Solaredge Technologies (NASDAQ: SEDG) stock soared 16% on Wednesday following the release of its fourth-quarter 2024 financial results. While the smart energy technology company reported a larger-than-expected loss, its revenue beat analysts’ expectations.
The Israel-based company posted a non-GAAP net loss of $3.52 per share for the quarter, significantly worse than the analyst forecast of a $1.66 loss per share. However, revenue totaled $196.2 million, slightly beating the $194.95 million consensus estimate. However, it was down 17% from the $235.4 million recorded in the previous quarter.
During the quarter, Solaredge shipped 895 MW (AC) of inverters and 130 MWh of batteries for photovoltaic (PV) applications. Revenue from its solar segment dropped 15% quarter-over-quarter to $189.0 million.
CEO Shuki Nir expressed optimism about the company’s future, saying,
“There are exciting opportunities ahead for SolarEdge. 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 2025.”
For Q1 2025, Solaredge (NASDAQ: SEDG) forecasts revenue to range between $195 million and $215 million, slightly below the analyst consensus of $207.9 million. The company also expects a non-GAAP gross margin of 6% to 10% and operating expenses ranging from $98 million to $103 million.
The fourth quarter results included a $138 million write-down and impairment of various assets, weighing on GAAP and non-GAAP figures. However, SolarEdge posted a positive free cash flow of $25.5 million for the quarter, a significant improvement compared to a deficit of $136.7 million in the same period last year.
