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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

The Top 5 Analyst Questions From SolarEdge’s Q1 Earnings Call

SEDG Cover Image

SolarEdge’s first quarter results for 2025 were met with a positive market reaction, as the company exceeded Wall Street’s revenue expectations and continued to show progress in its turnaround efforts. Management attributed the quarter’s performance to improved operational efficiency, increased shipments across both residential and commercial segments, and a focus on inventory reduction. CEO Shuki Nir highlighted that “we delivered quarter-over-quarter and year-over-year revenue growth,” while also noting expanded gross margins and ongoing cost control measures. The company also pointed to higher battery attach rates and growing participation in virtual power plant (VPP) programs as supporting factors.

Is now the time to buy SEDG? Find out in our full research report (it’s free).

SolarEdge (SEDG) Q1 CY2025 Highlights:

  • Revenue: $219.5 million vs analyst estimates of $204.5 million (7.4% year-on-year growth, 7.3% beat)
  • Adjusted EPS: -$1.14 vs analyst estimates of -$1.16 (1.7% beat)
  • Adjusted EBITDA: -$85.91 million vs analyst estimates of -$75.96 million (-39.1% margin, 13.1% miss)
  • Revenue Guidance for Q2 CY2025 is $275 million at the midpoint, above analyst estimates of $247.9 million
  • Operating Margin: -46.8%, up from -85% in the same quarter last year
  • Megawatts Shipped: 1,208, up 262 year on year
  • Market Capitalization: $1.39 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions SolarEdge’s Q1 Earnings Call

  • Christine Cho (Barclays): Asked about growth in commercial storage and tariff impacts; CEO Shuki Nir explained attach rates were rising globally, and that tariff effects would be mitigated by supply chain adjustments and U.S. manufacturing.
  • Colin Rusch (Oppenheimer): Questioned pricing strategy and inventory reduction pace; Nir responded that pricing would be based on value and market conditions, while inventory reductions would continue but without a specific target disclosed.
  • Philip Shen (Roth Capital Partners): Inquired about the duration of European pricing promotions and distributor dynamics; Nir said promotions would phase out as inventory normalizes and that SolarEdge treats both large and local distributors as strategic partners.
  • Brian Lee (Goldman Sachs): Pressed on lower average selling prices and U.S. battery supply strategy; Nir attributed ASP changes to mix and deferred revenue timing, while reiterating supply chain flexibility and focus on quality.
  • Vikram Bagri (Citi): Asked about OpEx targets and free cash flow outlook; CFO Asaf Alperovitz confirmed the company’s OpEx target range and stated that full-year free cash flow should be approximately breakeven, with ongoing focus on efficiency.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will be watching (1) the pace of supply chain diversification and the tangible impact of tariff mitigation efforts on gross margins, (2) the normalization of channel inventories in Europe and whether this enables margin recovery without aggressive pricing support, and (3) the uptake and commercial success of new products, including the Nexis platform and expanded energy storage solutions. Execution on these fronts will be critical for SolarEdge’s ability to stabilize and return to profitable growth.

SolarEdge currently trades at $23.49, up from $12.92 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

The Best Stocks for High-Quality Investors

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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