Group 1: Market Performance - Solar stocks generally rose, with Array up 7.64%, Canadian Solar ADR up 5.62%, Sunrun up 4.96%, First Solar up 4.32%, SolarEdge up 3.23%, and JinkoSolar ADR up 2.72% [1][2] - The S&P 500 index is currently down 0.45%, the Dow Jones is down 104 points (0.49%), while the Nasdaq is up 13 points (0.31%) [1] Group 2: Regulatory Environment - The U.S. believes that imports of solar products from Southeast Asia harm the domestic industry, laying the groundwork for tariffs on these imports [1]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.Financial%20Statements) The company reported a narrowed net loss and positive operating cash flow in Q1 2025 despite ongoing restructuring Condensed Consolidated Balance Sheet Data (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,989,683 | $2,050,565 | | **Total assets** | $2,525,173 | $2,646,453 | | **Total current liabilities** | $974,426 | $1,057,337 | | **Total liabilities** | $1,930,960 | $1,988,111 | | **Total stockholders' equity** | $594,213 | $658,342 | Condensed Consolidated Statements of Loss (in thousands, except per share data) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenues** | $219,480 | $204,399 | | **Gross profit (loss)** | $17,536 | $(26,187) | | **Operating loss** | $(102,726) | $(173,705) | | **Net loss** | $(98,523) | $(157,311) | | **Net basic and diluted loss per share** | $(1.70) | $(2.75) | Condensed Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $33,823 | $(217,019) | | **Net cash provided by investing activities** | $67,597 | $149,008 | | **Net cash used in financing activities** | $(6,237) | $(50,987) | - The company designs, develops, and sells intelligent inverter solutions for the photovoltaic (PV) market[38](index=38&type=chunk) - The company depends on two contract manufacturers, who jointly accounted for **64.3% of total trade payables** as of March 31, 2025[44](index=44&type=chunk)[45](index=45&type=chunk) - The company announced a restructuring plan in January 2024, reducing headcount by **~900 employees**, and later announced the closure of its Energy Storage Division, impacting an additional **~500 employees**[159](index=159&type=chunk)[160](index=160&type=chunk) - The company is involved in a securities class action lawsuit and related derivative complaints, but a potential range of loss cannot be reasonably estimated at this stage[137](index=137&type=chunk)[142](index=142&type=chunk)[145](index=145&type=chunk) - Following the discontinuation of its Energy Storage activity in 2024, the company now operates as a **single operating segment**[178](index=178&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=35&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue and gross margin improved YoY amid a market slowdown, with a focus on U.S. manufacturing and liquidity management Overview and Key Metrics - The company now operates as a **single solar segment** after discontinuing its LCV e-Mobility, Automation Machines, and Energy Storage businesses to focus on core activities[194](index=194&type=chunk)[195](index=195&type=chunk) - The company is increasing manufacturing in the U.S. (Texas, Florida, Utah) while discontinuing manufacturing in China, Mexico, and Hungary[196](index=196&type=chunk) - The company has faced a slowdown in demand since Q3 2023 due to high inventory in distribution channels and slower installation rates, particularly in Europe[199](index=199&type=chunk) Key Operating Metrics | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Inverters shipped | 84,533 | 68,882 | | Power optimizers shipped | 2,251,596 | 1,070,987 | | Megawatts shipped | 1,208 | 946 | | Megawatt hours shipped (batteries) | 177 | 128 | Results of Operations Revenue Comparison (in thousands) | | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $219,480 | $204,399 | $15,081 | 7.4% | - The revenue increase was primarily driven by a **$36.4 million increase** from a higher number of power optimizers sold, partially offset by a $14.1 million decrease in ancillary solar product sales[215](index=215&type=chunk) Gross Profit (Loss) Comparison (in thousands) | | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Cost of revenues** | $201,944 | $230,586 | $(28,642) | (12.4)% | | **Gross profit (loss)** | $17,536 | $(26,187) | $43,723 | (167.0)% | - The improvement in gross profit was mainly due to a **$17.2 million decrease** in warranty expenses and an **$8.7 million decrease** in inventory costs[223](index=223&type=chunk) - R&D expenses decreased by **17.7%** and Sales & Marketing expenses decreased by **18.6%** YoY, primarily due to reduced personnel-related costs from the company's restructuring plan[224](index=224&type=chunk) - Net loss decreased by **$58.8 million (37.4%)** to $98.5 million in Q1 2025 compared to Q1 2024[235](index=235&type=chunk) Liquidity and Capital Resources - As of March 31, 2025, cash and cash equivalents were **$401.4 million**, with an additional $284.3 million in marketable securities and $104.5 million in restricted cash[237](index=237&type=chunk) - Net cash provided by operating activities was **$33.8 million** in Q1 2025, a significant improvement from the **$217.0 million used** in Q1 2024[239](index=239&type=chunk) - Cash used in financing activities decreased from $51.0 million in Q1 2024 to **$6.2 million** in Q1 2025, mainly due to a **$50.0 million reduction** in share repurchases[241](index=241&type=chunk) - In June 2024, the company issued **$300 million of 2.25% convertible senior notes** due 2029 and used proceeds to repurchase a portion of its 2025 notes[245](index=245&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces primary market risks from foreign currency rates, customer concentration, and commodity price volatility - The company's main market risks are foreign currency fluctuations (primarily Euro and NIS), customer concentration, and commodity price volatility[248](index=248&type=chunk) - A hypothetical **10% change** in foreign currency exchange rates would impact net income by **$4.0 million** for the Euro and **$12.8 million** for the NIS for the quarter[249](index=249&type=chunk) - As of March 31, 2025, three major customers accounted for **35.9%** of consolidated trade receivables, while two customers accounted for **41.4%** of total revenues for the quarter[253](index=253&type=chunk) - The company uses derivative financial instruments to hedge portions of anticipated payroll payments denominated in NIS[251](index=251&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[256](index=256&type=chunk) - There were **no material changes** in the company's internal control over financial reporting during the first quarter of 2025[257](index=257&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings & Risk Factors](index=49&type=section&id=ITEM%201.%20Legal%20Proceedings%20%26%20ITEM%201A.%20Risk%20Factors) The company faces uncertain legal outcomes and highlights new risks from U.S. tariffs on Chinese goods - The company is involved in various legal claims but cannot predict if any resulting liability would have a material adverse effect[258](index=258&type=chunk) - A key risk is the imposition of new U.S. tariffs, including a **145% tariff** on goods from China, which could increase costs for key components and adversely affect financial results[260](index=260&type=chunk) - While the company is exploring alternative suppliers outside of China, there is no assurance of success or that alternatives won't result in increased costs[260](index=260&type=chunk) [Other Items](index=50&type=section&id=Other%20Items%20(Items%202%2C%203%2C%204%2C%205)) The company reported no unregistered equity sales, senior security defaults, or other material information for the quarter - The company reported "None" for Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults upon Senior Securities), and Item 5 (Other Information)[264](index=264&type=chunk)[265](index=265&type=chunk) - Item 4 (Mine Safety Disclosures) was reported as "Not applicable"[264](index=264&type=chunk)

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 return of its relevant market benchmark [11]. Core Insights - The company reported a net adjusted loss of $66 million for Q1 2025, which was better than the consensus expectation of a $75 million loss, primarily due to stronger-than-expected revenue performance and robust cost control [2][3]. - For Q2 2025, the company expects revenue to reach between $265 million and $285 million, surpassing the consensus estimate of $246 million, with a non-GAAP gross margin projected at 8%-12% [3]. - The company achieved Q1 2025 revenue of $212 million, exceeding the consensus estimate of $205 million, with a non-GAAP gross margin of approximately 8%, compared to the expected 7% [3][5]. - The company shipped 1,208 MW of photovoltaic inverters and 180 MWh of photovoltaic batteries during the first quarter [3]. Summary by Sections Financial Performance - Q1 2025 net revenue was $212 million, an 8% increase quarter-over-quarter and a 4% increase year-over-year, compared to the consensus estimate of $205 million [5]. - The operating cost for Q1 2025 was $195 million, a 37% decrease from Q4 2024 and a 15% decrease year-over-year [5]. - The gross profit for Q1 2025 was $17 million, with a gross margin of 8%, significantly improved from a gross loss in the previous quarters [5]. Guidance - The company’s guidance for Q2 2025 indicates a revenue range of $265 million to $285 million, with a non-GAAP gross margin of 8%-12%, including a 2% tariff impact [3].

Group 1 - SolarEdge Technologies (NASDAQ: SEDG) has faced significant stock declines due to a series of operational errors, including issues with self-developed batteries and poor inventory management [1] - The company has made investments in the mobility segment that have not yielded positive results, contributing to its stock performance challenges [1] - The focus of the analysis is on identifying companies that can leverage their intellectual property and play a significant role in current geopolitical dynamics, particularly in sectors like energy and technology [1] Group 2 - The investment strategy emphasizes growth companies, particularly in the mid-cap segment, with a systematic approach to balance sheet analysis and stress testing to assess business viability [1] - Long-term capital appreciation is prioritized over short-term speculation, indicating a strategic focus on sustainable growth [1]

Company Performance - SolarEdge Technologies, Inc. reported a first-quarter 2025 adjusted loss of $1.14 per share, which is an improvement from the prior year's loss of $1.90 and better than the Zacks Consensus Estimate of a loss of $1.20 [1][2] - The company incurred a GAAP loss of $1.70 per share, compared to a GAAP loss of $2.75 in the same quarter last year [1] Revenue and Profitability - SolarEdge's revenues for the quarter were $219.5 million, exceeding the Zacks Consensus Estimate by 7.7% and increasing 7.4% from $204.4 million in the prior-year quarter [3] - The adjusted gross profit was $16.6 million, a significant improvement from an adjusted gross loss of $13.3 million in the previous year [4] - Adjusted operating expenses decreased by 18.4% year over year to $89.1 million [4] Operational Highlights - The company shipped 1,208 megawatts-alternate current (MWac) of inverters and 180 megawatt-hours of batteries during the quarter [4] - An adjusted operating loss of $72.4 million was reported, which is an improvement from an operating loss of $122.5 million in the prior-year quarter [5] Financial Position - As of March 31, 2025, SolarEdge had cash and cash equivalents of $401.4 million, up from $274.6 million at the end of 2024 [6] - The net cash inflow from operating activities was $33.8 million, a significant turnaround from a cash outflow of $217 million recorded a year ago [6] - Total long-term liabilities were $956.5 million, reflecting a 2.8% increase from the end of 2024 [6] Future Guidance - For Q2 2025, SolarEdge expects revenues to be in the range of $265-$285 million, which is above the Zacks Consensus Estimate of $239.7 million [7] - Adjusted operating expenses are projected to be between $90-$95 million, with an expected adjusted gross margin of 8% to 12% [7] Industry Context - SolarEdge currently holds a Zacks Rank 3 (Hold), indicating a neutral outlook in the current market environment [8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $219.5 million, with non-GAAP revenues at $212.1 million after excluding $7.4 million from discontinued operations [28] - Non-GAAP gross margin improved to 7.8% from a negative 39.5% in Q4 2024 [31] - Non-GAAP operating loss decreased to $72.4 million from $184.1 million in the previous quarter [31] - Non-GAAP net loss was $66.1 million in Q1, compared to $202.5 million in Q4 [31] - Free cash flow generated in Q1 was approximately $20 million, marking the second consecutive quarter of positive free cash flow [32] Business Line Data and Key Metrics Changes - In Q1, 50% of total megawatt shipments were commercial and utility products, while the other 50% were residential [29] - The average selling price (ASP) per watt was $0.01, down 17% from Q4 due to lower pricing in Europe [30] - Battery shipments totaled 180 MWh, with a blended ASP per kilowatt-hour of $267, up from $262 in Q4 [30] Market Data and Key Metrics Changes - North America sell-through was approximately $370 million, down 18% quarter-over-quarter, primarily due to seasonality [25] - European sales grew by 6% quarter-over-quarter, with expectations for normalized inventory levels by the end of Q2 2025 [26] - The company shipped 642 megawatts to the U.S., 324 megawatts to Europe, and 242 megawatts to international markets, totaling approximately 1.2 GW of shipments [29] Company Strategy and Development Direction - The company has set four strategic priorities: strengthening financials, regaining market share, accelerating innovation, and ramping up U.S. manufacturing [11] - The company aims to mitigate the impact of tariffs by diversifying its supply chain and optimizing sourcing [22] - A multi-year strategic partnership was established with a global leader in logistics real estate to integrate SolarEdge products across its portfolio [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about turning the corner in market share position, particularly in Europe [16] - The company expects a limited negative impact of 2% on gross margin due to tariffs in Q2, with a potential 4% to 6% impact in the second half of the year [23] - Management emphasized the importance of operational efficiency and innovation to drive future growth [12][19] Other Important Information - The company has created nearly 2,000 jobs in the U.S. and reached a capacity of 70,000 inverters per quarter [21] - The company divested its tracker business to reduce operating expenses without significantly impacting revenue [12] Q&A Session Summary Question: Can you provide insights on commercial storage growth? - Management noted strong growth in commercial battery attach rates but did not disclose specific numbers [39] Question: How will tariffs impact gross margins? - Management indicated that the 145% tariff on Chinese products would have a higher impact compared to the 10% tariff on other regions, with ongoing efforts to optimize the supply chain [41][42] Question: What is the pricing strategy moving forward? - The company plans to price products based on the value provided to customers and competitive advantages in specific markets [45] Question: What is the outlook for inventory levels? - Management expects the majority of distributors to reach normalized inventory levels by the end of Q2, which may influence revenue levels in Q3 [108] Question: How is the utility segment performing? - Management highlighted that SolarEdge technology optimizes power production and is gaining traction in the utility market, contributing to increased revenue [102]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $219.5 million, with non-GAAP revenues at $212.1 million after excluding $7.4 million from discontinued operations [25] - Non-GAAP gross margin improved to 7.8% from negative 39.5% in Q4 2024 [29] - Non-GAAP operating loss decreased to $72.4 million from $184.1 million in the previous quarter [29] - Non-GAAP net loss was $66.1 million in Q1, compared to $202.5 million in Q4 [29] - Free cash flow generated in Q1 was approximately $20 million, marking the second consecutive quarter of positive free cash flow [30] Business Line Data and Key Metrics Changes - In Q1, 50% of total megawatt shipments were commercial and utility products, while the other 50% were residential [26] - The average selling price (ASP) per watt was $0.0173, down 17% from Q4 due to lower pricing in Europe [27] - Battery shipments totaled 180 MWh, with a blended ASP per kilowatt-hour of $267, up from $262 in Q4 [28] Market Data and Key Metrics Changes - North America sell-through was approximately $370 million, down 18% quarter-over-quarter, primarily due to seasonality [23] - European sales grew by 6% quarter-over-quarter, with expectations for normalized inventory levels by the end of Q2 2025 [24] - The company shipped 642 megawatts to the U.S., 324 megawatts to Europe, and 242 megawatts to international markets, totaling approximately 1.2 GW of shipments [26] Company Strategy and Development Direction - The company has set four strategic priorities: strengthening financials, regaining market share, accelerating innovation, and ramping up U.S. manufacturing [8] - The company aims to mitigate the impact of tariffs by diversifying its supply chain and optimizing sourcing [21] - A multi-year strategic partnership was established with a global leader in logistics real estate to integrate SolarEdge products across its portfolio [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about turning the corner in market share position, particularly in Europe [14] - The company anticipates a 2% reduction in gross margin due to tariffs in Q2, with a potential 4% to 6% impact in the second half of the year [21] - Management emphasized the importance of operational efficiency and innovation to navigate the challenging global environment [9] Other Important Information - The company has created nearly 2,000 jobs in the U.S. and reached a capacity of 70,000 inverters per quarter [19] - The company divested its tracker business to reduce operating expenses without significantly impacting revenue [10] Q&A Session Summary Question: Growth of commercial storage - Management noted strong growth in commercial battery attach rates but did not disclose specific numbers [34][36] Question: Strategy regarding tariffs and pricing - The company is working on alternative sourcing to mitigate tariff impacts and is focused on maintaining product quality [39][40] Question: Pricing strategy and inventory management - Management stated that pricing will reflect the value provided to customers and that inventory levels are being actively managed [42][46] Question: Update on European market demand - Management indicated that while the European market is challenging, there are signs of improved market share and sales performance [70][71] Question: Utility segment performance - The company is seeing traction in the utility segment due to its optimized technology, which enhances power production [100]

Financial Performance (Q1 2025) - GAAP Revenues were $219.5 million[9] - GAAP Gross Margin was 8.0%[10] - GAAP Net Loss was $(98.5) million[10, 11] - Non-GAAP Net Loss was $(66.1) million[9, 10] - Cash provided by operating activities was $33.8 million[10] - Cash, Deposits and Investments, Net of Debt was $113.2 million[10] Market Trends and Growth - Global population is projected to increase by 22% (+1.7 billion) from 2022-2050[17, 18] - Urbanization is expected to increase from 55% to 80% between 2020 and 2050[19] - Electric Vehicle penetration is projected to increase from 1% to 86% between 2020 and 2050[19] - There is a 68% increase in energy sector investment technologies from 2015-2022, totaling $62 billion in 2022[31]

Exhibit 99.1 SolarEdge Announces First Quarter 2025 Financial Results MILPITAS, Calif. — May 6, 2025. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the first quarter ended March 31, 2025. GAAP gross margin was 8.0%1, compared to negative 57.2%1 in the prior quarter. Non-GAAP gross margin2 was 7.8%, compared to negative 39.5%1 in the prior quarter. GAAP operating expenses were $120.3 million, compared to $151.41 million in t ...

Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Has Expand Energy (EXE) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.Expand Energy is one of 247 companies in the Oils-Energy group. The Oils-Energy group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector grou ...