SolarEdge Technologies, Inc., a global leader in smart energy technology, has announced its financial results for the first quarter ended March 31, 2026. The company is listed on Nasdaq under the ticker SEDG and continues to focus on advancing intelligent energy solutions across solar, storage, and emerging applications such as AI-driven energy systems.
According to the company, the first quarter performance reflects strong operational execution, ongoing innovation, and continued business momentum. SolarEdge reported a 46% year-over-year revenue growth along with its sixth consecutive quarter of margin expansion. CEO Shuki Nir noted that the company is approaching a key financial turning point, with expectations of near break-even operating profitability by the midpoint of the second quarter guidance.
He also highlighted that the company is now shifting its focus toward growth opportunities, particularly through the rollout of its SolarEdge Nexis platform and the development of its AI-based data center power solutions.For the first quarter of 2026, SolarEdge reported total revenues of $310.5 million, compared to $335.4 million in the previous quarter, representing a decline of 7.4% quarter-over-quarter. On a non-GAAP basis, revenues stood at $309.9 million, also reflecting a similar sequential decrease.
The company clarified that the first-quarter results did not include any significant one-time or pull-forward revenues related to safe harbor or 25D demand at the end of the prior year.In terms of product activity during the quarter, SolarEdge recognized revenue from approximately 50,500 inverters, 2.4 million power optimizers, and 331 MWh of batteries used in photovoltaic applications.
These figures reflect the continued deployment of its integrated solar energy ecosystem across residential, commercial, and utility-scale markets.Profitability metrics showed relatively stable margins. GAAP gross margin for the quarter was 22.0%, slightly lower than 22.2% in the previous quarter. Non-GAAP gross margin improved slightly to 23.5%, compared to 23.3% in the prior quarter, indicating steady operational efficiency at the core business level.
Operating expenses under GAAP stood at $123.3 million, marginally higher than $122.8 million in the previous quarter. On a non-GAAP basis, operating expenses increased to $97.7 million from $88.7 million. The company also noted that this figure includes a one-time expense of approximately $14 million, and excluding this, operating expenses were closer to $84 million.The company reported a GAAP operating loss of $55.0 million, compared to $48.3 million in the previous quarter.
The non-GAAP operating loss was $24.8 million, compared to $11.0 million in the prior quarter. However, when adjusting for the one-time expense, the operating loss was approximately $11 million, broadly stable compared to the previous period.Net loss for the quarter was reported at $57.4 million on a GAAP basis, a significant improvement compared to $132.1 million in the prior quarter. On a non-GAAP basis, net loss was $26.3 million, compared to $8.2 million previously.
After excluding the one-time expense, the adjusted net loss stood at approximately $11.9 million. GAAP net loss per share was $0.95, while non-GAAP net loss per share was $0.43.From a cash flow perspective, SolarEdge generated $24.4 million in operating cash flow, down from $52.6 million in the prior quarter. Free cash flow came in at $20.7 million, compared to $43.3 million previously.
As of March 31, 2026, the company’s cash and investments, net of debt, increased slightly to $246.2 million from $244.2 million at the end of the previous quarter.Looking ahead, SolarEdge provided guidance for the second quarter of 2026. The company expects revenue to be in the range of $325 million to $355 million.
Non-GAAP gross margin is projected between 23% and 27%, while non-GAAP operating expenses are expected to range from $86 million to $91 million.Overall, the results reflect a period of transition for SolarEdge, with improving operational efficiency and a strategic shift toward next-generation platforms, including AI-driven energy infrastructure and expanded smart energy solutions.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
