SolarEdge reports record revenues in Q2, expects decline in Q3

SolarEdge headquarters. Source: SolarEdge Technologies

Israel-based photovoltaic (PV) inverters supplier SolarEdge Technologies Inc (NASDAQ:SEDG) on Tuesday reported record revenues and record operating profit for the second quarter of 2023.

Revenues rose 5% quarter-over-quarter and 36% year-over-year to USD 991.3 million (EUR 903.6m) in the April-June period. GAAP operating profit reached USD 150.4 million, rising 4% from the preceding quarter and 318% from the same quarter of 2022. At USD 119.5 million, GAAP net profit showed a 14% decline over the previous quarter and a huge increase compared to the year-ago period.

Amounts in USD, except percentages	Q2 2023	Q1 2023	Q2 2022
Revenues	991.3m	943.9m	727.8m
- from the solar segment	947.4m	908.5m	687.6m
GAAP gross margin	32.0%	31.8%	25.1%
Non-GAAP gross margin	32.7%	32.6%	26.7%
GAAP operating profit	150.4m	144.2m	36m
Non-GAAP operating profit	191m	183.8m	84.7m
GAAP net profit	119.5m	138.4m	15.1m
Non-GAAP net profit	157.4m	174.5m	56.7m

Chief executive Zvi Lando said that the company had a strong performance in Europe in both the residential and commercial solar segments but the US residential solar market is experiencing some headwinds mainly related to higher interest rates. He added the company is navigating through this period by leveraging its geographic and multi-segment strengths in the solar markets.

SolarEdge guided for a revenue slowdown in the third quarter to a range of USD 880 million to USD 920 million. Non-GAAP gross margin is seen in the range of 28% to 31%, while Non-GAAP operating profit at between USD 115 million to USD 135 million.

(USD 1 = EUR 0.912)

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