SolarEdge Technologies Stock Drops to $28.41 in 2025 Amid $11.4M Customer Bankruptcy
In 2025, SolarEdge Technologies faces a significant setback as a customer declares bankruptcy owing $11.4 million, causing shares to fall sharply. The company also plans $300 million convertible notes issuance and anticipates $150 million free cash usage this quarter.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading news teams responsible for major stories of the era.
Key Highlights
- SolarEdge reveals that PM&M Electric, an Arizona solar installer, has filed for bankruptcy owing $11.4 million.
- Company forecasts $150 million in free cash usage during Q2 2024 due to investments and operational costs.
- Plans announced to issue $300 million in convertible senior notes maturing in 2029.
Shares of SolarEdge Technologies (SEDG) experienced a steep decline on Tuesday, dropping to $28.41—the lowest in nearly seven years—following the announcement of a customer bankruptcy filing under Chapter 7, jeopardizing collection of $11.4 million in owed funds.
According to a Monday SEC filing, PM&M Electric’s bankruptcy may result in delayed or uncollected payments to SolarEdge, highlighting risks in receivables.
Q2 2024 Free Cash Usage Forecast
SolarEdge expects to utilize approximately $150 million in free cash this quarter, driven by discretionary minority investments, extended customer credits, increased working capital from U.S. manufacturing scale-up, and slower accounts receivable collections.
The company has also disclosed plans to raise $300 million through convertible senior notes due in 2029, aimed at financing capped call transactions, repaying prior debts, and supporting general corporate activities.
This combination of financial challenges and strategic capital raising has contributed to the notable stock price decrease, reflecting investor concerns amid evolving market conditions.
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