SolarEdge stock stabilizes inventory levels, CEO confirms path to profitability

Published 11/08/2025, 15:54
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com - SolarEdge Technologies (NASDAQ:SEDG) has successfully stabilized inventory levels in its distribution channels and is working to reduce working capital without implementing further price actions, according to company executives. The company’s efforts come amid challenging market conditions, with revenue declining 37.8% in the last twelve months, though InvestingPro data shows the stock has demonstrated resilience with an 86.5% price return over the past six months.

SolarEdge CEO Shuki Nir and Investor Relations Head JB Lowe discussed these developments during investor meetings and a fireside chat at Oppenheimer’s 28th Annual Technology Conference, where Oppenheimer reiterated its Perform rating on the stock.

The solar technology company is leveraging its research and development efforts to achieve incremental manufacturing efficiency, particularly in the United States, which now represents approximately 60% of the company’s sales.

SolarEdge continues to experience notable strength in the commercial and industrial market and for its energy storage solutions, highlighting the importance of harmonizing solar and storage performance in dynamic rate environments for its customers.

The company maintains that sales volume will be a key factor in returning to profitability, while expressing confidence that its balance sheet is more than sufficient to support growth, reiterating expectations to achieve positive free cash flow in 2025.

In other recent news, SolarEdge Technologies reported second-quarter results that surpassed both top and bottom-line expectations. The company exceeded revenue forecasts by $37 million, driven by strong storage volumes and improved gross margins. Analysts from Goldman Sachs noted that SolarEdge’s guidance for the third quarter of 2025 indicates continued sequential growth in both revenue and margins. Additionally, Northland raised its price target for SolarEdge to $20.00, citing the company’s quarterly earnings results and third-quarter revenue guidance, which exceeded market expectations.

Oppenheimer maintained its Perform rating on SolarEdge, highlighting the company’s progress in normalizing channel inventory levels and guiding toward gross margin recovery in Q3 2025. Barclays (LON:BARC) reiterated an Equalweight rating with a $29.00 price target, emphasizing SolarEdge’s strong positioning in the U.S. commercial and industrial solar sector. Meanwhile, GLJ Research maintained a Hold rating, expressing caution that the revenue beat might be driven by temporary factors rather than organic demand growth. Despite these mixed outlooks, SolarEdge’s business operations show signs of recovery, as noted by multiple analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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