Solar Market

SolarEdge Continues Its Upward Momentum

Posted on by Techtime

SolarEdge is reporting a particularly strong second quarter for 2025, showing significant recovery across nearly all operational and financial indicators. Revenue reached $289.4 million, a sharp 32% increase compared to the previous quarter. This marks the second consecutive quarter of both quarterly and year-over-year growth, signaling a clear trend of stabilization following a prolonged downturn. The company’s stock responded positively, posting modest gains in pre-market Nasdaq trading.

Profit margins are also showing signs of recovery. GAAP gross margin reached 11.1%, up from 8% last quarter. On a Non-GAAP basis, margins rose to 13.1% from 7.8%. The improvement is attributed to higher sales volume and operational efficiency measures, although new U.S. tariffs continue to weigh slightly on profitability, reducing margins by approximately one percentage point.

The company also reported a notable improvement in its cash position. Net cash, after subtracting debt, stood at approximately $132 million—an increase of $19 million from the end of 2024. This growth reflects prudent financial management, reduced inventory levels, and improved cash flow from operating activities.

Looking ahead, SolarEdge expects the positive trend to continue. The third-quarter revenue forecast stands between $315 million and $355 million. Non-GAAP gross margins are expected to expand further, reaching 15%–19%, even after accounting for a roughly two-percentage-point hit from tariffs.

CEO Shuki Nir expressed confidence in the company’s progress, stating:
“This is the second consecutive quarter in which we’ve demonstrated revenue growth—both sequentially and year-over-year—alongside improving profit margins. We are working diligently to bring SolarEdge back on track, and the numbers clearly show that our efforts are paying off.”

This latest report marks a new phase in SolarEdge’s recovery. With rising revenue, improved profitability, stronger cash flow, and an optimistic outlook for the next quarter, the company signals a return to growth momentum.