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SolarEdge Technologies (SEDG - Free Report) closed the most recent trading day at $34.68, moving -5.63% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.86% for the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.96%.

Heading into today, shares of the photovoltaic products maker had gained 14.2% over the past month, outpacing the Oils-Energy sector's gain of 5.4% and the S&P 500's loss of 1.96%.

Investors will be eagerly watching for the performance of SolarEdge Technologies in its upcoming earnings disclosure. On that day, SolarEdge Technologies is projected to report earnings of $0.03 per share, which would represent year-over-year growth of 109.68%. Meanwhile, our latest consensus estimate is calling for revenue of $328.24 million, down 3.51% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of -$0.22 per share and a revenue of $1.33 billion, demonstrating changes of +90.76% and +12.53%, respectively, from the preceding year.

Any recent changes to analyst estimates for SolarEdge Technologies should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.14% higher. Currently, SolarEdge Technologies is carrying a Zacks Rank of #3 (Hold).

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

SolarEdge Technologies, Inc. (SEDG) Analyst/Investor Day Transcript

SolarEdge published an 800 VDC white paper co-authored with NVIDIA and hosted its Analyst Day, yet the stock fell while solar peers rallied. The market sent a clear message about what kind of disclosure it actually wants.

Shares of SolarEdge Technologies (NASDAQ:SEDG | SEDG Price Prediction) are down 4% to $33.73 in Thursday’s midday session, sliding as management hosts its Analyst Day and after the company published a joint 800 VDC power architecture framework with a leading AI chipmaker. The move stands out because listed solar peers are catching a bid at the same time.

Meanwhile, Enphase Energy (NASDAQ:ENPH) shares are up 2% to $37.36. First Solar (NASDAQ:FSLR) stock is climbing 2% to $206.85, extending a bounce that started midweek.

For sector context, the Invesco Solar ETF (NYSEARCA:TAN) is down 1%, a modest slip that leaves SolarEdge as the clear outlier in the group and reinforces that the move is company-specific rather than a sector-wide risk-off session. As broad-market context, the SPDR S&P 500 ETF Trust (NYSE ARCA:SPY) is down 0.5%.

Lab Milestone Meets a Show-Me Analyst Day Before the open, SolarEdge said the medium-voltage to 800 VDC conversion stage of its DC powertrain for AI data centers is now operating under load in its engineering labs, with system-level validation of the full path still underway. Alongside that update, the company published a protection and grounding framework for 800 VDC systems, offered as a technology-neutral document any vendor can implement, according to SolarEdge.

NVIDIA (NASDAQ:NVDA) is named as the co-author of that framework. The tie-in matters because the chipmaker’s next-generation AI factories are moving toward higher-voltage DC power architectures, and a shared safety and grounding standard is a prerequisite for broader industry adoption. CEO Shuki Nir said the transition will hinge on whether these systems can be protected, serviced and trusted at scale, and that SolarEdge is building the full DC path from utility to rack.

Higher-voltage DC distribution matters because it can cut conduction losses inside a data center hall, freeing up more of the electrical envelope for compute rather than power conversion. Efficiency gains at this level of the stack translate into more compute per megawatt delivered, which is why hyperscalers and chip vendors have coalesced around 800 VDC as the target standard for next-generation AI factories, according to SolarEdge (we profiled seven suppliers powering that buildout, from power to cooling, in a free AI infrastructure report).

The release states plainly that the data center products are still under development, aren’t yet generally available, and that nothing in it should be read as a preview of the Analyst Day being held today. That statement effectively caps SolarEdge’s commercial disclosure ahead of this afternoon’s investor presentations, which likely factors into the negative reaction on a morning shaped by the absence of monetization specifics.

Peers Rally as a Show-Me Reaction Isolates the Stock Intraday action isolates SolarEdge stock cleanly. Both of the peer stocks mentioned here are higher and the TAN solar ETF is only modestly lower, which rules out a sector explanation for the slide. On Tuesday, SolarEdge shares rose alongside Enphase after Enphase said solid-state transformer power modules were being built at its Texas facility, without any SolarEdge news of its own that session.

That flips today’s setup awkwardly. The name that climbed on a rival’s actual manufacturing milestone is now sliding on its own laboratory result and white paper, delivered on the morning of an event the release declines to preview. The morning reaction points to demand for revenue timing and customer detail beyond a technology-neutral document.

SolarEdge is deep into a real turnaround on the core business. In its most recent quarter, SolarEdge grew revenue 20% year over year with gross margin expanding to 28.6%, and posted its first non-GAAP operating profit in years. Rising Treasury yields and continued softness in U.S. residential solar remain the standing headwinds against that improvement.

Relative valuations underscore the split. First Solar carries a forward P/E ratio of 9.27x and a contracted backlog of 45.1 GW extending through 2030, giving it the cleanest cash-flow visibility in the group. SolarEdge stock trades on a much thinner near-term earnings base, which makes the AI data center leg the most sensitive part of its narrative.

What to Watch Next The Analyst Day agenda runs through the afternoon, and the key question for the sell side is whether SolarEdge attaches revenue timing, customer names or unit economics to its Solid State Transformer opportunity. Follow-on notes into the close and Friday’s session can shape whether today’s show-me reaction sticks or fades.

Investors weighing their exposure to solar-equipment names may want to keep an eye on whether Analyst Day commentary translates into contracted 800 VDC volume rather than more lab validation, according to SolarEdge. Their position sizing should reflect that the turnaround thesis on SolarEdge is intact on the core business, while the AI data center leg still needs commercial proof to justify the multiple embedded in it.

Contact [email protected] for any questions or corrections.

MILPITAS, Calif. & MUNICH--(BUSINESS WIRE)--SolarEdge and Infineon extend collaboration into solid-state circuit breaker technology for HVDC distribution in AI and hyperscale data centers.

A month has gone by since the last earnings report for SolarEdge Technologies (SEDG - Free Report) . Shares have added about 3.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is SolarEdge due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for SolarEdge Technologies, Inc. before we dive into how investors and analysts have reacted as of late.

SolarEdge Technologies' Q2 Earnings Top Estimates, Revenues Rise Y/Y

SolarEdge Technologies, Inc. reported a second-quarter 2026 adjusted earnings of 6 cents per share, which beat the Zacks Consensus Estimate of 4 cents by 50%. The result marked a sharp improvement from the year-ago loss of 81 cents per share.

Barring one-time adjustments, the company incurred a GAAP loss of 50 cents per share compared with a GAAP loss of $2.13 in the year-ago period.

SEDG’s RevenuesRevenues increased 19.6% year over year to $346.2 million and surpassed the consensus estimate of $343 million by 1.3%. Strong European demand and U.S. commercial and industrial activity offset softness in the U.S. residential market. Battery volume reached 426 megawatt-hours.

Highlights of SEDG’s Q2 ReleaseAdjusted gross profit rose to $98.7 million from $36.9 million in the prior-year quarter. The adjusted gross margin expanded to 28.6% from 13.1%, representing the sixth consecutive quarter of year-over-year gross margin improvement.

The reported margin included a $13.3 million benefit related to tariff matters under the International Emergency Economic Powers Act. Even with that contribution, the widening margin and stronger revenue base helped SolarEdge return to adjusted operating profitability for the first time since the second quarter of 2023.

Adjusted operating expenses were $88.5 million compared with $85.2 million a year earlier. However, the improvement in gross profit more than offset the modest increase in expenses, resulting in adjusted operating income of $10.2 million.

SEDG had recorded an adjusted operating loss of $48.3 million in the prior-year period.

SEDG's Product Volumes Support the RecoverySEDG recognized revenues from approximately 62,600 inverters during the quarter, up from 50,500 in the first quarter. Optimizer volume increased sequentially to nearly 2.49 million units from roughly 2.44 million.

Battery volume climbed to 426 megawatt-hours from 331 megawatt-hours in the preceding quarter. The sharp sequential increase supports the strong battery revenue performance and highlights the product category’s growing importance within SEDG’s sales mix.

SEDG’s Financial PerformanceCash and cash equivalents reached $527.3 million as of June 30, 2026, up from $455.1 million at the end of 2025.

As of the same date, total long-term liabilities were $971.1 million compared with $951.2 million as of Dec. 31, 2025.

The net cash provided by operating activities in the first six months of 2026 amounted to $35.84 million compared with $26.02 million in the year-ago period.

SEDG’s Q3 2026 GuidanceFor the third quarter of 2026, the company expects revenues to be between $310 million and $340 million. The midpoint of $325 million implies a sequential decline from the second-quarter level. The Zacks Consensus Estimate is pegged at $377.18 million, higher than the company’s guided range.

Adjusted gross margin is projected between 22% and 26%, while adjusted operating expenses are expected in the range of $86 million to $91 million. The guidance excludes potential third-quarter tariff refunds and assumes no significant revenue pull-forward.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -167.86% due to these changes.

VGM ScoresAt this time, SolarEdge has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, SolarEdge has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Shares of SolarEdge Technologies Inc. (NASDAQ:SEDG) are trading higher Wednesday morning as investors digest a Wall Street upgrade.

SolarEdge Technologies stock is surging to new heights today. What’s fueling SEDG momentum? UBS Upgrade To Buy Catalyzes Wednesday AdvanceUBS upgraded the stock from Neutral to Buy, citing favorable supply-demand dynamics created by the Federal Communications Commission’s July 28 ban on new foreign-produced power inverter imports.

With the restriction affecting over 50% of the U.S. inverter market, analysts expect SolarEdge, which already maintains U.S. manufacturing bases across Florida, Texas and Utah, to capture significant market share and gain pricing power across its commercial, industrial and utility-scale product lines.

UBS also highlighted the company’s upcoming Analyst Day on Sep. 10 as a key near-term catalyst.

Q2 Results and Management Commentary Signal Improving ExecutionThe regulatory tailwinds build upon the foundation established during SolarEdge’s second-quarter earnings release on Aug. 5, where the company reported revenue of $346.2 million, a 11.5% sequential increase, and beat consensus estimates with an adjusted EPS of 5 cents.

During the earnings call, management emphasized that rigorous inventory clear-outs and normalized channel distribution levels have positioned the firm for operational leverage.

Leadership expressed confidence that U.S. manufacturing incentives under the IRA alongside steady demand for commercial and storage solutions will continue to drive margin expansion and operating profitability through the second half of the year.

SEDG Shares Climb Wednesday MorningSEDG Price Action: SolarEdge Technologies shares were trading higher by 8.43% at $32.40 on Wednesday, according to Benzinga Pro data.

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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.

Wolfe Research analyst Keith Stanley upgraded DT Midstream Inc (NYSE:DTM) from Peer Perform to Outperform and announced a $145 price target. DT Midstream closed at $126.74 on Tuesday. See how other analysts view this stock. UBS analyst Jon Windham upgraded SolarEdge Technologies Inc (NASDAQ:SEDG) from Neutral to Buy and raised the price target from $36 to $42. SolarEdge Technologies shares closed at $29.88 on Tuesday. See how other analysts view this stock. Considering buying SEDG stock? Here’s what analysts think:

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SolarEdge Technologies Inc (SEDG) Stock Up 10.7% but GF Value Says Overvalued -- GF Score: 74/100

On August 26, 2026, SolarEdge Technologies Inc SEDG shares rose 10.7% to a current price of $33.08. This movement comes amid a challenging performance context, as the stock has experienced a 52-week range of $28.21 to $81.25.

GF Value™ verdict: Current price is $33.08 vs. GF Value of $28.74, indicating the stock is 15.1% overvalued.GF Score™ of 74/100 suggests it is above average, reflecting a moderate performance across various metrics.Most notable signal: Insiders sold $0.1M over the past 12 months, indicating a lack of buying interest from those closest to the company.Is SEDG Overvalued or Undervalued?The current price of SolarEdge Technologies Inc SEDG at $33.08 is significantly higher than the GF Value™ estimate of $28.74, suggesting that the stock is overvalued by 15.1%. GF Value™ is GuruFocus' proprietary estimate of a stock's intrinsic value, calculated based on historical trading multiples, business growth patterns, and future performance projections. Given that SEDG is currently unprofitable and cash-flow negative, the traditional earnings-based valuation methods, such as the P/E ratio, are not applicable in this case. Instead, it is crucial to focus on the Price-to-Sales (P/S) ratio, which is more relevant for loss-making companies.

The GF Valuation label describes SEDG as "Modestly Overvalued," and this designation aligns with the current price being above the GF Value™ estimate. Investors must approach this overvaluation with caution, as it signifies potential risks should the market correct this discrepancy.

How Does SEDG's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)N/A102.3xForward P/E625.9xN/ADue to the lack of earnings, it is not possible to provide a meaningful P/E analysis for SolarEdge. The current P/E (TTM) is not applicable as the company is unprofitable; instead, it trades at a forward P/E of 625.9x, which is astronomically high compared to its 5-year median P/E of 102.3x. This extreme valuation further supports the GF Value™ verdict, emphasizing the risks associated with investing in SEDG at its current price level.

What Does SEDG's GF Score™ Tell Us?The GF Score™ is a comprehensive measure that evaluates a company's performance across various fundamental aspects, including financial strength, profitability, growth potential, valuation, and momentum. SolarEdge's GF Score™ of 74/100 indicates an above-average performance, with strengths in momentum and valuation metrics, but with moderate weaknesses in growth and financial strength.

MetricRatingGF Score™74/100Financial Strength4/10Profitability7/10Growth4/10Valuation7/10Momentum10/10The strongest area for SEDG is its momentum rank, which stands at a perfect 10/10, indicating strong recent price performance. However, the company's financial strength and growth ranks are notably weak, at 4/10, suggesting potential concerns regarding its long-term sustainability and ability to generate profits.

What Are Gurus and Insiders Doing with SEDG?Currently, 7 gurus hold stakes in SolarEdge Technologies Inc SEDG, with 4 adding to their positions and 4 trimming them in recent quarters. This mixed signal indicates a divided sentiment among knowledgeable investors regarding the stock's future prospects. Notably, insiders have sold $0.1M worth of shares in the past year, with no buying activity reported. This pattern of selling suggests a lack of confidence or urgency among those with intimate knowledge of the company's operations, which could be a red flag for potential investors.

What This Means for InvestorsIn conclusion, SolarEdge Technologies Inc SEDG is currently overvalued based on the GF Value™ estimate, which indicates a potential mispricing in the market. The company's high forward P/E and lack of profitability further complicate the investment landscape. Investors should approach this stock with caution, considering the market's potential for correction. For further details on SEDG's performance and valuation metrics, visit the SolarEdge Technologies Inc (SEDG) stock page.

Frequently Asked QuestionsWhat is SEDG's GF Score™?

SEDG's GF Score™ is 74/100, indicating it performs above average across various fundamental metrics, reflecting its strengths and weaknesses in financial analysis.

Is SEDG overvalued or undervalued?

SEDG is currently overvalued, with a GF Value™ estimate of $28.74 compared to its current price of $33.08, suggesting a 15.1% overvaluation.

What is SEDG's P/E ratio?

SEDG's P/E ratio is not applicable as the company is unprofitable; however, its forward P/E stands at 625.9x, significantly higher than its historical median of 102.3x.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

SolarEdge is downgraded to Hold after Q2 2026, as margin recovery and positive cash flow appear partly temporary. SEDG's gross profit remains highly dependent on U.S. policy incentives, with liquidity exposed to the timing of AMPTC monetization. Europe drove revenue growth, especially with Nexis, but U.S. residential demand remains weak and no near-term rebound is expected.

For the quarter ended June 2026, SolarEdge Technologies (SEDG - Free Report) reported revenue of $346.25 million, up 19.6% over the same period last year. EPS came in at $0.06, compared to -$0.81 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $341.66 million, representing a surprise of +1.34%. The company delivered an EPS surprise of +50%, with the consensus EPS estimate being $0.04.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how SolarEdge performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Megawatt hours recognized as revenue - batteries: 426 compared to the 329 average estimate based on four analysts.Inverters recognized as revenue: 62.6 thousand versus the three-analyst average estimate of 82.13 thousand.Power optimizers recognized as revenue: 2.49 million versus 2.96 million estimated by three analysts on average.Revenues- Batteries: $125.99 million versus the three-analyst average estimate of $102.29 million.Revenues- Inverters: $71.47 million compared to the $73.27 million average estimate based on two analysts.Revenues- Optimizers: $116.51 million versus $140.16 million estimated by two analysts on average.View all Key Company Metrics for SolarEdge here>>>

Shares of SolarEdge have returned -35.3% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

SolarEdge Technologies (NASDAQ:SEDG) shares fell about 24% on Wednesday after the solar technology company issued a weaker-than-expected third quarter outlook, overshadowing better-than-expected second quarter results.

The company guided for Q3 2026 revenue of $310 million to $340 million, with a midpoint of $325 million, below analyst expectations of roughly $368 million to $372 million. The lighter forecast reflected ongoing uncertainty in residential solar demand, particularly in the US, and weighed on investor sentiment.

SolarEdge reported second quarter revenue of $346.2 million, ahead of Wall Street expectations of about $342 million and up 19.6% from $289.4 million a year earlier.

Adjusted earnings per share came in at $0.05 to $0.06, compared with analyst expectations for approximately break-even results.

The company reported continued improvement in profitability during the quarter, with non-GAAP gross margin expanding to 28.6% from 13.1% in the year-ago period. Non-GAAP operating income reached $10.2 million, compared with an operating loss of $48.3 million in Q2 2025, while non-GAAP net income was $3.6 million versus a loss of $47.7 million a year earlier.

On a GAAP basis, SolarEdge posted a net loss of $30.8 million, or $0.50 per diluted share, narrowing from a net loss of $124.7 million, or $2.13 per share, in the prior-year quarter.

“Our second-quarter results mark an important milestone in SolarEdge’s turnaround,” the company’s CEO Shuki Nir said in a statement.  

“Revenue grew 20% year over year, GAAP operating loss narrowed significantly, and we returned to non-GAAP operating profitability for the first time since the second quarter of 2023, while continuing to generate positive free cash flow.”

Nir highlighted stronger demand in Europe and growth in US commercial and industrial markets, which helped offset industry-wide weakness in US residential solar.

SolarEdge ended the quarter with $264.6 million in cash and investments, net of debt, compared with $244.2 million at the end of 2025. Free cash flow was $3.1 million in the quarter, compared with negative free cash flow of $9.1 million in the second quarter of 2025.

Solar Flare: A Perfect Storm for Solar StocksSolarEdge Technologies NASDAQ: SEDG reported second-quarter results that marked a return to non-GAAP operating profitability, as higher revenue, improving margins and cost controls offset continued softness in the U.S. residential solar market.

Revenue for the quarter ended June 30 was $346.2 million on a GAAP basis, up 11.5% sequentially and 19.6% from a year earlier. Non-GAAP revenue was $345.5 million, exceeding the midpoint of the company’s guidance range, according to Chief Financial Officer Maoz Sigron. Management said the quarter did not include significant revenue pulled forward from safe-harbor transactions.

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SolarEdge: A Surprising Bright Spot in a Troubled Solar Industry?“We returned to non-GAAP operating profitability and made progress in all four priorities,” Chief Executive Officer Shuki Nir said, referring to the company’s focus on profitable growth, market-share expansion, scaling its Nexis platform and developing power infrastructure for data centers.

Margins Improve as Revenue Rises GAAP gross margin rose to 27.5% from 22% in the first quarter and 11.1% a year earlier. Non-GAAP gross margin reached 28.6%, compared with 23.5% in the prior quarter and 13.1% in the second quarter of 2025.

MarketBeat Week in Review – 12/16 - 12/20The margin result included a gross benefit of $13.3 million related to refunds under the International Emergency Economic Powers Act, or IEEPA. Sigron said margin improvement also reflected cost discipline, favorable product mix and better absorption of fixed costs as volume increased.

GAAP operating expenses declined to $111.2 million from $123.3 million in the first quarter and $147.6 million a year earlier. Non-GAAP operating expenses were $88.5 million, down from $97.7 million sequentially.

The company reported a GAAP operating loss of $16 million, narrowing from a $55 million loss in the first quarter. Non-GAAP operating income was $10.2 million, compared with a non-GAAP operating loss of $24.8 million in the prior quarter and a $48.3 million loss a year earlier.

GAAP net loss was $30.8 million, or $0.50 per share. Non-GAAP net income was $3.6 million, or $0.05 per diluted share. SolarEdge said non-GAAP net income was positive for the first time since the second quarter of 2023. Cash, cash equivalents and marketable securities totaled $601.6 million at June 30, up from $581.1 million at the end of 2025. Free cash flow was $3.1 million during the quarter. Europe Growth Offsets U.S. Residential Weakness U.S. revenue totaled $154.9 million, down 2% sequentially and representing 44.7% of revenue. European revenue was $154.4 million, up 36% from the first quarter and accounting for 44.6% of sales. Revenue from other international markets was $36.9 million, down 5% sequentially.

Nir said U.S. residential demand remained soft as customers navigated a slower tax-equity funding environment and uncertainty around foreign entity of concern, or FEOC, rules. He said funding constraints have pressured installers’ cash flows and reduced distributor purchases and inventory levels.

Management expects U.S. residential softness to continue in the third quarter and said it does not anticipate the typical seasonal pickup in the U.S. market. However, Nir said the company believes it is positioned to gain share when the market recovers, citing its fit with third-party ownership financing models, safe-harbor agreements and the rollout of Nexis products.

In U.S. commercial and industrial solar, SolarEdge said its market share exceeded 50% of rooftop installations in the most recent report. Nir also said SolarEdge systems are installed on the rooftops of more than 60% of Fortune 100 companies. The company expects continued support for the C&I market from higher electricity prices and data center-driven electricity demand.

Management said SolarEdge has been the only major C&I inverter vendor delivering U.S.-manufactured products at scale designed to meet domestic-content, non-FEOC and FCC Covered List requirements. Nir said the company does not expect FCC requirements to delay the U.S. Nexis rollout and stated that Nexis is made in the United States by SolarEdge.

Nexis Shipments and Storage Demand SolarEdge said it more than doubled European revenue year over year, aided by demand for solar ahead of anticipated higher electricity prices and rising storage demand as net-metering programs are phased out in several markets.

The company began meaningful European shipments of its three-phase Nexis platform during the second quarter, with shipments exceeding $60 million. Nir said installer feedback at the Intersolar trade event in Germany was favorable and that the company expects momentum in the DACH region to continue. SolarEdge plans to roll out single-phase Nexis in Europe in the first quarter of 2027.

In the U.S., Nexis has been approved on financing platforms spanning third-party ownership, prepaid power-purchase agreements and loan products, according to the company. SolarEdge expects installations to grow as it begins rolling out the platform in volume.

SolarEdge also cited an installed base of more than 1 million homes in the Netherlands and DACH region, where it has launched retrofit campaigns. The company generated more than $20 million in upsell activity during the second quarter.

On storage pricing, Nir said prices have remained stable by product, with quarter-to-quarter differences primarily driven by mix. He said storage is expected to become a larger portion of the company’s revenue over time as attachment rates rise and homeowners add batteries to existing solar systems.

Third-Quarter Outlook and Data Center Plans For the third quarter, SolarEdge projected revenue of $310 million to $340 million. Management said the expected sequential decline is primarily tied to Europe, where revenue is expected to decline by about $15 million at the midpoint due largely to seasonality.

The company expects non-GAAP gross margin of approximately 22% to 26%, excluding potential IEEPA refunds, and non-GAAP operating expenses of $86 million to $91 million. Sigron said the lower gross-margin outlook primarily reflects lower business scale and associated fixed costs in cost of goods sold. Including $11.5 million in IEEPA refunds received in July, the midpoint of the outlook implies non-GAAP operating profit, he said.

SolarEdge maintained its expectation for positive free cash flow for the full year and projected 2026 capital expenditures of $60 million to $80 million, including investments in U.S. PV and battery capacity, Israeli research and development facilities, its AI factory offering and maintenance spending.

Separately, the company said it is advancing its solid-state transformer, or SST, offering for data centers. Management said live lab demonstrations validated 99% efficiency across power levels and direct conversion from medium-voltage alternating current to a regulated direct-current bus. SolarEdge plans to have a working full three-phase 34.5-kilovolt system in its lab by year-end, followed by pilot installations in 2027 and volume shipments in 2028.

About SolarEdge Technologies (NASDAQ:SEDG)SolarEdge Technologies NASDAQ: SEDG is a global provider of solar energy solutions focused on optimizing photovoltaic (PV) power generation. The company's core offerings include power optimizers, inverters and cloud-based monitoring platforms designed to maximize energy output and improve safety across residential, commercial and utility-scale installations. By coupling module-level electronics with centralized inverters, SolarEdge's technology enables real-time performance monitoring and rapid fault detection to enhance system reliability.

In recent years, SolarEdge has expanded its product portfolio beyond solar PV to include energy storage systems, electric vehicle (EV) charging solutions and smart energy management tools.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways SolarEdge beat Q2 earnings estimates as revenues rose 19.6% on strong European and commercial demand.SEDG returned to adjusted operating profitability with a sixth straight quarter of gross margin improvement.SEDG guided Q3 revenues below consensus, expecting $310-$340M in sales and 22-26% in gross margin. SolarEdge Technologies, Inc. (SEDG - Free Report) reported a second-quarter 2026 adjusted earnings of 6 cents per share, which beat the Zacks Consensus Estimate of 4 cents by 50%. The result marked a sharp improvement from the year-ago loss of 81 cents per share.

Barring one-time adjustments, the company incurred a GAAP loss of 50 cents per share compared with a GAAP loss of $2.13 in the year-ago period.

SEDG’s RevenuesRevenues increased 19.6% year over year to $346.2 million and surpassed the consensus estimate of $343 million by 1.3%. Strong European demand and U.S. commercial and industrial activity offset softness in the U.S. residential market. Battery volume reached 426 megawatt-hours.

Highlights of SEDG’s Q2 ReleaseAdjusted gross profit rose to $98.7 million from $36.9 million in the prior-year quarter. The adjusted gross margin expanded to 28.6% from 13.1%, representing the sixth consecutive quarter of year-over-year gross margin improvement.

The reported margin included a $13.3 million benefit related to tariff matters under the International Emergency Economic Powers Act. Even with that contribution, the widening margin and stronger revenue base helped SolarEdge return to adjusted operating profitability for the first time since the second quarter of 2023.

Adjusted operating expenses were $88.5 million compared with $85.2 million a year earlier. However, the improvement in gross profit more than offset the modest increase in expenses, resulting in adjusted operating income of $10.2 million.

SEDG had recorded an adjusted operating loss of $48.3 million in the prior-year period.

SEDG's Product Volumes Support the RecoverySEDG recognized revenues from approximately 62,600 inverters during the quarter, up from 50,500 in the first quarter. Optimizer volume increased sequentially to nearly 2.49 million units from roughly 2.44 million.

Battery volume climbed to 426 megawatt-hours from 331 megawatt-hours in the preceding quarter. The sharp sequential increase supports the strong battery revenue performance and highlights the product category’s growing importance within SEDG’s sales mix.

SEDG’s Financial PerformanceCash and cash equivalents reached $527.3 million as of June 30, 2026, up from $455.1 million at the end of 2025.

As of the same date, total long-term liabilities were $971.1 million compared with $951.2 million as of Dec. 31, 2025.

The net cash provided by operating activities in the first six months of 2026 amounted to $35.84 million compared with $26.02 million in the year-ago period.

SEDG’s Q3 2026 GuidanceFor the third quarter of 2026, the company expects revenues to be between $310 million and $340 million. The midpoint of $325 million implies a sequential decline from the second-quarter level. The Zacks Consensus Estimate is pegged at $377.18 million, higher than the company’s guided range.

Adjusted gross margin is projected between 22% and 26%, while adjusted operating expenses are expected in the range of $86 million to $91 million. The guidance excludes potential third-quarter tariff refunds and assumes no significant revenue pull-forward.

SEDG’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar ReleasesFirst Solar, Inc. (FSLR - Free Report) reported second-quarter 2026 earnings of $3.92 per share, which beat the Zacks Consensus Estimate of $2.74 by 43.1%. The bottom line increased 23.3% from $3.18 in the year-ago quarter.

FSLR’s net sales of $1.06 billion missed the consensus estimate of $1.061 billion by 0.4% and declined 3.7% year over year.

Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2026 adjusted earnings of 46 cents per share, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 33.3% from 69 cents in the prior-year quarter.

ENPH’s second-quarter revenues of $291.9 million missed the Zacks Consensus Estimate of $295 million by 1%. The top line also decreased 19.6% from the prior-year quarter’s reported figure of $363.2 million.

An Upcoming Solar ReleaseCanadian Solar Inc. (CSIQ - Free Report) is slated to report second-quarter 2026 results on Aug. 27, before market open. The Zacks Consensus Estimate for CSIQ’s second-quarter loss is pegged at $1.01 per share, indicating a year-over-year decline of 90.6%.

The Zacks Consensus Estimate for CSIQ’s second-quarter sales is pegged at $1.17 billion, implying a year-over-year decline of 31.2%.

SolarEdge Technologies (SEDG -24.69%) stock, the Israeli maker of power inverters for solar panels, short-circuited despite delivering a strong earnings beat last night.

Heading into the report, analysts expected SolarEdge to report a loss of $0.02 per share, but the company delivered a pleasant surprise instead: a $0.05 per share profit. Sales likewise didn't disappoint, with SolarEdge edging past a $342 million forecast to report sales of $346.2 million.

Despite all this good news, SolarEdge stock sold off today and is down 24.6% through 12:45 p.m. ET. Why?

Image source: Getty Images.

SolarEdge Q2 earnings by the numbers SolarEdge grew its sales 20% year over year in Q2 -- that's the good news. The bad news is that SolarEdge's apparent "profit" was an illusion. While non-GAAP, pro forma earnings were positive for the quarter, earnings calculated under generally accepted accounting principles (GAAP) were still deeply negative -- $0.50 per share.

That was still better than the $0.95 SolarEdge lost in Q1 2026, and much better than the $2.13 it lost in Q2 2025. But a loss is still a loss -- and the fact remains that SolarEdge lost money in Q2.

Today's Change

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36.72

What's next for SolarEdge stock? SolarEdge is trying to turn things around, and CEO Shuki Nir says it's making progress as solar demand remains strong in Europe, and is improving in the commercial and industrial sectors of the U.S. Just don't expect the turnaround to happen immediately.

Demand remains weak in the U.S. residential sector, and SolarEdge forecasts Q3 2026 sales to fall sequentially, to $310 million to $340 million. That whole range is below Q2 sales -- and way below Wall Street forecasts for more than $370 million in Q3 sales.

Earnings "beat" or no, with negative GAAP profit and sales still weak, SolarEdge remains a "sell" for me, for now.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

SolarEdge stock falters after a strong start to the week as guidance sends shares sharply lower.

Wall Street expects a year-over-year increase in earnings on higher revenues when SolarEdge Technologies (SEDG - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis photovoltaic products maker is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +104.9%.

Revenues are expected to be $341.66 million, up 18.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for SolarEdge?For SolarEdge, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -125.00%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that SolarEdge will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that SolarEdge would post a loss of$0.23 per share when it actually produced a loss of -$0.43, delivering a surprise of -86.96%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

SolarEdge doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

SolarEdge Technologies (SEDG - Free Report) closed at $48.61 in the latest trading session, marking a -9.09% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.19% for the day. On the other hand, the Dow registered a loss of 0.59%, and the technology-centric Nasdaq decreased by 0.05%.

Shares of the photovoltaic products maker witnessed a loss of 7.89% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 3.6%, and the S&P 500's gain of 0.55%.

Market participants will be closely following the financial results of SolarEdge Technologies in its upcoming release. The company plans to announce its earnings on August 5, 2026. The company's earnings per share (EPS) are projected to be $0.04, reflecting a 104.94% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $341.66 million, indicating a 18.04% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.05 per share and a revenue of $1.4 billion, representing changes of +102.1% and +18.44%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for SolarEdge Technologies. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.68% higher. SolarEdge Technologies is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, SolarEdge Technologies is presently trading at a Forward P/E ratio of 984.97. This signifies a premium in comparison to the average Forward P/E of 19.81 for its industry.

The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

MILPITAS, Calif.--(BUSINESS WIRE)--SolarEdge Technologies, Inc. (NASDAQ: SEDG), a global leader in smart energy technology, will report financial results for the second quarter ended June 30, 2026, before market open on Wednesday, August 5, 2026. Management will host a conference call at 8:00 A.M. ET on Wednesday, August 5, 2026, to discuss these results. The call will be available live to interested parties by dialing: United States/Canada Toll Free: +1 800-347-6865 International Toll: +1 203-.

In the latest close session, SolarEdge Technologies (SEDG - Free Report) was down 4.18% at $56.00. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.66%.

The photovoltaic products maker's stock has dropped by 25.56% in the past month, falling short of the Oils-Energy sector's loss of 4.76% and the S&P 500's loss of 1.21%.

The investment community will be closely monitoring the performance of SolarEdge Technologies in its forthcoming earnings report. The company is expected to report EPS of $0.05, up 106.17% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $341.66 million, indicating a 18.04% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.03 per share and a revenue of $1.4 billion, representing changes of +101.26% and +18.44%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SolarEdge Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% increase. At present, SolarEdge Technologies boasts a Zacks Rank of #3 (Hold).

In the context of valuation, SolarEdge Technologies is at present trading with a Forward P/E ratio of 2191.5. This signifies a premium in comparison to the average Forward P/E of 23.19 for its industry.

The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 36% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

SolarEdge Technologies Inc (NASDAQ:SEDG) stock has pivoted into the red today, down 1.8% to trade at $51.42 after opening the session higher. The alternative energy stock has taken a 32% haircut this month and is 36% off its May 29 two-year high of $81.25. The good news is that if past is precedent, the pullback could have historically bullish implications.

According to Schaeffer's Senior Quantitative Analyst Rocky White, SEDG is trading within 0.75 times its 80-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline.

This setup has appeared 10 times over the last decade, after which the stock was higher one month later 60% of the time, averaging a 13.4% gain. A move of similar magnitude would have SolarEdge back above $60.

Despite an 80% year-to-date gain on the year, bearish bettors have piled on during the pullback, with short interest up 7.3% in the two most recent reporting periods. The 10.95 million shares sold short account for 18.2% of SEDG's total available float. 

A shift in sentiment among analysts could also fuel tailwinds. SEDG is up 175% in the last 12 months, yet 25 of the 26 brokerages covering the stock maintain "hold" or "strong sell" ratings. Plus, the equity's consensus 12-month price target of $40.87 is a 20.6% discount from its current perch.

SolarEdge Technologies (SEDG - Free Report) ended the recent trading session at $60.19, demonstrating a -1% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.65%. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 3.07%.

Heading into today, shares of the photovoltaic products maker had lost 1.55% over the past month, outpacing the Oils-Energy sector's loss of 2.71% and lagging the S&P 500's gain of 0.48%.

Investors will be eagerly watching for the performance of SolarEdge Technologies in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.04, reflecting a 104.94% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $341.66 million, showing a 18.04% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.03 per share and a revenue of $1.4 billion, representing changes of +101.26% and +18.44%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SolarEdge Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SolarEdge Technologies presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that SolarEdge Technologies has a Forward P/E ratio of 2128 right now. This expresses a premium compared to the average Forward P/E of 20.45 of its industry.

The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 168, finds itself in the bottom 32% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Wall Street expects a year-over-year increase in earnings on higher revenues when SolarEdge Technologies (SEDG - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on May 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis photovoltaic products maker is expected to post quarterly loss of $0.23 per share in its upcoming report, which represents a year-over-year change of +79.8%.

Revenues are expected to be $303.42 million, up 38.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 7.69% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for SolarEdge?For SolarEdge, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +30.44%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that SolarEdge will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that SolarEdge would post a loss of$0.19 per share when it actually produced a loss of -$0.14, delivering a surprise of +26.32%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

SolarEdge appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

MILPITAS, Calif.--(BUSINESS WIRE)--SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the first quarter ended March 31, 2026.

“Our first quarter results reflect strong execution, continued innovation, and business acceleration, with 46% year-over-year revenue growth and a sixth consecutive quarter of margin expansion,” said Shuki Nir, CEO of SolarEdge. “At the midpoint of our Q2 outlook, we expect to be close to breakeven operating profitability. With a return to profitability in sight, we have shifted decisively to offense and are focused on rolling out the SolarEdge Nexis platform and advancing our AI data-center power roadmap.”

First Quarter 2026 Summary

The Company reported revenues of $310.5 million, down 7.4% from $335.4 million in the prior quarter.

Non-GAAP revenues1 were $309.9 million, down 7.1% from $333.8 million the prior quarter.

First quarter revenue does not include significant one-time or pull forward of revenue from safe harbor nor from the 25D rush towards the end of the year.

During the quarter approximately 50.5 thousand inverters, 2.4 million optimizers and 331 MWh of batteries for PV applications were recognized as revenue.

GAAP gross margin was 22.0%, compared to 22.2% in the prior quarter.

Non-GAAP gross margin1 was 23.5%, compared to 23.3% in the prior quarter.

GAAP operating expenses were $123.3 million, compared to $122.8 million in the prior quarter.

Non-GAAP operating expenses1 were $97.7 million, compared to $88.7 million in the prior quarter. Excluding a one-time expense of approximately $14 million, our operating expenses were approximately $84 million.

GAAP operating loss was $55.0 million, compared to $48.3 million in the prior quarter.

Non-GAAP operating loss1 was $24.8 million, compared to $11.0 million in the prior quarter. Excluding a one-time expense of approximately $14 million, our operating loss was approximately $11 million, approximately flat with the prior quarter.

GAAP net loss was $57.4 million, compared to $132.1 million in the prior quarter.

Non-GAAP net loss1 was $26.3 million, compared to $8.2 million in the prior quarter. Excluding a one-time expense of approximately $14 million, our net loss was approximately $11.9 million.

GAAP net loss per share was $0.95, compared to $2.21 in the prior quarter.

Non-GAAP net loss per share1 was $0.43, compared to $0.14 in the prior quarter. Excluding a one-time expense of approximately $14 million, our net loss per share was approximately $0.20.

Cash flow from operating activities was $24.4 million, compared with $52.6 million in the prior quarter.

Free cash flow1 generated was $20.7 million, compared to $43.3 million in the prior quarter.

As of March 31, 2026, our cash and investments portfolio, net of debt, grew by $2.0 million to $246.2 million, compared to $244.2 million as of December 31, 2025.

Outlook for the Second Quarter 2026

The Company also provides guidance for the second quarter ending June 30, 2026 as follows:

Revenues to be within the range of $325 million to $355 million; this range does not include significant one-time or pull forward of revenue. Non-GAAP gross margin* expected to be within the range of 23% to 27% Non-GAAP operating expenses* to be within the range of $86 million to $91 million. *Non-GAAP gross margin and Non-GAAP operating expenses are non-GAAP financial measures, and these forward-looking measures have not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures. Forward-looking estimates of Non-GAAP gross margin and Non-GAAP operating expenses are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.

Conference Call

The Company will host a conference call to discuss its results for the first quarter ended March 31, 2026 at 8:00 a.m. ET on Wednesday, May 6, 2026. The call will be available, live, to interested parties by dialing +1 800-225-9448. For international callers, please dial +1 203-518-9708. The Conference ID is SEDG. To avoid a delay in connecting to the call, please dial in 10 minutes prior to the start time. A live webcast will also be available in the Investors Relations section of the Company’s website at: http://investors.solaredge.com

A replay of the webcast will be available in the Investor Relations section of the Company’s web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.

About SolarEdge

SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, batteries, EV charging, smart energy management, and grid services solutions. SolarEdge is online at www.solaredge.com.

Use of Non-GAAP Financial Measures

To provide investors and others with additional information regarding SolarEdge’s results, SolarEdge has disclosed in this earnings release the following non-GAAP financial measures: non-GAAP revenue, non-GAAP operating income (loss), non-GAAP operating expenses, non-GAAP gross margin, non-GAAP net income (loss), non-GAAP net earnings (loss) per share, and non-GAAP net free cash flow. SolarEdge has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure below. These non-GAAP financial measures differ from GAAP in that they exclude stock-based compensation, amortization and impairment of acquired intangible assets, restructuring and impairment charges, acquisition, disposition and other items, certain litigation and other contingencies, amortization of debt issuance cost, non-cash interest expense and non-cash revenue recognized from significant financing component, certain foreign currency exchange rates, gains and losses on investments, income and losses from equity method investments and discrete items that impacted our GAAP tax rate. Our non-GAAP financial measures also reflect the application of our non-GAAP tax rate.

SolarEdge’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, to calculate bonus payments and to evaluate SolarEdge’s financial performance, the performance of its individual functional groups and the ability of operations to generate cash. Management believes these non-GAAP financial measures reflect SolarEdge’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in SolarEdge’s business, as they exclude charges and gains that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating SolarEdge’s operating results and future prospects from the same perspective as management and in comparing financial results across accounting periods.

The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense that affect SolarEdge’s operations. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP and should not be considered measures of SolarEdge’s liquidity. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review SolarEdge’s financial information in its entirety and not rely on a single financial measure.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements contained in this press release contains may contain forward-looking statements that are based on our management’s expectations, estimates, projections, beliefs and assumptions in accordance with information currently available to our management. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include information, among other things, concerning our possible or assumed future results of operations, return to positive free cash flow generation, future demands for solar energy solutions, business strategies, technology developments, new products and services, financing and investment plans; dividend policy; competitive position, industry and regulatory environment, general economic conditions; potential growth opportunities; cancellations and pushouts of existing backlog; installation rates; goodwill impairment; the effects of competition; tariff impacts and the impacts of the One Big Beautiful Bill Act. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negatives of those terms.

Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this release. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to: our ability to be profitable in the future; the rapidly evolving and competitive nature of the solar industry; changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act and the H.R. 1; future demand for renewable energy including solar energy solutions; our ability to maintain a return to free cash flow positive generation; macroeconomic conditions in our domestic and international markets, as well as inflation concerns, rising interest rates and recessionary concerns; changes in the U.S. and global trade environments, including the imposition and/or increase of import tariffs or other restrictive trade measures; the retail price of electricity derived from the utility grid or alternative energy sources; our ability to forecast demand for our products accurately and to match production to such demand as well as our customers’ ability to forecast demand based on inventory levels; interest rates and supply of capital in the global financial markets in general and in the PV market specifically; competition, including introductions of power optimizer, inverter, EV chargers, batteries and PV system monitoring products by our competitors; the retail price of electricity derived from the utility grid or alternative energy sources; developments in alternative technologies or improvements in distributed solar energy generation; historic cyclicality of the solar industry and periodic downturns; product quality or performance problems in our products; changes in our geographic footprint or product and service offerings; our dependence upon a small number of outside contract manufacturers and limited or single source suppliers; delays, disruptions, and quality control problems in manufacturing; shortages, delays, price changes, or cessation of operations or production affecting our suppliers of key components; capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components; changing political, geopolitical conditions, and the conditions of the global energy market; performance of distributors and large installers in selling our products; consolidation in the solar industry among our customers and distributors; our ability to implement our new Enterprise Resource Planning ("ERP") system; our ability to successfully operate our global operations with a reduced work force; our ability to recognize expected benefits from restructuring plans; any unauthorized access to, disclosure, or theft of confidential or personal information or unauthorized access to our network or other similar cyber incidents; attempts by third parties, our employees, or our vendors might gain unauthorized access to our network or seek to compromise our products and services; emerging issues related to the development and use of artificial intelligence; loss of key executives, and our ability to retain key personnel and attract additional qualified personnel; disruption to our business operations due to the evolving conflict in Israel and other conditions in Israel that affect our operations; tax benefits that are available to us under Israeli law require us to meet various conditions and may be terminated or reduced in the future; difficulty to enforce a judgment of a U.S. court against our officers and directors, to assert U.S. securities laws claims in Israel; our dependence on ocean transportation to timely deliver our products in a cost-effective manner; fluctuations in global currency exchange rates; the impact of evolving legal and regulatory requirements, including corporate social responsibility and sustainability requirements; existing and future responses to and effects of pandemics, epidemics or other health crises; reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar electricity applications; changes to net metering policies may reduce demand for electricity from PV systems; stringent and changing data privacy and security laws, rules, regulations and other obligations; federal, state, and local regulations governing the electric utility industry with respect to solar energy; business practices and regulatory compliance of our raw material suppliers; our ability to maintain our brand and to protect and defend our intellectual property; volatility of our stock price; our customers’ financial stability, creditworthiness, and debt leverage ratio; our ability to effectively design, launch, market, and sell new generations of our products and services; our ability to retain, and events affecting, our major customers; our ability to service our debt; impairment of our goodwill or other long-lived and intangible assets; our liquidity and ability to service our debt; and the other factors set forth under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed on February 25, 2026, in subsequent Quarterly Reports on Form 10Q and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business. The preceding list is not intended to be an exhaustive list of all of our forward‐looking statements. You should not rely upon forward‐looking statements as predictions of future events. Although we believe that the expectations reflected in the forward‐looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward‐looking statements will be achieved or will occur. Statements in this press release speak only as of the date they were made. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or changes in its expectations or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

SOLAREDGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS

(in thousands, except per share data)

  Three Months Ended

March 31,

2026

2025

Unaudited

Revenues

$

310,501

$

219,480

Cost of revenues

242,220

201,944

Gross profit

68,281

17,536

Operating expenses:

Research and development, net

50,155

61,997

Sales and marketing

27,449

31,657

General and administrative

36,422

30,183

Other operating expense (income), net

9,298

(3,575

)

Total operating expenses

123,324

120,262

Operating loss

(55,043

)

(102,726

)

Financial income (expense), net

(1,037

)

10,068

Other income, net

—

148

Loss before income taxes

(56,080

)

(92,510

)

Income taxes

(1,286

)

(5,726

)

Net loss from equity method investments

—

(287

)

Net loss

$

(57,366

)

$

(98,523

)

  SOLAREDGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

  March 31,

2026

December 31,

2025

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

512,381

$

455,075

Restricted cash

40,985

84,771

Marketable securities

29,269

38,097

Trade receivables, net of allowances of $30,478 and $17,224, respectively

222,704

267,441

Inventories, net

596,824

552,632

Prepaid expenses and other current assets

414,518

341,831

Total current assets

1,816,681

1,739,847

LONG-TERM ASSETS:

Property, plant and equipment, net

264,965

269,351

Operating lease right-of-use assets, net

50,085

48,178

Intangible assets, net

6,420

7,129

Goodwill

49,852

50,123

Other long-term assets

72,505

67,566

Total long-term assets

443,827

442,347

Total assets

2,260,508

2,182,194

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Trade payables

404,507

271,983

Employees and payroll accruals

81,990

73,992

Warranty obligations

83,685

89,330

Deferred revenues and customers advances

38,540

70,371

Accrued expenses and other current liabilities

288,549

297,819

Total current liabilities

897,271

803,495

LONG-TERM LIABILITIES:

Convertible senior notes, net

331,944

331,561

Warranty obligations

238,129

268,559

Deferred revenues and customers advances

313,949

293,328

Finance lease liabilities

18,323

18,558

Operating lease liabilities

39,307

36,648

Other long-term liabilities

10,865

2,581

Total long-term liabilities

952,517

951,235

STOCKHOLDERS’ EQUITY:

Common stock of $0.0001 par value - Authorized: 125,000,000; Issued and outstanding: 60,817,930 and 60,360,154 shares as of March 31, 2026 and December 31, 2025, respectively

6

6

Additional paid-in capital

1,896,782

1,872,760

Accumulated other comprehensive income (loss)

4,937

(11,663

)

Accumulated deficit

(1,491,005

)

(1,433,639

)

Total stockholders’ equity

410,720

427,464

Total liabilities and stockholders’ equity

$

2,260,508

$

2,182,194

  SOLAREDGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except per share data)

  Three Months Ended March 31

2026

2025

Cash flows from operating activities:

Net loss

$

(57,366

)

$

(98,523

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

5,941

12,001

Stock-based compensation expenses

19,852

31,426

Loss from business disposition

7,600

—

Loss (gain) from exchange rate fluctuations

659

(2,930

)

Other items

(939

)

1,242

Changes in assets and liabilities:

Trade receivables, net

43,559

29,247

Inventories, net

(38,339

)

12,285

Prepaid expenses and other assets

(88,163

)

100,361

Operating lease right-of-use assets, net

3,288

3,659

Trade payables

132,556

30,275

Employees and payroll accruals

9,625

208

Warranty obligations

(36,064

)

(19,745

)

Deferred revenues and customers advances

(11,168

)

(51,970

)

Operating lease liabilities

(3,805

)

(3,571

)

Accrued expenses and other liabilities

37,192

(10,142

)

Net cash provided by operating activities

24,428

33,823

Cash flows from investing activities:

Investment in available-for-sale marketable securities

—

(72,465

)

Proceeds from maturities of available-for-sale marketable securities

8,811

142,931

Purchase of property, plant and equipment

(3,701

)

(10,109

)

Business dispositions, net of cash sold

(2,631

)

—

Repayment related to governmental grant

—

(6,643

)

Withdrawal from restricted bank deposits

2,700

80

Payments made before lease commencement

(26,162

)

—

Proceeds from loan receivables

56

13,653

Other investing activities

487

150

Net cash provided by (used in) investing activities

(20,440

)

67,597

Cash flows from financing activities:

Repurchase of convertible debt

—

(5,093

)

Issuance of common stock upon exercise of stock-based awards

3,850

10

Tax withholding in connection with stock-based awards, net

(1,487

)

(338

)

Other financing activities

(375

)

(816

)

Net cash provided by (used in) financing activities

1,988

(6,237

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(1,146

)

701

Increase in cash, cash equivalents and restricted cash including cash classified within current held-for-sale assets

4,830

95,884

Change in cash classified within current held-for-sale assets

8,690

—

Increase in cash, cash equivalents and restricted cash

13,520

95,884

Cash, cash equivalents and restricted cash, beginning of period

539,846

409,939

Cash, cash equivalents and restricted cash, end of period

$

553,366

$

505,823

  SOLAREDGE TECHNOLOGIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

  Three months ended

Year ended

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2025

December 31,

2024

December 31,

2023

Gross profit (loss) (GAAP)

$

68,281

$

74,471

$

72,143

$

32,131

$

17,536

$

196,281

$

(877,204

)

$

703,823

Revenues from finance component

(498

)

(456

)

(351

)

(304

)

(264

)

(1,375

)

(984

)

(834

)

Discontinued operation revenues

(64

)

(1,107

)

(85

)

(8,132

)

(7,098

)

(16,422

)

—

—

Discontinued operation cost of revenues

573

(331

)

(13,101

)

7,834

792

(4,806

)

24,921

36,648

Stock-based compensation

3,607

3,687

3,959

4,004

4,372

16,022

21,952

23,200

Amortization of stock-based compensation capitalized in inventories

313

613

825

882

381

2,701

3,138

1,100

Amortization and depreciation of acquired asset

500

495

501

483

491

1,970

5,412

6,038

Restructuring charges

278

344

31

10

430

815

15,327

23,154

Gross profit (loss) (Non-GAAP)

$

72,990

$

77,716

$

63,922

$

36,908

$

16,640

$

195,186

$

(807,438

)

$

793,129

Gross margin (loss) (GAAP)

22.0

%

22.2

%

21.2

%

11.1

%

8.0

%

16.6

%

(97.3

)%

23.6

%

Revenues from finance component

(0.2

)

0.0

0.0

0.0

0.0

(0.1

)

(0.1

)

0.0

Discontinued operation revenues

0.0

0.0

0.0

(2.8

)

(3.2

)

(1.4

)

—

—

Discontinued operation cost of revenues

0.2

0.0

(3.9

)

3.0

0.4

(0.4

)

2.8

1.2

Stock-based compensation

1.1

1.1

1.2

1.4

2.0

1.4

2.4

0.9

Amortization of stock-based compensation capitalized in inventories

0.1

0.0

0.2

0.3

0.2

0.2

0.3

0.0

Amortization and depreciation of acquired asset

0.2

0.0

0.1

0.2

0.2

0.3

0.6

0.2

Restructuring charges

0.1

0.0

0.0

0.0

0.2

0.1

1.7

0.8

Gross margin (loss) (Non-GAAP)

23.5

%

23.3

%

18.8

%

13.2

%

7.8

%

16.7

%

(89.6

)%

26.7

%

Operating expenses (GAAP)

$

123,324

$

122,781

$

107,293

$

147,624

$

120,262

$

497,960

$

831,084

$

663,618

Stock-based compensation - R&D

(8,061

)

(8,442

)

(10,681

)

(9,856

)

(15,911

)

(44,890

)

(62,546

)

(66,944

)

Stock-based compensation - S&M

(4,151

)

(4,298

)

(4,348

)

(4,342

)

(4,742

)

(17,730

)

(27,328

)

(30,987

)

Stock-based compensation - G&A

(4,033

)

(3,546

)

(2,897

)

(1,059

)

(6,401

)

(13,903

)

(25,425

)

(28,814

)

Amortization and depreciation of acquired assets - R&D

—

—

—

—

—

—

(1,000

)

(989

)

Amortization and depreciation of acquired assets - S&M

(116

)

(116

)

(116

)

(116

)

(424

)

(772

)

(1,599

)

(927

)

Amortization and depreciation of acquired assets - G&A

—

—

—

—

—

—

(6

)

(15

)

Amortization of stock-based compensation capitalized in assets

(110

)

—

—

—

—

—

—

—

Discontinued operation

556

(6,989

)

(316

)

(27,069

)

(1,522

)

(35,896

)

(3,293

)

(388

)

Restructuring charges

(371

)

(423

)

(426

)

(867

)

(2,613

)

(4,329

)

(5,607

)

—

Assets impairment and disposal by abandonment

(970

)

(3,135

)

(672

)

(1,967

)

(224

)

(5,998

)

(251,823

)

(30,790

)

Gain (loss) from assets sales

(8,327

)

(7,117

)

(158

)

(17,108

)

662

(23,721

)

(5,746

)

1,262

Certain litigation and other contingencies

—

—

—

—

—

—

399

(1,786

)

Acquisition costs

—

—

—

—

—

—

(9

)

(135

)

Operating expenses (Non-GAAP)

$

97,741

$

88,715

$

87,679

$

85,240

$

89,087

$

350,721

$

447,101

$

503,105

  SOLAREDGE TECHNOLOGIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

  Three months ended

Year ended

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2025

December 31,

2024

December

31, 2023

Operating income (loss) (GAAP)

$

(55,043

)

$

(48,310

)

$

(35,150

)

$

(115,493

)

$

(102,726

)

$

(301,679

)

$

(1,708,288

)

$

40,205

Revenues from finance component

(498

)

(456

)

(351

)

(304

)

(264

)

(1,375

)

(984

)

(834

)

Discontinued operation

(47

)

5,551

(12,870

)

26,771

(4,784

)

14,668

28,214

37,036

Stock-based compensation

19,852

19,973

21,885

19,261

31,426

92,545

137,251

149,945

Amortization of stock-based compensation capitalized in inventories

313

613

825

882

381

2,701

3,138

1,100

Amortization and depreciation of acquired assets

616

611

617

599

915

2,742

8,017

7,969

Amortization of stock-based compensation capitalized in assets

110

—

—

—

—

—

—

—

Restructuring charges

649

767

457

877

3,043

5,144

20,934

23,154

Assets impairment and disposal by abandonment

970

3,135

672

1,967

224

5,998

251,823

30,790

Loss (gain) from assets sales

8,327

7,117

158

17,108

(662

)

23,721

5,746

(1,262

)

Certain litigation and other contingencies

—

—

—

—

—

—

(399

)

1,786

Acquisition costs

—

—

—

—

—

—

9

135

Operating income (loss) (Non-GAAP)

$

(24,751

)

$

(10,999

)

$

(23,757

)

$

(48,332

)

$

(72,447

)

$

(155,535

)

$

(1,254,539

)

$

290,024

Financial income (expense), net (GAAP)

$

(1,037

)

$

(77,784

)

$

3,040

$

(7,323

)

$

10,068

$

(71,999

)

$

(14,570

)

$

41,212

Non cash interest expense

4,793

4,420

4,462

4,326

4,051

17,259

14,877

12,703

Currency fluctuation related to lease standard

(317

)

3,360

1,552

7,151

(1,633

)

10,430

(744

)

(3,055

)

Discontinued operation

3

1,402

(958

)

2,265

(276

)

2,433

—

—

CTA reclassification upon liquidation of a foreign subsidiary

225

59,520

—

—

—

59,520

—

—

One‑time foreign exchange impact from VAT settlement agreement

(3,900

)

10,963

—

—

—

10,963

—

—

Financial income (expense), net (Non-GAAP)

$

(233

)

$

1,881

$

8,096

$

6,419

$

12,210

$

28,606

$

(437

)

$

50,860

Other income (loss) (GAAP)

$

—

$

(6,582

)

$

(15,011

)

$

4,017

$

148

$

(17,428

)

$

14,547

$

(318

)

Loss (gain) from sale of equity and debt investments

—

—

—

—

(2

)

(2

)

(2,966

)

193

Gain from business combination

—

—

—

—

—

—

(1,125

)

—

Gain from the repurchase of convertible notes

—

—

—

—

(146

)

(146

)

(15,456

)

—

Loss (gain) from sale of privately-held companies

—

155

—

(4,017

)

—

(3,862

)

—

—

Loss from impairment of privately-held companies

—

6,427

15,011

—

—

21,438

5,000

—

Other income (loss) (Non-GAAP)

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

(125

)

Income tax benefit (expense) (GAAP)

$

(1,286

)

$

564

$

(2,563

)

$

(5,657

)

$

(5,726

)

$

(13,382

)

$

(96,150

)

$

(46,420

)

Income tax adjustment

(15

)

389

(124

)

(100

)

(155

)

10

39,007

(45,896

)

Income tax benefit (expense) (Non-GAAP)

$

(1,301

)

$

953

$

(2,687

)

$

(5,757

)

$

(5,881

)

$

(13,372

)

$

(57,143

)

$

(92,316

)

Equity method investments income (loss) (GAAP)

$

—

$

(9

)

$

(376

)

$

(288

)

$

(287

)

$

(960

)

$

(1,896

)

$

(350

)

Loss from equity method investments

—

9

376

288

287

960

1,896

350

Equity method investments income (loss) (Non-GAAP)

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

  SOLAREDGE TECHNOLOGIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

  Three months ended

Year ended

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2025

December 31,

2024

December 31,

2023

Net income (loss) (GAAP)

$

(57,366

)

$

(132,121

)

$

(50,060

)

$

(124,744

)

$

(98,523

)

$

(405,448

)

$

(1,806,357

)

$

34,329

Revenues from finance component

(498

)

(456

)

(351

)

(304

)

(264

)

(1,375

)

(984

)

(834

)

Discontinued operation

(44

)

6,953

(13,828

)

29,036

(5,060

)

17,101

28,214

37,036

Stock-based compensation

19,852

19,973

21,885

19,261

31,426

92,545

137,251

149,945

Amortization of stock-based compensation capitalized in inventories

313

613

825

882

381

2,701

3,138

1,100

Amortization and depreciation of acquired assets

616

611

617

599

915

2,742

8,017

7,969

Amortization of stock-based compensation capitalized in assets

110

—

—

—

—

—

—

—

Restructuring charges

649

767

457

877

3,043

5,144

20,934

23,154

Assets impairment and disposal by abandonment

970

3,135

672

1,967

224

5,998

251,823

30,790

Loss (gain) from assets sales

8,327

7,117

158

17,108

(662

)

23,721

5,746

(1,262

)

Certain litigation and other contingencies

—

—

—

—

—

—

(399

)

1,786

Acquisition costs

—

—

—

—

—

—

9

135

Non cash interest expense

4,793

4,420

4,462

4,326

4,051

17,259

14,877

12,703

CTA reclassification upon liquidation of a foreign subsidiary

225

59,520

—

—

—

59,520

—

—

One‑time foreign exchange impact from VAT settlement agreement

(3,900

)

10,963

—

—

—

10,963

—

—

Currency fluctuation related to lease standard

(317

)

3,360

1,552

7,151

(1,633

)

10,430

(744

)

(3,055

)

Loss (gain) from sale of equity and debt investments

—

—

—

—

(2

)

(2

)

(2,966

)

193

Loss (gain) from business combination

—

—

—

—

—

—

(1,125

)

—

Gain from the repurchase of convertible notes

—

—

—

—

(146

)

(146

)

(15,456

)

—

Loss (gain) from sale of privately-held companies

—

155

—

(4,017

)

—

(3,862

)

—

—

Loss from impairment of privately-held companies

—

6,427

15,011

—

—

21,438

5,000

—

Income tax adjustment

(15

)

389

(124

)

(100

)

(155

)

10

39,007

(45,896

)

Equity method adjustments

—

9

376

288

287

960

1,896

350

Net income (loss) (Non-GAAP)

$

(26,285

)

$

(8,165

)

$

(18,348

)

$

(47,670

)

$

(66,118

)

$

(140,301

)

$

(1,312,119

)

$

248,443

SOLAREDGE TECHNOLOGIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

  Three months ended

Year ended

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2025

December 31,

2024

December 31,

2023

Net basic earnings (loss) per share (GAAP)

$

(0.95

)

$

(2.21

)

$

(0.84

)

$

(2.13

)

$

(1.70

)

$

(6.88

)

$

(31.64

)

$

0.61

Revenues from finance component

(0.01

)

(0.01

)

(0.01

)

(0.01

)

0.00

(0.02

)

(0.02

)

(0.02

)

Discontinued operation

0.00

0.12

(0.23

)

0.50

(0.09

)

0.29

0.49

0.66

Stock-based compensation

0.33

0.33

0.37

0.33

0.54

1.57

2.41

2.65

Amortization of stock-based compensation capitalized in inventories

0.01

0.01

0.01

0.01

0.01

0.05

0.05

0.02

Amortization and depreciation of acquired assets

0.01

0.01

0.01

0.01

0.02

0.04

0.14

0.14

Amortization of stock-based compensation capitalized in assets

0.00

—

—

—

—

—

—

—

Restructuring charges

0.01

0.02

0.01

0.02

0.05

0.09

0.37

0.41

Assets impairment and disposal by abandonment

0.02

0.05

0.01

0.03

0.00

0.10

4.41

0.54

Loss (gain) from assets sales

0.14

0.12

0.00

0.30

(0.01

)

0.40

0.10

(0.02

)

Certain litigation and other contingencies

—

—

—

—

—

—

(0.01

)

0.03

Acquisition costs

—

—

—

—

—

—

0.00

0.00

Non cash interest expense

0.08

0.07

0.08

0.07

0.07

0.30

0.26

0.23

CTA reclassification upon liquidation of a foreign subsidiary

0.00

1.00

—

—

—

1.01

—

—

One‑time foreign exchange impact from VAT settlement agreement

(0.06

)

0.18

—

—

—

0.18

—

—

Currency fluctuation related to lease standard

(0.01

)

0.06

0.02

0.12

(0.03

)

0.18

(0.01

)

(0.06

)

Loss (gain) from sale of equity and debt investments

—

—

—

—

—

0.00

(0.05

)

0.01

Loss (gain) from business combination

—

—

—

—

—

—

(0.02

)

—

Gain from the repurchase of convertible notes

—

—

—

—

0.00

0.00

(0.27

)

—

Loss (gain) from sale of privately-held companies

—

0.00

—

(0.06

)

—

(0.07

)

—

—

Loss from impairment of privately-held companies

—

0.11

0.26

—

—

0.36

0.09

—

Income tax adjustment

0.00

0.00

(0.01

)

0.00

0.00

0.00

0.68

(0.81

)

Equity method adjustments

—

0.00

0.01

0.00

0.00

0.02

0.03

0.00

Net basic earnings (loss) per share (Non-GAAP)

$

(0.43

)

$

(0.14

)

$

(0.31

)

$

(0.81

)

$

(1.14

)

$

(2.38

)

$

(22.99

)

$

4.39

  SOLAREDGE TECHNOLOGIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

  Three months ended

Year ended

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2025

December 31,

2024

December 31,

2023

Net diluted earnings (loss) per share (GAAP)

$

(0.95

)

$

(2.21

)

$

(0.84

)

$

(2.13

)

$

(1.70

)

$

(6.88

)

$

(31.64

)

$

0.60

Revenues from finance component

(0.01

)

(0.01

)

(0.01

)

(0.01

)

0.00

(0.02

)

(0.02

)

(0.01

)

Discontinued operation

0.00

0.12

(0.23

)

0.50

(0.09

)

0.29

0.49

0.64

Stock-based compensation

0.33

0.33

0.37

0.33

0.54

1.57

2.41

2.57

Amortization of stock-based compensation capitalized in inventories

0.01

0.01

0.01

0.01

0.01

0.05

0.05

0.02

Amortization and depreciation of acquired assets

0.01

0.01

0.01

0.01

0.02

0.04

0.14

0.14

Amortization of stock-based compensation capitalized in assets

0.00

—

—

—

—

—

—

—

Restructuring charges

0.01

0.02

0.01

0.02

0.05

0.09

0.37

0.40

Assets impairment and disposal by abandonment

0.02

0.05

0.01

0.03

0.00

0.10

4.41

0.53

Loss (gain) from assets sales

0.14

0.12

0.00

0.30

(0.01

)

0.40

0.10

(0.02

)

Certain litigation and other contingencies

—

—

—

—

—

—

(0.01

)

0.03

Acquisition costs

—

—

—

—

—

—

0.00

0.00

Non cash interest expense

0.08

0.07

0.08

0.07

0.07

0.30

0.26

0.03

CTA reclassification upon liquidation of a foreign subsidiary

0.00

1.00

—

—

—

1.01

—

—

One‑time foreign exchange impact from VAT settlement agreement

(0.06

)

0.18

—

—

—

0.18

—

—

Currency fluctuation related to lease standard

(0.01

)

0.06

0.02

0.12

(0.03

)

0.18

(0.01

)

(0.05

)

Loss (gain) from sale of equity and debt investments

—

—

—

—

0.00

0.00

(0.05

)

0.00

Loss (gain) from business combination

—

—

—

—

—

—

(0.02

)

—

Gain from the repurchase of convertible notes

0.00

—

—

—

0.00

0.00

(0.27

)

—

Loss (gain) from sale of privately-held companies

—

0.00

—

(0.06

)

—

(0.07

)

—

—

Loss from impairment of privately-held companies

—

0.11

0.26

—

—

0.36

0.09

—

Income tax adjustment

0.00

0.00

(0.01

)

0.00

0.00

0.00

0.68

(0.76

)

Equity method adjustments

—

0.00

0.01

0.00

0.00

0.02

0.03

0.00

Net diluted earnings (loss) per share (Non-GAAP)

$

(0.43

)

$

(0.14

)

$

(0.31

)

$

(0.81

)

$

(1.14

)

$

(2.38

)

$

(22.99

)

$

4.12

Number of shares used in computing net diluted earnings (loss) per share (GAAP)

60,517,248

59,828,042

59,278,269

58,567,394

58,121,502

58,954,380

57,082,182

57,237,518

Stock-based compensation

—

—

—

—

—

—

—

725,859

Notes due 2025

—

—

—

—

—

—

—

2,276,818

Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP)

60,517,248

59,828,042

59,278,269

58,567,394

58,121,502

58,954,380

57,082,182

60,240,195

Net cash provided by (used in) operating activities (GAAP)

$

24,428

$

52,629

$

25,608

$

(7,799

)

$

33,823

$

104,261

$

(313,319

)

$

(180,113

)

Purchase of property, plant and equipment

(3,701

)

(9,293

)

(2,809

)

(1,256

)

(10,109

)

(23,467

)

(108,163

)

(170,523

)

Discontinued operation

—

—

—

—

(3,867

)

(3,867

)

—

—

Free cash flow (deficit) (Non-GAAP)

$

20,727

$

43,336

$

22,799

$

(9,055

)

$

19,847

$

76,927

$

(421,482

)

$

(350,636

)

More News From SolarEdge Technologies, Inc.

Key Takeaways SolarEdge reported Q1 2026 adjusted loss of 43 cents, wider than estimates but improved year over year.SEDG revenues rose 41.5% to $310.5M, beating estimates, with strong growth in shipments and gross profit.SolarEdge expects Q2 revenues of $325-$355M, with gross margin projected between 23% and 27%. SolarEdge Technologies, Inc. (SEDG - Free Report) reported a first-quarter 2026 adjusted loss of 43 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents. The bottom line improved from the prior-year quarter’s loss of $1.14 per share.

Barring one-time adjustments, the company incurred a GAAP loss of 95 cents per share compared with a GAAP loss of $1.70 in the year-ago period.

SEDG’s RevenuesRevenues of $310.5 million surpassed the Zacks Consensus Estimate of $303 million by 2.3%. The top line also increased 41.5% from the year-ago quarter’s $219.5 million.

SEDG’s Operational HighlightsSolarEdge Technologies shipped approximately 50.5 thousand inverters, 2.4 million optimizers and 331 MWh of batteries for PV applications in the first quarter.

The company reported an adjusted gross profit of $68.3 million compared with $17.5 million in the prior-year period.

Adjusted operating expenses increased 2.5% year over year to $123.3 million.

SEDG incurred an adjusted operating loss of $55 million compared with an operating loss of $102.7 million in the prior-year quarter.

SEDG’s Financial PerformanceAs of March 31, 2026, SolarEdge Technologies had cash and cash equivalents worth $512.4 million compared with $455.1 million as of Dec. 31, 2025.

As of the same date, total long-term liabilities were $952.5 million compared with $951.2 million as of Dec. 31, 2025.

The net cash provided by operating activities in the first three months of 2026 amounted to $24.4 million compared with $33.8 million in the year-ago period.

SEDG’s Q2 2026 GuidanceSEDG expects revenues to be in the range of $325-$355 million for the second quarter of 2026. The Zacks Consensus Estimate is pegged at $342.7 million, higher than the midpoint of the company’s guided range.

Adjusted operating expenses are projected to be in the range of $86-$91 million, while the adjusted gross margin is expected to be between 23% and 27%.

SEDG’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar ReleasesFirst Solar, Inc. (FSLR - Free Report) reported first-quarter 2026 earnings of $3.22 per share, which beat the Zacks Consensus Estimate of $2.87 by 12.1%. The bottom line increased 65.1% from the prior-year quarter’s figure of $1.95.

First Solar’s first-quarter net sales were $1.04 billion, which missed the Zacks Consensus Estimate by 0.1%. However, the top line rose 23.6% from the year-ago quarter’s $0.84 billion.

Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2026 adjusted earnings of 47 cents per share, which decreased 30.9% from 68 cents reported in the prior-year quarter. However, the bottom line topped the Zacks Consensus Estimate of 43 cents by 8.2%.

Enphase Energy’s first-quarter revenues of $282.9 million missed the Zacks Consensus Estimate of $284 million by 0.2%. The top line decreased 28.6% from the prior-year quarter’s reported figure of $356.1 million.

An Upcoming Solar ReleaseCanadian Solar Inc. (CSIQ - Free Report) is slated to report first-quarter 2026 results on May 14, before market open. The Zacks Consensus Estimate for CSIQ’s first-quarter loss is pegged at $1.08 per share, indicating a year-over-year decline of 0.9%.

The Zacks Consensus Estimate for CSIQ’s first-quarter sales is pegged at $947.6 million, implying a year-over-year decline of 20.8%.

-

MILPITAS, Calif. & HERZLIYA, Israel--(BUSINESS WIRE)--SolarEdge Technologies, Inc. (“SolarEdge” or the “Company”) (Nasdaq: SEDG), a global leader in smart energy technology, announced today the appointment of Mr. Maoz Sigron as the Company’s new Chief Financial Officer (CFO), effective May 31, 2026. Maoz Sigron succeeds Mr. Asaf Alperovitz, who is stepping down from the role to pursue another professional opportunity outside of the industry. Asaf will remain with the Company through June 9, 2026 to assist with a smooth handover.

Mr. Sigron has over 20 years of financial and operational experience across global organizations, with a strong track record in governance, M&A, capital markets, budgeting and operational discipline in NASDAQ- and TASE-listed companies. Most recently, he served as CFO and later COO at Perion Network Ltd. (NASDAQ & TASE: PERI). Earlier in his career, Mr. Sigron held senior finance leadership positions at Allot Ltd. (NASDAQ: ALLT, TASE: ALLT), Tnuva, and Stratasys Ltd. (NASDAQ: SSYS). Throughout his career, Mr. Sigron has succeeded in driving strategic business transformation, raising capital on NASDAQ through equity offerings, directing M&A processes for several strategic acquisitions, achieving substantial operational efficiencies, and supporting complex, multi-market operations. He holds a BA in Accounting and Business Management from The College of Management Academic Studies.

“Maoz joins SolarEdge at a pivotal moment for the company as we continue to execute on our strategic priorities, with a focus on operational efficiency, strengthening financial discipline, and positioning the Company for long-term, profitable growth,” said Shuki Nir, CEO of SolarEdge. “I am delighted to welcome Maoz to the team and am confident that his combination of financial rigor and hands-on leadership will help us strengthen execution and continue to improve our financial performance. I also extend my appreciation to Asaf Alperovitz for his leadership and for the role he played in setting the stage for profitable growth, and we wish him all the best in what’s next.”

“SolarEdge is a company with a strong culture of innovation, a differentiated market position, and significant global growth opportunities,” said Mr. Sigron. “I am excited to join Shuki and the talented SolarEdge team and help drive the company’s next phase of growth by continuing to strengthen financial performance and disciplined execution across the organization. I look forward to building on the company’s momentum as we continue to advance our strategic priorities and drive meaningful long-term value for our customers and stakeholders.”

About SolarEdge

SolarEdge is a global smart energy technology company. SolarEdge develops, manufactures, and sells products that address a broad range of energy market segments through its diversified product offering, including residential, commercial and large scale photovoltaic or PV, energy storage and backup solutions, electric vehicle (“EV”) charging capabilities, home energy management, grid services and virtual power plants. By leveraging engineering capabilities and focusing on innovation, safety and reliability, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge is online at www.solaredge.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release contains forward looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include information, among other things, concerning: management transitions, our possible or assumed future results of operations; future demands for solar energy solutions; business strategies; technology developments; financing and investment plans; dividend policy; competitive position; industry and regulatory environment; general economic conditions; potential growth opportunities; and the effects of competition. These forward-looking statements are often characterized by the use of words such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negative or plural of those terms and other like terminology.

Forward-looking statements are only predictions based on our current expectations and our projections about future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Given these factors, you should not place undue reliance on these forward-looking statements. These factors include, but are not limited to, the matters discussed in the section entitled “Risk Factors” of our Annual Report on Form 10-K/A for the year ended December 31, 2025, filed on March 23, 2026, and other reports filed with the SEC. All information set forth in this release is as of May 11, 2026. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

More News From SolarEdge Technologies, Inc.

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