olivLaw · US equity research
SolarEdge Technologies, Inc. SEDG
Semiconductors & Related Devices · SIC 3674 · Vertical: Semiconductors & Related Devices (SIC 3674)
SolarEdge designs and sells photovoltaic systems built around module-level power optimizers, inverters, and storage and energy management solutions for residential and commercial customers. The company reported revenue growth of 19.6% in the second quarter of 2026 over the same period a year earlier, a sign of recovery after a long period of weak demand.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, SolarEdge Technologies, Inc. (SEDG) stock was 30.02 USD (−8.70% on the day), with market capitalisation 1.8 bn USD, beta 1.88, 52-week range 28.47–78.51 USD. Latest reported quarter (Q2 2026): revenue of 346.2 m USD (+19.6% YoY), net income of -30.8 m USD, diluted EPS -0.50 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 43.7
- weak (30–45)
- Bollinger (20, 2)
- 29.32 – 33.86
- in the lower half of the band · %B 0.15 · band width 14.4%
- SMA 50 / 200
- 32.91 / 42.27
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.66 / -0.64
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −12.7% | −1.1% | −11.6 pp | — |
| 3 months | −11.4% | −0.5% | −11.0 pp | — |
| 6 months | −26.1% | +4.4% | −30.5 pp | — |
| Year to date | +4.1% | +12.3% | −8.3 pp | — |
| 1 year | −5.7% | +13.5% | −19.2 pp | +37.6% |
| 3 years | −60.3% | +76.4% | −136.7 pp | +125.7% |
| 5 years | −91.3% | +63.7% | −154.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 235.4 m | 196.2 m | 219.5 m | 289.4 m | 340.2 m | 335.4 m | 310.5 m | 346.2 m |
| Cost of revenue | 963.2 m | 308.5 m | 201.9 m | 257.3 m | 268.0 m | 260.9 m | 242.2 m | 251.1 m |
| Gross profit | -727.8 m | -112.3 m | 17.5 m | 32.1 m | 72.1 m | 74.5 m | 68.3 m | 95.2 m |
| Research & development | 70.4 m | 62.2 m | 62.0 m | 53.4 m | 54.1 m | 51.7 m | 50.2 m | 52.8 m |
| Operating income | -1.1 bn | -263.7 m | -102.7 m | -115.5 m | -35.2 m | -48.3 m | -55.0 m | -16.0 m |
| Depreciation & amortisation | 16.8 m ≈ | 12.7 m | 12.0 m | 4.2 m ≈ | 7.2 m ≈ | 7.1 m | 5.9 m | 5.7 m ≈ |
| Pre-tax income | -1.1 bn | -275.9 m | -92.5 m | -118.8 m | -47.1 m | -132.7 m | -56.1 m | -28.4 m |
| Income tax | 121.1 m | 11.0 m | 5.7 m | 5.7 m | 2.6 m | -564.0 k | 1.3 m | 2.3 m |
| Net income | -1.2 bn | -287.4 m | -98.5 m | -124.7 m | -50.1 m | -132.1 m | -57.4 m | -30.8 m |
| Diluted EPS | -21.58 | -5.00 ≈ | -1.70 | -2.13 | -0.84 | -2.21 ≈ | -0.95 | -0.50 |
| Operating cash flow | -89.3 m ≈ | 37.8 m | 33.8 m | -7.8 m ≈ | 25.6 m ≈ | 52.6 m | 24.4 m | 11.4 m ≈ |
| Capex | 47.4 m ≈ | 12.3 m | 10.1 m | 1.3 m ≈ | 2.8 m ≈ | 9.3 m | 3.7 m | 8.3 m ≈ |
| Share repurchases | 300.0 k ≈ | -121.0 k | 0 | 0 ≈ | 0 ≈ | 0 | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 937.2 m | 1.4 bn | 1.5 bn | 2.0 bn | 3.1 bn | 3.0 bn | 901.5 m | 1.2 bn |
| Revenue YoY | +54.4% | +52.1% | +2.4% | +34.6% | +58.4% | −4.3% | −69.7% | +31.4% |
| Net income | 128.8 m | 146.5 m | 140.3 m | 169.2 m | 441.7 m | 34.3 m | -1.8 bn | -405.4 m |
| Net income YoY | +53.1% | +13.8% | −4.2% | +20.6% | +161.1% | −92.2% | −5,361.9% | unavailable |
| Diluted EPS | 2.69 | 2.90 | 2.66 | 3.06 | 1.65 | 0.60 | -31.64 | -6.88 |
| Diluted EPS YoY | +45.4% | +7.8% | −8.3% | +15.0% | −46.1% | −63.6% | −5,373.3% | unavailable |
| net % | 13.7% | 10.3% | 9.6% | 8.6% | 14.2% | 1.2% | -200.4% | -34.2% |
| Free cash flow | 150.5 m | 186.4 m | 95.9 m | 64.9 m | -138.1 m | -350.6 m | -421.5 m | 80.8 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 455.1 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 427.5 m USD
- Total assets
- 2.2 bn USD
- Debt / equity
- unavailable
- Current ratio
- 2.17x
- ROE
- -74.7%
- ROA
- -16.8%
- FCF margin
- 6.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.5 bn | 2.0 bn | 3.1 bn | 3.0 bn | 901.5 m | 1.2 bn | SEC (XBRL)· 25 Feb 2026verified |
| Cost of revenue | 997.9 m | 1.3 bn | 2.3 bn | 2.3 bn | 1.8 bn | 988.2 m | SEC (XBRL)· 25 Feb 2026verified |
| Gross profit | 461.4 m | 629.3 m | 844.6 m | 703.8 m | -877.2 m | 196.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Research & development | 163.1 m | 219.6 m | 289.8 m | 321.5 m | 277.2 m | 221.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Operating income | 142.6 m | 207.1 m | 166.1 m | 40.2 m | -1.7 bn | -301.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Depreciation & amortisation | — | 39.5 m | 49.7 m | 57.2 m | 59.9 m | 30.5 m | SEC (XBRL)· 25 Feb 2026verified |
| EBITDA | — | 246.7 m ≈ | 215.8 m ≈ | 97.4 m ≈ | -1.6 bn ≈ | -271.2 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Interest expense | 5.3 m | 605.0 k | 1.5 m | 1.3 m | 1.2 m | 1.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Pre-tax income | 163.7 m | 187.2 m | 177.2 m | 81.1 m | -1.7 bn | -391.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Income tax | 23.3 m | 18.1 m | 83.4 m | 46.4 m | 96.2 m | 13.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Net income | 140.3 m | 169.2 m | 441.7 m | 34.3 m | -1.8 bn | -405.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Diluted EPS | 2.66 | 3.06 | 1.65 | 0.60 | -31.64 | -6.88 | SEC (XBRL)· 25 Feb 2026verified |
| Weighted average diluted shares | 52.8 m | 56.0 m | 58.1 m | 57.2 m | 57.1 m | 59.0 m | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 827.1 m | 530.1 m | 783.1 m | 338.5 m | 274.6 m | 455.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Receivables | 218.7 m | 456.3 m | 905.1 m | 622.4 m | 160.4 m | 267.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Inventories | 331.7 m | 380.1 m | 729.2 m | 1.4 bn | 645.9 m | 552.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Current assets | 1.7 bn | 1.7 bn | 2.9 bn | 3.3 bn | 2.1 bn | 1.7 bn | SEC (XBRL)· 25 Feb 2026verified |
| Property, plant & equipment, net | 303.4 m | 410.4 m | 544.0 m | 614.6 m | 343.4 m | 269.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Goodwill | 140.5 m | 129.6 m | 31.2 m | 43.0 m | 48.4 m | 50.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Intangibles (excl. goodwill) | 67.8 m | 58.9 m | 19.9 m | 35.3 m | 9.7 m | 7.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Total assets | 2.4 bn | 2.9 bn | 4.3 bn | 4.6 bn | 2.6 bn | 2.2 bn | SEC (XBRL)· 25 Feb 2026verified |
| Accounts payable | 162.1 m | 252.1 m | 459.8 m | 386.5 m | 107.5 m | 272.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Current liabilities | 436.1 m | 525.2 m | 889.7 m | 893.2 m | 1.1 bn | 803.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Equity | 1.1 bn | 1.3 bn | 2.2 bn † | 2.4 bn † | 658.3 m † | 427.5 m † | SEC (XBRL)· 25 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 222.7 m | 214.1 m | 31.3 m | -180.1 m | -313.3 m | 104.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Capex | 126.8 m | 149.3 m | 169.3 m | 170.5 m | 108.2 m | 23.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Free cash flow | 95.9 m ≈ | 64.9 m ≈ | -138.1 m ≈ | -350.6 m ≈ | -421.5 m ≈ | 80.8 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Investing cash flow | -236.6 m | -484.2 m | -417.0 m | -268.9 m | 416.3 m | 379.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Financing cash flow | 640.5 m | -15.2 m | 654.6 m | -12.0 m | -20.1 m | -348.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Share repurchases | — | — | 0 | 0 | 50.2 m | 0 | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.8 bn USD
Key indicators
Coverage and freshness
Score by group
77% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 23.3% | 0 (on a fixed band) | 14% |
| EBIT margin · Quality | -11.6% | 29 (vs peers) | 11% |
| FCF margin · Quality | 6.8% | 27 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | -27.5% | 0 (on a fixed band) | 22% |
| Revenue growth (YoY) · Growth | 31.4% | 69 (vs peers) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.0x | 72 (on a fixed band) | 8% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 4.9% | 97 (on a fixed band) | 17% |
| Shareholder yield (distributions) · Returns | 0.0% | 33 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial72/100 · 1/2 factors with a value
- Growth23/100 · 2/2 factors with a value
- Quality17/100 · 3/3 factors with a value
- Returns33/100 · 1/1 factors with a value
- Valuation· partial97/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
SOLAREDGE TECHNOLOGIES, INC. (SEDG). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.2 bn USD in 2025; YoY growth 31.4%; net margin -20.3%; ROE -58.4%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 2.0x
- FCF yield: 4.9%
What contradicts it
- Gross margin: 23.3%
- EBIT margin: -11.6%
- FCF margin: 6.8%
- Revenue CAGR 3Y: -27.5%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.
Versus the vertical median
Semiconductors & Related Devices (SIC 3674) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| TSMTaiwan Semiconductor Manufacturing Company Limited | 10,262.8 bn | 291.0 | 29.3% | 40.0% | +25.0% | +36% / +307% |
| NVDANvidia Corp | 4,823.1 bn | 25.3 | 117.2% | 63.7% | +65.5% | +13% / +328% |
| AVGOBroadcom Inc. | 1,553.7 bn | 41.6 | 44.2% | 42.9% | +23.9% | −19% / +252% |
| MUMicron Technology, Inc. | 899.7 bn | 10.7 | 88.3% | 63.8% | +256.3% | +236% / +945% |
| AMDAdvanced Micro Devices, Inc | 801.6 bn | 106.3 | 11.8% | 16.8% | +34.3% | +125% / +303% |
| INTCIntel Corporation | 309.7 bn | — | -10.9% | -20.1% | −0.5% | +44% / +30% |
| AMATApplied Materials Inc | 293.2 bn | 31.9 | 41.1% | 30.1% | +4.4% | +46% / +147% |
| TXNTexas Instruments Inc | 284.6 bn | 40.4 | 39.7% | 34.3% | +13.0% | +85% / +104% |
| ADIAnalog Devices Inc | 196.8 bn | 48.2 | 12.2% | 29.8% | +16.9% | +53% / +122% |
| MRVLMarvell Technology, Inc | 140.1 bn | 52.8 | 16.5% | 27.9% | +42.1% | +79% / +187% |
| NXPINXP Semiconductors N.V. | 66.8 bn | 20.8 | 29.2% | 23.4% | −2.7% | +36% / +30% |
| MPWRMonolithic Power Systems, Inc. | 61.5 bn | 69.5 | 25.1% | 23.9% | +26.4% | +36% / +130% |
| MCHPMicrochip Technology Incorporated | 40.9 bn | 104.2 | 7.2% | 9.3% | +7.1% | +41% / −10% |
| ALABAstera Labs, Inc. | 39.0 bn | 89.0 | 28.2% | 29.6% | +115.1% | +42% / unavailable |
| ONOn Semiconductor Corp | 27.7 bn | 41.4 | 8.9% | 10.8% | −15.3% | +42% / −0% |
| CRDOCredo Technology Group Holding Ltd | 25.7 bn | 48.7 | 30.7% | 33.8% | +205.7% | −23% / +662% |
| QQnity Electronics, Inc. | 24.8 bn | 42.0 | 7.6% | 11.5% | +9.7% | +46% / unavailable |
| GFSGLOBALFOUNDRIES Inc. | 22.4 bn | 25.4 | 7.8% | 13.0% | +0.6% | +13% / −25% |
| FSLRFirst Solar, Inc. | 20.9 bn | 11.3 | 18.7% | 37.1% | +24.1% | −29% / +23% |
| MTSIMACOM Technology Solutions Holdings, Inc. | 17.8 bn | 74.6 | 17.2% | 20.7% | +32.6% | +33% / +178% |
| TSEMTower Semiconductor Ltd. | 16.7 bn | 76.7 | 7.9% | 14.1% | +9.1% | +38% / +443% |
| SMTCSemtech Corporation | 10.3 bn | — | -5.8% | -3.0% | +15.5% | +50% / +578% |
| RMBSRambus Inc | 8.9 bn | 34.1 | 19.6% | 33.4% | +27.1% | −13% / +23% |
| MXLMaxLinear, Inc. | 5.2 bn | — | -5.9% | -4.4% | +29.7% | +265% / +204% |
| AAOIApplied Optoelectronics, Inc. | 5.0 bn | — | -5.4% | -9.6% | +82.8% | +121% / +347% |
1- and 3-year price returns: for SEDG from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
In brief
SolarEdge designs and sells photovoltaic systems built around module-level power optimizers, inverters, and storage and energy management solutions for residential and commercial customers. The company reported revenue growth of 19.6% in the second quarter of 2026 over the same period a year earlier, a sign of recovery after a long period of weak demand.
SWOT
Strengths
- The company has a DC optimized technology architecture recognized for long-term safety and reliability. It also has a broad distribution network and a product range from inverters to storage and energy management.
- Local production in the United States allows it to benefit from tax incentives and meet domestic content requirements. This position can be an advantage over competitors that depend on imports.
- The company has put gross margin back on an upward path and returned to non-GAAP operating profitability in the second quarter of 2026, which points to tighter cost management.
Weaknesses
- The company recorded large net losses in recent years, and future profitability is not assured. Development and restructuring costs remain high relative to revenue.
- Sales depend on a small number of large customers and distributors, and one customer can represent a significant share of revenue. Losing such a partner could affect results.
- The company depends on a limited number of component suppliers and contract manufacturers, which can create vulnerability to delays or quality problems.
Opportunities
- Growth in battery storage and energy management solutions could raise value per system. The launch of the Nexis range and expansion of commercial storage could support this direction.
- Demand for data center power and SST-type solutions could open new markets if the technology reaches commercial scale.
- European markets and the U.S. commercial segment appear to be recovering faster than U.S. residential, which could offset weakness in one region.
Threats
- Changes in U.S. tax and trade policy, including tariffs and FEOC rules, could reduce demand or raise production costs.
- Competition from lower-cost producers could pressure prices and margins, especially in standardized product segments.
- Geopolitical risks and instability in Israel, where the company has operations, could disrupt production and deliveries.
Risks
- Uncertain profitabilityhigh
The company reported large net losses in 2024 and 2025 and cannot guarantee a durable return to profit. If revenue does not grow enough, fixed costs could remain a pressure on results.
- U.S. tax policyhigh
Changes under H.R.1 and the non-FEOC component rules may affect customers' eligibility for credits and demand for products. The impact depends on final Treasury guidance, which is still evolving.
- Dependence on customers and distributorsmedium
Revenue is concentrated in a few large customers and distributors. If they reduce orders or delay payments, quarterly results could fluctuate significantly.
- Supply chainmedium
The company depends on limited suppliers and contract manufacturers. Disruptions in ocean transport or quality problems could delay deliveries and raise costs.
- Implementation of new systemslow
The move to a new ERP system and a reduced workforce may cause operational disruption. If expected restructuring benefits do not materialize, costs could remain elevated.
Investment thesis
What would need to be true (bull case)
- The recovery of revenue and gross margin in the second quarter of 2026 suggests the focus on core markets can work. If growth holds, the company could return to durable profitability.
- Local production and positions in storage and energy management could give an edge over competitors that depend on imports or have narrower portfolios.
- If demand for batteries and data center solutions grows, revenue per system could rise faster than the volume of inverters sold.
What would break the thesis
- Large net losses in recent years show that profitability is not yet established. If revenue stops growing, costs could quickly consume available liquidity.
- U.S. tax policy is in flux, and the H.R.1 changes could reduce demand from residential customers. Regulatory uncertainty may discourage investment.
- Intense competition and price pressure could limit margins, especially if rivals launch cheaper products with similar features.
What to watch
- Delivery of the non-GAAP revenue and gross margin guidanceQ3 2026
- Evolution of U.S. residential demand after the H.R.1 changes2026
- Pace of adoption of the Nexis range and commercial storagenext 10-K
- Free cash flow generation and net cash position trendQ3 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
The business
SolarEdge describes its system as a DC optimized architecture in which power optimizers track the maximum power point of each module and the inverter handles DC-AC conversion and grid interaction. The company sells mainly indirectly through large distributors and electrical wholesalers, and directly to large installers and EPC firms. Its products also include battery storage, EV chargers and the SolarEdge ONE energy management platform.
Manufacturing has moved largely to the United States, especially for inverters and optimizers in Texas and Florida, and batteries in Utah, in response to incentives under the Inflation Reduction Act. The company discontinued manufacturing in China, Mexico and Hungary and chose to concentrate operations in key markets.
On July 4, 2025 the H.R.1 law was enacted, amending clean energy tax credits and shortening the phase-out timeline for customers' credits. This change can influence demand for SolarEdge products, which is why it remains an important factor in assessing the business.
Segments
Power Optimizers
Optimizers are DC-DC converters attached to each PV module that increase output by continuously tracking the maximum power point. They carried the largest share of revenue, at 41.4% in 2025 1.
Inverters
Inverters perform DC-AC conversion and communicate with optimizers over the DC wiring. They represented 28.2% of revenue in 2025 1, and part of their range is now delivered as a single programmable SKU in the field.
Storage and Energy Management
Residential and commercial batteries, EV chargers and the SolarEdge ONE platform form a broader product line. The company launched its Nexis residential portfolio toward the end of 2025 1, and battery demand is growing as the attachment rate rises.
Market context
The PV market went through a long period of weak demand, but sales rose in 2025 because channel inventory in the United States and Europe normalized 1. Demand for batteries and integrated solutions is becoming increasingly important for the whole sector.
U.S. tax credits and domestic content and non-FEOC component rules directly shape demand from SolarEdge customers. Guidance for the third quarter of 2026 points to continued growth, but results depend on how policies and tariffs evolve.
Trends
- Recovery of demand in Europe and U.S. C&Itailwind
The company reported strong demand in Europe and in the U.S. commercial and industrial segment, which offset weakness in U.S. residential. If this pattern holds, it could support revenue growth in the coming quarters.
- Changes to U.S. tax creditsheadwind
H.R.1 shortens the deadlines for TPO project credits and eliminates the individual 25D credit at the end of 2025. This could reduce demand from residential customers, especially if installations do not begin within the required timeframes.
- Incentives for local productionmixed
45X manufacturing credits support the production of inverters and DC optimized systems in the United States. They could improve margins, but non-FEOC content requirements may raise costs if targets are not met.
- Storage and data centerstailwind
Rising battery attachment to solar installations and interest in power solutions for data centers open new opportunities. The company also mentions its SST technology for AI factories, although revenue from this segment remains uncertain.
Competitive position
SolarEdge competes with makers of string inverters and microinverters, as well as companies launching monitoring and storage products. The analyzed sources do not detail market share but identify intensifying competition as a significant risk.
The company's stated advantages are module-level efficiency, design flexibility, safety and integration with storage. Competitive pressure can affect prices and margins, particularly in segments where customers compare cost per watt.
- String inverter manufacturers
Compete on price and performance of traditional central inverter systems, particularly in commercial and small utility installations.
- Microinverter manufacturers
Offer module-level solutions close to SolarEdge optimizers, with advantages in residential projects.
- Battery and storage system suppliers
Compete in residential and commercial storage, where SolarEdge is expanding its range with new products.
- Monitoring and energy management companies
Offer monitoring and control platforms for PV systems, an area where SolarEdge ONE must differentiate itself.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- SolarEdge’s (SEDG) 800 Volt Data Center Push Just Got RealYahoo Finance — News · 16 Sept 2026 · EN
- SolarEdge Targets $2.4B by 2029, Bets on AI Data Center Power GrowthYahoo Finance — News · 13 Sept 2026 · EN
- SolarEdge Falls 4% on Analyst Day Despite Joint NVIDIA 800 VDC Paper; Enphase Energy and First Solar Edge HigherYahoo Finance — News · 10 Sept 2026 · EN
- Which Solar Stock Has Dominated in 2026: SolarEdge, Enphase Energy, or First Solar?Yahoo Finance — News · 07 Sept 2026 · EN
- Trump Just Gave SolarEdge Stock a Lift. How You Should Play SEDG Here.Yahoo Finance — News · 01 Sept 2026 · EN
- UBS Just Upgraded SolarEdge Stock. Here's Why.Yahoo Finance — News · 26 Aug 2026 · EN
- SolarEdge Stock Jumps After Upgrade. Why This Analyst Sees a 41% Gain.Yahoo Finance — News · 26 Aug 2026 · EN
- Intuit downgraded, SolarEdge upgraded: Wall Street's top analyst callsYahoo Finance — News · 26 Aug 2026 · EN
The latest news item in our archive is from 16 Sept 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report04 Nov 2026Results of operations · Financial statements and exhibits
- Current report05 Oct 2026Departure or appointment of officers
- Current report10 Sept 2026Regulation FD disclosure
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report25 Jun 2026Departure or appointment of officers
- Current report04 Jun 2026Shareholder vote
- Current report11 May 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / SolarEdge Technologies, Inc. · 25 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / SolarEdge Technologies, Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / SolarEdge Technologies, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.