"Solaredge Technologies, Inc. (NASDAQ: SEDG) has released its financial results for the fourth quarter and full year ended December 31, 2024. The company reported revenues of $196.2 million for the fourth quarter, representing a 17% decrease from the prior quarter's $235.4 million. Revenues from the solar segment were $189.0 million, down 15% from the previous quarter's $222.1 million.
The company's GAAP gross margin for the fourth quarter was negative 57.2%, an improvement from the prior quarter's negative 309.1%. Non-GAAP gross margin also improved to negative 39.5% from negative 305.0% in the prior quarter.
GAAP operating expenses were $151.4 million, down from $382.91 million in the prior quarter. GAAP operating loss was $263.7 million, a significant improvement from the prior quarter's $1.111 billion. Non-GAAP operating loss also decreased to $184.1 million from $833.61 million in the prior quarter.
For the full year 2024, Solaredge reported total revenues of $901.5 million, down from $2.98 billion in the prior year. Revenues from the solar segment were $842.4 million, compared to $2.82 billion in the prior year.
The company's GAAP gross margin for the full year was negative 97.3%, a decrease from the prior year's 23.6%. Non-GAAP gross margin also declined to negative 89.7% from 26.7% in the prior year.
GAAP operating expenses for the full year were $831.1 million, up from $663.61 million in the prior year. GAAP operating loss was $1.71 billion, a significant drop from the prior year's operating income of $40.21 million. Non-GAAP operating loss also decreased to $1.25 billion from non-GAAP operating income of $290.0 million in the prior year.
Solaredge's net loss for the full year was $1.81 billion on a GAAP basis and $1.31 billion on a non-GAAP basis, compared to a GAAP net income of $34.31 million and non-GAAP net income of $248.4 million in the prior year.
The company's cash provided by operating activities for the fourth quarter was $37.8 million, compared with $89.4 million used in the prior quarter. Free cash flow generated was $25.5 million, an improvement from the prior quarter's free cash flow deficit of $136.7 million.
As of December 31, 2024, Solaredge's cash, cash equivalents, restricted cash, bank deposits, restricted bank deposits, and marketable securities totaled $81.8 million, net of debt, compared to $51.3 million as of September 30, 2024.
Looking ahead, the company expects first quarter 2025 revenues to be within the range of $195 million to $215 million, with non-GAAP gross margin expected to be within the range of 6% to 10% and non-GAAP operating expenses to be within the range of $98 million to $103 million." As a result of these announcements, the company's shares have moved 21.6% on the market, and are now trading at a price of $20.58. If you want to know more, read the company's complete 8-K report here.
