SolarEdge Reports Strong Revenue Growth Despite Rating Downgrade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 06 2024
0mins
Should l Buy SEDG?
Source: SeekingAlpha
SolarEdge Technologies Inc. saw its stock price drop by 5.98% as it crossed below the 5-day SMA, despite positive market conditions with the Nasdaq-100 up 1.24% and the S&P 500 up 0.85%.
The company reported a 31% revenue growth for 2025, reaching $1.184 billion, alongside a significant recovery in gross margins to 16.6%. However, analysts downgraded the stock to 'Hold' due to concerns over margins not returning to historical levels, which may affect investor confidence. This rating change comes despite the company's strong earnings performance and optimistic outlook for future growth, indicating a potential disconnect between market performance and analyst sentiment.
The implications of this downgrade could lead to increased scrutiny from investors, as SolarEdge aims to navigate competitive pressures in the solar market while focusing on profitability and market share expansion.
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Analyst Views on SEDG
Wall Street analysts forecast SEDG stock price to fall
18 Analyst Rating
1 Buy
12 Hold
5 Sell
Hold
Current: 37.130
Low
6.90
Averages
32.56
High
44.00
Current: 37.130
Low
6.90
Averages
32.56
High
44.00
About SEDG
SolarEdge Technologies, Inc. offers an inverter solution for a solar photovoltaic (PV) system. The Company's products include SolarEdge Power Optimizer, SolarEdge Inverter, StorEdge Solutions and SolarEdge Monitoring Software. Its product roadmap consists of categories, including power optimizers, inverters, monitoring services, energy storage and smart energy management. The Company's power optimizers provide module-level maximum power point (MPP) tracking and real-time adjustments of current and voltage to the optimal working point of each individual PV module. The Company's solution consists of a direct current (DC) power optimizer, an inverter and a cloud-based monitoring platform that operates as a single integrated system.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SolarEdge Technologies Optimistic Outlook Amidst Rating Downgrade
- Earnings Beat: SolarEdge Technologies reported earnings that exceeded market expectations, with both revenue and profit surpassing analyst forecasts, demonstrating the company's resilience and growth potential in a competitive solar market.
- Future Outlook: The company has initiated its Q1 2023 outlook, expecting to maintain a growth trajectory, reflecting management's confidence in future market demand despite facing cost pressures.
- Rating Downgrade: Despite the strong performance, analysts have downgraded SolarEdge's rating to 'Hold' primarily due to margins not recovering to historical levels, which may impact investor confidence.
- Intensifying Competition: In the context of increasing competition in the solar industry, SolarEdge must implement effective measures to improve margins to maintain its market share and attract investor interest.
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SolarEdge Q4 Earnings Beat Expectations with Strong Revenue Growth
- Earnings Highlights: SolarEdge reported a Q4 non-GAAP EPS of -$0.14, beating expectations by $0.09, with revenue of $335.36 million reflecting a robust 70.9% year-over-year growth, indicating strong performance in the photovoltaic market.
- Revenue Breakdown: The quarter recognized approximately 98.8 thousand inverters, 2.87 million optimizers, and 280 MWh of batteries, despite not including significant one-time revenue, demonstrating stability in product delivery.
- Margin Improvement: The non-GAAP gross margin increased to 23.3% from 18.8% in the previous quarter, reflecting enhanced cost control and operational efficiency, which may lay the groundwork for future profitability.
- Strong Cash Flow: Operating cash flow reached $52.6 million, significantly up from $25.6 million in the prior quarter, while free cash flow was $43.3 million, indicating improved financial health and potential for future investments.
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SolarEdge Reports 31% Revenue Growth in 2025 Financial Results
- Significant Revenue Growth: SolarEdge reported total revenues of $1.184 billion for 2025, marking a 31% year-over-year increase, which underscores the strong market demand for its smart energy technology and solidifies its market position.
- Margin Improvement: The GAAP gross margin for 2025 was 16.6%, a substantial recovery from the negative 97.3% in 2024, indicating significant progress in cost control and operational efficiency, thereby enhancing profitability.
- Positive Free Cash Flow: The company generated $76.9 million in free cash flow for 2025, a dramatic turnaround from the negative $421.5 million in 2024, reflecting its efforts to restore financial health and enhance future investment capacity.
- Positive Outlook: SolarEdge plans to focus on profitable growth and market share expansion in 2026, aiming to drive transformation through the rollout of the SolarEdge Nexis platform and investments in high-growth areas like AI data center power.
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Retail Giants Earnings Season Nears Conclusion
- Earnings Calendar: This week, several retail, energy, and tech giants are set to report earnings, with investors particularly focused on Medtronic, Energy Transfer, and HIVE, while Carvana's Q4 results are due after Wednesday's close.
- Carvana Earnings Expectations: Analysts forecast Carvana to report earnings of $1.10 per share on revenue of $5.26 billion, with strong year-over-year growth in retail units and gross profit per unit, although investor concerns linger over a recent short-seller report alleging accounting irregularities.
- Walmart Earnings Focus: Walmart is expected to report earnings on Thursday, with estimates of $0.72 per share and revenue of $190.24 billion, as investors will closely monitor the growth of high-margin segments and commentary on consumer health.
- Opendoor Earnings Outlook: Opendoor is set to release its Q4 results after Thursday's close, with investors looking for updates on its turnaround plans and progress towards profitability by 2026, particularly regarding improvements in gross margins and the success of its AI-driven “capital-light” platform.
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Sunrun Customer Participation Surges Fivefold
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- Enhanced Dispatchable Capacity: The company expects to have 10 gigawatt-hours of dispatchable capacity online by the end of 2028, with recent dispatches of 18 gigawatt-hours capable of powering 15 million homes for one hour, showcasing its ability to meet surging electricity demand.
- Strong Stock Performance: Sunrun's shares jumped over 12% on Wednesday, marking its best session in nearly four months, reflecting investor optimism about the company's power plant programs, with the stock up nearly 13% year-to-date.
- Rising Market Demand: As electricity demand driven by AI and extreme weather increases, Sunrun's 17 programs leverage 217,000 home battery systems to support the grid during critical hours, effectively reducing energy costs for all ratepayers.
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- Significant Stock Surge: Enphase Energy's shares jumped over 21% in after-hours trading, positioning the stock for its best single-day performance since October 2021, indicating strong market confidence in its outlook.
- Positive Market Response: Despite a more than 50% decline in 2025, Enphase continues to see steady demand in markets like California, and is expected to benefit from rising demand for its IQ Batteries, further solidifying its market position.
- Optimistic Analyst Ratings: According to Koyfin, Enphase Energy has a consensus rating of 'Buy', with 8 out of 32 analysts rating it 'Buy' or higher, reflecting a positive outlook for its future growth potential.
- Retail Sentiment Shift: On Stocktwits, retail sentiment for Enphase Energy shifted from 'bearish' to 'extremely bullish', with message volumes surging by 1,116%, showcasing strong investor confidence and positive reactions to the company's prospects.
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SolarEdge Technologies Optimistic Outlook Amidst Rating Downgrade
- Earnings Beat: SolarEdge Technologies reported earnings that exceeded market expectations, with both revenue and profit surpassing analyst forecasts, demonstrating the company's resilience and growth potential in a competitive solar market.
- Future Outlook: The company has initiated its Q1 2023 outlook, expecting to maintain a growth trajectory, reflecting management's confidence in future market demand despite facing cost pressures.
- Rating Downgrade: Despite the strong performance, analysts have downgraded SolarEdge's rating to 'Hold' primarily due to margins not recovering to historical levels, which may impact investor confidence.
- Intensifying Competition: In the context of increasing competition in the solar industry, SolarEdge must implement effective measures to improve margins to maintain its market share and attract investor interest.
See More
SolarEdge Q4 Earnings Beat Expectations with Strong Revenue Growth
- Earnings Highlights: SolarEdge reported a Q4 non-GAAP EPS of -$0.14, beating expectations by $0.09, with revenue of $335.36 million reflecting a robust 70.9% year-over-year growth, indicating strong performance in the photovoltaic market.
- Revenue Breakdown: The quarter recognized approximately 98.8 thousand inverters, 2.87 million optimizers, and 280 MWh of batteries, despite not including significant one-time revenue, demonstrating stability in product delivery.
- Margin Improvement: The non-GAAP gross margin increased to 23.3% from 18.8% in the previous quarter, reflecting enhanced cost control and operational efficiency, which may lay the groundwork for future profitability.
- Strong Cash Flow: Operating cash flow reached $52.6 million, significantly up from $25.6 million in the prior quarter, while free cash flow was $43.3 million, indicating improved financial health and potential for future investments.
See More
SolarEdge Reports 31% Revenue Growth in 2025 Financial Results
- Significant Revenue Growth: SolarEdge reported total revenues of $1.184 billion for 2025, marking a 31% year-over-year increase, which underscores the strong market demand for its smart energy technology and solidifies its market position.
- Margin Improvement: The GAAP gross margin for 2025 was 16.6%, a substantial recovery from the negative 97.3% in 2024, indicating significant progress in cost control and operational efficiency, thereby enhancing profitability.
- Positive Free Cash Flow: The company generated $76.9 million in free cash flow for 2025, a dramatic turnaround from the negative $421.5 million in 2024, reflecting its efforts to restore financial health and enhance future investment capacity.
- Positive Outlook: SolarEdge plans to focus on profitable growth and market share expansion in 2026, aiming to drive transformation through the rollout of the SolarEdge Nexis platform and investments in high-growth areas like AI data center power.
See More
Retail Giants Earnings Season Nears Conclusion
- Earnings Calendar: This week, several retail, energy, and tech giants are set to report earnings, with investors particularly focused on Medtronic, Energy Transfer, and HIVE, while Carvana's Q4 results are due after Wednesday's close.
- Carvana Earnings Expectations: Analysts forecast Carvana to report earnings of $1.10 per share on revenue of $5.26 billion, with strong year-over-year growth in retail units and gross profit per unit, although investor concerns linger over a recent short-seller report alleging accounting irregularities.
- Walmart Earnings Focus: Walmart is expected to report earnings on Thursday, with estimates of $0.72 per share and revenue of $190.24 billion, as investors will closely monitor the growth of high-margin segments and commentary on consumer health.
- Opendoor Earnings Outlook: Opendoor is set to release its Q4 results after Thursday's close, with investors looking for updates on its turnaround plans and progress towards profitability by 2026, particularly regarding improvements in gross margins and the success of its AI-driven “capital-light” platform.
See More
Sunrun Customer Participation Surges Fivefold
- Surge in Customer Participation: Sunrun reported that customer participation in its distributed power plant programs for 2025 exceeded 106,000, increasing nearly fivefold from last year, indicating strong demand for home battery storage and solar solutions, thereby solidifying its market position.
- Enhanced Dispatchable Capacity: The company expects to have 10 gigawatt-hours of dispatchable capacity online by the end of 2028, with recent dispatches of 18 gigawatt-hours capable of powering 15 million homes for one hour, showcasing its ability to meet surging electricity demand.
- Strong Stock Performance: Sunrun's shares jumped over 12% on Wednesday, marking its best session in nearly four months, reflecting investor optimism about the company's power plant programs, with the stock up nearly 13% year-to-date.
- Rising Market Demand: As electricity demand driven by AI and extreme weather increases, Sunrun's 17 programs leverage 217,000 home battery systems to support the grid during critical hours, effectively reducing energy costs for all ratepayers.
See More
Enphase Energy Shares Surge 21% in After-Hours Trading
- Significant Stock Surge: Enphase Energy's shares jumped over 21% in after-hours trading, positioning the stock for its best single-day performance since October 2021, indicating strong market confidence in its outlook.
- Positive Market Response: Despite a more than 50% decline in 2025, Enphase continues to see steady demand in markets like California, and is expected to benefit from rising demand for its IQ Batteries, further solidifying its market position.
- Optimistic Analyst Ratings: According to Koyfin, Enphase Energy has a consensus rating of 'Buy', with 8 out of 32 analysts rating it 'Buy' or higher, reflecting a positive outlook for its future growth potential.
- Retail Sentiment Shift: On Stocktwits, retail sentiment for Enphase Energy shifted from 'bearish' to 'extremely bullish', with message volumes surging by 1,116%, showcasing strong investor confidence and positive reactions to the company's prospects.
See More
