SolarEdge Technologies Inc (SEDG) Q4 2025 Earnings Call Highlights: Robust Revenue Growth Amid …

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Thu, February 19, 2026 at 4:00 AM GMT+9 4 min read

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**Revenue:** $334 million for Q4, up 70% year-over-year.

**Gross Margin:** 23.3% for Q4, up from 18.8% in Q3.

**Free Cash Flow:** $43 million for Q4; $77 million for the year 2025.

**Net Loss:** Non-GAAP net loss of $8.2 million for Q4.

**Cash and Equivalents:** $581 million as of December 31, 2025.

**US Revenue:** $198 million for Q4, representing 59% of total revenue.

**European Revenue:** $99 million for Q4, representing 30% of total revenue.

**International Markets Revenue:** $37 million for Q4, representing 11% of total revenue.

**Operating Expenses:** Non-GAAP operating expenses of $88.7 million for Q4.

**Guidance for Q1 2026:** Expected revenue range of $290 million to $320 million; non-GAAP gross margin range of 20% to 24%.

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Release Date: February 18, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

SolarEdge Technologies Inc (NASDAQ:SEDG) reported a 70% year-over-year increase in fourth-quarter revenue, demonstrating strong growth momentum.

The company expanded its gross margins for the fifth consecutive quarter, exceeding the top end of its margin guidance.

SolarEdge Technologies Inc (NASDAQ:SEDG) generated $43 million in free cash flow for the fourth quarter, contributing to a total of $77 million for the year.

The company increased its market share in the US across residential, commercial, and storage categories, and gained share in Europes C&I market.

SolarEdge Technologies Inc (NASDAQ:SEDG) is on track to launch its Nexis platform, which has received positive feedback and is expected to enhance market share and product offerings.

Negative Points

Despite improvements, SolarEdge Technologies Inc (NASDAQ:SEDG) reported a non-GAAP operating loss of $11 million for the fourth quarter.

The company recorded a one-time non-cash finance expense of approximately $60 million related to the closure of its battery manufacturing division.

Revenue from the US and Europe saw slight quarter-over-quarter declines, indicating potential challenges in maintaining consistent growth.

The strengthening of the Israeli Shekel posed a headwind, impacting non-GAAP operating expenses.

The company anticipates higher CapEx in 2026 due to investments in the solid-state transformer project and production ramp-up, which may impact free cash flow.

Q & A Highlights

Q: Can you provide more details on the AI data center opportunity and what needs to happen before it impacts your 2027 business plan? A: Shuki Nir, CEO: The AI data center opportunity is a multibillion-dollar prospect for us. NVIDIA’s new GPUs requiring 800-volt DC architecture are expected by 2027. We are engaging with ecosystem players and receiving positive feedback on our technology. We anticipate initial prototype testing soon, with no revenue expected before 2027. Our experience in mass production will be crucial as the market ramps up in 2028.

Story Continues  

Q: How do you expect revenue and margins to trend in Q2 and beyond? A: Asaf Alperovitz, CFO: We typically see a positive seasonality driver in Q2, around 15% to 20% growth. In the US, we expect a shift towards TPOs, and our Nexus platform rollout is on track. In Europe, despite a sluggish market, we aim for market share expansion with new products and a better cost structure. We expect margins to improve with higher revenue, US production ramp-up, and new product introductions.

Q: Can you discuss your free cash flow expectations for 2026 and the competitive dynamics in Europe? A: Asaf Alperovitz, CFO: We expect to be free cash flow positive in Q1. Beyond that, we focus on improving our cash conversion cycle. In Europe, we see opportunities to gain market share with US-manufactured products and the Nexus platform. The removal of VAT rebates by Chinese competitors may enhance our competitive position.

Q: What is the current status of channel inventory in the US and Europe? A: Shuki Nir, CEO: In Europe, most distributors have resumed normal inventory levels, and we are now producing products for Europe in the US. In the US, channel inventory levels are normal, with no major issues to report.

Q: How are you approaching the solid-state transformer opportunity in AI data centers, and what are the competitive advantages? A: Shuki Nir, CEO: We are focusing on our expertise in DC architecture and high efficiency. Our ability to manufacture at scale is a significant advantage. We aim to bring a superior solution to the market and maintain leadership through continuous innovation.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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