UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported):  November 6, 2024
 

 
SOLAREDGE TECHNOLOGIES, INC
(Exact name of registrant as specified in its charter)
 

 
Delaware
 
001-36894
 
20-5338862
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
1 Hamada Street, Herziliya Pituach, Israel
 
4673335
(Address of Principal executive offices)
 
(Zip Code)

Registrant’s Telephone number, including area code: 972 (9) 957-6620

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.0001 per share
SEDG
NASDAQ (Global Select Market)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below):
 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 240.12b-2 of this chapter).

Emerging growth company         
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.          
 

Item 2.02.    Results of Operations and Financial Condition.

On November 6, 2024, SolarEdge Technologies, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, this information, including the exhibits hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall such information, including the exhibits hereto be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits

Exhibit No.
Description
104
Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
SOLAREDGE TECHNOLOGIES, INC.
   
Date: November 6, 2024
By:      /s/Ariel Porat
 
Name: Ariel Porat
Title:   Chief Financial Officer



Exhibit 99.1



SolarEdge Announces Third Quarter 2024 Financial Results
 
MILPITAS, Calif. — November 6, 2024. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the third quarter ended September 30, 2024.
 
Third Quarter 2024 Highlights
 

Revenues of $260.9 million

Revenues from solar segment of $247.5 million

GAAP gross margin of negative 269.2%1

Non-GAAP gross margin2 of negative 265.4%1

Gross margin from solar segment of negative 245.8%1

GAAP operating loss of negative $1.09 billion1

Non-GAAP operating loss2 of $808.1 million1

GAAP net loss of negative $1.21 billion1

Non-GAAP net loss2 of negative $874.3 million1

GAAP net loss per share of negative $21.11

Non-GAAP net loss2 per share of $15.31

Impairment and write downs of $1.03 billion

850 Megawatts (AC) of inverters shipped

189 MWh of batteries for PV applications shipped
 
“As SolarEdge weathers this difficult period in the Company’s history, we are diligently pursuing three main priorities: financial stability, recapturing market share and refocusing on our core solar and storage opportunities,” said Ronen Faier, Interim Chief Executive Officer of SolarEdge. “We are grateful for our passionate and dedicated workforce and proud of our leadership in technological innovation, all of which I am confident will put the Company back on a profitable growth trajectory.”

Third Quarter 2024 Summary
 
The Company reported revenues of $260.9 million, down 2% from $265.4 million in the prior quarter and down 64% from $725.3 million in the same quarter last year.
 
Revenues from the solar segment were $247.5 million, up 3% from $241.2 million in the prior quarter and down 63% from $676.9 million in the same quarter last year.
 
GAAP gross margin was negative 269.2%1, compared to negative 4.1% in the prior quarter and compared to 19.7% in the same quarter last year.
 

 
Non-GAAP gross margin2 was negative 265.4%1, compared to non-GAAP gross margin of 0.2% in the prior quarter and compared to 20.8% in the same quarter last year.
 
Gross margin from the solar segment was negative 245.8%1, compared to 1.3% in the prior quarter and compared to 24.0% in the same quarter last year.
 
GAAP operating expenses were $382.9 million1, compared to $149.2 million in the prior quarter and $159.5 million in the same quarter last year.
 
Non-GAAP operating expenses2 were $116.3 million, up 1% from $114.8 million in the prior quarter and down 9% from $128.0 million in the same quarter last year.
 
GAAP operating loss was $1.09 billion1, compared to a GAAP operating loss of $160.2 million in the prior quarter and a GAAP operating loss of $16.7 million in the same quarter last year.
 
Non-GAAP operating loss2 was $808.1 million1, compared to a Non-GAAP operating loss of $114.3 million in the prior quarter and Non-GAAP operating income of $23.1 million in the same quarter last year.
 
GAAP net loss was $1.21 billion1, compared to a GAAP net loss of $130.8 million in the prior quarter and compared to a GAAP net loss of $61.2 million in the same quarter last year.
 
Non-GAAP net loss2 was $874.3 million1, compared to a Non-GAAP net loss of $101.2 million in the prior quarter and compared to a Non-GAAP net loss of $31.0 million in the same quarter last year.
 
GAAP net loss per share was $21.131, compared to a GAAP net loss per share of $2.31 in the prior quarter and compared to GAAP net loss per share of $1.08 in the same quarter last year.
 
Non-GAAP net loss per share2 was $15.331, compared to a Non-GAAP net loss per share of $1.79 in the prior quarter and compared to a Non-GAAP net loss of $0.55 in the same quarter last year.
 
Cash used in operating activities was $63.9 million, compared with $44.8 million used in operating activities in the prior quarter and $40.6 million generated from operating activities in the same quarter last year.
 
As of September 30, 2024, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $53.3 million, net of debt, compared to $165.3 million as of June 30, 2024.
 
Impairment
 
During the third quarter, SolarEdge undertook an asset valuation analysis which resulted in a write down and impairment of various assets. In total, the write down and impairment amount was $1.03 billion.

______________________________________________________________________
1 Includes impairments and write offs. See financials and reconciliation for details.
2 Non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.

2

 
Outlook for the Fourth Quarter 2024
 
The Company also provides guidance for the fourth quarter ending December 31, 2024 as follows:


Revenues to be within the range of $180 million to $200 million;

Non-GAAP gross margin* expected to be within the range of negative 4% to 0%, including approximately 1,000 basis points of net IRA manufacturing tax credit;

Non-GAAP operating expenses* to be within the range of $103 million to $108 million;

Revenues from the solar segment to be within the range of $170 million to $190 million;

Gross margin from the solar segment expected to be within the range of 0% to 3% including approximately 1,050 basis points of net IRA manufacturing tax credit.
 
*Non-GAAP gross margin and Non-GAAP operating expenses are non-GAAP financial measures, and these forward-looking measures have not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures. Forward-looking estimates of Non-GAAP gross margin and Non-GAAP operating expenses are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.
 
Conference Call
 
The Company will host a conference call to discuss its results for the third quarter ended September 30, 2024 at 4:30 p.m. ET on Wednesday, November 6, 2024. The call will be available, live, to interested parties by dialing 800-343-4136. For international callers, please dial +1 203-518-9843. The Conference ID is SEDG.  To avoid a delay in connecting to the call, please dial in 10 minutes prior to the start time. A live webcast will also be available in the Investors Relations section of the Company’s website at: http://investors.solaredge.com
 
A replay of the webcast will be available in the Investor Relations section of the Company’s web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.

3


About SolarEdge
 
SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, and grid services solutions. SolarEdge is online at www.solaredge.com
 
Use of Non-GAAP Financial Measures
 
To provide investors and others with additional information regarding SolarEdge’s results, SolarEdge has disclosed in this earnings release the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating expenses, non-GAAP gross margin, non-GAAP net income (loss), and non-GAAP net earnings (loss) per share. SolarEdge has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure below. These non-GAAP financial measures differ from GAAP in that they exclude stock-based compensation, amortization and impairment of acquired intangible assets, restructuring and impairment charges, acquisition, disposition and other items, certain litigation and other contingencies, amortization of debt issuance cost, non-cash interest expense and non-cash revenue recognized from significant financing component, certain foreign currency exchange rates, gains and losses on investments, income and losses from equity method investments and discrete items that impacted our GAAP tax rate. Our non-GAAP financial measures also reflect the application of our non-GAAP tax rate.
 
SolarEdge’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, to calculate bonus payments and to evaluate SolarEdge’s financial performance, the performance of its individual functional groups and the ability of operations to generate cash. Management believes these non-GAAP financial measures reflect SolarEdge’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in SolarEdge’s business, as they exclude charges and gains that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating SolarEdge’s operating results and future prospects from the same perspective as management and in comparing financial results across accounting periods.
 
The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense that affect SolarEdge’s operations. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP and should not be considered measures of SolarEdge’s liquidity. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review SolarEdge’s financial information in its entirety and not rely on a single financial measure.
 
4


Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements contained in this press release contains may contain forward-looking statements that are based on our management’s expectations, estimates, projections, beliefs and assumptions in accordance with information currently available to our management. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements include information, among other things, concerning our possible or assumed future results of operations, future demands for solar energy solutions, business strategies, technology developments, new products and services, financing and investment plans; dividend policy; competitive position, industry and regulatory environment, general economic conditions; potential growth opportunities; cancellations and pushouts of existing backlog; installation rates; goodwill impairment; and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negatives of those terms.

Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on forward-looking statements.  Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this release. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to: future demand for renewable energy including solar energy solutions; our ability to forecast demand for our products accurately and to match production to such demand as well as our customers’ ability to forecast demand based on inventory levels; macroeconomic conditions in our domestic and international markets, as well as inflation concerns, rising interest rates,  and recessionary concerns; changes, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; changes in the U.S. trade environment; federal, state, and local regulations governing the electric utility industry with respect to solar energy; changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act; the retail price of electricity derived from the utility grid or alternative energy sources; interest rates and supply of capital in the global financial markets in general and in the solar market specifically; competition, including introductions of power optimizer, inverter and solar photovoltaic system monitoring products by our competitors; developments in alternative technologies or improvements in distributed solar energy generation; historic cyclicality of the solar industry and periodic downturns; product quality or performance problems in our products; shortages, delays, price changes, or cessation of operations or production affecting our suppliers of key components; our dependence upon a small number of outside contract manufacturers and limited or single source suppliers; capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components; delays, disruptions, and quality control problems in manufacturing; existing and future responses to and effects of pandemics, epidemics, or other health crises; disruption in our global supply chain and rising prices of oil and raw materials as a result of the conflict between Russia and Ukraine; our customers’ financial stability and our ability to retain customers; our ability to retain key personnel and attract additional qualified personnel; performance of distributors and large installers in selling our products; consolidation in the solar industry among our customers and distributors; our ability to manage effectively the growth of our organization and expansion into new markets and integration of acquired businesses; our ability to recognize expected benefits from restructuring plans; any unauthorized access to, disclosure, or theft of personal information or unauthorized access to our network or other similar cyber incidents; disruption to our business operations due to the evolving state of war in Israel and political conditions related to the Israeli government's plans to significantly reduce the Israeli Supreme Court's judicial oversight; our dependence on ocean transportation to timely deliver our products in a cost-effective manner; fluctuations in global currency exchange rates; the impact of evolving legal and regulatory requirements, including emerging environmental, social and governance requirements; changes to net metering policies or the reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; federal, state, and local regulations governing the electric utility industry with respect to solar energy; changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act; changes in the U.S. trade environment, including the imposition of import tariffs; business practices and regulatory compliance of our raw material suppliers; our ability to maintain our brand and to protect and defend our intellectual property; the impairment of our goodwill or other intangible assets; volatility of our stock price; our customers’ financial stability, creditworthiness, and debt leverage ratio; our ability to retain key personnel and attract additional qualified personnel; our ability to effectively design, launch, market, and sell new generations of our products and services; our ability to retain, and events affecting, our major customers; our ability to service our debt; future goodwill impairments; and the other factors set forth under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed on February 26, 2024, in subsequent Quarterly Reports on Form 10Q and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business. The preceding list is not intended to be an exhaustive list of all of our forward‐looking statements. You should not rely upon forward‐looking statements as predictions of future events. Although we believe that the expectations reflected in the forward‐looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward‐looking statements will be achieved or will occur. Statements in this press release speak only as of the date they were made. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or changes in its expectations or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

Investor Contacts
SolarEdge Technologies, Inc.
JB Lowe, Head of Investor Relations
investors@solaredge.com

Sapphire Investor Relations, LLC
Erica Mannion or Michael Funari
investors@solaredge.com

5


SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except per share data)

   
Three Months Ended
September 30,
   
Nine Months Ended
September 30,
 
   
2024
   
2023
   
2024
   
2023
 
   
Unaudited
   
Unaudited
 
Revenues
 
$
260,903
   
$
725,305
   
$
730,707
   
$
2,660,484
 
Cost of revenues
   
963,229
     
582,488
     
1,470,189
     
1,900,236
 
Gross profit (loss)
   
(702,326
)
   
142,817
     
(739,482
)
   
760,248
 
Operating expenses:
                               
Research and development
   
70,372
     
80,082
     
214,999
     
246,481
 
Sales and marketing
   
37,427
     
40,351
     
116,316
     
125,539
 
General and administrative
   
41,212
     
39,110
     
111,085
     
111,876
 
Other operating expense (income), net
   
233,929
     
     
237,271
     
(1,434
)
Total operating expenses
   
382,940
     
159,543
     
679,671
     
482,462
 
Operating income (loss)
   
(1,085,266
)
   
(16,726
)
   
(1,419,153
)
   
277,786
 
Financial income (expense), net
   
5,558
     
(7,901
)
   
(2,371
)
   
19,157
 
Other income (loss), net
   
(3,928
)
   
(484
)
   
14,623
     
(609
)
Income (loss) before income taxes
   
(1,083,636
)
   
(25,111
)
   
(1,406,901
)
   
296,334
 
Income taxes
   
(121,108
)
   
(36,065
)
   
(85,109
)
   
(99,622
)
Net loss from equity method investments
   
(577
)
   
     
(1,440
)
   
 
Net income (loss)
 
$
(1,205,321
)
 
$
(61,176
)
 
$
(1,493,450
)
 
$
196,712
 

6

SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)

   
September 30,
2024
   
December 31,
2023
 
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
303,904
   
$
338,468
 
Marketable securities
   
374,869
     
521,570
 
Trade receivables, net of allowances of $41,501 and $16,400, respectively
   
239,408
     
622,425
 
Inventories, net
   
798,383
     
1,443,449
 
Prepaid expenses and other current assets
   
401,551
     
378,394
 
Total current assets
   
2,118,115
     
3,304,306
 
LONG-TERM ASSETS:
               
   Marketable securities
   
56,041
     
407,825
 
   Deferred tax assets, net
   
     
80,912
 
   Property, plant and equipment, net
   
423,905
     
614,579
 
   Operating lease right-of-use assets, net
   
43,088
     
64,167
 
   Intangible assets, net
   
11,169
     
35,345
 
   Goodwill
   
51,875
     
42,996
 
   Other long-term assets
   
112,201
     
37,601
 
Total long-term assets
   
698,279
     
1,283,425
 
Total assets
   
2,816,394
     
4,587,731
 
 LIABILITIES AND STOCKHOLDERS’ EQUITY
               
CURRENT LIABILITIES:
               
Trade payables, net
 
$
94,730
   
$
386,471
 
Employees and payroll accruals
   
70,120
     
76,966
 
Warranty obligations
   
163,561
     
183,047
 
Deferred revenues and customers advances
   
27,367
     
40,836
 
Accrued expenses and other current liabilities
   
202,134
     
205,911
 
Convertible senior notes, net
   
345,900
     
 
Total current liabilities
   
903,812
     
893,231
 
LONG-TERM LIABILITIES:
               
Convertible senior notes, net
   
329,614
     
627,381
 
Warranty obligations
   
315,343
     
335,197
 
Deferred revenues
   
226,770
     
214,607
 
Finance lease liabilities
   
39,197
     
41,892
 
Operating lease liabilities
   
31,293
     
45,070
 
Other long-term liabilities
   
13,999
     
18,444
 
Total long-term liabilities
   
956,216
     
1,282,591
 
COMMITMENTS AND CONTINGENT LIABILITIES
               
STOCKHOLDERS’ EQUITY:
               
Common stock of $0.0001 par value - Authorized: 125,000,000 shares; issued: 57,935,436 shares at September 30, 2024 and 57,123,437 shares at December 31, 2023; outstanding: 57,182,072 shares at September 30, 2024 and 57,123,437 shares at December 31, 2023.
   
6
     
6
 
Additional paid-in capital
   
1,779,212
     
1,680,622
 
Treasury stock, at cost; 753,364 shares held
   
(50,315
)
   
 
Accumulated other comprehensive loss
   
(57,253
)
   
(46,885
)
Retained earnings (Accumulated deficit)
   
(715,284
)
   
778,166
 
Total stockholders’ equity
   
956,366
     
2,411,909
 
Total liabilities and stockholders’ equity
 
$
2,816,394
   
$
4,587,731
 

7

SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except per share data)

   
Nine Months Ended September 30,
 
   
2024
   
2023
 
Cash flows from operating activities:
           
Net income (loss)
 
$
(1,493,450
)
 
$
196,712
 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
               
Depreciation and amortization
   
47,215
     
42,019
 
Provision to write down inventories to net realizable value
   
638,966
     
20,674
 
Loss on impairment and disposal of property, plant and equipment
   
206,620
     
 
Stock-based compensation expenses
   
112,818
     
115,015
 
Impairment of goodwill and intangible assets
   
24,725
     
 
Deferred income taxes, net
   
79,831
     
(18,199
)
Gain from repurchasing of convertible notes
   
(15,455
)
   
 
Loss (gain) from exchange rate fluctuations
   
8,243
     
(8,170
)
Other items
   
10,299
     
6,915
 
Changes in assets and liabilities:
               
Trade receivables, net
   
379,214
     
(40,011
)
Inventories, net
   
15,858
     
(458,475
)
Prepaid expenses and other assets
   
(38,223
)
   
19,822
 
Operating lease right-of-use assets, net
   
12,286
     
12,323
 
Trade payables, net
   
(284,255
)
   
(53,996
)
Warranty obligations
   
(39,294
)
   
130,863
 
Deferred revenues and customers advances
   
1,253
     
18,580
 
Operating lease liabilities
   
(11,881
)
   
(11,945
)
Accrued expenses and other liabilities, net
   
19,574
     
(12,330
)
Net cash used in operating activities
   
(325,656
)
   
(40,203
)
Cash flows from investing activities:
               
Investment in available-for-sale marketable securities
   
(200,919
)
   
(214,516
)
Proceeds from maturities of available-for-sale marketable securities
   
632,866
     
191,810
 
Proceeds from sales of available-for-sale marketable securities
   
70,642
     
2,807
 
Purchase of property, plant and equipment
   
(95,905
)
   
(130,024
)
Business combinations, net of cash acquired
   
(10,417
)
   
(16,653
)
Purchase of intangible assets
   
(10,000
)
   
(10,600
)
Disbursements for loans receivables
   
(37,500
)
   
(13,000
)
Investment in privately-held companies
   
(25,742
)
   
(8,000
)
Other investing activities
   
(4,270
)
   
9,989
 
Net cash provided by (used in) investing activities
   
318,755
     
(188,187
)
Cash flows from financing activities:
               
Repurchase of common stock
   
(50,315
)
   
 
Partial repurchase of Notes 2025
   
(267,900
)
   
 
Proceeds from issuance of Notes 2029, net of issuance costs
   
329,214
     
 
Capped call transactions related to Notes 2029
   
(28,342
)
   
 
Tax withholding in connection with stock-based awards, net
   
(592
)
   
(9,267
)
Other financing activities
   
(1,938
)
   
(2,038
)
Net cash used in financing activities
   
(19,873
)
   
(11,305
)
Effect of exchange rate differences on cash and cash equivalents
   
(7,790
)
   
7,705
 
Decrease in cash and cash equivalents
   
(34,564
)
   
(231,990
)
Cash and cash equivalents at the beginning of the period
   
338,468
     
783,112
 
Cash and cash equivalents at the end of the period
 
$
303,904
   
$
551,122
 

8

SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)

   
Three months ended
   
Year ended
 
   
September 30,
2024
   
June 30,
2024
   
March 31,
2024
   
December 31,
2023
   
September 30,
2023
   
December 31,
2023
   
December 31,
2022
   
December 31,
2021
 
Gross profit (loss) (GAAP)
 
$
(702,326
)
 
$
(10,969
)
 
$
(26,187
)
 
$
(56,425
)
 
$
142,817
   
$
703,823
   
$
844,648
   
$
629,318
 
Revenues from finance component
   
(250
)
   
(246
)
   
(234
)
   
(230
)
   
(215
)
   
(834
)
   
(614
)
   
(418
)
Discontinued operation
   
(6
)
   
(757
)
   
(434
)
   
36,648
     
     
36,648
     
4,314
     
 
Stock-based compensation
   
6,039
     
6,218
     
5,968
     
5,468
     
5,882
     
23,200
     
21,818
     
18,743
 
Amortization of stock-based compensation capitalized in inventories
   
1,484
     
362
     
197
     
343
     
441
     
1,100
     
     
 
Amortization and depreciation of acquired asset
   
2,034
     
1,343
     
1,551
     
1,555
     
2,096
     
6,038
     
7,429
     
9,326
 
Restructuring charges
   
1,216
     
4,519
     
5,822
     
23,154
     
     
23,154
     
     
 
Gross profit (loss) (Non-GAAP)
 
$
(691,809
)
 
$
470
   
$
(13,317
)
 
$
10,513
   
$
151,021
   
$
793,129
   
$
877,595
   
$
656,969
 
                                                                 
Gross margin (loss) (GAAP)
   
(269.2
)%
   
(4.1
)%
   
(12.8
)%
   
(17.9
)%
   
19.7
%
   
23.6
%
   
27.2
%
   
32.0
%
Revenues from finance component
   
(0.1
)
   
0.0
     
(0.1
)
   
(0.1
)
   
0.0
     
0.0
     
0.0
     
0.0
 
Discontinued operation
   
0.0
     
(0.3
)
   
(0.2
)
   
11.6
     
     
1.2
     
0.1
     
 
Stock-based compensation
   
2.3
     
2.3
     
2.9
     
1.8
     
0.8
     
0.9
     
0.7
     
1.0
 
Amortization of stock-based compensation capitalized in inventories
   
0.6
     
0.1
     
0.1
     
0.1
     
0.0
     
0.0
     
     
 
Amortization and depreciation of acquired asset
   
1.0
     
0.5
     
0.8
     
0.5
     
0.3
     
0.2
     
0.2
     
0.5
 
Restructuring charges
   
0.0
     
1.7
     
2.8
     
7.3
     
     
0.8
     
     
 
Gross margin (loss) (Non-GAAP)
   
(265.4
)%
   
0.2
%
   
(6.5
)%
   
3.3
%
   
20.8
%
   
26.7
%
   
28.2
%
   
33.5
%
                                                                 
Operating expenses (GAAP)
 
$
382,940
   
$
149,213
   
$
147,518
   
$
181,156
   
$
159,543
   
$
663,618
   
$
678,528
   
$
422,179
 
Stock-based compensation - R&D
   
(17,115
)
   
(17,639
)
   
(17,139
)
   
(15,982
)
   
(16,481
)
   
(66,944
)
   
(63,211
)
   
(45,424
)
Stock-based compensation - S&M
   
(6,816
)
   
(8,149
)
   
(7,911
)
   
(7,347
)
   
(7,739
)
   
(30,987
)
   
(31,017
)
   
(22,834
)
Stock-based compensation - G&A
   
(6,672
)
   
(6,565
)
   
(6,588
)
   
(6,133
)
   
(6,713
)
   
(28,814
)
   
(29,493
)
   
(15,592
)
Amortization and depreciation of acquired assets - R&D
   
(270
)
   
(271
)
   
(270
)
   
(58
)
   
(329
)
   
(989
)
   
(1,206
)
   
(530
)
Amortization and depreciation of acquired assets - S&M
   
(566
)
   
(467
)
   
(124
)
   
(190
)
   
(321
)
   
(927
)
   
(822
)
   
(927
)
Amortization and depreciation of acquired assets - G&A
   
(2
)
   
(2
)
   
(2
)
   
(2
)
   
(4
)
   
(15
)
   
(21
)
   
(29
)
Discontinued operation
   
11
     
     
47
     
(388
)
   
     
(388
)
   
     
 
Restructuring charges
   
(1,299
)
   
(366
)
   
(3,943
)
   
     
     
     
     
 
Assets impairment and disposal by abandonment
   
(232,102
)
   
     
(1,732
)
   
(30,790
)
   
     
(30,790
)
   
(119,141
)
   
(2,209
)
Gain (loss) from assets sales
   
(1,827
)
   
(951
)
   
(1,058
)
   
(172
)
   
     
1,262
     
2,603
     
976
 
Certain litigation and other contingencies
   
     
     
399
     
(1,786
)
   
     
(1,786
)
   
     
 
Acquisition costs
   
     
     
(9
)
   
     
     
(135
)
   
(350
)
   
 
Operating expenses (Non-GAAP)
 
$
116,282
   
$
114,803
   
$
109,188
   
$
118,308
   
$
127,956
   
$
503,105
   
$
435,870
   
$
335,610
 

9

SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)

   
Three months ended
   
Year ended
 
   
September 30,
2024
   
June 30,
2024
   
March 31,
2024
   
December 31,
2023
   
September 30,
2023
   
December 31,
2023
   
December 31,
2022
   
December 31,
2021
 
Operating income (loss) (GAAP)
 
$
(1,085,266
)
 
$
(160,182
)
 
$
(173,705
)
 
$
(237,581
)
 
$
(16,726
)
 
$
40,205
   
$
166,120
   
$
207,139
 
Revenues from finance component
   
(250
)
   
(246
)
   
(234
)
   
(230
)
   
(215
)
   
(834
)
   
(614
)
   
(418
)
Discontinued operation
   
(17
)
   
(757
)
   
(481
)
   
37,036
     
     
37,036
     
4,314
     
 
Stock-based compensation
   
36,642
     
38,571
     
37,606
     
34,930
     
36,815
     
149,945
     
145,539
     
102,593
 
Amortization of stock-based compensation capitalized in inventories
   
1,484
     
362
     
197
     
343
     
441
     
1,100
     
     
 
Amortization and depreciation of acquired assets
   
2,872
     
2,083
     
1,947
     
1,805
     
2,750
     
7,969
     
9,478
     
10,812
 
Restructuring charges
   
2,515
     
4,885
     
9,765
     
23,154
     
     
23,154
     
     
 
Assets impairment and disposal by abandonment
   
232,102
     
     
1,732
     
30,790
     
     
30,790
     
119,141
     
2,209
 
Loss (gain) from assets sales
   
1,827
     
951
     
1,058
     
172
     
     
(1,262
)
   
(2,603
)
   
(976
)
Certain litigation and other contingencies
   
     
     
(399
)
   
1,786
     
     
1,786
     
     
 
Acquisition costs
   
     
     
9
     
     
     
135
     
350
     
 
Operating income (loss) (Non-GAAP)
 
$
(808,091
)
 
$
(114,333
)
 
$
(122,505
)
 
$
(107,795
)
 
$
23,065
   
$
290,024
   
$
441,725
   
$
321,359
 
                                                                 
Financial income (expense), net (GAAP)
 
$
5,558
   
$
(865
)
 
$
(7,064
)
 
$
22,055
   
$
(7,901
)
 
$
41,212
   
$
3,750
   
$
(19,915
)
Non cash interest expense
   
3,785
     
3,636
     
3,536
     
3,422
     
3,284
     
12,703
     
9,954
     
8,674
 
Unrealized losses (gains)
   
     
     
     
     
     
     
119
     
(541
)
Currency fluctuation related to lease standard
   
966
     
(1,523
)
   
(1,276
)
   
4,359
     
(2,788
)
   
(3,055
)
   
(11,187
)
   
2,007
 
Financial income (expense), net (Non-GAAP)
 
$
10,309
   
$
1,248
   
$
(4,804
)
 
$
29,836
   
$
(7,405
)
 
$
50,860
   
$
2,636
   
$
(9,775
)
                                                                 
Other income (loss) (GAAP)
 
$
(3,928
)
 
$
18,551
   
$
   
$
291
   
$
(484
)
 
$
(318
)
 
$
7,285
   
$
 
Loss (gain) from sale of equity and debt investments
   
(1,072
)
   
(1,970
)
   
     
(291
)
   
484
     
193
     
(8,008
)
   
 
Loss (gain) from business combination
   
   
$
(1,125
)
 
$
   
$
   
$
   
$
   
$
   
$
 
Gain from the repurchase of convertible notes
 
$
   
$
(15,456
)
 
$
   
$
   
$
   
$
   
$
   
$
 
Loss from impairment of  private held companies
 
$
5,000
   
$
   
$
   
$
   
$
   
$
   
$
   
$
 
Other loss (Non-GAAP)
 
$
   
$
   
$
   
$
   
$
   
$
(125
)
 
$
(723
)
 
$
 
                                                                 
Tax benefits (income taxes) (GAAP)
 
$
(121,108
)
 
$
12,245
   
$
23,754
   
$
53,202
   
$
(36,065
)
 
$
(46,420
)
 
$
(83,376
)
 
$
(18,054
)
Uncertain tax positions
   
     
     
     
     
     
     
     
(9,007
)
Income tax adjustment
   
44,602
     
(357
)
   
(5,062
)
   
(27,699
)
   
(10,561
)
   
(45,896
)
   
(9,067
)
   
(11,639
)
Tax benefits (income taxes) (Non-GAAP)
 
$
(76,506
)
 
$
11,888
   
$
18,692
   
$
25,503
   
$
(46,626
)
 
$
(92,316
)
 
$
(92,443
)
 
$
(38,700
)
                                                                 
Equity method investments loss (GAAP)
 
$
(577
)
 
$
(567
)
 
$
(296
)
 
$
(350
)
 
$
   
$
(350
)
 
$
   
$
 
Loss from equity method investments
   
577
     
567
     
296
     
350
     
     
350
     
     
 
Equity method investments loss (Non-GAAP)
 
$
   
$
   
$
   
$
   
$
   
$
   
$
   
$
 

10

SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)

   
Three months ended
   
Year ended
 
   
September 30,
2024
   
June 30,
2024
   
March 31,
2024
   
December 31,
2023
   
September 30,
2023
   
December 31,
2023
   
December 31,
2022
   
December 31,
2021
 
Net income (loss) (GAAP)
 
$
(1,205,321
)
 
$
(130,818
)
 
$
(157,311
)
 
$
(162,383
)
 
$
(61,176
)
 
$
34,329
   
$
93,779
   
$
169,170
 
Revenues from finance component
   
(250
)
   
(246
)
   
(234
)
   
(230
)
   
(215
)
   
(834
)
   
(614
)
   
(418
)
Discontinued operation
   
(17
)
   
(757
)
   
(481
)
   
37,036
     
     
37,036
     
4,314
     
 
Stock-based compensation
   
36,642
     
38,571
     
37,606
     
34,930
     
36,815
     
149,945
     
145,539
     
102,593
 
Amortization of stock-based compensation capitalized in inventories
   
1,484
     
362
     
197
     
343
     
441
     
1,100
     
     
 
Amortization and depreciation of acquired assets
   
2,872
     
2,083
     
1,947
     
1,805
     
2,750
     
7,969
     
9,478
     
10,812
 
Restructuring charges
   
2,515
     
4,885
     
9,765
     
23,154
     
     
23,154
     
     
 
Assets impairment and disposal by abandonment
   
232,102
     
     
1,732
     
30,790
     
     
30,790
     
119,141
     
2,209
 
Loss (gain) from assets sales
   
1,827
     
951
     
1,058
     
172
     
     
(1,262
)
   
(2,603
)
   
(976
)
Certain litigation and other contingencies
   
     
     
(399
)
   
1,786
     
     
1,786
     
     
 
Acquisition costs
   
     
     
9
     
     
     
135
     
350
     
 
Non cash interest expense
   
3,785
     
3,636
     
3,536
     
3,422
     
3,284
     
12,703
     
9,954
     
8,674
 
Unrealized losses (gains)
   
     
     
     
     
     
     
119
     
(541
)
Currency fluctuation related to lease standard
   
966
     
(1,523
)
   
(1,276
)
   
4,359
     
(2,788
)
   
(3,055
)
   
(11,187
)
   
2,007
 
Loss (gain) from sale of equity and debt investments
   
(1,072
)
   
(1,970
)
   
     
(291
)
   
484
     
193
     
(8,008
)
   
 
Loss (gain) from business combination
   
     
(1,125
)
   
     
     
     
     
     
 
Gain from the repurchase of convertible notes
   
     
(15,456
)
   
     
     
     
     
     
 
Loss from impairment of  private held companies
   
5,000
     
     
     
     
     
     
     
 
Uncertain tax positions
   
     
     
     
     
     
     
     
(9,007
)
Income tax adjustment
   
44,602
     
(357
)
   
(5,062
)
   
(27,699
)
   
(10,561
)
   
(45,896
)
   
(9,067
)
   
(11,639
)
equity method adjustments
   
577
     
567
     
296
     
350
     
     
350
     
     
 
Net income (loss) (Non-GAAP)
 
$
(874,288
)
 
$
(101,197
)
 
$
(108,617
)
 
$
(52,456
)
 
$
(30,966
)
 
$
248,443
   
$
351,195
   
$
272,884
 

11

SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)

   
Three months ended
   
Year ended
 
   
September 30,
2024
   
June 30,
2024
   
March 31,
2024
   
December 31,
2023
   
September 30,
2023
   
December 31,
2023
   
December 31,
2022
   
December 31,
2021
 
Net basic earnings (loss) per share (GAAP)
 
$
(21.13
)
 
$
(2.31
)
 
$
(2.75
)
 
$
(2.85
)
 
$
(1.08
)
 
$
0.61
   
$
1.70
   
$
3.24
 
Revenues from finance component
   
(0.01
)
   
0.00
     
(0.01
)
   
(0.01
)
   
0.00
     
(0.02
)
   
(0.01
)
   
(0.01
)
Discontinued operation
   
0.00
     
(0.02
)
   
(0.01
)
   
0.65
     
     
0.66
     
0.08
     
 
Stock-based compensation
   
0.64
     
0.69
     
0.66
     
0.62
     
0.65
     
2.65
     
2.64
     
1.97
 
Amortization of stock-based compensation capitalized in inventories
   
0.03
     
0.00
     
0.01
     
0.00
     
0.00
     
0.02
     
     
 
Amortization and depreciation of acquired assets
   
0.05
     
0.04
     
0.03
     
0.04
     
0.05
     
0.14
     
0.17
     
0.21
 
Restructuring charges
   
0.04
     
0.08
     
0.17
     
0.40
     
     
0.41
     
     
 
Assets impairment and disposal by abandonment
   
4.07
     
     
0.03
     
0.54
     
     
0.54
     
2.17
     
0.05
 
Loss (gain) from assets sales
   
0.04
     
0.02
     
0.02
     
0.01
     
     
(0.02
)
   
(0.05
)
   
(0.03
)
Certain litigation and other contingencies
   
     
     
(0.01
)
   
0.03
     
     
0.03
     
     
 
Acquisition costs
   
     
     
0.00
     
     
     
0.00
     
0.01
     
 
Non cash interest expense
   
0.06
     
0.07
     
0.06
     
0.06
     
0.06
     
0.23
     
0.18
     
0.16
 
Unrealized losses (gains)
   
     
     
     
     
     
     
0.00
     
(0.01
)
Currency fluctuation related to lease standard
   
0.02
     
(0.04
)
   
(0.02
)
   
0.07
     
(0.05
)
   
(0.06
)
   
(0.21
)
   
0.04
 
Loss (gain) from sale of equity and debt investments
   
(0.02
)
   
(0.03
)
   
     
0.00
     
0.01
     
0.01
     
(0.14
)
   
 
Loss (gain) from business combination
   
     
(0.02
)
   
     
     
     
     
     
 
Gain from the repurchase of convertible notes
   
     
(0.27
)
   
     
     
     
     
     
 
Loss from impairment of  private held companies
   
0.09
     
     
     
     
     
     
     
 
Uncertain tax positions
   
     
     
     
     
     
     
     
(0.17
)
Income tax adjustment
   
0.78
     
(0.01
)
   
(0.09
)
   
(0.49
)
   
(0.19
)
   
(0.81
)
   
(0.16
)
   
(0.22
)
Equity method adjustments
   
0.01
     
0.01
     
0.01
     
0.01
     
     
0.00
     
     
 
Net basic earnings (loss) per share (Non-GAAP)
 
$
(15.33
)
 
$
(1.79
)
 
$
(1.90
)
 
$
(0.92
)
 
$
(0.55
)
 
$
4.39
   
$
6.38
   
$
5.23
 

12


SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)

   
Three months ended
   
Year ended
 
   
September 30,
2024
   
June 30,
2024
   
March 31,
2024
   
December 31,
2023
   
September 30,
2023
   
December 31,
2023
   
December 31,
2022
   
December 31,
2021
 
Net diluted earnings (loss) per share (GAAP)
 
$
(21.13
)
 
$
(2.31
)
 
$
(2.75
)
 
$
(2.85
)
 
$
(1.08
)
 
$
0.60
   
$
1.65
   
$
3.06
 
Revenues from finance component
   
(0.01
)
   
0.00
     
(0.01
)
   
(0.01
)
   
0.00
     
(0.01
)
   
(0.01
)
   
(0.01
)
Discontinued operation
   
0.00
     
(0.02
)
   
(0.01
)
   
0.65
     
     
0.64
     
0.08
     
 
Stock-based compensation
   
0.64
     
0.69
     
0.66
     
0.62
     
0.65
     
2.57
     
2.43
     
1.77
 
Amortization of stock-based compensation capitalized in inventories
   
0.03
     
0.00
     
0.01
     
0.00
     
0.00
     
0.02
     
     
 
Amortization and depreciation of acquired assets
   
0.05
     
0.04
     
0.03
     
0.04
     
0.05
     
0.14
     
0.16
     
0.19
 
Restructuring charges
   
0.04
     
0.08
     
0.17
     
0.40
     
     
0.40
     
     
 
Assets impairment and disposal by abandonment
   
4.07
     
     
0.03
     
0.54
     
     
0.53
     
2.02
     
0.04
 
Loss (gain) from assets sales
   
0.04
     
0.02
     
0.02
     
0.01
     
     
(0.02
)
   
(0.04
)
   
(0.02
)
Certain litigation and other contingencies
   
     
     
(0.01
)
   
0.03
     
     
0.03
     
     
 
Acquisition costs
   
     
     
0.00
     
     
     
0.00
     
0.00
     
 
Non cash interest expense
   
0.06
     
0.07
     
0.06
     
0.06
     
0.06
     
0.03
     
0.13
     
0.12
 
Unrealized losses (gains)
   
     
     
     
     
     
     
0.00
     
(0.01
)
Currency fluctuation related to lease standard
   
0.02
     
(0.04
)
   
(0.02
)
   
0.07
     
(0.05
)
   
(0.05
)
   
(0.19
)
   
0.03
 
Loss (gain) from sale of equity and debt investments
   
(0.02
)
   
(0.03
)
   
     
0.00
     
0.01
     
0.00
     
(0.13
)
   
 
Loss (gain) from business combination
   
     
(0.02
)
   
     
     
     
     
     
 
Gain from the repurchase of convertible notes
   
     
(0.27
)
   
     
     
     
     
     
 
Loss from impairment of  private held companies
   
0.09
     
     
     
     
     
     
     
 
Uncertain tax positions
   
     
     
     
     
     
     
     
(0.16
)
Income tax adjustment
   
0.78
     
(0.01
)
   
(0.09
)
   
(0.49
)
   
(0.19
)
   
(0.76
)
   
(0.15
)
   
(0.20
)
Equity method adjustments
   
0.01
     
0.01
     
0.01
     
0.01
     
     
0.00
     
     
 
Net diluted earnings (loss) per share (Non-GAAP)
 
$
(15.33
)
 
$
(1.79
)
 
$
(1.90
)
 
$
(0.92
)
 
$
(0.55
)
 
$
4.12
   
$
5.95
   
$
4.81
 
                                                                 
Number of shares used in computing net diluted earnings (loss) per share (GAAP)
   
57,029,983
     
56,687,006
     
57,140,126
     
56,916,831
     
56,671,504
     
57,237,518
     
55,087,770
     
55,971,030
 
Stock-based compensation
   
     
     
     
     
     
725,859
     
963,373
     
773,636
 
Notes due 2025
   
     
     
     
     
     
2,276,818
     
     
 
Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP)
   
57,029,983
     
56,687,006
     
57,140,126
     
56,916,831
     
56,671,504
     
60,240,195
     
56,051,143
     
56,744,666
 

13