SolarEdge(SEDG) - 2025 Q2 - Quarterly Results

Company Overview and Q2 2025 Highlights SolarEdge reported Q2 2025 results, highlighting steady progress with revenue growth and margin expansion Introduction and CEO Statement CEO Shuki Nir highlighted SolarEdge's second consecutive quarter of revenue growth and margin expansion - SolarEdge achieved its second consecutive quarter of year-over-year and sequential revenue growth[3] - The company also experienced margin expansion during the quarter[3] Second Quarter 2025 Financial Summary (GAAP & Non-GAAP) SolarEdge reported sequential revenue and gross margin growth, reduced non-GAAP losses, while GAAP losses increased and cash flow turned negative Revenue and Shipments Q2 2025 revenues showed strong sequential increases for both GAAP and Non-GAAP, with substantial inverter and battery shipments Q2 2025 Revenue Performance (Millions) | Metric | Q2 2025 | Prior Quarter | Sequential Change | | :----- | :------ | :------------ | :---------------- | | GAAP Revenues | $289.41 | $219.51 | +32% | | Non-GAAP Revenues | $281.0 | $212.1 | +32% | - The Company shipped 1,194 MW (AC) of inverters and 247 MWh of batteries for PV applications in Q2 2025[5] Margins and Expenses Gross margins improved sequentially in Q2 2025 for both GAAP and Non-GAAP, despite tariff impact, while GAAP operating expenses increased Q2 2025 Gross Margin and Operating Expenses | Metric | Q2 2025 | Prior Quarter | Sequential Change | | :----- | :------ | :------------ | :---------------- | | GAAP Gross Margin | 11.1% | 8.0% | +3.1 pp | | Non-GAAP Gross Margin | 13.1% | 7.8% | +5.3 pp | | GAAP Operating Expenses (Millions) | $147.61 | $120.31 | +$27.3 | | Non-GAAP Operating Expenses (Millions) | $85.2 | $89.1 | -$3.9 | - New tariffs had a negative impact of approximately 1% on gross margin in the second quarter[6] Operating and Net Loss GAAP operating and net losses increased in Q2 2025, while Non-GAAP operating and net losses significantly narrowed Q2 2025 Operating and Net Loss (Millions) | Metric | Q2 2025 | Prior Quarter | Sequential Change | | :----- | :------ | :------------ | :---------------- | | GAAP Operating Loss | $(115.51) | $(102.71) | $(12.8) | | Non-GAAP Operating Loss | $(48.3) | $(72.4) | +$24.1 | | GAAP Net Loss | $(124.71) | $(98.51) | $(26.2) | | Non-GAAP Net Loss | $(47.7) | $(66.1) | +$18.4 | | GAAP Net Loss per Share | $(2.13) | $(1.70) | $(0.43) | | Non-GAAP Net Loss per Share | $(0.81) | $(1.14) | +$0.33 | Cash Flow and Liquidity Operating and free cash flow turned negative in Q2 2025, but net cash and investments portfolio increased from year-end 2024 Q2 2025 Cash Flow Summary (Millions) | Metric | Q2 2025 | Prior Quarter | Sequential Change | | :----- | :------ | :------------ | :---------------- | | Cash used in operating activities | $(7.8) | $33.8 (provided) | $(41.6) | | Free cash flow used | $(9.1) | $19.8 (generated) | $(28.9) | - As of June 30, 2025, the cash and investments portfolio, net of debt, totaled $131.8 million, an increase of $18.6 million from $113.2 million as of December 31, 2024[12] Outlook for Third Quarter 2025 SolarEdge projects continued revenue growth and improved non-GAAP gross margin for Q3 2025, with stable non-GAAP operating expenses Q3 2025 Financial Guidance | Metric | Guidance Range | Notes | | :----- | :------------- | :---- | | Revenues (Millions) | $315 to $355 | | | Non-GAAP Gross Margin (%) | 15 to 19 | Includes approximately 2% of new tariff impact | | Non-GAAP Operating Expenses (Millions) | $85 to $90 | | Conference Call Information SolarEdge scheduled a conference call for August 7, 2025, to discuss Q2 2025 results, with live access and webcast replay details - A conference call to discuss Q2 2025 results was scheduled for 8:00 a.m. ET on Thursday, August 7, 2025[14] - Interested parties could join by dialing +1 833-316-1983 (domestic) or +1 785-838-9310 (international), using Conference ID SEDG[14] - A live webcast and replay would be available in the Investor Relations section of the Company's website[14] About SolarEdge SolarEdge is a global leader in smart energy technology, providing intelligent inverter solutions and a broad range of smart energy offerings - SolarEdge is a global leader in smart energy technology, leveraging world-class engineering and innovation[17] - The company developed an intelligent inverter solution for photovoltaic (PV) systems to maximize power generation and lower energy costs[17] - SolarEdge addresses various energy market segments with solutions for PV, storage, EV charging, batteries, and grid services[17] Use of Non-GAAP Financial Measures SolarEdge uses non-GAAP measures to provide additional insights into operating results by excluding certain non-recurring or non-cash items - Non-GAAP measures exclude items such as stock-based compensation, amortization and impairment of acquired intangible assets, restructuring and impairment charges, and certain litigation expenses[18] - Management uses non-GAAP measures for internal budgeting, forecasting, evaluating financial performance, and comparing operating results across periods[19] - These non-GAAP measures have limitations and should be considered in addition to, not as a substitute for, GAAP measures, and may not be comparable to those of other companies[20] Safe Harbor Statement The press release contains forward-looking statements subject to known and unknown risks and uncertainties, with no obligation for updates - The press release includes forward-looking statements regarding future results, business strategies, technology developments, and economic conditions[21] - These statements are subject to known and unknown risks and uncertainties, including demand for renewable energy, ability to forecast demand, changes in tax laws, trade environment, and macroeconomic conditions[22] - Readers should not place undue reliance on forward-looking statements, and the company does not undertake to update them[22] Investor Contacts Contact information for SolarEdge's Investor Relations department and Sapphire Investor Relations, LLC is provided for inquiries - JB Lowe is the Head of Investor Relations for SolarEdge Technologies, Inc[24] - Erica Mannion or Michael Funari from Sapphire Investor Relations, LLC can also be contacted[24] - All investor inquiries can be directed to investors@solaredge.com[24] Condensed Consolidated Financial Statements (GAAP) This section presents SolarEdge's GAAP financial statements, including statements of loss, balance sheets, and cash flows Condensed Consolidated Statements of Loss GAAP statements show a net loss of $(124,744) thousand for Q2 2025, an increase from the prior year, despite higher revenues Condensed Consolidated Statements of Loss (GAAP, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenues | $289,429 | $265,405 | $508,909 | $469,804 | | Cost of revenues | 257,298 | 276,374 | 459,242 | 506,960