SolarEdge Technologies reported its fourth‑quarter and full‑year 2025 results, posting revenue of $335.4 million, a 1.4 % decline from $340.2 million in Q3 2025 but a 70 % year‑over‑year increase from $200.3 million in Q4 2024. The company’s GAAP gross margin expanded to 22.2 % from 16.6 % a year earlier, while non‑GAAP gross margin rose to 23.3 %. The improvement reflects a higher mix of U.S.‑made products and lower seasonal warranty costs.
Operating results remained negative, with a GAAP operating loss of $48.3 million and a non‑GAAP operating loss of $11 million. Net loss was $132.1 million GAAP and $8.2 million non‑GAAP, compared with a full‑year GAAP net loss of $405.4 million and a non‑GAAP net loss of $140.3 million. Despite the losses, the company generated $43.3 million in free cash flow and ended the year with $244.2 million in cash and investments, up $35.4 million from the end of September 2025.
The company’s non‑GAAP earnings per share of $‑0.14 beat the consensus estimate of $‑0.19, a margin that underscores disciplined cost management amid a sequential revenue decline. Segment revenue was led by the U.S. market, which contributed $198 million (59 % of total), followed by Europe at $99 million (30 %) and international markets at $37 million (11 %).
For the first quarter of 2026, SolarEdge guided revenue of $290 million to $320 million, a range that excludes one‑time or pull‑forward items. The guidance signals confidence in maintaining growth momentum while navigating a tightening U.S. residential market and ongoing tariff impacts. Management emphasized a strategic shift toward “offense,” focusing on profitable growth and expanding market share through the rollout of the SolarEdge Nexis platform and investment in high‑growth adjacencies such as AI data‑center power.
Market reaction to the earnings was cautiously positive. The EPS beat, consecutive margin expansion, and positive free‑cash‑flow generation were highlighted as key drivers of investor sentiment, while headwinds such as a tightening residential market and currency effects were noted as potential risks.
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