Revenue drop pushes SolarEdge into Q2 net loss

Israel-based photovoltaic (PV) inverters and batteries supplier SolarEdge Technologies Inc (NASDAQ:SEDG) on Wednesday reported a second-quarter net loss of USD 130.8 million (EUR 119.7m) after revenues experienced a 73% year-on-year drop due to high inventories.

The negative bottom line result compares with a profit of USD 119.5 million in the year-ago period and a deficit of USD 157.3 million in the preceding quarter. The company’s GAAP gross margin was a negative 4.1%, against a positive 32.0% in the second quarter of 2023.

At USD 265.4 million, revenues were significantly lower than in the year-ago period as revenues from the solar segment plunged by 75% to USD 241.2 million. Sequentially, revenues were 30% higher, with those in the solar segment rising by 27%.

Regardless of the year-on-year decrease in the top-line result, CEO Zvi Lando said he is encouraged by the sequential improvement of revenues in the second quarter. “While we expect undershipping to continue in the third quarter, we believe the momentum in our underlying business and the actions we are taking to gain market share and address new growth segments will enable a return to higher revenue levels once inventories are cleared in the first half of 2025,” he said.

SolarEdge shipped 873 MW of inverters and 128 MWh of batteries for photovoltaic (PV) applications in April-June.

For the third quarter, the Israeli company anticipates its revenues to range between USD 260 million and USD 290 million, with the solar segment seen to contribute some USD 245 million-280 million. Non-GAAP gross margin is forecast to stand between a negative 3% and a positive 1% and non-GAAP operating expenses are projected to fall within the USD 111 million-116 million range.

(USD 1.0 = EUR 0.915)

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