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.

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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).

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