SolarEdge Technologies Q4 Loss Wider Than Expected, Revenues Down Y/Y

Core Insights - SolarEdge Technologies, Inc. reported a significant deterioration in its financial performance for the fourth quarter of 2024, with an adjusted loss of $3.52 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.57 and a decline from a loss of 92 cents per share in the prior-year quarter [1][2][3] Financial Performance - The company incurred a GAAP loss of $5 per share in Q4 2024, compared to a GAAP loss of $2.85 in the same period last year [2] - For the full year 2024, SolarEdge reported an adjusted loss of $22.99 per share, wider than the Zacks Consensus Estimate of a loss of $20.65, and a decline from earnings of $4.12 per share in the previous year [3] - Revenues for Q4 2024 were $196.2 million, exceeding the Zacks Consensus Estimate by 5.3%, but down 37.9% from $316 million in the prior-year quarter [4] - Total revenues for 2024 were $0.90 billion, significantly lower than $2.98 billion in the previous year and below the Zacks Consensus Estimate of $0.94 billion [4] Operational Highlights - In Q4 2024, SolarEdge shipped 895 megawatts of inverters and 130 megawatt-hours of batteries [5] - The company reported an adjusted gross loss of $77.3 million, compared to an adjusted gross profit of $10.5 million in the prior-year period [5] - Adjusted operating expenses decreased by 9.7% year-over-year to $106.8 million, but the adjusted operating loss widened to $184.1 million from $107.8 million in the prior-year quarter [5] Financial Position - As of December 31, 2024, SolarEdge had cash and cash equivalents of $274.6 million, down from $338.5 million at the end of 2023 [6] - Cash outflow from operating activities for 2024 was $313.3 million, compared to $180.1 million in the previous year [6] - Total long-term liabilities as of December 31, 2024, were $0.93 billion, a decrease of 27.4% from the previous year [6] Guidance - For Q1 2025, SolarEdge expects revenues to be between $195 million and $215 million, while the Zacks Consensus Estimate is $219.2 million [7] - Adjusted operating expenses are projected to be in the range of $98 million to $103 million, with an expected adjusted gross margin between 6% and 10% [7]