Israel-based solar inverter manufacturer SolarEdge reported revenues of $196.21 million in the fourth quarter (Q4) of 2024, a 37.9% year-over-year (YoY) decline from $316 million. However, the revenue beat analysts’ expectations by $6.99 million.

The solar segment contributed $189 million in revenue, down from $282.4 million in the same quarter last year. Solar revenue from the U.S. was $114 million, Europe was $44.8 million, and the international solar market was $30.3 million.

SolarEdge recorded a net loss of $202.5 million in Q4 2024, compared to $52.5 million in Q4 2023.

The earnings (loss) per share (EPS) was $3.52, missing the analyst expectation by $1.86 and an increase from a loss of $0.92 per share in the same period the previous year.

The company also undertook an asset valuation analysis in Q4, leading to write-downs and impairments totaling $138 million.

It shipped 895 MW of inverters and 130 MWh of batteries during Q4. The total inverter shipment comprised systems of 384 MW capacity to the U.S., 231 MW to Europe, and 280 MW to the international markets. Approximately 63% of the total shipment was for commercial and utility, and 37% was for residential usage.

The average selling price (ASP) per watt, excluding battery shipments, was $0.208, up 2% from Q3. Increased pricing in the U.S. and a higher mix of shipments to the country more than offset the company’s price reductions and promotions in Europe and international markets.

SolarEdge’s blended ASP/kWh on all photovoltaic-attached batteries was $262 in Q4, down 21 % quarter-over-quarter (QoQ) from $317. Price reductions, promotions, and a higher mix of non-US shipments contributed significantly to this decrease.

The company’s Austin facility has increased its run rate capacity to over 70,000 inverters per quarter, and its Florida facility is expected to reach a run rate capacity of 2 million optimizers per quarter in Q1 2025.

Full Year 2024 Performance

SolarEdge posted a total revenue of $901.5 million in 2024, a 69.7% YoY decline from $2.98 billion. The solar segment generated $842.4 million in revenue, compared to $2.82 billion the previous year.

The company’s net loss for the year widened to $1.31 billion, compared to a net income of $248.4 million in 2023. Non-GAAP EPS for 2024 was at a loss of $22.99, compared to a gain of $4.39 per share in the previous year.

The company recorded write-downs and impairments totaling $1.17 billion during 2024. Gross margin fell to negative 89.7% from 26.7% in 2023.

Total shipments for 2024 included 3,563 MW of inverters and 576 MWh of batteries for photovoltaic applications.

The company’s sell-through for Q4 was approximately $400 million. In North America, its sell-through declined 17% QoQ. SolarEdge’s channel inventories remained primarily normalized. While there is additional uncertainty in the U.S. market due to potential policy changes, the long-term underlying fundamentals of the solar segment are healthy.

The European market remains challenging due to continued macro headwinds. The company expects most of its distribution partners to reach normalized inventory levels by the end of Q2 2025. Its sell-through in the region was roughly flat QoQ.

SolarEdge announced the closure of its energy storage business in Korea. In the future, the company will not report segments in its financial reporting.

Outlook for Q1 2025

SolarEdge expects its revenue to range between $195 million and $215 million in Q1 2025. Gross margin is expected to range between 6% and 10%. Non-GAAP operating expenses are expected to range from $98 million to $103 million.

The company is focusing on stabilizing its operations and improving cash flow. Shuki Nir, CEO, SolarEdge said, “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.”

SolarEdge‘s net loss increased by over 1877% YoY to $1.21 billion in the third quarter of 2024 from $61.18 million, impacted by impairment and inventory write-down of $1.03 billion.