SolarEdge Technologies Inc. reported significant declines in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, the company generated revenues of $260.9 million, a decrease of 64.0% from $725.3 million in Q3 2023. The nine-month revenue also fell by 72.5%, from $2.66 billion in 2023 to $730.7 million in 2024. This decline was primarily attributed to reduced sales of inverters and power optimizers, as well as the discontinuation of light commercial vehicle e-mobility activities.
The gross profit for Q3 2024 was a loss of $702.3 million, compared to a profit of $142.8 million in the same quarter of 2023. For the nine months, the gross loss was $739.5 million, contrasting sharply with a profit of $760.2 million in the prior year. The company's operating loss for Q3 2024 was $1.09 billion, significantly higher than the $16.7 million loss reported in Q3 2023. The nine-month operating loss also escalated to $1.42 billion from a profit of $277.8 million in 2023.
Net losses were substantial, with Q3 2024 reporting a net loss of $1.21 billion compared to a loss of $61.2 million in Q3 2023. For the nine months, the net loss reached $1.49 billion, a stark contrast to the net income of $196.7 million in the same period of 2023. The basic and diluted earnings per share for Q3 2024 were both $(21.13), compared to $(1.08) in Q3 2023.
The company’s total current assets decreased from $3.30 billion at the end of 2023 to $2.12 billion by September 30, 2024. Cash and cash equivalents also fell from $338.5 million to $303.9 million during the same period. Total liabilities and stockholders' equity dropped from $4.59 billion to $2.82 billion.
Strategically, SolarEdge has undergone significant restructuring, including a headcount reduction of approximately 16% and the discontinuation of its e-mobility activities. The company also completed the acquisition of Weev Energy B.F. Ltd. in April 2024, which is expected to enhance its capabilities in the energy sector. Additionally, the company has faced challenges due to ongoing geopolitical tensions, particularly in Israel, which have impacted operations and workforce availability.
The company’s financial difficulties were compounded by increased inventory write-downs, totaling $627.9 million for Q3 2024, primarily due to a slowdown in product demand. The impairment of long-lived assets and goodwill also contributed to the financial strain, with charges of $207.4 million and $2.3 million, respectively, recorded in Q3 2024.
About SOLAREDGE TECHNOLOGIES, INC.
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