SolarEdge slumps on Q2 loss as inverter shipments sink 80% from year ago

SolarEdge Technologies (NASDAQ:SEDG) -5.5% in Thursday’s trading after reporting a larger than expected Q2 adjusted loss and a 73% Y/Y decline in revenues, while reporting downside sales guidance for Q3.

Q2 GAAP net loss was $130.8M, or a net loss of $2.31/share, compared to a GAAP net loss of $157.3M in Q1, or a net loss of $2.75/share, and GAAP net income of $119.5M, or $2.03/share, in the year-earlier quarter.

SolarEdge (SEDG) said Q2 inverter shipments slumped to 873 MW from more than 4.3 GW in the year-earlier quarter.

SolarEdge (SEDG) issued guidance for Q3 revenues of $260M-$290M, well below the $357M analyst consensus estimate from FactSet, with non-GAAP gross margin in the range of negative 3% to positive 1%, including ~560 bps of net IRA manufacturing tax credit.

“While we expect undershipping to continue in the third quarter, we believe the momentum in our underlying business and the actions we are taking to gain market share and address new growth segments will enable a return to higher revenue levels once inventories are cleared in the first half of 2025,” CEO Zvi Lando said.