SolarEdge Reports Strong 2025 Momentum With Four Straight Quarters Of Year-Over-Year Revenue Growth And Five Consecutive Margin Expansions

SolarEdge Technologies, Inc., a global leader in smart energy technology, has released its financial results for the fourth quarter and full year ended December 31, 2025. The company delivered strong momentum in 2025, marked by consistent quarterly revenue growth and steady margin recovery, setting the stage for a strategic shift toward profitable expansion in 2026.

CEO Shuki Nir emphasized that the fourth quarter capped a notable year of rebuilding and discipline for SolarEdge. He highlighted that the company achieved 70% year-over-year revenue growth in the fourth quarter, extending its streak of year-over-year growth to four consecutive quarters and demonstrating a fifth consecutive quarter of margin expansion. He noted that 2025 was focused on restoring operational discipline, strengthening free cash flow, and rebuilding margins after previous challenges.

In contrast, 2026 will be a year of proactive growth, with the company targeting global market share gains and increased profitability through the rollout of the SolarEdge Nexis platform. Nir added that their continued focus on leveraging DC power expertise, expanding into high-growth areas such as AI data center power, and maintaining cost discipline positions the company for a transformative year ahead.

Fourth quarter revenues reached $335.4 million, reflecting a slight decrease of 1.4% from the prior quarter. Non-GAAP revenue showed a similar trend at $333.8 million, down 1.8%. Importantly, the company noted that the quarter’s performance did not include any unusual revenue pulls from safe harbor mechanisms or end-of-year 25D incentives, ensuring a clean representation of underlying demand. During the quarter, SolarEdge recognized revenue from approximately 98.8 thousand inverters, 2.87 million optimizers, and 280 MWh of batteries for solar applications, demonstrating continued steady shipments across all core product lines.

Margins continued to improve, with GAAP gross margin rising to 22.2% from 21.2% in the previous quarter. Non-GAAP gross margin increased even more significantly, climbing to 23.3% from 18.8%. Operating expenses on a GAAP basis were $122.8 million, reflecting an increase compared to the prior quarter, while non-GAAP operating expenses remained nearly flat at $88.7 million. GAAP operating loss widened to $48.3 million; however, the company’s non-GAAP operating loss improved notably to $11.0 million, a substantial reduction from $23.8 million in the previous quarter, reflecting stronger operational efficiency.

The company reported a GAAP net loss of $132.1 million, driven largely by a one-time non-cash finance expense of $70.5 million associated with exchange rate fluctuations tied to the near-completion of its Korean business liquidation. Excluding this and other adjustments, the non-GAAP net loss narrowed to $8.2 million, an improvement from the previous quarter. Earnings per share reflected this trend, with GAAP net loss per share at $2.21 and non-GAAP net loss per share at $0.14. SolarEdge delivered strong cash generation during the quarter, with cash flow from operations rising to $52.6 million and free cash flow reaching $43.3 million, both approximately double the prior quarter. As of year-end 2025, the company’s net cash and investments portfolio increased by $35.4 million, reaching $244.2 million.

For the full year 2025, SolarEdge recorded revenues of $1.18 billion, achieving 31% growth over 2024. Non-GAAP revenues similarly increased 30% to $1.17 billion. The company recognized revenue from approximately 465.7 thousand inverters, 10.8 million optimizers, and 928 MWh of batteries throughout the year, showcasing strong demand across its product ecosystem. GAAP gross margin for the year improved to 16.6%, a dramatic recovery from negative results in 2024. Non-GAAP gross margin followed the same trajectory, rising to 16.7%. Operational improvements were evident as GAAP operating expenses declined significantly to $498.0 million from $831.1 million in 2024, while non-GAAP operating expenses fell to $350.7 million.

GAAP operating loss narrowed substantially to $301.7 million, compared to a steep loss of $1.71 billion the year before. Overall, SolarEdge’s 2025 performance reflects a disciplined year of rebuilding, efficiency, and financial stabilization. With strengthened margins, improved cash flow, and a solid path toward profitable growth, the company enters 2026 with renewed momentum and a clear strategic focus on expanding its global footprint through innovation and operational discipline.