SolarEdge Announces Third Quarter 2026 Financial Results

Revenue of $326.1 million, in line with the midpoint of guidance Cash flow from operations of $20.4 million; fifth consecutive quarter of positive free cash flow Continued progress on the SolarEdge SST platform for the AI data center opportunityMILPITAS, Calif.--(BUSINESS WIRE)--SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the third quarter ended September 30, 2026. “The SolarEdge team delivered third-quarter revenue of $326.1 million, at the midpoint of our guidance, with profitability in line with expectations,” said Shuki Nir, CEO of SolarEdge. “As near-term market uncertainty persists and given reduced revenue expectations for the fourth quarter, we are taking decisive steps to reduce costs, sharpen our focus, and support profitability amid softer demand. At the same time, we believe that our product innovation initiatives, including strong momentum in Nexis and increasing storage adoption, position us to capitalize on a market recovery. In addition, we are accelerating our efforts in the AI data center power infrastructure market, where live demonstrations of our solid-state transformer (SST) technology are generating increasing interest from potential partners and customers.” Third Quarter 2026 Financial Highlights (In millions, except percentages and per share data) GAAP Non-GAAP (1) Q3 2026 Q2 2026 Q3 2025 Q3 2026 Q2 2026 Q3 2025 Revenue $326.1 $346.2 $340.2 $325.4 $345.5 $339.7 Gross margin 33.2% 27.5% 21.2% 34.7% 28.6% 18.8% Operating expenses $110.1 $111.2 $107.3 $88.8 $88.5 $87.7 Operating income (loss) $(1.9) $(16.0) $(35.2) $23.9 $10.2 $(23.8) Net income (loss) $(8.4) $(30.8) $(50.1) $21.1 $3.6 $(18.3) EPS (diluted) $(0.14) $(0.50) $(0.84) $0.29 $0.05 $(0.31) Adjusted EBITDA (loss) (1) -- -- -- $31.8 $18.3 $(14.1) (1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information on Non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. GAAP revenues were $326.1 million, down 5.8% from the prior quarter and down 4.1% from the third quarter of 2025. Non-GAAP revenues were $325.4 million, down 5.8% from the prior quarter and down 4.2% from the third quarter of 2025. GAAP gross margin was 33.2%, compared to 27.5% in the prior quarter and 21.2% in the third quarter of 2025. Results include a benefit of $36.0 million related to IEEPA tariff matters. Non-GAAP gross margin was 34.7%, compared to 28.6% in the prior quarter and 18.8% in the third quarter of 2025. Results include a benefit of $36.0 million related to IEEPA tariff matters. GAAP operating expenses were $110.1 million, compared to $111.2 million in the prior quarter and $107.3 million in the third quarter of 2025. Non-GAAP operating expenses were $88.8 million, compared to $88.5 million in the prior quarter and $87.7 million in the third quarter of 2025. GAAP operating loss was $1.9 million, compared to $16.0 million in the prior quarter and $35.2 million in the third quarter of 2025. Non-GAAP operating income was $23.9 million, compared to $10.2 million in the prior quarter and a non-GAAP operating loss of $23.8 million in the third quarter of 2025. GAAP net loss was $8.4 million, compared to $30.8 million in the prior quarter and $50.1 million in the third quarter of 2025. Non-GAAP net income was $21.1 million, compared to $3.6 million in the prior quarter and a non-GAAP net loss of $18.3 million in the third quarter of 2025. Free cash flow was $7.8 million, compared to $3.1 million in the prior quarter and $22.8 million in the third quarter of 2025, marking the fifth consecutive quarter of positive free cash flow. As of September 30, 2026, our cash and investments portfolio, net of debt, was $260.9 million, compared to $264.6 million as of June 30, 2026. Outlook for the Fourth Quarter of 2026 The Company provides the following guidance for the fourth quarter ending December 31, 2026. This guidance excludes potential IEEPA refunds in the fourth quarter. Guidance Metric Q4 2026 Guidance Revenue $245 million – $275 million Non-GAAP gross margin* 17% – 21% Non-GAAP operating expenses* $87 million – $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 CallRead the full story here

SolarEdge Announces Third Quarter 2026 Financial Results

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