SolarEdge Technologies has released its latest 10-K report, providing insight into the company's financial performance and operations. The company, headquartered in Herzliya, Israel, specializes in designing, developing, manufacturing, and selling direct current (DC) optimized inverter systems for solar photovoltaic installations across various markets, including residential, commercial, and large-scale photovoltaic segments, energy storage, and backup solutions, electric vehicle charging capabilities, home energy management, grid services, and virtual power plants. In addition, the company also offers products in non-solar businesses such as lithium-ion cells, batteries, and energy storage systems. SolarEdge Technologies sells its products through solar installers and distributors, electrical equipment wholesalers, PV module manufacturers, and engineering, procurement, and construction firms.
In the year ended December 31, 2024, SolarEdge Technologies reported revenues of $901.5 million, a significant decrease from the $2,976.5 million recorded in 2023. The company experienced a gross loss of 97.3% in 2024, compared to a gross profit of 23.6% in 2023. Furthermore, the net loss for 2024 amounted to $1,806.4 million, a sharp contrast to the net income of $34.3 million in 2023. SolarEdge Technologies identified one reportable segment, the Solar segment, in the fourth quarter of 2024.
The company's performance measures include metrics related to shipments of inverters, power optimizers, and megawatts to evaluate sales performance and market acceptance of its products. In 2024, SolarEdge Technologies shipped 257,808 inverters, a decrease from 1,011,890 in 2023, and 6,975,739 power optimizers, down from 17,430,082 in 2023. The megawatts shipped also saw a decline, amounting to 3,563 in 2024 compared to 12,629 in 2023.
SolarEdge Technologies faced challenges in 2024, including a slowdown in demand for its products in the Solar segment, disruptions due to the war in Israel, and the impact of Ukraine's conflict on the energy landscape. The company also addressed the Inflation Reduction Act of 2022, which included provisions intended to accelerate U.S. manufacturing and adoption of clean energy, impacting its business and operations.
The company's cost of revenues primarily consists of product costs, shipping, customer support, and other fixed costs. SolarEdge Technologies announced the closure of its Energy Storage Division in November 2024, and it has been in the process of reducing its headcount to enhance operating efficiency. Additionally, the company made restructuring plans in response to challenging industry conditions, including reducing its manufacturing capacity and workforce.
SolarEdge Technologies' 10-K report provides a comprehensive overview of its financial performance, challenges faced, and measures taken to address market conditions and operational efficiency. The market has reacted to these announcements by moving the company's shares 2.1% to a price of $18.85. For the full picture, make sure to review SolarEdge Technologies's 10-K report.
