SEDG - SolarEdge: Persistent Cash Flow Issues Culminate In Convertible Notes Offering

2024-06-24 21:50:25 ET

Summary

• SolarEdge Technologies continues to be impacted by adverse market conditions as very much evidenced by disclosures made in connection with Monday's $300 million convertible notes offering.
• While the company reaffirmed projections for Q2 top- and bottom line results, SolarEdge now expects negative free cash flow of approximately $150 million.
• Over the past 18 months, the company has recorded negative free cash flow of almost $750 million.
• With net cash declining rapidly and a $632.5 million debt maturity approaching next year, the company decided to proactively assess the capital markets.
• Given renewed uncertainty regarding the timing and potential extent of the eagerly-awaited industry recovery, investors should consider moving to the sidelines until the dust has cleared.

SolarEdge Technologies or "SolarEdge" ( SEDG ) continues to be impacted by adverse market conditions as very much evidenced by disclosures made in connection with Monday's $300 million convertible notes offering ....

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