Core Insights - The shift towards renewable energy is increasing investor interest in solar power companies, particularly Enphase Energy, Inc. (ENPH) and SolarEdge Technologies, Inc. (SEDG) [1] Enphase Energy (ENPH) - Recent Achievements: Enphase Energy reported a 15.8% year-over-year growth in earnings per share and a 2.4% rise in revenues for Q2 2025 [3]. The company signed a new safe harbor agreement with a leading solar and battery financing company [3]. Enphase launched its IQ Battery 5P and its fourth-generation Enphase Energy System, enhancing market reach [4]. - Financial Stability: As of Q2 2025, Enphase had cash and cash equivalents of $1.53 billion, long-term debt of $0.57 billion, and current debt of $0.63 billion, indicating a strong financial position [5]. - Challenges: Enphase faces exposure to global trade policies, with key components sourced from Asia, which may increase costs due to rising tariffs [6]. The company is also experiencing a slowdown in Europe due to lower utility rates and unfavorable government policies [7]. SolarEdge Technologies (SEDG) - Recent Achievements: SolarEdge ended Q2 2025 with a narrower loss compared to the previous year and a 9.1% year-over-year revenue increase [8]. The company announced a partnership with Schaeffler to deploy 2,300 EV charging points in Europe [8][9]. Additionally, SolarEdge signed a deal to provide U.S.-made solar technology for over 500 rooftop projects [9]. - Financial Stability: SolarEdge reported cash and cash equivalents of $785 million, long-term debt of $372 million, and current debt of $342 million as of Q2 2025, indicating a solid financial position [10]. - Challenges: SolarEdge's operations are vulnerable to global trade and geopolitical risks, particularly due to the ongoing Russia-Ukraine conflict and U.S. tariffs on foreign imports [11]. Policy shifts under the One Big Beautiful Act may reduce clean energy tax credits, impacting demand for its products [12]. EPS Estimates Comparison - For Enphase, the Zacks Consensus Estimate for 2025 EPS is $2.56, indicating an 8% year-over-year growth, with revenues estimated at $1.45 billion, implying growth of 8.8% [13]. - For SolarEdge, the Zacks Consensus Estimate for 2025 loss is $3.05 per share, an improvement from the prior year's loss, with revenues estimated at $1.15 billion, implying growth of 24.5% [14]. Stock Performance and Valuation - Over the past year, SEDG stock gained 26.3%, while ENPH declined by 68.4%, making SEDG more attractive [8][17]. - SEDG trades at a forward Price/Sales multiple of 1.42X compared to ENPH's 3.61X, indicating a more favorable valuation for SEDG [17]. Conclusion - Both Enphase Energy and SolarEdge are positioned to benefit from the clean energy transition, but ENPH faces trade risks and demand challenges in Europe, while SEDG has a diversified product base and strong partnerships supporting its growth potential [19][20].

Core Viewpoint - Solar stocks experienced a significant rally on August 18, 2025, following the U.S. Treasury Department's release of guidance on clean energy tax credits, which were less restrictive than initially feared [1] Market Reaction - First Solar (FSLR) saw a jump of over 9%, becoming the second-best performer in the S&P 500 on that day, while Sunrun (RUN) gained nearly 11.4%. Enphase Energy (ENPH) and SolarEdge (SEDG) each increased by approximately 3% [2] - Several exchange-traded funds (ETFs), including Proshares S&P Kensho Cleantech ETF (CTEX), Fidelity Clean Energy ETF (FRNW), SPDR Kensho Clean Power ETF (CNRG), Global Clean Energy iShares ETF (ICLN), and Global X Cleantech ETF (CTEC), reached a 52-week high on August 18, 2025 [2] Tax Credit Phase-Out Timeline - The "One Big Beautiful Bill" signed by President Donald Trump phased out tax credits for new wind and solar projects unless construction begins by July 4, 2026. The IRS's new guidance clarifies that smaller projects, like rooftop solar installations, can still benefit from a 5% "safe harbor" rule, allowing developers to qualify for tax credits if they invest at least 5% of the project's total cost and complete construction within four years [3] - For larger, utility-scale projects, the new guidance requires that "physical work of a significant nature" must have begun to qualify for the credits, eliminating reliance on the previous safe harbor rule [4] Analyst Takeaways - Jefferies analysts described the update as a "clear win" for residential solar, alleviating fears of stricter rules and retroactive changes [5] - Citi analysts noted that the guidance was "better than anticipated," as it was not retroactive and the investment threshold did not increase above 10%, providing relief to investors [5]

Market Performance - On August 15, U.S. stock indices closed mixed, with the Dow Jones slightly up by 0.08% at 44,946.12 points, while the Nasdaq fell by 0.40% to 21,622.98 points, and the S&P 500 decreased by 0.29% to 6,449.80 points [1] - Major tech stocks showed varied performance, with Intel rising nearly 3%, while Tesla dropped over 1% [1] Retail Sales Data - July retail sales in the U.S. increased by 0.5%, aligning with market expectations, indicating healthy consumer spending despite concerns over tariffs potentially raising prices [2] - Excluding automobiles, retail sales grew by 0.3%, with motor vehicle sales surging by 1.6% and furniture sales increasing by 1.4% [2] - Year-over-year, July retail sales rose by 3.9% [2] Notable Stock Movements - UnitedHealth saw a significant increase of 11.98%, marking its largest single-day gain since October 2008, following Berkshire Hathaway's purchase of 5.04 million shares valued at approximately $1.6 billion [3] - Nvidia's stock fell by 0.86%, with a focus on its substantial investment in AI cloud computing services [3] - Tesla's stock decreased by 1.50%, with JP Morgan Chase increasing its holdings by 16.7%, making it one of Tesla's top five institutional shareholders [3] Solar Sector Performance - The solar sector experienced a collective surge, with Sunrun's stock rising by 32.82% and SolarEdge Technologies increasing by 17.10% [4] - Other solar-related stocks also saw significant gains, with Array Technologies up by 25.33% and Enphase Energy rising by 8.13% [4][5] Tax Credit Changes for Renewable Energy - New guidelines from the U.S. Treasury and IRS have altered the criteria for tax credits for solar and wind projects, moving away from the previous "5% standard" to requiring proof of substantial ongoing construction [7] - The changes are expected to positively impact over 2,500 potential solar and wind projects, equivalent to the capacity of 383 nuclear power plants [7]

Core Viewpoint - The Trump administration faces significant opposition regarding its plans to reduce subsidies for wind and solar energy, with a notable increase in Solaredge Technologies' stock price following lobbying efforts from a key industry coalition [1][2]. Group 1: Stock Performance - Solaredge Technologies' share price increased by over 17%, contrasting sharply with the S&P 500 index, which declined by 0.3% [2]. Group 2: Industry Coalition's Actions - The Data Center Coalition formally requested U.S. Treasury Secretary Scott Bessent to maintain the current federal subsidy framework for wind and solar projects [3]. - The coalition emphasized that any regulatory delays in deploying new energy generation would hinder the ability to meet future electricity demands driven by artificial intelligence [5]. Group 3: Coalition Composition - The coalition includes major tech and financial companies such as Google, Amazon Web Services, and Visa, indicating a strong influence on the government's decision-making process [6].

Core Insights - SolarEdge Technologies, Inc. (SEDG) reported a second-quarter 2025 adjusted loss of 81 cents per share, which was better than the Zacks Consensus Estimate of a loss of 82 cents and improved from a loss of $1.79 in the prior-year quarter [1][8] - The company's revenues for the second quarter reached $289.4 million, exceeding the Zacks Consensus Estimate by 5.7% and representing a 9.1% increase from $265.4 million in the same quarter last year [3][8] Financial Performance - SolarEdge's adjusted gross profit for the second quarter was $36.9 million, a significant increase from $0.5 million in the prior-year period [4] - The company reported an adjusted operating loss of $48.3 million, which is an improvement from an operating loss of $114.3 million in the previous year [5][8] - As of June 30, 2025, SolarEdge had cash and cash equivalents of $545.2 million, up from $274.6 million at the end of 2024 [6] - The net cash inflow from operating activities for the first half of 2025 was $26 million, compared to a cash outflow of $261.8 million in the same period last year [6] Operational Highlights - In the second quarter, SolarEdge shipped 1,194 megawatt-alternate current (MWac) of inverters and 247 megawatt-hours of batteries [4] - Adjusted operating expenses decreased by 25.8% year over year to $85.2 million [4] Future Guidance - For the third quarter of 2025, SolarEdge expects revenues to be in the range of $315-$355 million, with the Zacks Consensus Estimate at $332.8 million [7] - Adjusted operating expenses are projected to be between $85-$90 million, and the adjusted gross margin is expected to be between 15% and 19% [7]

Investment Rating - The report assigns an "Outperform" rating to the company, indicating an expected total return over the next 12-18 months that exceeds the relevant market benchmark by more than 10% [10]. Core Insights - The company reported a net adjusted loss of $48 million for Q2 2025, which was better than the consensus expectation of a $55 million loss, primarily due to strong revenue performance and effective cost control [1][3]. - For Q3 2025, the company expects revenue to be between $315 million and $355 million, surpassing the consensus estimate of approximately $300 million, with a projected non-GAAP gross margin of 15-19% [2]. - The company anticipates achieving positive cash flow by the end of the year and believes it can offset tariff impacts in FY 2026 [1]. Summary by Sections Revenue and Cost Performance - In Q2 2025, the company's revenue was $289 million, significantly higher than the consensus estimate of $273 million, and up 32% from Q1 2025 [3]. - The gross margin for Q2 2025 was approximately 11%, a substantial increase from 8% in Q1 2025, and well above the consensus expectation of 9.5% [2][3]. Shipment Volumes - The company shipped 1,194 MW of photovoltaic inverters in Q2 2025, slightly down from 1,208 MW in Q1 2025, while the shipment of photovoltaic batteries reached 247 MWh, up from 180 MWh in Q1 2025 [2].

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion for the period ended June 30, 2025 [Item 1. Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) This section presents SolarEdge Technologies' unaudited condensed consolidated financial statements for the three and six months ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to $2.49 billion, total liabilities slightly increased, and stockholders' equity declined to $513.2 million due to net losses Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,971,913 | $2,050,565 | | Inventories, net | $529,306 | $645,897 | | **Total assets** | **$2,490,448** | **$2,646,453** | | **Total current liabilities** | $1,016,730 | $1,057,337 | | **Total liabilities** | $1,977,229 | $1,988,111 | | **Total stockholders' equity** | $513,219 | $658,342 | [Condensed Consolidated Statements of Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) For Q2 2025, revenues increased to $289.4 million, gross profit improved to $32.1 million, and net loss narrowed to $124.7 million or ($2.13) per share Three Months Ended June 30, (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $289,429 | $265,405 | | Gross profit (loss) | $32,131 | $(10,969) | | Operating loss | $(115,493) | $(160,182) | | Net loss | $(124,744) | $(130,818) | | Net basic and diluted loss per share | $(2.13) | $(2.31) | Six Months Ended June 30, (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $508,909 | $469,804 | | Gross profit (loss) | $49,667 | $(37,156) | | Operating loss | $(218,219) | $(333,887) | | Net loss | $(223,267) | $(288,129) | | Net basic and diluted loss per share | $(3.83) | $(5.06) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, operating activities generated $26.0 million in cash, a significant improvement, leading to a $162.6 million increase in cash and equivalents, ending at $572.5 million Six Months Ended June 30, (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $26,024 | $(261,791) | | Net cash provided by investing activities | $136,187 | $243,224 | | Net cash used in financing activities | $(6,610) | $(50,684) | | **Increase (decrease) in cash, cash equivalents and restricted cash** | **$162,567** | **$(78,970)** | | **Cash, cash equivalents and restricted cash, end of period** | **$572,506** | **$259,498** | [Notes to the Condensed Consolidated Financial Statements (unaudited)](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) These notes detail accounting policies, segment reporting, inventory, convertible notes, restructuring activities, and pending legal proceedings, providing context to the financial statements - Following the sale of Automation Machines and discontinuation of its Energy Storage activity, the company now operates as a single operating segment focused on its intelligent inverter solutions[183](index=183&type=chunk) - In June 2024, the company issued **$300 million** of 2.25% convertible senior notes due 2029 and used a portion of the proceeds to repurchase **$285 million** of its 0.00% notes due 2025[94](index=94&type=chunk)[101](index=101&type=chunk) - The company is undergoing restructuring plans initiated in 2024, which included reducing its workforce by approximately **900 employees** in H1 2024 and an additional **400** in July 2024 to align with market conditions[165](index=165&type=chunk) - The company is facing a consolidated securities class action lawsuit and several derivative complaints alleging violations of federal securities laws related to disclosures about inventory levels and demand in Europe[145](index=145&type=chunk)[146](index=146&type=chunk)[150](index=150&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial performance, including revenue growth, narrowed net loss, operational metrics, global market conditions, and the company's strong liquidity position [Overview and Global Circumstances](index=38&type=section&id=Overview%20and%20Global%20Circumstances) The company has refocused on its core solar segment, facing global challenges including European demand slowdown, U.S. regulatory changes (OBBB Act), and trade tariffs - The company now operates as a single solar segment after discontinuing its LCV e-Mobility, Automation Machines, and Energy Storage divisions to focus on core activities[195](index=195&type=chunk)[196](index=196&type=chunk) - Demand in Europe has been slow due to high inventory levels, though most distribution partners reached normalized levels by the end of Q2 2025. In contrast, U.S. demand increased in H1 2025 as inventory levels normalized[200](index=200&type=chunk) - The One Big Beautiful Bill Act (OBBB), enacted in July 2025, amends IRA tax credits, accelerating the phase-out of certain customer credits and introducing new eligibility criteria (e.g., FEOC rules), which could negatively impact demand[202](index=202&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) [Key Operating Metrics](index=42&type=section&id=Key%20Operating%20Metrics) Q2 2025 saw significant increases in shipments of inverters, power optimizers, and batteries, with 1,194 megawatts and 247 megawatt-hours shipped respectively Key Operating Metrics (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Inverters shipped | 88,954 | 65,772 | | Power optimizers shipped | 2,742,725 | 2,001,614 | | Megawatts shipped | 1,194 | 873 | | Megawatt hours shipped - batteries | 247 | 128 | [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Q2 2025 revenues grew 9.1% to $289.4 million, gross margin improved to 11.1%, and operating expenses decreased, resulting in a narrowed net loss of $124.7 million - Q2 2025 revenue increased **9.1% YoY**, driven by higher sales volumes of inverters (**+31.9%**), power optimizers (**+31.9%**), and batteries (**+79.2%**)[222](index=222&type=chunk)[224](index=224&type=chunk) - Blended ASP per watt for solar products (ex-batteries) decreased **13.9% YoY** in Q2 2025 due to price reductions, mainly in Europe[225](index=225&type=chunk) - Gross margin improved to **11.1%** in Q2 2025 from a gross loss of **4.1%** in Q2 2024, primarily due to a **$14.7 million** decrease in warranty expenses and better absorption of fixed costs on higher revenue[233](index=233&type=chunk)[234](index=234&type=chunk)[236](index=236&type=chunk) - Total operating expenses decreased to **$147.6 million** in Q2 2025 from **$149.2 million** in Q2 2024, despite a **$44.8 million** increase in 'Other operating expense' from an asset impairment. This was offset by significant reductions in R&D, S&M, and G&A expenses due to restructuring[221](index=221&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk)[241](index=241&type=chunk)[244](index=244&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company maintained strong liquidity with $545.2 million in cash and equivalents, and operating activities generated $26.0 million in H1 2025 - The company's liquidity position as of June 30, 2025, includes **$545.2 million** in cash and cash equivalents and **$235.9 million** in marketable securities[258](index=258&type=chunk) - Net cash from operating activities for H1 2025 was a positive **$26.0 million**, compared to a use of **$261.8 million** in H1 2024, indicating improved working capital management[258](index=258&type=chunk)[260](index=260&type=chunk) - The company has outstanding purchase obligations of **$349.1 million** for raw materials and manufacturing, and capital expenditure commitments of **$18.5 million**[258](index=258&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks including foreign currency fluctuations, significant customer concentration, and unhedged commodity price volatility for raw materials - A hypothetical **10%** change in the EUR/USD exchange rate would impact net income by **$11.4 million** for the first six months of 2025. A **10%** change in the NIS/USD rate would impact net income by **$19.8 million**[272](index=272&type=chunk) - Significant customer concentration exists, with one customer representing **25.3%** of net trade receivables as of June 30, 2025. For Q2 2025, three customers accounted for **44.6%** of total revenues[276](index=276&type=chunk) - The company is exposed to fluctuating market prices for commodity raw materials such as Copper, Lithium, Nickel, and Cobalt, and does not currently hedge this risk[277](index=277&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls as of June 30, 2025, following the substantial implementation of a new ERP system, which changed internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[280](index=280&type=chunk) - The company substantially completed the implementation of a new ERP system during Q2 2025, which resulted in changes to internal controls over financial reporting[281](index=281&type=chunk) [PART II. OTHER INFORMATION](index=57&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides other required information, including legal proceedings, updated risk factors, and exhibits [Item 1. Legal Proceedings](index=57&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 14 for details on various legal proceedings, including significant shareholder class action and derivative lawsuits - The company is party to various legal claims, with further details provided in Note 14 of the financial statements[283](index=283&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=ITEM%201A.%20Risk%20Factors) This section updates risk factors, emphasizing new U.S. tax law changes (OBBB Act) impacting demand and tax credits, alongside global trade environment risks and tariffs - The newly enacted OBBB amends IRA tax credits, accelerating phase-outs and imposing new eligibility criteria (e.g., domestic content, FEOC rules), which could harm demand for the company's products and reduce tax benefits[285](index=285&type=chunk)[286](index=286&type=chunk)[289](index=289&type=chunk) - The company faces risks from U.S. tariffs on imported components and potential retaliatory tariffs from other countries on its U.S.-manufactured products, which could increase costs and harm sales[293](index=293&type=chunk)[294](index=294&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the reporting period - None[296](index=296&type=chunk) [Item 3. Defaults upon Senior Securities](index=58&type=section&id=ITEM%203.%20Defaults%20upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[296](index=296&type=chunk) [Item 4. Mine Safety Disclosures](index=58&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[296](index=296&type=chunk) [Item 5. Other Information](index=58&type=section&id=ITEM%205.%20Other%20Information) There is no other information to report for the period - None[297](index=297&type=chunk) [Item 6. Exhibits](index=59&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including a new employment agreement, CEO and CFO certifications, and financial statements formatted in Inline XBRL - Exhibits filed include an employment agreement for Daniel Huber, CEO/CFO certifications (31.1, 31.2, 32.1, 32.2), and XBRL data[298](index=298&type=chunk)

分组1 - SolarEdge Technologies reported a quarterly loss of $0.81 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.82, and an improvement from a loss of $1.79 per share a year ago, indicating an earnings surprise of +1.22% [1] - The company posted revenues of $289.43 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.74% and showing an increase from year-ago revenues of $265.4 million [2] - SolarEdge shares have increased approximately 89.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.69 on revenues of $302.07 million, and for the current fiscal year, it is -$3.29 on revenues of $1.1 billion [7] - The Zacks Industry Rank indicates that the solar industry is currently in the bottom 39% of over 250 Zacks industries, which may impact stock performance [8] - Sunnova Energy, another company in the solar industry, is expected to report a quarterly loss of $0.71 per share, with revenues projected to be $266 million, reflecting a year-over-year increase of 21.1% [9]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $289 million, with non-GAAP revenues at $281 million after excluding $8 million from discontinued operations [22] - Non-GAAP gross margin increased to 13.1% from 7.8% in Q1 2025, driven by higher revenue and increased utilization of operational cost structure [23][24] - Non-GAAP operating loss for Q2 was $48.3 million, an improvement from a loss of $72.4 million in Q1 [26] - Non-GAAP net loss was $47.7 million in Q2, compared to $66.1 million in Q1, with net loss per share improving to $0.81 from $1.14 [26] Business Line Data and Key Metrics Changes - U.S. revenues amounted to $185 million, representing 66% of non-GAAP revenues, while Europe contributed $65 million (23%) and international markets $31 million (11%) [22] - The company recorded a one-time expense of $18 million related to the disposition of its tracker business and a $37 million write-down of the Stella II facility [25] Market Data and Key Metrics Changes - The U.S. residential market is expected to see a shift towards the TPO model, which is anticipated to accelerate in 2026 [12] - In Europe, the company has seen initial market share gains in Q2, although overall share remains below historical levels [15] Company Strategy and Development Direction - The company plans to maximize opportunities from the One Big Beautiful Bill Act, which supports onshoring manufacturing to the U.S. and extends storage tax credits [6][7] - The focus is on ramping up U.S. manufacturing, with production facilities in Texas, Florida, and Utah [19] - The NexSys platform is on track for initial volume by the end of the year, aimed at enhancing product offerings and market competitiveness [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive free cash flow for the full year 2025, despite challenges from tariffs [10][27] - The company anticipates a decline in residential demand in 2026 due to the elimination of the 25D credit, but expects this to be partially offset by the TPO shift [9][74] - Management highlighted the importance of domestic content and compliance with FiOQ requirements to capture market share [12][44] Other Important Information - The company has approximately $812 million in cash and investments, with a net cash position of about $470 million [27] - Inventory levels decreased by $108 million to $529 million, marking the fifth consecutive quarter of reduction [28] Q&A Session Summary Question: Sustainability of revenue in Q2 and Q3 - Management indicated that Q3 guidance does not include significant pull forward of demand related to 25D or safe harbor, reflecting ongoing business recovery [35] Question: Gross margin expectations beyond Q3 - Management noted that higher revenue will drive better utilization of fixed costs, contributing to improved margins [38] Question: Safe harbor opportunities in C&I business - Management refrained from providing specifics on safe harbor deals but acknowledged strong demand in the C&I segment [44] Question: Revenue growth expectations in Europe and the U.S. - Management expects strong performance in the U.S. market, while the European market may remain weak [53] Question: Pricing strategy in Europe - Management stated that pricing is not currently a barrier to growth, and they are prepared to respond to market conditions as needed [97] Question: Battery sourcing strategy and margin targets - Management emphasized a focus on quality and reliability in battery sourcing, with ongoing efforts to improve cost structures [100] Question: Warranty impact on margins - Management noted improvements in product quality, which should positively affect warranty-related costs over time [105]

Exhibit 99.1 SolarEdge Announces Second Quarter 2025 Financial Results MILPITAS, Calif. — August 7, 2025. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the second quarter ended June 30, 2025. "I'm proud of the steady progress we made in turning SolarEdge around this quarter," said Shuki Nir, CEO of SolarEdge. "This was our second consecutive quarter of year-over-year and sequential revenue growth, along with margin expansio ...