Israel-based solar inverter manufacturer SolarEdge reported a revenue of $289.4 million in the second quarter (Q2) of 2025, a 9.04% year-over-year (YoY) growth from $265.4 million. The results surpassed analysts’ expectations by $14.94 million.

SolarEdge recorded a one-time expense of $37 million related to a write-down of its Sella 2 facility and is planning to divest it. However, the one-time expense was partially offset by a one-time $10 million gain on the sale of its Nonsan production facility in Korea.

The company shipped 1,194 MW of inverters and 247 MWh of batteries during the quarter for solar applications.

SolarEdge reported a net loss of $47.7 million in Q2 2025, a 52.86% YoY improvement from a loss of $101.2 million.

Its earnings per share (EPS) came in at a loss of $0.81 in Q2 2025, compared to an EPS loss of $1.79 in the same quarter last year.

The EPS loss in Q2 2025 beat analysts’ expectations by $0.03.

In the first half of 2025, the company reported $508.91 million, an 8.32% rise from $469.8 million from the same period of last year.

Outlook

SolarEdge expects its revenue to range from $315 million to $355 million.

It said the U.S. One Big Beautiful Bill Act (OBBA) validates its multi-year push to onshore manufacturing in the U.S. as it preserves the 45X advanced manufacturing credit for seven years.

The company stated that with the improved visibility in policy, it intends to manufacture in the U.S. and ship its products to domestically and overseas markets in the coming years.

SolarEdge said that with the OBBA enactment, U.S. customers have a built-in incentive to prefer products that are made in-country, especially if they comply with foreign entity of concern requirements and meet domestic content thresholds.

It believes that the storage tax credit extension will accelerate battery adoption and help SolarEdge expand its addressable market.

Yehoshua Nir, CEO and Director at SolarEdge, also forecasted a drop in residential demand.

He added that while the elimination of the 25D residential credit in 2026 will likely reduce overall residential demand, this is expected to be partly offset by growth in the third-party ownership model supported by the ongoing 48E credit.

The companye xpects its gross margin headwinds to reduce to approximately 2% in the second half of the year, from prior expectations of 4% to 6%.

In its earnings call, SolarEdge announced a multiyear agreement with Solar Landscape to deploy the SolarEdge equipment on more than 500 commercial and industrial rooftops across the country.

It also signed a multiyear frame agreement with a leading U.S. retailer that will integrate SolarEdge’s products nationwide.

In its earnings call, SolarEdge said it is planning to expand its manufacturing capacity in Texas, Florida, and Utah, and it plans to ramp production further to serve both U.S. and international markets.

In Q1 2025, the company reported a revenue of $219.5 million, a 7% YoY increase from $204.4 million. The results surpassed analysts’ expectations by $15.2 million. The U.S. accounted for $132.1 million, or 62% of the total revenue. European markets contributed $47.4 million (22%), while international markets added $32.6 million (16%).