SolarEdge Technologies (SEDG) Q4 2025 earnings summary

Executive summary

• Achieved 70% year-over-year revenue growth in Q4 2025, with four consecutive quarters of revenue growth and five consecutive quarters of margin expansion; Q4 gross margin reached 23% from negative territory in 2024.

• Stabilized financials, generating $77 million in free cash flow for 2025 versus negative $421 million in 2024, and increased market share in the U.S. and Europe.

• 2025 focused on restoring discipline, generating strong free cash flow, and rebuilding margins; 2026 strategy shifts to profitable growth, scaling the Nexus platform, expanding in high-growth adjacencies like AI data center power, and maintaining operational discipline.

Financial highlights

• Q4 2025 non-GAAP revenue was $334 million, up 70% year-over-year, slightly down sequentially; full-year 2025 revenues reached $1.18 billion, up 31% year-over-year.

• Q4 non-GAAP gross margin rose to 23.3% from 18.8% in Q3, exceeding guidance, driven by higher U.S.-made product sales and lower warranty costs.

• Q4 non-GAAP operating loss was $11 million, down from $23.8 million in Q3; non-GAAP net loss was $8.2 million, down from $18.3 million in Q3.

• Free cash flow for Q4 was $43.3 million; full-year free cash flow was $77 million, reversing a $421 million deficit in 2024.

• Cash and equivalents at year-end were $581 million, up $34 million in Q4; cash and investments portfolio, net of debt, increased to $244.2 million.

Outlook and guidance

• Q1 2026 revenue expected between $290 million–$320 million, with non-GAAP gross margin of 20%–24%.

• Q1 non-GAAP operating expenses guided at $88 million–$93 million, with positive free cash flow expected.

• Anticipates continued positive seasonality in Q2, with revenue typically up 15%–20% sequentially.

• Expects to achieve EBIT profitability later in 2026 if current trends continue.

• No significant one-time or pull-forward revenue recognized in Q4 or included in guidance.