SolarEdge’s 2025 Results: Growth, Challenges and a Look Ahead

SolarEdge, a key player in smart solar technology, shared its earnings for the last quarter and the full year of 2025. The company reported a revenue of $335. 4 million for the fourth quarter, a slight dip from the previous period but still reflecting strong sales of inverters and battery systems. Despite a drop in revenue, the firm achieved a 22. 2% gross margin on GAAP terms, up from 21. 2% the previous quarter, and a non‑GAAP margin of 23. 3%, showing improved efficiency after trimming one‑time costs. Operating expenses rose to $122. 8 million from $107. 3 million, yet the company’s operating loss narrowed to $48. 3 million from $35. 2 million, and the non‑GAAP loss fell to $11 million from $23. 8 million, indicating tighter cost control. For the full year, SolarEdge’s revenue jumped 31% to $1. 18 billion, driven by the sale of nearly half a million inverters and over 10 million optimizers. Gross margins improved dramatically, reaching 16. 6% on GAAP and 16. 7% non‑GAAP, a sharp turnaround from negative margins the year before.Operating and net losses shrank to $301. 7 million and $405. 4 million respectively, compared with losses exceeding a billion dollars in 2024, thanks to disciplined spending and better cash flow generation. Free cash flow swung from a $421. 5 million deficit to $76. 9 million, showing the company is moving toward positive cash generation. Looking forward to early 2026, SolarEdge forecasts revenue between $290 million and $320 million for the first quarter, with a non‑GAAP gross margin target of 20%–24% and operating expenses around $88 million to $93 million. The company plans to push its new Nexis platform, expand into AI‑driven data center power and other high‑growth areas, while maintaining strict cost discipline to secure a stronger market position. Investors can listen to the earnings call on February 18, 2026, and access a replay for up to a month after the event. SolarEdge’s financial narrative highlights its recovery from past losses, strategic product expansion, and cautious optimism about future growth in the renewable energy sector.