SEDG · SolarEdge Technologies, Inc.

SolarEdge's first quarter 2026 results reflect a sequential revenue decline of 7.4% to $310.5 million, which management attributed to the absence of significant one-time or pull-forward revenue from safe harbor or the 25D rush. Despite the top-line dip, the company highlighted 46% year-over-year revenue growth and a sixth consecutive quarter of margin expansion. GAAP gross margin contracted slightly to 22.0% from 22.2% in the prior quarter, while non-GAAP gross margin improved to 23.5% from 23.3%. Operating expenses increased modestly on a GAAP basis but rose more on a non-GAAP basis, partly due to a one-time expense of approximately $14 million. Excluding that item, non-GAAP operating expenses were about $84 million, and operating loss was approximately $11 million, roughly flat sequentially. GAAP net loss narrowed significantly to $57.4 million from $132.1 million, driven by lower impairment or restructuring charges in the prior quarter. Non-GAAP net loss widened to $26.3 million from $8.2 million. Cash flow from operations was $24.4 million, down from $52.6 million, and free cash flow was $20.7 million versus $43.3 million. The company ended the quarter with net cash and investments of $246.2 million, up slightly from $244.2 million. CEO Shuki Nir expressed optimism about returning to profitability, noting that at the midpoint of Q2 guidance, the company expects to be close to breakeven operating profitability. The Q2 outlook calls for revenue of $325 million to $355 million, non-GAAP gross margin of 23% to 27%, and non-GAAP operating expenses of $86 million to $91 million. The company is focused on rolling out the SolarEdge Nexis platform and advancing its AI data-center power roadmap.