SolarEdge Technologies (SEDG) investor relations material

Executive summary

• Achieved Q2 2026 revenue of $346.2 million, up 20% year-over-year and 11.5% sequentially, driven by battery and accessory sales despite a decline in inverter and optimizer units.

• Returned to non-GAAP operating profitability for the first time since Q2 2023, with non-GAAP operating income of $10.2 million.

• Gross profit margin improved to 27.5% from 11.1% year-over-year, aided by product mix, cost reductions, and $13.3 million in IEEPA tariff refunds.

• Strategic focus on profitable growth, global market share expansion, scaling the Nexis platform, and advancing power infrastructure for AI factories.

• Positive free cash flow of $3.1 million, though lower than the prior quarter.

Financial highlights

• GAAP revenue for Q2 2026 was $346.2 million, up 19.6% year-over-year and 11.5% sequentially; non-GAAP revenue was $345.5 million, up 23% year-over-year.

• GAAP gross margin reached 27.5% (vs. 22% prior quarter, 11.1% prior year); non-GAAP gross margin was 28.6%, above guidance, aided by IEEPA tariff refunds.

• GAAP operating loss narrowed to $16 million (from $55 million prior quarter, $115.5 million prior year); non-GAAP operating income was $10.2 million.

• GAAP net loss was $30.8 million (vs. $57.4 million prior quarter, $124.7 million prior year); non-GAAP net income was $3.6 million, positive for the first time since Q2 2023.

• Cash, equivalents, and marketable securities totaled $601.6 million as of June 30, 2026; net cash and investments portfolio was $264.6 million.

Outlook and guidance

• Q3 2026 revenue expected between $310 million and $340 million, with most sequential decline in Europe due to seasonality.

• Non-GAAP gross margin guidance for Q3 is 22%-26%, excluding potential IEEPA refunds.

• Non-GAAP operating expenses expected at $86 million-$91 million, consistent with Q2 run rate.

• Management expects continued softness in global PV demand into Q3 2026, with uncertainty around sales growth.

• Continued expectation of positive free cash flow for full year 2026.