SolarEdge Technologies, Inc., a global leader in smart energy technology, has announced its financial results for the fourth quarter and the 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%, compared to negative 309.1% in the prior quarter.
- Non-GAAP gross margin was negative 39.5%, compared to negative 305.0% in the prior quarter.
- Gross margin from the solar segment was negative 38.8%, compared to negative 285.4% in the prior quarter.
- GAAP operating expenses were $151.4 million, compared to $382.9 million in the prior quarter.
- Non-GAAP operating expenses were $106.8 million, compared to $116.3 million in the prior quarter.
- GAAP operating loss was $263.7 million, compared to $1.11 billion in the prior quarter.
- Non-GAAP operating loss was $184.1 million, compared to $833.6 million in the prior quarter.
- GAAP net loss was $287.4 million, compared to $1.23 billion in the prior quarter.
- Non-GAAP net loss was $202.5 million, compared to $899.8 million in the prior quarter.
- GAAP net loss per share was $5.00, compared to a GAAP net loss per share of $21.58 in the prior quarter.
- Non-GAAP net loss per share was $3.52, compared to a Non-GAAP net loss per share of $15.78 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 flow generated was $25.5 million, compared with a free cash flow deficit of $136.7 in the prior quarter.
- 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%, compared to 23.6% in the prior year.
- Non-GAAP gross margin was negative 89.7%, compared to 26.7% in the prior year.
- Gross margin from the solar segment was negative 84.4%, compared to 29.2% in the prior year.
- GAAP operating expenses were $831.1 million, compared to $663.6 million in the prior year.
- Non-GAAP operating expenses were $447.1 million, compared to $503.1 million in the prior year.
- GAAP operating loss was $1.71 billion, compared to a GAAP operating income of $40.2 million in the prior year.
- Non-GAAP operating loss was $1.25 billion, compared to Non-GAAP operating income of $290.0 million in the prior year.
- GAAP net loss was $1.81 billion, compared to GAAP net income of $34.3 million in the prior year.
- Non-GAAP net loss was $1.31 billion, compared to Non-GAAP net income of $248.4 million in the prior year.
- GAAP net loss per share was $31.6, compared to GAAP earnings per share of $0.61 in the prior year.
- Non-GAAP net loss per share was $22.99, 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 flow deficit was $421.5 million, compared with a free cash flow deficit of $350.6 in the prior year.
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 SolarEdge’s Energy Storage business in Korea, going forward the company will not report segments in its financial reporting.
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