SEDG

SolarEdge is a credible turnaround in progress, not yet a clean one. After the 2024 implosion (revenue down to $901M, a -$1.81B net loss, and a staggering -97.3% gross margin as it wrote off the discontinued e-Mobility, energy-storage and PV-Tracker businesses), FY2025 shows genuine repair: revenue rebounded +31.4% to $1.18B, gross profit swung to +$196M (16.6% margin), net loss narrowed 77.6% to -$405M, and — most importantly — operating cash flow turned positive at $104M (+133%) while capex was slashed 78% to $23.5M, leaving real free cash flow. Cash built 65.7% to $455M against a clean current ratio of ~2.2 ($1.74B current assets vs $803M current liabilities). The MD&A backs this: a leaner one-segment business, the Single-SKU software-defined inverter platform that simplifies manufacturing and inventory, the new SolarEdge Nexis residential line, and a US-manufacturing footprint (Texas/Florida/Utah) positioned to harvest IRA domestic-content incentives.

But the quality bar for a buy isn't met. The company is still firmly unprofitable: -25.5% operating margin, -34.2% net margin, diluted EPS of -$6.88, ROE of -94.8%, and a -$1.43B accumulated deficit that grew another 39.4% this year. Equity shrank 35.1% to $427M. The headline YoY 'improvements' are improvements in the size of the losses, not profits. The provided debt figures are stale (FY2014, ~$3.4M each), so I cannot verify the current debt/convertible load — treat the balance-sheet leverage picture as data-unavailable rather than clean.