SolarEdge Announces Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

SolarEdge Technologies (SEDG) reported Q4 2024 financial results with revenues of $196.2 million, down 17% from the previous quarter. The solar segment contributed $189.0 million, shipping 895 MW of inverters and 130 MWh of batteries. The company recorded a significant asset write-down and impairment of $138 million.

Q4 GAAP net loss was $287.4 million ($5.00 per share), while generating positive free cash flow of $25.5 million. For full-year 2024, total revenues were $901.5 million, compared to $2.98 billion in 2023, with total write-downs and impairments of $1.17 billion.

Looking ahead, Q1 2025 guidance projects revenues between $195-215 million, with Non-GAAP gross margin expected at 6-10%. The company expects to maintain positive free cash flow throughout 2025.

Positive

• Return to positive free cash flow generation in Q4 ($25.5 million)
• Reduced operating expenses: Non-GAAP operating expenses decreased to $106.8 million from $116.3 million QoQ
• Improved cash position to $81.8 million net of debt, up from $51.3 million in Q3

Negative

• Revenue declined 17% QoQ to $196.2 million
• Full year revenue dropped 70% YoY from $2.98B to $901.5M
• Q4 GAAP net loss of $287.4 million
• Significant asset write-down and impairment of $138 million in Q4
• Negative Q4 gross margin of -57.2% (GAAP) and -39.5% (Non-GAAP)
• Full year GAAP net loss of $1.81 billion compared to net income of $34.3 million in prior year

Insights

Financial Analyst

The Q4 2024 results present a complex picture of SolarEdge's ongoing transformation. While the headline numbers show significant stress - with revenues declining 17% QoQ to $196.2 million and massive asset impairments totaling $1.17 billion for the year - there are important indicators of a potential turnaround emerging.

The most significant positive signal is the return to positive free cash flow of $25.5 million in Q4, a dramatic improvement from the $136.7 million deficit in the prior quarter. This cash flow recovery, combined with an increase in net cash position to $81.8 million from $51.3 million QoQ, suggests the company's aggressive restructuring efforts are beginning to yield results.

The Q1 2025 guidance represents a potential inflection point, projecting non-GAAP gross margins of 6-10% - a remarkable improvement from Q4's -39.5%. This substantial margin recovery, if achieved, would validate management's turnaround strategy and suggest the worst of the inventory and pricing challenges may be behind the company.

Several strategic moves warrant attention:

• The closure of the Korean energy storage business and elimination of segment reporting indicates a streamlining of operations and focus on core competencies
• The $138 million Q4 asset write-down, while painful, creates a cleaner balance sheet for future growth
• The revision of a customer agreement resulting in a $25.5 million adjustment to previous quarters suggests more conservative revenue recognition practices

The projected revenue range of $195-215 million for Q1 2025 indicates stabilization rather than immediate growth, but the focus on profitability over revenue suggests a more sustainable business model is being implemented. The reduction in non-GAAP operating expenses to $106.8 million in Q4 from $116.3 million demonstrates meaningful cost control measures taking effect.

MILPITAS, Calif.--(BUSINESS WIRE)-- SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the fourth quarter ended December 31, 2024 and full year ended December 31, 2024.

“There are exciting opportunities ahead for SolarEdge,” said Shuki Nir, CEO of SolarEdge. “We are just getting started on our turnaround story. The return to positive free cash flow generation in Q4 is a solid first step, and we expect to be free cash flow positive in Q1 2025 and for the full year 2025.”

Fourth Quarter 2024 Summary

The Company reported revenues of $196.2 million, down 17% from $235.4 million in the prior quarter.

Revenues from the solar segment were $189.0 million, down 15% from $222.1 million in the prior quarter.

The Company shipped 895 MW (AC) of inverters and 130 MWh of batteries for PV applications.

During the fourth quarter, the Company undertook an asset valuation analysis which resulted in a write down and impairment of various assets that impacted both GAAP and Non-GAAP financials. In total, the write down and impairment amount was $138 million.

GAAP gross margin was negative 57.2%¹, compared to negative 309.1%¹ in the prior quarter.

Non-GAAP gross margin² was negative 39.5%¹, compared to negative 305.0%¹ in the prior quarter.

Gross margin from the solar segment was negative 38.8%¹, compared to negative 285.4%¹ in the prior quarter.

GAAP operating expenses were $151.4 million¹, compared to $382.9¹ million in the prior quarter.

Non-GAAP operating expenses² were $106.8 million, compared to $116.3 million in the prior quarter.

GAAP operating loss was $263.7 million¹, compared to $1.11¹ billion in the prior quarter.

Non-GAAP operating loss² was $184.1 million¹, compared to $833.6¹ million in the prior quarter.

GAAP net loss was $287.4 million¹, compared to $1.23¹ billion in the prior quarter.

Non-GAAP net loss² was $202.5 million¹, compared to $899.8¹ million in the prior quarter.

GAAP net loss per share was $5.00¹, compared to a GAAP net loss per share of $21.58¹ in the prior quarter.

Non-GAAP net loss per share² was $3.52¹, compared to a Non-GAAP net loss per share of $15.78¹ in the prior quarter.

Cash provided by operating activities was $37.8 million, compared with $89.4 million used in the prior quarter.

Free cash flow² generated was $25.5 million, compared with a free cash flow deficit of $136.7 in the prior year.

As of December 31, 2024, cash, cash equivalents, restricted cash, bank deposits, restricted bank deposits and marketable securities totaled $81.8 million, net of debt, compared to $51.3 million as of September 30, 2024.

Full Year 2024 Summary

The Company reported total revenues of $901.5 million, compared to $2.98 billion in the prior year.

Revenues from the solar segment of $842.4 million, compared to from $2.82 billion in the prior year.

The Company shipped 3,563 MW (AC) of inverters and 576 MWh of batteries for PV applications.

During 2024, the company reported write downs and impairments of various assets that impacted both GAAP and Non-GAAP financials. In total, the write down and impairment amount was $1.17 billion.

GAAP gross margin was negative 97.3%¹, compared to 23.6% in the prior year.

Non-GAAP gross margin² was negative 89.7%¹, compared to 26.7% in the prior year.

Gross margin from the solar segment was negative 84.4%¹, compared to 29.2% in the prior year.

GAAP operating expenses were $831.1 million¹, compared to $663.6¹ million in the prior year.

Non-GAAP operating expenses² were $447.1 million, compared to $503.1 million in the prior year.

GAAP operating loss was $1.71 billion¹, compared to a GAAP operating income of $40.2¹ million in the prior year.

Non-GAAP operating loss² was $1.25 billion¹, compared to Non-GAAP operating income of $290.0 million in the prior year.

GAAP net loss was $1.81 billion¹, compared to GAAP net income of $34.3¹ million in the prior year.

Non-GAAP net loss² was $1.31 billion¹, compared to Non-GAAP net income of $248.4 million in the prior year.

GAAP net loss per share was $31.64¹, compared to GAAP earnings per share of $0.61¹ in the prior year.

Non-GAAP net loss per share² was $22.99¹, compared to Non-GAAP earnings per share of $4.39 in the prior year.

Cash used in operating activities was $313.3 million, compared to $180.1 million used in the prior year.

Free cash flow² deficit was $421.5 million, compared with a free cash flow deficit of $350.6 in the prior year.

Immaterial prior quarter adjustment

During the preparation of the audited financial statements and subsequent to filing the Form 10-Q for the third quarter of 2024, the Company considered an amended agreement with a customer which was signed on December 21, 2024. In connection with such amendment, the Company determined it was appropriate to revise previously reported revenues and loans receivables with this customer for the three and nine months ended, September 30, 2024.

The financial information presented in this earnings release has been revised accordingly for the period ended September 30, 2024. The Company will also adjust previously reported financial information for such immaterial revision in future filings, as applicable.

For the nine months ended September 30, 2024, the revised revenues and net loss are $705.2 million and $1,519 million, respectively, which is $25.5 million lower revenues and $25.5 million higher loss than as previously reported. The revised net loss per share is $26.67. For the three months ended September 30, 2024, the revised revenues and net loss are $235.4 million and $1,231 million, respectively, which is $25.5 million lower revenues and $25.5 million higher loss than as previously reported. The revised net loss per share is $21.58. The impact on the Company’s consolidated financial information as of September 30, 2024 was a reduction of loans receivables of $25.5 million and of total stockholder equity by $25.5 million.

Outlook for the First Quarter 2025

The Company also provides guidance for the first quarter ending March 31, 2025 as follows:

• Revenues to be within the range of $195 million to $215 million;
• Non-GAAP gross margin* expected to be within the range of 6% to 10%;
• Non-GAAP operating expenses* to be within the range of $98 million to $103 million.

Due to the closure of our Energy Storage business in Korea, going forward we will not report segments in our financial reporting.

*Non-GAAP gross margin and Non-GAAP operating expenses are non-GAAP financial measures, and these forward-looking measures have not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures. Forward-looking estimates of Non-GAAP gross margin and Non-GAAP operating expenses are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.

Conference Call

The Company will host a conference call to discuss its results for the fourth quarter and year ended December 31, 2024 at 8:00 a.m. ET on Wednesday, February 19, 2025. The call will be available, live, to interested parties by dialing +1 800-445-7795. For international callers, please dial +1 785-424-1699. The Conference ID is SEDG. To avoid a delay in connecting to the call, please dial in 10 minutes prior to the start time. A live webcast will also be available in the Investors Relations section of the Company’s website at: http://investors.solaredge.com.

A replay of the webcast will be available in the Investor Relations section of the Company’s web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.

______________________________________________________________________
¹ Includes impairments and write offs. See financials and reconciliation for details.
² Non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.

About SolarEdge

SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, and grid services solutions. SolarEdge is online at www.solaredge.com.

Use of Non-GAAP Financial Measures

To provide investors and others with additional information regarding SolarEdge’s results, SolarEdge has disclosed in this earnings release the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating expenses, non-GAAP gross margin, non-GAAP net income (loss), non-GAAP net earnings (loss) per share, and non-GAAP net free cash flow. SolarEdge has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure below. These non-GAAP financial measures differ from GAAP in that they exclude stock-based compensation, amortization and impairment of acquired intangible assets, restructuring and impairment charges, acquisition, disposition and other items, certain litigation and other contingencies, amortization of debt issuance cost, non-cash interest expense and non-cash revenue recognized from significant financing component, certain foreign currency exchange rates, gains and losses on investments, income and losses from equity method investments and discrete items that impacted our GAAP tax rate. Our non-GAAP financial measures also reflect the application of our non-GAAP tax rate.

SolarEdge’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, to calculate bonus payments and to evaluate SolarEdge’s financial performance, the performance of its individual functional groups and the ability of operations to generate cash. Management believes these non-GAAP financial measures reflect SolarEdge’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in SolarEdge’s business, as they exclude charges and gains that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating SolarEdge’s operating results and future prospects from the same perspective as management and in comparing financial results across accounting periods.

The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense that affect SolarEdge’s operations. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP and should not be considered measures of SolarEdge’s liquidity. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review SolarEdge’s financial information in its entirety and not rely on a single financial measure.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements contained in this press release contains may contain forward-looking statements that are based on our management’s expectations, estimates, projections, beliefs and assumptions in accordance with information currently available to our management. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include information, among other things, concerning our possible or assumed future results of operations, return to positive free cash flow generation, future demands for solar energy solutions, business strategies, technology developments, new products and services, financing and investment plans; dividend policy; competitive position, industry and regulatory environment, general economic conditions; potential growth opportunities; cancellations and pushouts of existing backlog; installation rates; goodwill impairment; and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negatives of those terms.

Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this release. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to: future demand for renewable energy including solar energy solutions; our ability to maintain a return to free cash flow positive generation; our ability to forecast demand for our products accurately and to match production to such demand as well as our customers’ ability to forecast demand based on inventory levels; macroeconomic conditions in our domestic and international markets, as well as inflation concerns, rising interest rates, and recessionary concerns; changes, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; changes in the U.S. trade environment; federal, state, and local regulations governing the electric utility industry with respect to solar energy; changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act; the retail price of electricity derived from the utility grid or alternative energy sources; interest rates and supply of capital in the global financial markets in general and in the solar market specifically; competition, including introductions of power optimizer, inverter and solar photovoltaic system monitoring products by our competitors; developments in alternative technologies or improvements in distributed solar energy generation; historic cyclicality of the solar industry and periodic downturns; product quality or performance problems in our products; shortages, delays, price changes, or cessation of operations or production affecting our suppliers of key components; our dependence upon a small number of outside contract manufacturers and limited or single source suppliers; capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components; delays, disruptions, and quality control problems in manufacturing; existing and future responses to and effects of pandemics, epidemics, or other health crises; disruption in our global supply chain and rising prices of oil and raw materials as a result of the conflict between Russia and Ukraine; our customers’ financial stability and our ability to retain customers; our ability to retain key personnel and attract additional qualified personnel; performance of distributors and large installers in selling our products; consolidation in the solar industry among our customers and distributors; our ability to manage effectively the growth of our organization and expansion into new markets and integration of acquired businesses; our ability to recognize expected benefits from restructuring plans; any unauthorized access to, disclosure, or theft of personal information or unauthorized access to our network or other similar cyber incidents; disruption to our business operations due to the evolving state of war in Israel and political conditions related to the Israeli government's plans to significantly reduce the Israeli Supreme Court's judicial oversight; our dependence on ocean transportation to timely deliver our products in a cost-effective manner; fluctuations in global currency exchange rates; the impact of evolving legal and regulatory requirements, including emerging environmental, social and governance requirements; changes to net metering policies or the reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; federal, state, and local regulations governing the electric utility industry with respect to solar energy; changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act; changes in the U.S. trade environment, including the imposition of import tariffs; business practices and regulatory compliance of our raw material suppliers; our ability to maintain our brand and to protect and defend our intellectual property; the impairment of our goodwill or other intangible assets; volatility of our stock price; our customers’ financial stability, creditworthiness, and debt leverage ratio; our ability to retain key personnel and attract additional qualified personnel; our ability to effectively design, launch, market, and sell new generations of our products and services; our ability to retain, and events affecting, our major customers; our ability to service our debt; future goodwill impairments; and the other factors set forth under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed on February 26, 2024, in subsequent Quarterly Reports on Form 10Q and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business. The preceding list is not intended to be an exhaustive list of all of our forward‐looking statements. You should not rely upon forward‐looking statements as predictions of future events. Although we believe that the expectations reflected in the forward‐looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward‐looking statements will be achieved or will occur. Statements in this press release speak only as of the date they were made. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or changes in its expectations or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

SOLAREDGE TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands, except per share data)
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
		Unaudited
Revenues		$	196,217			$	316,044			$	901,456			$	2,976,528
Cost of revenues			308,471				372,469				1,778,660				2,272,705
Gross profit (loss)			(112,254	)			(56,425	)			(877,204	)			703,823
Operating expenses:
Research and development			62,238				75,001				277,237				321,482
Sales and marketing			30,549				38,779				146,865				164,318
General and administrative			36,370				34,628				147,455				146,504
Other operating expenses, net			22,256				32,748				259,527				31,314
Total operating expenses			151,413				181,156				831,084				663,618
Operating income (loss)			(263,667	)			(237,581	)			(1,708,288	)			40,205
Financial income (expense), net			(12,199	)			22,055				(14,570	)			41,212
Other income (loss), net			(76	)			291				14,547				(318	)
Income (loss) before income taxes			(275,942	)			(215,235	)			(1,708,311	)			81,099
Tax benefits (Income taxes)			(11,041	)			53,202				(96,150	)			(46,420	)
Net loss from equity method investments			(456	)			(350	)			(1,896	)			(350	)
Net income (loss)		$	(287,439	)		$	(162,383	)		$	(1,806,357	)		$	34,329

SOLAREDGE TECHNOLOGIES INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data)
	December 31,
	2024				2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	274,611			$	338,468
Restricted cash		135,328				—
Marketable securities		311,279				521,570
Trade receivables, net of allowances of $43,038 and $16,400, respectively		160,423				622,425
Inventories, net		645,897				1,443,449
Prepaid expenses and other current assets		506,769				378,394
Total current assets		2,034,307				3,304,306
LONG-TERM ASSETS:
Marketable securities		42,597				407,825
Deferred tax assets, net		—				80,912
Property, plant and equipment, net		343,438				614,579
Operating lease right-of-use assets, net		41,393				64,167
Goodwill and intangible assets, net		58,046				78,341
Loan receivables, net		45,678				2,438
Other long-term assets		64,736				35,163
Total long-term assets		595,888				1,283,425
Total assets		2,630,195				4,587,731
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade payables, net		93,491				386,471
Employees and payroll accruals		76,292				76,966
Warranty obligations		140,249				183,047
Deferred revenues and customers advances		140,870				40,836
Accrued expenses and other current liabilities		243,872				205,911
Convertible senior notes, net		346,305				—
Total current liabilities		1,041,079				893,231
LONG-TERM LIABILITIES:
Convertible senior notes, net		330,006				627,381
Warranty obligations		292,116				335,197
Deferred revenues		231,049				214,607
Finance lease liabilities		39,159				41,892
Operating lease liabilities		30,018				45,070
Other long-term liabilities		8,426				18,444
Total long-term liabilities		930,774				1,282,591
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS’ EQUITY:
Common stock of $0.0001 par value - Authorized: 125,000,000 shares; issued: 58,780,490 shares at December 31, 2024 and 57,123,437 shares at December 31, 2023; outstanding: 58,027,126 shares at December 31, 2024 and 57,123,437 shares at December 31, 2023.		6				6
Additional paid-in capital		1,813,198				1,680,622
Treasury stock, at cost; 753,364 shares held		(50,194	)			—
Accumulated other comprehensive loss		(76,477	)			(46,885	)
Retained earnings (Accumulated deficit)		(1,028,191	)			778,166
Total stockholders’ equity		658,342				2,411,909
Total liabilities and stockholders’ equity	$	2,630,195			$	4,587,731

SOLAREDGE TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, except per share data)
		Year ended December 31,
		2024				2023
Cash flows from operating activities:
Net income (loss)		$	(1,806,357	)		$	34,329
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization			59,865				57,196
Provision to write down inventories to net realizable value			738,757				46,369
Loss on impairment and disposal of property, plant and equipment			224,772				25,168
Stock-based compensation expenses			137,251				149,945
Impairment of goodwill and intangible assets			24,674				5,622
Deferred income taxes, net			79,209				(43,071	)
Gain from repurchasing of convertible notes			(15,456	)			—
Loss (gain) from exchange rate fluctuations			11,918				(26,878	)
Other items			8,030				8,164
Changes in assets and liabilities:
Trade receivables, net			451,707				296,429
Inventories, net			67,799				(737,223	)
Prepaid expenses and other assets			(122,484	)			(92,067	)
Operating lease right-of-use assets, net			15,805				16,525
Trade payables, net			(285,505	)			(67,795	)
Warranty obligations			(85,541	)			133,090
Deferred revenues and customers advances			119,519				39,632
Operating lease liabilities			(15,829	)			(15,981	)
Accrued expenses and other liabilities, net			78,547				(9,567	)
Net cash used in operating activities			(313,319	)			(180,113	)
Cash flows from investing activities:
Investment in available-for-sale marketable securities			(253,431	)			(296,396	)
Proceeds from maturities of available-for-sale marketable securities			719,454				277,382
Proceeds from sales of available-for-sale marketable securities			114,564				2,807
Purchase of property, plant and equipment			(108,163	)			(170,523	)
Business combinations, net of cash acquired			(10,417	)			(16,653	)
Purchase of intangible assets			(10,000	)			(10,600	)
Disbursements for loans receivables			(37,500	)			(58,000	)
Investment in privately-held companies			(25,664	)			(8,000	)
Proceeds from loans receivables			32,150				—
Proceeds from governmental grant			—				6,794
Other investing activities			(4,707	)			4,295
Net cash provided by (used in) investing activities			416,286				(268,894	)
Cash flows from financing activities:
Repurchase of common stock			(50,194	)			—
Partial repurchase of Notes 2025			(267,900	)			—
Proceeds from issuance of Notes 2029, net of issuance costs			329,214				—
Capped call transactions related to Notes 2029			(28,342	)			—
Tax withholding in connection with stock-based awards, net			(281	)			(9,259	)
Other financing activities			(2,626	)			(2,697	)
Net cash used in financing activities			(20,129	)			(11,956	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(11,367	)			16,319
Increase (decrease) in cash, cash equivalents and restricted cash			71,471				(444,644	)
Cash and cash equivalents at the beginning of the period			338,468				783,112
Cash, cash equivalents and restricted cash, end of period		$	409,939			$	338,468

SOLAREDGE TECHNOLOGIES INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages)
	Three months ended																				Year ended
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
Gross profit (loss) (GAAP)	$	(112,254	)		$	(727,794	)		$	(10,969	)		$	(26,187	)		$	(56,425	)		$	(877,204	)		$	703,823			$	844,648
Revenues from finance component		(254	)			(250	)			(246	)			(234	)			(230	)			(984	)			(834	)			(614	)
Discontinued operation		26,118				(6	)			(757	)			(434	)			36,648				24,921				36,648				4,314
Stock-based compensation		3,727				6,039				6,218				5,968				5,468				21,952				23,200				21,818
Amortization of stock-based compensation capitalized in inventories		1,095				1,484				362				197				343				3,138				1,100				—
Amortization and depreciation of acquired asset		484				2,034				1,343				1,551				1,555				5,412				6,038				7,429
Restructuring charges		3,770				1,216				4,519				5,822				23,154				15,327				23,154				—
Gross profit (loss) (Non-GAAP)	$	(77,314	)		$	(717,277	)		$	470			$	(13,317	)		$	10,513			$	(807,438	)		$	793,129			$	877,595
Gross margin (loss) (GAAP)		(57.2	)%			(309.1	)%			(4.1	)%			(12.8	)%			(17.9	)%			(97.3	)%			23.6	%			27.2	%
Revenues from finance component		(0.1	)			(0.1	)			0.0				(0.1	)			(0.1	)			(0.1	)			0.0				0.0
Discontinued operation		13.3				0.0				(0.3	)			(0.2	)			11.6				2.8				1.2				0.1
Stock-based compensation		1.9				2.6				2.3				2.9				1.8				2.4				0.9				0.7
Amortization of stock-based compensation capitalized in inventories		0.6				0.6				0.1				0.1				0.1				0.3				0.0			----
Amortization and depreciation of acquired asset		0.2				1.0				0.5				0.8				0.5				0.6				0.2				0.2
Restructuring charges		1.9				1.0				1.7				2.8				7.3				1.7				0.8			----
Gross margin (loss) (Non-GAAP)		(39.4	)%			(304.0	)%			0.2	%			(6.5	)%			3.3	%			(89.6	)%			26.7	%			28.2	%
Operating expenses (GAAP)	$	151,413			$	382,940			$	149,213			$	147,518			$	181,156			$	831,084			$	663,618			$	678,528
Stock-based compensation - R&D		(10,653	)			(17,115	)			(17,639	)			(17,139	)			(15,982	)			(62,546	)			(66,944	)			(63,211	)
Stock-based compensation - S&M		(4,452	)			(6,816	)			(8,149	)			(7,911	)			(7,347	)			(27,328	)			(30,987	)			(31,017	)
Stock-based compensation - G&A		(5,600	)			(6,672	)			(6,565	)			(6,588	)			(6,133	)			(25,425	)			(28,814	)			(29,493	)
Amortization and depreciation of acquired assets - R&D		(189	)			(270	)			(271	)			(270	)			(58	)			(1,000	)			(989	)			(1,206	)
Amortization and depreciation of acquired assets - S&M		(442	)			(566	)			(467	)			(124	)			(190	)			(1,599	)			(927	)			(822	)
Amortization and depreciation of acquired assets - G&A		—				(2	)			(2	)			(2	)			(2	)			(6	)			(15	)			(21	)
Discontinued operation		(3,350	)			11				—				47				(388	)			(3,293	)			(388	)			—
Restructuring charges		—				(1,299	)			(366	)			(3,943	)			—				(5,607	)			—				—
Assets impairment and disposal by abandonment		(17,989	)			(232,102	)		----					(1,732	)			(30,790	)			(251,823	)			(30,790	)			(119,141	)
Gain (loss) from assets sales		(1,910	)			(1,827	)			(951	)			(1,058	)			(172	)			(5,746	)			1,262				2,603
Certain litigation and other contingencies		—				—				—				399				(1,786	)			399				(1,786	)			—
Acquisition costs		—				—				—				(9	)			—				(9	)			(135	)			(350	)
Operating expenses (Non-GAAP)	$	106,828			$	116,282			$	114,803			$	109,188			$	118,308			$	447,101			$	503,105			$	435,870

SOLAREDGE TECHNOLOGIES INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages)
	Three months ended																				Year ended
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
Operating income (loss) (GAAP)	$	(263,667	)		$	(1,110,734	)		$	(160,182	)		$	(173,705	)		$	(237,581	)		$	(1,708,288	)		$	40,205			$	166,120
Revenues from finance component		(254	)			(250	)			(246	)			(234	)			(230	)			(984	)			(834	)			(614	)
Discontinued operation		29,468				(17	)			(757	)			(481	)			37,036				28,214				37,036				4,314
Stock-based compensation		24,432				36,642				38,571				37,606				34,930				137,251				149,945				145,539
Amortization of stock-based compensation capitalized in inventories		1,095				1,484				362				197				343				3,138				1,100				—
Amortization and depreciation of acquired assets		1,115				2,872				2,083				1,947				1,805				8,017				7,969				9,478
Restructuring charges		3,770				2,515				4,885				9,765				23,154				20,934				23,154				—
Assets impairment and disposal by abandonment		17,989				232,102				—				1,732				30,790				251,823				30,790				119,141
Loss (gain) from assets sales		1,910				1,827				951				1,058				172				5,746				(1,262	)			(2,603	)
Certain litigation and other contingencies		—				—				—				(399	)			1,786				(399	)			1,786				—
Acquisition costs		—				—				—				9				—				9				135				350
Operating income (loss) (Non-GAAP)	$	(184,142	)		$	(833,559	)		$	(114,333	)		$	(122,505	)		$	(107,795	)		$	(1,254,539	)		$	290,024			$	441,725
Financial income (expense), net (GAAP)	$	(12,199	)		$	5,558			$	(865	)		$	(7,064	)		$	22,055			$	(14,570	)		$	41,212			$	3,750
Non cash interest expense		3,920				3,785				3,636				3,536				3,422				14,877				12,703				9,954
Unrealized losses (gains)		—				—				—				—				—				—				—				119
Currency fluctuation related to lease standard		1,089				966				(1,523	)			(1,276	)			4,359				(744	)			(3,055	)			(11,187	)
Financial income (expense), net (Non-GAAP)	$	(7,190	)		$	10,309			$	1,248			$	(4,804	)		$	29,836			$	(437	)		$	50,860			$	2,636
Other income (loss) (GAAP)	$	(76	)		$	(3,928	)		$	18,551			$	—			$	291			$	14,547			$	(318	)		$	7,285
Loss (gain) from sale of equity and debt investments		76				(1,072	)			(1,970	)			—				(291	)			(2,966	)			193				(8,008	)
Loss (gain) from business combination		—				—				(1,125	)			—				—				(1,125	)			—				—
Gain from the repurchase of convertible notes		—				—				(15,456	)			—				—				(15,456	)			—				—
Loss (gain) from impairment of private held companies		—				5,000				—				—				—				5,000				—				—
Other income (loss) (Non-GAAP)	$	—			$	—			$	—			$	—			$	—			$	—			$	(125	)		$	(723	)
Income tax benefit (expense) (GAAP)	$	(11,041	)		$	(121,108	)		$	12,245			$	23,754			$	53,202			$	(96,150	)		$	(46,420	)		$	(83,376	)
Income tax adjustment		(176	)			44,602				(357	)			(5,062	)			(27,699	)			39,007				(45,896	)			(9,067	)
Income tax benefit (expense) (Non-GAAP)	$	(11,217	)		$	(76,506	)		$	11,888			$	18,692			$	25,503			$	(57,143	)		$	(92,316	)		$	(92,443	)
Equity method investments income (loss) (GAAP)	$	(456	)		$	(577	)		$	(567	)		$	(296	)		$	(350	)		$	(1,896	)		$	(350	)		$	—
Loss from equity method investments		456				577				567				296				350				1,896				350				—
Equity method investments income (loss) (Non-GAAP)	$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

SOLAREDGE TECHNOLOGIES INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages)
	Three months ended																				Year ended
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
Net income (loss) (GAAP)	$	(287,439	)		$	(1,230,789	)		$	(130,818	)		$	(157,311	)		$	(162,383	)		$	(1,806,357	)		$	34,329			$	93,779
Revenues from finance component		(254	)			(250	)			(246	)			(234	)			(230	)			(984	)			(834	)			(614	)
Discontinued operation		29,468				(17	)			(757	)			(481	)			37,036				28,214				37,036				4,314
Stock-based compensation		24,432				36,642				38,571				37,606				34,930				137,251				149,945				145,539
Amortization of stock-based compensation capitalized in inventories		1,095				1,484				362				197				343				3,138				1,100				—
Amortization and depreciation of acquired assets		1,115				2,872				2,083				1,947				1,805				8,017				7,969				9,478
Restructuring charges		3,770				2,515				4,885				9,765				23,154				20,934				23,154				—
Assets impairment and disposal by abandonment		17,989				232,102				—				1,732				30,790				251,823				30,790				119,141
Loss (gain) from assets sales		1,910				1,827				951				1,058				172				5,746				(1,262	)			(2,603	)
Certain litigation and other contingencies		—				—				—				(399	)			1,786				(399	)			1,786				—
Acquisition costs		—				—				—				9				—				9				135				350
Non cash interest expense		3,920				3,785				3,636				3,536				3,422				14,877				12,703				9,954
Unrealized losses (gains)		—				—				—				—				—				—				—				119
Currency fluctuation related to lease standard		1,089				966				(1,523	)			(1,276	)			4,359				(744	)			(3,055	)			(11,187	)
Loss (gain) from sale of equity and debt investments		76				(1,072	)			(1,970	)			—				(291	)			(2,966	)			193				(8,008	)
Loss (gain) from business combination		—				—				(1,125	)			—				—				(1,125	)			—				—
Gain from the repurchase of convertible notes		—				—				(15,456	)			—				—				(15,456	)			—				—
Loss (gain) from impairment of private held companies		—				5,000				—				—				—				5,000				—				—
Income tax adjustment		(176	)			44,602				(357	)			(5,062	)			(27,699	)			39,007				(45,896	)			(9,067	)
equity method adjustments		456				577				567				296				350				1,896				350				—
Net income (loss) (Non-GAAP)	$	(202,549	)		$	(899,756	)		$	(101,197	)		$	(108,617	)		$	(52,456	)		$	(1,312,119	)		$	248,443			$	351,195

SOLAREDGE TECHNOLOGIES INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages)
	Three months ended																				Year ended
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
Net basic earnings (loss) per share (GAAP)	$	(5.00	)		$	(21.58	)		$	(2.31	)		$	(2.75	)		$	(2.85	)		$	(31.64	)		$	0.61			$	1.70
Revenues from finance component		(0.01	)			(0.01	)			0.00				(0.01	)			(0.01	)			(0.02	)			(0.02	)			(0.01	)
Discontinued operation		0.52				0.00				(0.02	)			(0.01	)			0.65				0.49				0.66				0.08
Stock-based compensation		0.42				0.65				0.69				0.66				0.62				2.41				2.65				2.64
Amortization of stock-based compensation capitalized in		0.02				0.02				0.00				0.01				0.00				0.05				0.02				—
Amortization and depreciation of acquired assets		0.02				0.05				0.04				0.03				0.04				0.14				0.14				0.17
Restructuring charges		0.07				0.05				0.08				0.17				0.40				0.37				0.41				—
Assets impairment and disposal by abandonment		0.31				4.07				—				0.03				0.54				4.41				0.54				2.17
Loss (gain) from assets sales		0.03				0.03				0.02				0.02				0.01				0.10				(0.02	)			(0.05	)
Certain litigation and other contingencies		—				—				—				(0.01	)			0.03				(0.01	)			0.03				—
Acquisition costs		—				—				—				0.00				—				0.00				0.00				0.01
Non cash interest expense		0.07				0.07				0.07				0.06				0.06				0.26				0.23				0.18
Unrealized losses (gains)		—				—				—				—				—				—				—				0.00
Currency fluctuation related to lease standard		0.02				0.01				(0.04	)			(0.02	)			0.07				(0.01	)			(0.06	)			(0.21	)
Loss (gain) from sale of equity and debt investments		0.00				(0.02	)			(0.03	)			0.00				0.00				(0.05	)			0.01				(0.14	)
Loss (gain) from business combination		—				—				(0.02	)			—				—				(0.02	)			—				—
Gain from the repurchase of convertible notes		—				—				(0.27	)			—				—				(0.27	)			—				—
Loss (gain) from impairment of private held companies		—				0.09				—				—				—				0.09				—				—
Income tax adjustment		0.00				0.78				(0.01	)			(0.09	)			(0.49	)			0.68				(0.81	)			(0.16	)
equity method adjustments		0.01				0.01				0.01				0.01				0.01				0.03				0.00				—
Net basic earnings (loss) per share (Non-GAAP)	$	(3.52	)		$	(15.78	)		$	(1.79	)		$	(1.90	)		$	(0.92	)		$	(22.99	)		$	4.39			$	6.38

SOLAREDGE TECHNOLOGIES INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages)
	Three months ended																				Year ended
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
Net diluted earnings (loss) per share (GAAP)	$	(5.00	)		$	(21.58	)		$	(2.31	)		$	(2.75	)		$	(2.85	)		$	(31.64	)		$	0.60			$	1.65
Revenues from finance component		(0.01	)			(0.01	)			0.00				(0.01	)			(0.01	)			(0.02	)			(0.01	)			(0.01	)
Discontinued operation		0.52				0.00				(0.02	)			(0.01	)			0.65				0.49				0.64				0.08
Stock-based compensation		0.42				0.65				0.69				0.66				0.62				2.41				2.57				2.43
Amortization of stock-based compensation capitalized in inventories		0.02				0.02				0.00				0.01				0.00				0.05				0.02				—
Amortization and depreciation of acquired assets		0.02				0.05				0.04				0.03				0.04				0.14				0.14				0.16
Restructuring charges		0.07				0.05				0.08				0.17				0.40				0.37				0.40				—
Assets impairment and disposal by abandonment		0.31				4.07				—				0.03				0.54				4.41				0.53				2.02
Loss (gain) from assets sales		0.03				0.03				0.02				0.02				0.01				0.10				(0.02	)			(0.04	)
Certain litigation and other contingencies		—				—				—				(0.01	)			0.03				(0.01	)			0.03				—
Acquisition costs		—				—				—				0.00				—				0.00				0.00				0.00
Non cash interest expense		0.07				0.07				0.07				0.06				0.06				0.26				0.03				0.13
Unrealized losses (gains)		—				—				—				—				—				—				—				0.00
Currency fluctuation related to lease standard		0.02				0.01				(0.04	)			(0.02	)			0.07				(0.01	)			(0.05	)			(0.19	)
Loss (gain) from sale of equity and debt investments		0.00				(0.02	)			(0.03	)			—				0.00				(0.05	)			0.00				(0.13	)
Loss (gain) from business combination		—				—				(0.02	)			—				—				(0.02	)			—				—
Gain from the repurchase of convertible notes		—				—				(0.27	)			—				—				(0.27	)			—				—
Loss (gain) from impairment of private held companies		—				0.09				—				—				—				0.09				—				—
Income tax adjustment		0.00				0.78				(0.01	)			(0.09	)			(0.49	)			0.68				(0.76	)			(0.15	)
equity method adjustments		0.01				0.01				0.01				0.01				0.01				0.03				0.00				—
Net diluted earnings (loss) per share (Non-GAAP)	$	(3.52	)		$	(15.78	)		$	(1.79	)		$	(1.90	)		$	(0.92	)		$	(22.99	)		$	4.12			$	5.95
Number of shares used in computing net diluted earnings (loss) per share (GAAP)		57,467,946				57,029,983				56,687,006				57,140,126				56,916,831				57,082,182				57,237,518				58,100,649
Stock-based compensation		—				—				—				—				—				—				725,859				963,373
Notes due 2025		—				—				—				—				—				—				2,276,818				—
Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP)		57,467,946				57,029,983				56,687,006				57,140,126				56,916,831				57,082,182				60,240,195				59,064,022

	Three months ended																				Year ended
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
Net cash provided by (used in) operating activities (GAAP)	$	37,804			$	(89,332	)		$	(44,772	)		$	(217,019	)		$	(139,910	)		$	(313,319	)		$	(180,113	)		$	31,284
Purchases of property and equipment		(12,258	)			(47,370	)			(22,188	)			(26,347	)			(40,501	)			(108,163	)			(170,523	)			(169,341	)
Free cash flow (deficit) (Non-GAAP)	$	25,546			$	(136,702	)		$	(66,960	)		$	(243,366	)		$	(180,411	)		$	(421,482	)		$	(350,636	)		$	(138,057	)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250219900153/en/

Investor Contacts

SolarEdge Technologies, Inc.

JB Lowe, Head of Investor Relations

investors@solaredge.com

Sapphire Investor Relations, LLC

Erica Mannion or Michael Funari

investors@solaredge.com

Source: SolarEdge Technologies, Inc.

FAQ

What was SolarEdge's (SEDG) revenue in Q4 2024?

SolarEdge reported Q4 2024 revenues of $196.2 million, representing a 17% decrease from $235.4 million in Q3 2024.

How much did SEDG write down in asset impairments for Q4 2024?

SolarEdge recorded asset write-downs and impairments totaling $138 million in Q4 2024.

What is SEDG's revenue guidance for Q1 2025?

SolarEdge provided Q1 2025 revenue guidance of $195 million to $215 million.

How many megawatts of inverters did SEDG ship in 2024?

SolarEdge shipped 3,563 MW (AC) of inverters in full-year 2024.

What was SEDG's free cash flow in Q4 2024?

SolarEdge generated positive free cash flow of $25.5 million in Q4 2024, compared to a deficit of $136.7 million in the prior year.