SolarEdge replaces CFO after nine months amid ongoing financial turmoil
Asaf Alperovitz takes over as company battles market downturn and layoffs.
Just nine months after being appointed, SolarEdge CFO Ariel Porat is leaving his position. He will be replaced by Asaf Alperovitz, who previously served as CFO of Delta Galil for four and a half years. Alperovitz left Delta Galil about a year ago.
Porat’s appointment came amid the ongoing crisis that the solar panel inverter manufacturer has faced over the past two years, leading to multiple management changes.
Last June, SolarEdge’s long-time CFO Ronen Faier stepped down after 14 years at the company and was succeeded by Porat. In August, CEO Zvi Lando also left his role but remained a director at the company. Faier was then appointed interim CEO until December, when Shuki Nir, formerly the company’s CMO, was named CEO. Additionally, the company’s chairman, Nadav Zafrir, resigned from his position but remained a director at SolarEdge following his appointment as CEO of Check Point.
In 2022, SolarEdge was trading at a valuation approaching $20 billion. Today, its market capitalization has dropped to just $955 million.
The company’s crisis stemmed from multiple factors, including a downturn in the European solar market. During the pandemic, supply chain disruptions initially raised concerns, but the outbreak of war in Ukraine drove up electricity prices, leading to a surge in demand and increased sales for SolarEdge. However, the solar market did not expand as expected, leaving the company's European distributors with excess inventory.
Meanwhile, rising interest rates in the U.S. reduced the economic viability of rooftop solar panel installations. New regulations in California, a key market for SolarEdge, further hurt sales, contributing to the company's decline.
Despite these challenges, SolarEdge ended the final quarter of 2024 with a return to positive free cash flow, offering investors some reassurance. Additionally, throughout 2024 and January 2025, the company implemented multiple rounds of layoffs, cutting over 2,000 jobs.
