SolarEdge Announces Third Quarter 2025 Financial Results

MILPITAS, 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, 2025.

“We’re making steady progress in our turnaround, with three consecutive quarters of revenue growth and improving margins, and we’re not done yet,” said Shuki Nir, CEO of SolarEdge. “With energy taking an increasingly vital role in powering the global economy, we believe that SolarEdge is positioned for continued growth, sustained profitability, and leadership in smart energy solutions.”

Third Quarter 2025 Summary

The Company reported revenues of $340.2 1 million, up 18% from $289.4 1 million in the prior quarter.

Non-GAAP revenues 2 were $339.7 million, up 21% from $281.0 million the prior quarter.

During the quarter approximately 92.7 thousand inverters, 2.95 million optimizers and 230 MWh of batteries for PV applications were recognized as revenue.

The Company shipped 1,471 MW (AC) of inverters in the quarter and 269 MWh of batteries for PV applications during the quarter. 3

GAAP gross margin was 21.2 % 1, compared to 11.1% 1 in the prior quarter.

Non-GAAP gross margin 2 was 18.8%, compared to 13.1% in the prior quarter. Tariffs had a negative impact of approximately 2% in the third quarter.

GAAP operating expenses were $107.3 1 million, compared to $147.6 1 million in the prior quarter.

Non-GAAP operating expenses 2 were $87.7 million, compared to $85.2 million in the prior quarter.

GAAP operating loss was $35.2 1 million, compared to $115.5 1 million in the prior quarter.

Non-GAAP operating loss 2 was $23.8 million, compared to $48.3 million in the prior quarter.

GAAP net loss was $50.1 million 1, compared to $124.7 1 million in the prior quarter.

Non-GAAP net loss 2 was $18.3 million, compared to $47.7 million in the prior quarter.

GAAP net loss per share was $0.84 1, compared to a GAAP net loss per share of $2.13 1 in the prior quarter.

Non-GAAP net loss per share 2 was $0.31, compared to a Non-GAAP net loss per share of $0.81 in the prior quarter.

Cash generated in operating activities was $25.6 million, compared with $7.8 million used by operating activities in the prior quarter.

Free cash flow 2 generated was $22.8 million, compared with free cash flow used of $9.1 million in the prior quarter.

As of September 30, 2025, our cash and investments portfolio, net of debt, grew by $77.0 million to $208.8 million, compared to $131.8 million as of June 30, 2025.

1 Includes impairments, write offs and discontinued operation. See financials and reconciliation for details.

2 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.

3 Starting in Q4 2025, we are going to be reporting on the key performance metrics consisting of i) inverters recognized as revenue, ii) optimizers recognized as revenue, and iii) mWh of batteries recognized as revenue and will stop reporting on what we no longer consider to be our key performance metrics of i) inverters shipped, ii) optimizers shipped, iii) mWh of batteries shipped, and iv) Megawatts shipped because we believe revenue recognition is a more accurate measurement than products shipped, for the purpose of assessing the Company’s actual earnings rather than mere operational activity and due to our reducing the variety of SKUs in a manner in which we would no longer be able to track Megawatts shipped as a metric.

Outlook for the Fourth Quarter 2025

The Company also provides guidance for the fourth quarter ending December 31, 2025 as follows:

*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 Call

The Company will host a conference call to discuss its results for the third quarter ended September 30, 2025 at 8:00 a.m. ET on Wednesday, November 5, 2025. The call will be available, live, to interested parties by dialing +1 800-225-9448. For international callers, please dial +1 203-518-9708. The Conference ID is SEDG. To avoid a delay in connecting to the call, please dial in 10 minutes prior to the start time. A live webcast will also be available in the Investors Relations section of the Company’s website at: http://investors.solaredge.com

______________________________________________________________________

A replay of the webcast will be available in the Investor Relations section of the Company’s web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.

About SolarEdge

SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, and grid services solutions. SolarEdge is online at www.solaredge.com

Use of Non-GAAP Financial Measures

To provide investors and others with additional information regarding SolarEdge’s results, SolarEdge has disclosed in this earnings release the following non-GAAP financial measures: non-GAAP revenue, non-GAAP operating income (loss), non-GAAP operating expenses, non-GAAP gross margin, non-GAAP net income (loss), non-GAAP net earnings (loss) per share, and non-GAAP net free cash flow. SolarEdge has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure below. These non-GAAP financial measures differ from GAAP in that they exclude stock-based compensation, amortization and impairment of acquired intangible assets, restructuring and impairment charges, acquisition, disposition and other items, certain litigation and other contingencies, amortization of debt issuance cost, non-cash interest expense and non-cash revenue recognized from significant financing component, certain foreign currency exchange rates, gains and losses on investments, income and losses from equity method investments and discrete items that impacted our GAAP tax rate. Our non-GAAP financial measures also reflect the application of our non-GAAP tax rate.

SolarEdge’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, to calculate bonus payments and to evaluate SolarEdge’s financial performance, the performance of its individual functional groups and the ability of operations to generate cash. Management believes these non-GAAP financial measures reflect SolarEdge’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in SolarEdge’s business, as they exclude charges and gains that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating SolarEdge’s operating results and future prospects from the same perspective as management and in comparing financial results across accounting periods.

The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense that affect SolarEdge’s operations. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP and should not be considered measures of SolarEdge’s liquidity. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review SolarEdge’s financial information in its entirety and not rely on a single financial measure.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements contained in this press release contains may contain forward-looking statements that are based on our management’s expectations, estimates, projections, beliefs and assumptions in accordance with information currently available to our management. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include information, among other things, concerning our possible or assumed future results of operations, return to positive free cash flow generation, future demands for solar energy solutions, business strategies, technology developments, new products and services, financing and investment plans; dividend policy; competitive position, industry and regulatory environment, general economic conditions; potential growth opportunities; cancellations and pushouts of existing backlog; installation rates; goodwill impairment; the effects of competition; tariff impacts and the impacts of the One Big Beautiful Bill Act. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negatives of those terms.

Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this release. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to: the impact of the continued U.S. government shutdown; future demand for renewable energy including solar energy solutions; our ability to maintain a return to free cash flow positive generation; our ability to forecast demand for our products accurately and to match production to such demand as well as our customers’ ability to forecast demand based on inventory levels; changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act and the One Big Beautiful Bill Act; changes in the U.S. or global trade environment, including the recent imposition of import tariffs by the U.S. and any future increase in such tariffs and/or subsequent retaliatory tariffs or other restrictive trade measures that other countries have taken or may take in response; tariff impacts and our ability to estimate the impact of tariffs on our operations; our ability to successfully operate our global operations with a reduced work force; macroeconomic conditions in our domestic and international markets, as well as inflation concerns, rising interest rates, and recessionary concerns; changes, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications;; the retail price of electricity derived from the utility grid or alternative energy sources; interest rates and supply of capital in the global financial markets in general and in the solar market specifically; competition, including introductions of power optimizer, inverter and solar photovoltaic system monitoring products by our competitors; developments in alternative technologies or improvements in distributed solar energy generation; historic cyclicality of the solar industry and periodic downturns; product quality or performance problems in our products; shortages, delays, price changes, or cessation of operations or production affecting our suppliers of key components; our dependence upon a small number of outside contract manufacturers and limited or single source suppliers; changes to net metering policies or the reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components; performance of distributors and large installers in selling our products; consolidation in the solar industry among our customers and distributors; our ability to effectively manage changes in our organization and expansion into new markets; our ability to recognize expected benefits from restructuring plans; any unauthorized access to, disclosure, or theft of personal information or unauthorized access to our network or other similar cyber incidents; our ability to implement our new ERP system; our ability to integrate acquired businesses; disruption to our business operations due to the evolving state of war in Israel and political conditions related to the war and Israeli government's plans to significantly reduce the Israeli Supreme Court's judicial oversight; our dependence on ocean transportation to timely deliver our products in a cost-effective manner; fluctuations in global currency exchange rates; the impact of evolving legal and regulatory requirements, including corporate social responsibility and sustainability requirements; existing and future responses to and effects of pandemics, epidemics or other health crises; federal, state, and local regulations governing the electric utility industry with respect to solar energy; business practices and regulatory compliance of our raw material suppliers; our ability to maintain our brand and to protect and defend our intellectual property; volatility of our stock price; our customers’ financial stability, creditworthiness, and debt leverage ratio; our ability to effectively design, launch, market, and sell new generations of our products and services; our ability to retain, and events affecting, our major customers; our ability to service our debt; impairment of our goodwill or other long-lived and intangible assets; our liquidity and ability to service our debt;; and the other factors set forth under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 25, 2025, in subsequent Quarterly Reports on Form 10Q and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business. The preceding list is not intended to be an exhaustive list of all of our forward‐looking statements. You should not rely upon forward‐looking statements as predictions of future events. Although we believe that the expectations reflected in the forward‐looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward‐looking statements will be achieved or will occur. Statements in this press release speak only as of the date they were made. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or changes in its expectations or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS

(in thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Unaudited

Revenues

340,177

235,435

849,086

705,239

Cost of revenues

268,034

963,229

727,276

1,470,189

Gross profit (loss)

72,143

(727,794

)

121,810

(764,950

)

Operating expenses:

Research and development

54,146

70,372

169,529

214,999

Sales and marketing

26,911

37,427

87,293

116,316

General and administrative

26,574

41,212

76,546

111,085

Other operating expense (income), net

(338

)

233,929

41,811

237,271

Total operating expenses

107,293

382,940

375,179

679,671

Operating loss

(35,150

)

(1,110,734

)

(253,369

)

(1,444,621

)

Financial income (expense), net

3,040

5,558

5,785

(2,371

)

Other income (expense), net

(15,011

)

(3,928

)

(10,846

)

14,623

Loss before income taxes

(47,121

)

(1,109,104

)

(258,430

)

(1,432,369

)

Income taxes

(2,563

)

(121,108

)

(13,946

)

(85,109

)

Net loss from equity method investments

(376

)

(577

)

(951

)

(1,440

)

Net loss

(50,060

)

(1,230,789

)

(273,327

)

(1,518,918

)

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

September 30,

2025

December 31,

2024

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

439,515

274,611

Restricted cash

47,481

135,328

Marketable securities

59,064

311,279

Trade receivables, net of allowances of $20,840 and $43,038, respectively

286,258

160,423

Inventories, net

530,799

645,897

Prepaid expenses and other current assets

404,399

523,027

Total current assets

1,767,516

2,050,565

LONG-TERM ASSETS:

Marketable securities

—

42,597

Property, plant and equipment, net

318,230

343,438

Operating lease right-of-use assets, net

41,937

41,393

Intangible assets, net

7,754

9,666

Goodwill

50,520

48,380

Loan receivables, net

—

45,678

Other long-term assets

46,353

64,736

Total long-term assets

464,794

595,888

Total assets

2,232,310

2,646,453

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Trade payables

283,505

107,543

Employees and payroll accruals

70,829

76,292

Warranty obligations

111,738

140,249

Deferred revenues and customers advances

45,873

140,870

Accrued expenses and other current liabilities

262,842

246,078

Convertible senior notes, net

—

346,305

Total current liabilities

774,787

1,057,337

LONG-TERM LIABILITIES:

Convertible senior notes, net

331,169

330,006

Warranty obligations

283,106

292,116

Deferred revenues

277,131

231,049

Finance lease liabilities

40,959

39,159

Operating lease liabilities

29,961

30,018

Other long-term liabilities

15,437

8,426

Total long-term liabilities

977,763

930,774

COMMITMENTS AND CONTINGENT LIABILITIES

STOCKHOLDERS’ EQUITY:

Common stock of $0.0001 par value - Authorized: 125,000,000 shares; issued: 59,800,052 shares as of September 30, 2025 and 58,780,490 shares as of December 31, 2024; outstanding: 59,559,546 shares as of September 30, 2025 and 58,027,126 shares as of December 31, 2024.

Additional paid-in capital

1,861,340

1,813,198

Treasury stock, at cost; 240,506 and 753,364 stocks held as of September 30, 2025 and December 31, 2024, respectively

(16,024

)

(50,194

)

Accumulated other comprehensive loss

(64,044

)

(76,477

)

Accumulated deficit

(1,301,518

)

(1,028,191

)

Total stockholders’ equity

479,760

658,342

Total liabilities and stockholders’ equity

2,232,310

2,646,453

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except per share data)

Nine Months Ended September 30

2025

2024

Cash flows from operating activities:

Net loss

(273,327

)

(1,518,918

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

23,430

47,215

Loss on impairment and disposal of property, plant and equipment

2,665

206,620

Provision to write down inventories to net realizable value

12,533

638,966

Impairment of asset held-for-sale

36,277

—

Impairment of goodwill and intangible assets

24,725

Impairment of privately-held companies

15,057

5,000

Stock-based compensation expenses

72,572

112,818

Loss from business disposition

17,875

—

Deferred income taxes, net

(976

)

79,831

Gain from repurchasing of convertible notes

—

(15,455

)

Loss from exchange rate fluctuations

2,874

8,243

Loss (gain) from sale of property, plant and equipment

(10,075

)

1,838

Other items

(1,408

)

3,461

Changes in assets and liabilities:

Trade receivables, net

(124,459

)

379,214

Inventories, net

117,875

15,858

Prepaid expenses and other assets

58,655

74,108

Operating lease right-of-use assets, net

8,185

12,286

Trade payables

175,906

(385,342

)

Warranty obligations

(37,316

)

(39,294

)

Deferred revenues and customers advances

(46,597

)

1,253

Operating lease liabilities

(10,051

)

(11,881

)

Accrued expenses and other liabilities

11,937

8,330

Net cash provided by (used in) operating activities

51,632

(351,124

)

Cash flows from investing activities:

Investment in available-for-sale marketable securities

(454,635

)

(200,919

)

Proceeds from maturities of available-for-sale marketable securities

682,866

632,866

Proceeds from sales of available-for-sale marketable securities

76,288

70,642

Purchase of property, plant and equipment

(14,174

)

(95,905

)

Business combinations, net of cash acquired

—

(10,417

)

Proceeds from sale of investment in privately-held company

4,000

—

Business dispositions, net of cash sold

(7,322

)

(2,598

)

Proceeds from sale of property, plant and equipment

38,026

1,733

Repayment related to governmental grant

(6,643

)

—

Purchase of intangible assets

—

(10,000

)

Disbursements for loans receivables

—

(37,500

)

Investment in privately-held companies

(300

)

(25,742

)

Proceeds from loan receivables

50,743

27,092

Other investing activities

2,932

(5,029

)

Net cash provided by investing activities

371,781

344,223

Cash flows from financing activities:

Repurchase of common stock

—

(50,315

)

Proceeds from issuance of Notes 2029, net of issuance costs

—

329,214

Capped call transactions related to Notes 2029

—

(28,342

)

Payment for settlement of convertible notes

(342,250

)

—

Repurchase of convertible debt

(5,093

)

(267,900

)

Other financing activities

(2,194

)

(2,530

)

Net cash used in financing activities

(349,537

)

(19,873

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

3,181

(7,790

)

Increase (decrease) in cash, cash equivalents and restricted cash

77,057

(34,564

)

Cash, cash equivalents and restricted cash, beginning of period

409,939

338,468

Cash, cash equivalents and restricted cash, end of period

486,996

303,904

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

Three months ended

Year ended

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

December 31,

2024

December 31,

2023

December 31,

2022

Gross profit (loss) (GAAP)

72,143

32,131

17,536

(112,254

)

(727,794

)

(877,204

)

703,823

844,648

Revenues from finance component

(351

)

(304

)

(264

)

(254

)

(250

)

(984

)

(834

)

(614

)

Discontinued operation revenues

(85

)

(8,132

)

(7,098

)

—

Discontinued operation cost of revenues

(13,101

)

7,834

792

26,118

)

24,921

36,648

4,314

Stock-based compensation

3,959

4,004

4,372

3,727

6,038

21,952

23,200

21,818

Amortization of stock-based compensation capitalized in inventories

825

882

381

1,095

1,484

3,138

1,100

—

Amortization and depreciation of acquired asset

501

483

491

484

2,034

5,412

6,038

7,429

Restructuring charges

430

3,770

1,217

15,327

23,154

—

Gross profit (loss) (Non-GAAP)

63,922

36,908

16,640

(77,314

)

(717,277

)

(807,438

)

793,129

877,595

Gross margin (loss) (GAAP)

21.2

11.1

8.0

(57.2

(309.1

(97.3

23.6

27.2

Revenues from finance component

0.0

(0.1

)

(0.1

)

(0.1

)

0.0

Discontinued operation revenues

0.0

(2.8

)

(3.2

)

—

Discontinued operation cost of revenues

(3.9

)

3.0

0.4

13.3

0.0

2.8

1.2

0.1

Stock-based compensation

1.2

1.4

2.0

1.9

2.6

2.4

0.9

0.7

Amortization of stock-based compensation capitalized in inventories

0.2

0.3

0.2

0.6

0.3

0.0

—

Amortization and depreciation of acquired asset

0.1

0.2

1.0

0.6

0.2

Restructuring charges

0.0

0.2

1.9

1.0

1.7

0.8

—

Gross margin (loss) (Non-GAAP)

18.8

13.2

7.8

(39.4

(304.0

(89.6

26.7

28.2

Operating expenses (GAAP)

107,293

147,624

120,262

151,413

382,940

831,084

663,618

678,528

Stock-based compensation - R&D

(10,681

)

(9,856

)

(15,911

)

(10,653

)

(17,115

)

(62,546

)

(66,944

)

(63,211

)

Stock-based compensation - S&M

(4,348

)

(4,342

)

(4,742

)

(4,452

)

(6,816

)

(27,328

)

(30,987

)

(31,017

)

Stock-based compensation - G&A

(2,897

)

(1,059

)

(6,401

)

(5,600

)

(6,672

)

(25,425

)

(28,814

)

(29,493

)

Amortization and depreciation of acquired assets - R&D

—

(189

)

(270

)

(1,000

)

(989

)

(1,206

)

Amortization and depreciation of acquired assets - S&M

(116

)

(116

)

(424

)

(442

)

(566

)

(1,599

)

(927

)

(822

)

Amortization and depreciation of acquired assets - G&A

—

)

(15

)

(21

)

Discontinued operation

(316

)

(27,069

)

(1,522

)

(3,350

)

(3,293

)

(388

)

—

Restructuring charges

(426

)

(867

)

(2,613

)

—

(1,299

)

(5,607

)

—

Assets impairment and disposal by abandonment

(672

)

(1,967

)

(224

)

(17,989

)

(232,102

)

(251,823

)

(30,790

)

(119,141

)

Gain (loss) from assets sales

(158

)

(17,108

)

662

(1,910

)

(1,827

)

(5,746

)

1,262

2,603

Certain litigation and other contingencies

—

399

(1,786

)

—

Acquisition costs

—

)

(135

)

(350

)

Operating expenses (Non-GAAP)

87,679

85,240

89,087

106,828

116,282

447,101

503,105

435,870

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

Three months ended

Year ended

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

December 31,

2024

December 31,

2023

December 31,

2022

Operating income (loss) (GAAP)

(35,150

)

(115,493

)

(102,726

)

(263,667

)

(1,110,734

)

(1,708,288

)

40,205

166,120

Revenues from finance component

(351

)

(304

)

(264

)

(254

)

(250

)

(984

)

(834

)

(614

)

Discontinued operation

(12,870

)

26,771

(4,784

)

29,468

(17

)

28,214

37,036

4,314

Stock-based compensation

21,885

19,261

31,426

24,432

36,641

137,251

149,945

145,539

Amortization of stock-based compensation capitalized in inventories

825

882

381

1,095

1,484

3,138

1,100

—

Amortization and depreciation of acquired assets

617

599

915

1,115

2,872

8,017

7,969

9,478

Restructuring charges

457

877

3,043

3,770

2,516

20,934

23,154

—

Assets impairment and disposal by abandonment

672

1,967

224

17,989

232,102

251,823

30,790

119,141

Loss (gain) from assets sales

158

17,108

(662

)

1,910

1,827

5,746

(1,262

)

(2,603

)

Certain litigation and other contingencies

—

(399

)

1,786

—

Acquisition costs

—

135

350

Operating income (loss) (Non-GAAP)

(23,757

)

(48,332

)

(72,447

)

(184,142

)

(833,559

)

(1,254,539

)

290,024

441,725

Financial income (expense), net (GAAP)

3,040

(7,323

)

10,068

(12,199

)

5,558

(14,570

)

41,212

3,750

Non cash interest expense

4,462

4,326

4,051

3,920

3,785

14,877

12,703

9,954

Unrealized losses

—

119

Currency fluctuation related to lease standard

1,552

7,151

(1,633

)

1,089

966

(744

)

(3,055

)

(11,187

)

Discontinued operation

(958

)

2,265

(276

)

—

Financial income (expense), net (Non-GAAP)

8,096

6,419

12,210

(7,190

)

10,309

(437

)

50,860

2,636

Other income (loss) (GAAP)

(15,011

)

4,017

148

(76

)

(3,928

)

14,547

(318

)

7,285

Loss (gain) from sale of equity and debt investments

—

)

(1,072

)

(2,966

)

193

(8,008

)

Loss (gain) from business combination

—

(1,125

)

—

Gain from the repurchase of convertible notes

—

(146

)

—

(15,456

)

—

Gain From sale of private held companies

—

(4,017

)

—

Loss from impairment of private held companies

15,011

—

5,000

—

Other income (loss) (Non-GAAP)

—

(125

)

(723

)

Income tax benefit (expense) (GAAP)

(2,563

)

(5,657

)

(5,726

)

(11,041

)

(121,108

)

(96,150

)

(46,420

)

(83,376

)

Income tax adjustment

(124

)

(100

)

(155

)

(176

)

44,602

39,007

(45,896

)

(9,067

)

Income tax benefit (expense) (Non-GAAP)

(2,687

)

(5,757

)

(5,881

)

(11,217

)

(76,506

)

(57,143

)

(92,316

)

(92,443

)

Equity method investments income (loss) (GAAP)

(376

)

(288

)

(287

)

(456

)

(577

)

(1,896

)

(350

)

—

Loss from equity method investments

376

288

287

456

577

1,896

350

—

Equity method investments income (loss) (Non-GAAP)

—

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

Three months ended

Year ended

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

December 31,

2024

December 31,

2023

December 31,

2022

Net income (loss) (GAAP)

(50,060

)

(124,744

)

(98,523

)

(287,439

)

(1,230,789

)

(1,806,357

)

34,329

93,779

Revenues from finance component

(351

)

(304

)

(264

)

(254

)

(250

)

(984

)

(834

)

(614

)

Discontinued operation

(13,828

)

29,036

(5,060

)

29,468

(17

)

28,214

37,036

4,314

Stock-based compensation

21,885

19,261

31,426

24,432

36,641

137,251

149,945

145,539

Amortization of stock-based compensation capitalized in inventories

825

882

381

1,095

1,484

3,138

1,100

—

Amortization and depreciation of acquired assets

617

599

915

1,115

2,872

8,017

7,969

9,478

Restructuring charges

457

877

3,043

3,770

2,516

20,934

23,154

—

Assets impairment and disposal by abandonment

672

1,967

224

17,989

232,102

251,823

30,790

119,141

Loss (gain) from assets sales

158

17,108

(662

)

1,910

1,827

5,746

(1,262

)

(2,603

)

Certain litigation and other contingencies

—

(399

)

1,786

—

Acquisition costs

—

135

350

Non cash interest expense

4,462

4,326

4,051

3,920

3,785

14,877

12,703

9,954

Unrealized losses

—

119

Currency fluctuation related to lease standard

1,552

7,151

(1,633

)

1,089

966

(744

)

(3,055

)

(11,187

)

Loss (gain) from sale of equity and debt investments

—

)

(1,072

)

(2,966

)

193

(8,008

)

Loss (gain) from business combination

—

(1,125

)

—

Gain from the repurchase of convertible notes

—

(146

)

—

(15,456

)

—

Gain From sale of private held companies

—

(4,017

)

—

Loss from impairment of private held companies

15,011

—

5,000

—

Income tax adjustment

(124

)

(100

)

(155

)

(176

)

44,602

39,007

(45,896

)

(9,067

)

Loss from equity method investments

376

288

287

456

577

1,896

350

—

Net income (loss) (Non-GAAP)

(18,348

)

(47,670

)

(66,118

)

(202,549

)

(899,756

)

(1,312,119

)

248,443

351,195

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

Three months ended

Year ended

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

December 31,

2024

December 31,

2023

December 31,

2022

Net basic earnings (loss) per share (GAAP)

(0.84

)

(2.13

)

(1.70

)

(5.00

)

(21.58

)

(31.64

)

0.61

1.70

Revenues from finance component

(0.01

)

(0.01

)

0.00

(0.01

)

(0.01

)

(0.02

)

(0.02

)

(0.01

)

Discontinued operation

(0.23

)

0.50

(0.09

)

0.52

0.00

0.49

0.66

0.08

Stock-based compensation

0.37

0.33

0.54

0.42

0.65

2.41

2.65

2.64

Amortization of stock-based compensation capitalized in inventories

0.01

0.02

0.05

0.02

—

Amortization and depreciation of acquired assets

0.01

0.02

0.05

0.14

0.17

Restructuring charges

0.01

0.02

0.05

0.07

0.05

0.37

0.41

—

Assets impairment and disposal by abandonment

0.01

0.03

0.00

0.31

4.07

4.41

0.54

2.17

Loss (gain) from assets sales

0.00

0.30

(0.01

)

0.03

0.10

(0.02

)

(0.05

)

Certain litigation and other contingencies

—

(0.01

)

0.03

—

Acquisition costs

—

0.00

0.01

Non cash interest expense

0.08

0.07

0.26

0.23

0.18

Unrealized losses

—

0.00

Currency fluctuation related to lease standard

0.02

0.12

(0.03

)

0.02

0.01

(0.01

)

(0.06

)

(0.21

)

Loss (gain) from sale of equity and debt investments

—

0.00

(0.02

)

(0.05

)

0.01

(0.14

)

Loss (gain) from business combination

—

(0.02

)

—

Gain from the repurchase of convertible notes

—

0.00

—

(0.27

)

—

Gain From sale of private held companies

—

(0.06

)

—

Loss from impairment of private held companies

0.26

—

0.09

—

Income tax adjustment

(0.01

)

0.00

0.78

0.68

(0.81

)

(0.16

)

Loss from equity method investments

0.01

0.00

0.01

0.03

0.00

—

Net basic earnings (loss) per share (Non-GAAP)

(0.31

)

(0.81

)

(1.14

)

(3.52

)

(15.78

)

(22.99

)

4.39

6.38

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

Three months ended

Year ended

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

December 31,

2024

December 31,

2023

December 31,

2022

Net diluted earnings (loss) per share (GAAP)

(0.84

)

(2.13

)

(1.70

)

(5.00

)

(21.58

)

(31.64

)

0.60

1.65

Revenues from finance component

(0.01

)

(0.01

)

0.00

(0.01

)

(0.01

)

(0.02

)

(0.01

)

(0.01

)

Discontinued operation

(0.23

)

0.50

(0.09

)

0.52

0.00

0.49

0.64

0.08

Stock-based compensation

0.37

0.33

0.54

0.42

0.65

2.41

2.57

2.43

Amortization of stock-based compensation capitalized in inventories

0.01

0.02

0.05

0.02

—

Amortization and depreciation of acquired assets

0.01

0.02

0.05

0.14

0.16

Restructuring charges

0.01

0.02

0.05

0.07

0.05

0.37

0.40

—

Assets impairment and disposal by abandonment

0.01

0.03

0.00

0.31

4.07

4.41

0.53

2.02

Loss (gain) from assets sales

0.00

0.30

(0.01

)

0.03

0.10

(0.02

)

(0.04

)

Certain litigation and other contingencies

—

(0.01

)

0.03

—

Acquisition costs

—

0.00

Non cash interest expense

0.08

0.07

0.26

0.03

0.13

Unrealized losses

—

0.00

Currency fluctuation related to lease standard

0.02

0.12

(0.03

)

0.02

0.01

(0.01

)

(0.05

)

(0.19

)

Loss (gain) from sale of equity and debt investments

—

0.00

(0.02

)

(0.05

)

0.00

(0.13

)

Loss (gain) from business combination

—

(0.02

)

—

Gain from the repurchase of convertible notes

—

0.00

—

(0.27

)

—

Gain From sale of private held companies

—

(0.06

)

—

Loss from impairment of private held companies

0.26

—

0.09

—

Income tax adjustment

(0.01

)

0.00

0.78

0.68

(0.76

)

(0.15

)

equity method adjustments

0.01

0.00

0.01

0.03

0.00

—

Net diluted earnings (loss) per share (Non-GAAP)

(0.31

)

(0.81

)

(1.14

)

(3.52

)

(15.78

)

(22.99

)

4.12

5.95

Number of shares used in computing net diluted earnings (loss) per share (GAAP)

59,278,269

58,567,394

58,121,502

57,467,946

57,029,983

57,082,182

57,237,518

58,100,649

Stock-based compensation

—

725,859

963,373

Notes due 2025

—

2,276,818

—

Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP)

59,278,269

58,567,394

58,121,502

57,467,946

57,029,983

57,082,182

60,240,195

59,064,022

Net cash provided by (used in) operating activities (GAAP)

25,608

(7,799

)

33,823

37,804

(89,332

)

(313,319

)

(180,113

)

31,284

Purchases of property and equipment

(2,809

)

(1,256

)

(10,109

)

(12,258

)

(47,370

)

(108,163

)

(170,523

)

(169,341

)

Discontinued operation

—

(3,867

)

—

Free cash flow (deficit) (Non-GAAP)

22,799

(9,055

)

19,847

25,546

(136,702

)

(421,482

)

(350,636

)

(138,057

)