SolarEdge Technologies, Inc. ( SEDG ) shares are trading higher on Wednesday, after the company reported third-quarter FY25 results.

SEDG shares are powering higher on strong volume. See the complete data here

Revenues of $340.2 million, up 18% sequentially and 44.5% year-over-year, beat the consensus of $336.12 million.

The company shipped 1,471 Megawatts (AC) of inverters and 269 MWh of batteries for PV applications in the quarter.

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Adjusted gross margin was 18.8% versus 13.1% in the prior quarter, and adjusted operating loss narrowed to $23.8 million from $48.3 million for the previous quarter. Tariffs had a negative impact of approximately 2% in the third quarter.

Adjusted loss per share of 31 cents beat the street view for a loss of 38 cents.

Operating cash flow for the quarter was $25.6 million, and free cash flow was $22.8 million.

As of September 30, the cash and investment portfolio, net of debt, totaled $208.8 million.

Outlook

For the fourth quarter, the company expects revenue of $310 million-$340 million (versus consensus of $345.91 million) and adjusted gross margin of 19% – 23%, including approximately 2% of tariff impact.

Infineon Collaboration

In a separate release, SolarEdge ( SEDG ) announced that it has partnered with Infineon to develop next-generation solid-state transformer (SST) technology for AI and hyperscale data centers.

The new SST will enable direct medium-voltage to 800–1500V DC conversion with over 99% efficiency, significantly reducing size, weight, and carbon footprint.

Price Action

SolarEdge ( SEDG ) is a highly shorted stock with 26.7% of its float in short positions. Its shares are having quite the day, up 20.21% to $38.25 at the time of publication on Wednesday in a short squeeze.

They’ve experienced significant fluctuations, reaching a high of $38.97 and a low of $30.26. Volume has been hefty with 6.6 million shares changing hands. The stock is 8.9% below its 52-week high, and it’s trading 7.6% above its 50-day moving average.

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