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 ...

Acquisition will support company’s efforts to meet growing demand in the defense industryFREMONT, Calif., April 03, 2025 (GLOBE NEWSWIRE) -- Enovix Corporation (Nasdaq: ENVX), a global high-performance battery company, today announced the acquisition of battery cell manufacturing assets from SolarEdge, located in South Korea. The acquisition will expand the company’s manufacturing footprint and help position Enovix to meet growing demand in the defense industry. The transaction is expected to close in April ...

Core Viewpoint - The article highlights the rapid transformation of China's renewable energy sector, particularly in the photovoltaic and energy storage industries, with Shenzhen SOFAR New Energy Co., Ltd. (首航新能) emerging as a key player following its recent listing on the Shenzhen Stock Exchange [1] Company Overview - Shenzhen SOFAR New Energy specializes in the research, production, sales, and service of renewable energy power equipment, focusing on photovoltaic grid-connected inverters, energy storage inverters, and storage batteries [1] - The company has achieved over 75% of its revenue from overseas markets, showcasing its competitive edge against international giants like SMA and SolarEdge [1][8] Market Trends - The photovoltaic industry is expected to stabilize with silicon wafer prices and profit margins rebounding, with projections indicating a return to over 15% gross margin by Q2 2025 [2] - The global energy storage market is anticipated to reach a scale of 200 billion yuan by 2025, with a shipment volume exceeding 449 GWh, reflecting a year-on-year growth of 30% [2] Business Strategy - SOFAR New Energy has adopted a dual-track strategy focusing on both photovoltaic and energy storage sectors, allowing it to adapt well to industry cycles [2] - The company has developed a product matrix that includes photovoltaic grid-connected inverters, energy storage inverters, and storage batteries, which has contributed to its robust growth [5] Financial Performance - The revenue from grid-connected inverters increased from 1.177 billion yuan in 2021 to 2.06 billion yuan in 2023, while energy storage inverters saw a 226% increase in 2022, reaching 1.373 billion yuan [5] - The company's R&D expenses have totaled 749 million yuan, accounting for 6.51% of its revenue, indicating a strong commitment to innovation [6] Technological Advancements - SOFAR New Energy's photovoltaic inverters have achieved a maximum efficiency of 98.4%, and the company has developed advanced grid interaction technologies [6] - The company has established a solid technological moat through significant R&D investments and partnerships with academic institutions [6] Global Expansion - The company has successfully penetrated international markets, with over 75% of its revenue coming from abroad, and has established a strong presence in emerging markets like India and Brazil [10] - SOFAR New Energy's strategic partnerships and localized marketing efforts have facilitated its global expansion [10] Future Outlook - The company plans to use the funds raised from its IPO to enhance its energy storage systems, R&D capabilities, and marketing networks, positioning itself for accelerated growth in the renewable energy sector [10]

Investment Rating - The report maintains a positive investment outlook for the renewable energy sector, particularly in solar and wind energy, highlighting strong demand and growth potential in both domestic and international markets [4][9][39]. Core Insights - The domestic solar installation in January-February 2025 reached 39.5GW, with an expected annual increase of 28% in total installations for 2024 [4][5][9]. - Global solar installation is projected to reach between 531GW and 583GW in 2025, with optimistic growth estimates of over 10% [28][39]. - The supply chain is showing signs of recovery, with prices stabilizing and a slight rebound in production across various segments, including polysilicon and solar modules [41][49]. Summary by Sections Domestic Market - In the first two months of 2025, China added 39.5GW of solar capacity, maintaining stable growth, with a total expected installation of 215-255GW for the year [4][6][9]. - The National Development and Reform Commission and the National Energy Administration have initiated reforms to enhance market-driven pricing for renewable energy [10][15]. International Market - The global demand for solar energy is steadily increasing, with significant installation plans emerging in regions like Latin America and the Middle East [18][28]. - In January 2025, India reported a substantial increase in solar installations, with a total capacity exceeding 100GW [31][34]. Supply Chain Dynamics - The polysilicon production in February 2025 was approximately 9.23 million tons, showing a slight decrease but expected to recover in March [49]. - Solar module prices have seen a minor increase due to rising demand from distributed energy projects, with significant players adjusting their production strategies accordingly [43][44]. Investment Recommendations - The report suggests focusing on high-growth areas such as inverter and racking systems, as well as leading solar manufacturers with cost advantages and strong distribution channels [4][39]. - Key companies to watch include LONGi Green Energy, Trina Solar, and various emerging technology leaders in the solar sector [4][39].

Investment Rating - The report maintains a positive investment outlook for the renewable energy sector, particularly in solar and wind energy, highlighting strong demand and growth potential in both domestic and international markets [4][9][39]. Core Insights - The domestic solar installation in January-February 2025 reached 39.5GW, with an expected annual increase of 28% in total installations for 2024 [4][5][9]. - Global solar installation is projected to reach between 531GW and 583GW in 2025, with optimistic growth estimates of over 10% [28][39]. - The supply chain is showing signs of recovery, with prices stabilizing and a slight rebound in production across various segments, including polysilicon and solar modules [41][49]. Summary by Sections Domestic Market - In the first two months of 2025, China added 39.5GW of solar capacity, maintaining stable growth, with a total expected installation of 215-255GW for the year [4][6][9]. - The National Development and Reform Commission and the National Energy Administration have initiated reforms to enhance market-driven pricing for renewable energy [10][15]. International Market - The global demand for solar energy is steadily increasing, with significant installation plans underway in emerging markets such as Latin America and the Middle East [18][28]. - In January 2025, India added 2.47GW of solar capacity, marking a year-on-year increase of 149.49% [31][34]. Supply Chain Dynamics - The polysilicon production in February 2025 was approximately 9.23 million tons, with prices remaining stable as manufacturers adopt a cautious approach [49]. - The solar module market is experiencing a surge in demand due to distributed generation projects, leading to a price increase of 5.8% month-on-month for certain module types [4][41]. Investment Recommendations - The report suggests focusing on high-growth areas such as inverter and racking systems, as well as leading solar manufacturers with cost advantages and strong distribution channels [4][39]. - Key players in the wind energy sector are also highlighted, particularly those involved in offshore wind projects and related supply chains [4][39].

Key Points Industry and Company * **Company**: SolarEdge Technologies, Inc. (NASDAQ: SEDG) * **Industry**: Solar inverters, energy storage, EV charging, and other clean technology solutions Core Views and Arguments * **Demand Trends**: * **Strong demand across all markets**: SolarEdge expects strong demand for solar inverters, energy storage, and other clean technology solutions in 2023. * **Europe leading the way**: Europe is experiencing significant growth driven by the energy crisis and high energy prices, leading to strong demand for solar and storage solutions. * **U.S. growth expected but decelerating**: The U.S. market is expected to grow, but at a slower pace compared to Europe. Factors such as net metering changes and higher interest rates may impact growth. * **Asia remains strong**: Asia, particularly Taiwan and Japan, continues to see strong demand for solar inverters and energy storage solutions. * **Revenue Growth**: * **50% year-on-year growth expected**: SolarEdge expects revenue growth of approximately 50% in 2023, driven by strong demand and the expansion of its product portfolio. * **Europe taking a larger share**: Europe is expected to take a larger share of revenues in 2023, driven by strong growth in the region. * **Supply Constraints**: * **Component shortages and manufacturing capacity constraints**: SolarEdge faces challenges related to component shortages and manufacturing capacity constraints, which may impact its ability to meet demand. * **Improving supply chain**: SolarEdge is working to improve its supply chain and manufacturing capacity to address these challenges. * **Battery Storage**: * **Strong growth expected in Europe**: Battery storage is expected to see strong growth in Europe, driven by high energy prices and government support. * **U.S. market facing challenges**: The U.S. market faces challenges related to high battery prices and long payback periods, which may limit growth. * **Inflation Reduction Act (IRA)**: * **Potential for U.S. manufacturing**: The IRA may provide opportunities for SolarEdge to expand its manufacturing footprint in the U.S. * **Decision-making process**: SolarEdge is currently evaluating its options for U.S. manufacturing, including working with contract manufacturers or building its own factory. Other Important Points * **Gross margins**: SolarEdge expects to achieve its target gross margin of 30% to 32% by the end of 2023. * **Battery margins**: SolarEdge targets a 25% gross margin for its battery storage solutions. * **Exchange rates**: The weaker euro is expected to have a positive impact on SolarEdge's gross margins. * **New products**: SolarEdge is launching a new utility-scale inverter and has acquired Hark, a company that provides IoT solutions for energy management.