SolarEdge’s FY 2025 Numbers Put Profitability Back Under the Microscope

SolarEdge Technologies (SEDG) closed FY 2025 with Q4 revenue of US$335.4 million and a basic EPS loss of US$2.21, alongside a quarterly net loss of US$132.1 million. On a trailing twelve month basis, revenue was US$1.18 billion with a net loss of US$405.4 million and basic EPS at a loss of US$6.88. Over recent quarters the company has seen revenue move from US$235.4 million in Q3 FY 2024 to US$196.2 million in Q4 FY 2024, then up to US$219.5 million in Q1 FY 2025, US$289.4 million in Q2, US$340.2 million in Q3 and US$335.4 million in Q4, with quarterly EPS losses ranging from US$0.84 to US$21.58 and quarterly net losses between US$50.1 million and US$1.23 billion. For investors, the latest print keeps the focus squarely on how quickly margins can repair from these loss levels and what that means for the long term earnings story.

See our full analysis for SolarEdge Technologies.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the widely held narratives around SolarEdge’s growth prospects and risk profile, and where the data starts to challenge those stories.

Losses Stay Heavy As TTM Net Income Hits US$405 Million

• On a trailing 12 month basis, SolarEdge booked revenue of US$1.18b and a net loss of US$405.4 million, compared with quarterly losses in FY 2025 that ranged from US$50.1 million in Q3 to US$132.1 million in Q4 on revenue between US$219.5 million and US$340.2 million.
• Bulls argue that analysts' projections of earnings growth of 83.44% per year and a move to profitability within three years line up with this revenue base, yet:
  • Five year losses have widened at an annualized 66.1% rate, so the path from a US$405.4 million trailing loss to positive earnings would require a sharp shift in how that US$1.18b in sales converts into profit.
  • The TTM Basic EPS loss of US$6.88 still reflects the earlier very large loss of about US$1.7b referenced in the narratives, so readers may want to compare the current loss level to those forecasts to see if the optimistic scenario matches the recent earnings run rate.

Have a closer look at how the bullish story stacks up against the current loss profile and the revenue base that needs to carry that turn to profit. 🐂 SolarEdge Technologies Bull Case

Valuation Tension: 2.1x P/S Versus DCF Fair Value Of US$21.62

• The data shows SolarEdge trading on a P/S of 2.1x, below the US Semiconductor industry average of 6.2x and a peer average of 2.6x, while a DCF fair value of US$21.62 sits well below the current share price of US$40.40.
• Consensus narrative highlights that analysts have a price target of US$33.71, supported by forecast revenue growth of 20.6% per year and profit margins moving from about negative 185.2% to 0.7%, yet:
  • The current market price is above both that US$33.71 target and the DCF fair value of US$21.62, so the relatively low P/S ratio is being weighed against models that point to lower values than where the stock is trading now.
  • With trailing 12 month revenue growth at 10.1% per year and the business still loss making, readers may want to think about whether the faster growth and margin lift in those forecasts feel in line with the earnings profile seen in FY 2025.

Quarterly Swings In Losses Challenge Bearish Margin Concerns

• Quarterly net losses moved from US$1.23b in Q3 FY 2024 to US$287.4 million in Q4 FY 2024, then to a range of US$50.1 million to US$132.1 million across FY 2025 on revenue between US$196.2 million and US$340.2 million.
• Bears point to pressure from tariffs, competition and policy risk as reasons margins could stay weak even if revenue grows at 9.2% per year as used in their scenario, but:
  • The step down from that earlier US$1.23b quarterly loss to FY 2025 losses that are in the tens or low hundreds of millions suggests recent results are being measured off a very stressed starting point, which matters when judging how persistent those margin pressures might be.
  • The bearish narrative also uses a scenario where profit margins eventually move toward the sector average of 14.1%, leading to US$172.8 million of earnings, so readers may want to compare that to the current quarterly loss band to see how conservative or aggressive that sounds relative to the latest filing.

Skeptics warn that even with smaller recent losses, the step from hundreds of millions in red ink to healthy margins is a big one, so it can help to read their full case alongside the raw numbers. 🐻 SolarEdge Technologies Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for SolarEdge Technologies on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of bullish and cautious signals feels conflicted, it is a good time to move fast and test the numbers yourself. You can then weigh the recent track record against 2 key rewards to see how those positives sit with your own view.

See What Else Is Out There

SolarEdge is still carrying heavy losses on a US$1.18b revenue base, with a TTM EPS loss of US$6.88 and valuation models that sit below the current share price.

If that mix of sizeable losses and valuation tension makes you cautious about paying up for this story, take a few minutes to scan 53 high quality undervalued stocks that combine more modest pricing with fundamentals you may find easier to underwrite.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.