SolarEdge(US:SEDG) Haitong Securities International·2025-05-08 08:49Investment 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].