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 relevant market benchmark by more than 10% [10]. Core Insights - The company reported a net adjusted loss of $48 million for Q2 2025, which was better than the consensus expectation of a $55 million loss, primarily due to strong revenue performance and effective cost control [1][3]. - For Q3 2025, the company expects revenue to be between $315 million and $355 million, surpassing the consensus estimate of approximately $300 million, with a projected non-GAAP gross margin of 15-19% [2]. - The company anticipates achieving positive cash flow by the end of the year and believes it can offset tariff impacts in FY 2026 [1]. Summary by Sections Revenue and Cost Performance - In Q2 2025, the company's revenue was $289 million, significantly higher than the consensus estimate of $273 million, and up 32% from Q1 2025 [3]. - The gross margin for Q2 2025 was approximately 11%, a substantial increase from 8% in Q1 2025, and well above the consensus expectation of 9.5% [2][3]. Shipment Volumes - The company shipped 1,194 MW of photovoltaic inverters in Q2 2025, slightly down from 1,208 MW in Q1 2025, while the shipment of photovoltaic batteries reached 247 MWh, up from 180 MWh in Q1 2025 [2].

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].