SOLAREDGE TECHNOLOGIES, INC. (SEDG): Results of Operations and Financial Condition
SOLAREDGE TECHNOLOGIES, INC. (SEDG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 SolarEdge Announces Second Quarter 2026 Financial Results Revenue of $346.2 million, representing 20% growth year-over-year Sixth consecutive quarter of gross margin expansion year-over-year MILPITAS, Calif. — August 5, 2026 — SolarEdge Technologies, Inc. (Nasdaq: SE
How this was made
The 30-second read
Why it matters
The filing provides fresh quarterly performance metrics (revenue growth, gross margin expansion, operating loss narrowing) and a quantified Q3 guidance range, enabling traders to reprice near-term fundamentals and margin trajectory.
Market read
Turnaround progress is quantified with margin expansion and a return to non-GAAP operating profitability, alongside explicit Q3 revenue and margin/expense guidance.
What to watch
Investors may underweight the gap between GAAP operating loss and non-GAAP profitability, and the guidance excludes potential IEEPA refunds in Q3, which could matter for GAAP-focused holders.
Revenue of $346.2 million, representing 20% growth year-over-year
Revenue grew year over year and sequentially, gross margin expanded sharply, GAAP operating loss narrowed, and the company returned to non-GAAP operating profitability while generating positive free cash flow.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $346.2 million | up 11.5% | up 19.6% |
| Revenuenon-GAAP | $345.5 million | up 11.5% | up 23.0% |
| Gross marginGAAP | 27.5% | – | – |
| Gross marginnon-GAAP | 28.6% | – | – |
| Operating expensesGAAP | $111.2 million | – | – |
| Operating expensesnon-GAAP | $88.5 million | – | – |
| Operating income (loss)GAAP | $(16.0) million | – | – |
| Operating income (loss)non-GAAP | $10.2 million | – | – |
| Net income (loss)GAAP | $(30.8) million | – | – |
| Net income (loss)non-GAAP | $3.6 million | – | – |
| EPS (diluted)GAAP | $(0.50) | – | – |
| EPS (diluted)non-GAAP | $0.05 | – | – |
| Free cash flowother | $3.1 million | – | – |
Q3 2026 outlook
- Revenue$310 million – $340 million
- Gross margin22% – 26%
- Operating expenses$86 million – $91 million
- NoteThis guidance does not include any significant pull-forward of revenue and excludes potential IEEPA refunds in the third quarter.
- NoteWhen including the $11.5 million of IEEPA refunds we received in July, the midpoint of our guidance implies a non-GAAP operating profit in the third quarter.
What drove it
- Strong demand in Europe combined with strength in U.S. C&I more than offset industry-wide softness in U.S. residential.
- GAAP and non-GAAP gross margin results include a benefit of $13.3 million related to IEEPA tariff matters.
- The company is focused on scaling the Nexis platform in its core markets and advancing the SolarEdge SST to address the opportunity in AI factories.
Concerns
- GAAP operating loss was $(16.0) million and GAAP net loss was $(30.8) million.
- Free cash flow of $3.1 million was below $20.7 million in the prior quarter.
- The Q3 2026 revenue guidance range is $310 million – $340 million, while Q2 2026 GAAP revenue was $346.2 million.
- The Q3 guidance excludes potential IEEPA refunds, and reported second-quarter gross margins included a benefit of $13.3 million related to IEEPA tariff matters.
- Management cited industry-wide softness in U.S. residential.
What to watch
- Execution against Q3 2026 revenue guidance of $310 million – $340 million.
- Whether non-GAAP gross margin remains within the Q3 2026 guidance range of 22% – 26% after Q2 non-GAAP gross margin of 28.6%.
- Whether non-GAAP operating expenses remain within the Q3 2026 guidance range of $86 million – $91 million.
- The impact of the $11.5 million of IEEPA refunds received in July and any potential IEEPA refunds excluded from third-quarter guidance.
- Demand trends in Europe, U.S. C&I, and U.S. residential, as well as scaling of the Nexis platform and progress on SolarEdge SST.
Balance sheet and cash flow
- Free cash flow was $3.1 million, compared to $20.7 million in the prior quarter and negative $9.1 million in the second quarter of 2025.
- As of June 30, 2026, our cash and investments portfolio, net of debt, grew by $20.4 million to $264.6 million, compared to $244.2 million as of December 31, 2025.
Analysis
SolarEdge reported a materially improved second quarter. GAAP revenue was $346.2 million, up 19.6% from the second quarter of 2025 and up 11.5% from the prior quarter. Non-GAAP revenue was $345.5 million, up 23.0% year over year and up 11.5% sequentially. Management attributed the growth to strong demand in Europe and strength in U.S. C&I, which more than offset industry-wide softness in U.S. residential.
Margins expanded substantially. GAAP gross margin reached 27.5%, compared with 22.0% in the prior quarter and 11.1% in the second quarter of 2025, while non-GAAP gross margin was 28.6%, compared with 23.5% and 13.1%, respectively. Both reported gross-margin results included a benefit of $13.3 million related to IEEPA tariff matters. Operating expense discipline also supported the recovery, with GAAP operating expenses of $111.2 million versus $123.3 million in the prior quarter and $147.6 million a year earlier.
The company remained loss-making on a GAAP basis, but losses narrowed sharply. GAAP operating loss was $(16.0) million and GAAP net loss was $(30.8) million, compared with $(55.0) million and $(57.4) million, respectively, in the prior quarter. Non-GAAP operating income was $10.2 million, following non-GAAP operating losses of $(24.8) million in the prior quarter and $(48.3) million in the second quarter of 2025. Non-GAAP net income was $3.6 million, compared with non-GAAP net losses in both comparison periods.
Free cash flow was positive at $3.1 million, though below $20.7 million in the prior quarter. Cash and investments portfolio, net of debt, increased by $20.4 million to $264.6 million as of June 30, 2026, compared with $244.2 million as of December 31, 2025. The release did not report repurchases or dividends.
For the third quarter, SolarEdge guided revenue to $310 million – $340 million, non-GAAP gross margin to 22% – 26%, and non-GAAP operating expenses to $86 million – $91 million. Guidance excludes any significant revenue pull-forward and potential IEEPA refunds in the third quarter. Management stated that including the $11.5 million of IEEPA refunds received in July, the midpoint of guidance implies a non-GAAP operating profit in the third quarter. The principal reported items to monitor are the durability of demand outside U.S. residential, gross-margin performance absent excluded potential refunds, and continued expense control.
Management, verbatim
Our second-quarter results mark an important milestone in SolarEdge’s turnaround. 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. Strong demand in Europe combined with strength in U.S. C&I, more than offset industry-wide softness in U.S. residential, driving overall year-over-year growth. We are focused on building on this momentum by scaling the Nexis platform in our core markets and continuing to advance the SolarEdge SST to address the significant opportunity in AI factories.
Shuki Nir, CEO of SolarEdge
Not in the filing
stated, not guessed- Segment revenue, segment year-over-year comparisons, and segment quarter-over-quarter comparisons
- Operating cash flow
- Gross cash balance
- Gross debt balance
- Share repurchases
- Dividends
- GAAP third-quarter revenue, gross margin, operating expenses, operating income, net income, or EPS guidance
- Third-quarter tax-rate guidance
- Prior-quarter cash and investments portfolio, net of debt
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K with Exhibit 99.1 covering SolarEdge’s Q2 2026 financial results and Q3 2026 outlook, including discussion of tariff-related IEEPA items.
Ticker impact
SolarEdge reported Q2 2026 results and guided Q3 2026 revenue $310M to $340M, with non-GAAP operating profit implied by IEEPA refunds.
Likely supportive for the stock versus prior turnaround narrative, but investors may focus on how much of the improvement depends on IEEPA-related items and whether core demand sustains.
The filing includes concrete quarterly datapoints (revenue, gross margin, operating loss/profit) and explicit Q3 guidance ranges, which are actionable for positioning into the next quarter.
Market effects
Improving inverter and energy-management profitability signals potential stabilization in parts of the solar hardware supply chain, though residential softness was cited.
Europe demand strength was highlighted as a key driver, suggesting regional demand divergence within solar installations.
Tariff and IEEPA-related items are explicitly quantified, which can influence cross-border solar equipment earnings comparability.
Counterpoint
The headline turnaround may be partially driven by IEEPA tariff-related benefits and refunds, so underlying demand and sustainable gross margin could be less strong than the headline implies.
Key entities
- companySolarEdge Technologies, Inc.
Reported Q2 2026 results, discussed turnaround progress, and issued Q3 2026 guidance ranges.
- executiveShuki Nir
CEO quoted on turnaround milestone, demand mix, and scaling the Nexis platform.
