SolarEdge Revenue Falls After Second-Quarter Gain

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter sales were $326.1 million at the guidance midpoint as a $36.0 million IEEPA tariff benefit lifted GAAP gross margin to 33.2%.

SolarEdge Technologies (SEDG) reported third-quarter revenue of $326.1 million, down 5.8% from the prior quarter and 4.1% from the third quarter of 2025, after second-quarter sales of $346.2 million had grown 11.5% sequentially and 19.6% year over year. The company said the result was in line with the midpoint of its guidance.

The global smart-energy technology company said it is taking steps to reduce costs, sharpen its focus and support profitability amid softer demand, citing near-term market uncertainty and reduced fourth-quarter revenue expectations. Chief Executive Shuki Nir said the team delivered revenue at the midpoint of guidance with profitability in line with expectations.

GAAP gross margin expanded to 33.2% from 27.5% in the second quarter and 21.2% a year earlier. Non-GAAP gross margin was 34.7%. Both figures include a $36.0 million benefit related to IEEPA tariff matters, versus a $13.3 million IEEPA benefit in the second quarter.

The GAAP operating loss narrowed to $1.9 million from $16.0 million in the prior quarter and $35.2 million a year earlier. Non-GAAP operating income was $23.9 million, compared with $10.2 million in the second quarter and a non-GAAP operating loss of $23.8 million in the third quarter of 2025. Adjusted EBITDA was $31.8 million.

GAAP net loss was $8.4 million, compared with $30.8 million in the prior quarter and $50.1 million a year earlier. Non-GAAP net income was $21.1 million, versus $3.6 million in the second quarter and a non-GAAP net loss of $18.3 million a year earlier. Diluted GAAP loss was $0.14 a share; non-GAAP diluted earnings were $0.29 a share.

GAAP operating expenses were $110.1 million. Non-GAAP operating expenses were $88.8 million, compared with $88.5 million in the second quarter and $87.7 million a year earlier.

Free cash flow was $7.8 million, compared with $3.1 million in the prior quarter and $22.8 million a year earlier, marking the fifth consecutive quarter of positive free cash flow. Cash and investments, net of debt, were $260.9 million as of September 30, 2026, down from $264.6 million as of June 30, 2026.

For the fourth quarter ending December 31, 2026, SolarEdge guided to revenue of $245 million to $275 million, non-GAAP gross margin of 17% to 21%, and non-GAAP operating expenses of $87 million to $91 million. The outlook excludes potential IEEPA refunds in the fourth quarter.

Nir said product innovation initiatives, including momentum in Nexis and increasing storage adoption, position the company to capitalize on a market recovery. The company also said it is accelerating efforts in AI data-center power infrastructure, where live demonstrations of its solid-state transformer technology are generating increasing interest from potential partners and customers.