# SOLAREDGE TECHNOLOGIES, INC. (SEDG) Informational only - not investment advice. CIK: 0001419612 SIC: 3674 Semiconductors & Related Devices SIC breadcrumb: [Manufacturing](/division/D/) > [Electronic And Other Electrical Equipment And Components, Except Computer Equipment](/major-group/36/) > [SIC 3674 Semiconductors & Related Devices](/industry/3674/) Latest 10-K filed: 2026-02-25 SEC page: https://www.sec.gov/edgar/browse/?CIK=1419612 Filing source: https://www.sec.gov/Archives/edgar/data/1419612/000117891326000632/zk2634374.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-03-23 · accession 0001178913-26-001595 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001419612.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 1,184,444,000 USD | 2025 | verified | | Net income | -405,448,000 USD | 2025 | verified | | Assets | 2,182,194,000 USD | 2025 | verified | | Free cash flow | 80,794,000 USD | 2025 | computed | | Net margin | -34.23% | 2025 | computed | | Operating margin | -25.47% | 2025 | computed | | Revenue YoY | +31.39% | 2025 | computed | | ROE | -94.85% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | SEDG | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -34.2% | 4.9% | 12 | 59 | | Operating margin | -25.5% | 3.7% | 12 | 58 | | Revenue growth | 31.4% | 15.5% | 72 | 61 | | FCF margin | 6.8% | 8.9% | 41 | 60 | | ROE | -94.8% | 3.8% | 4 | 58 | | ROA | -18.6% | 1.6% | 12 | 61 | | Liabilities / equity | 4.10 | 0.51 | 98 | 59 | | Current ratio | 2.17 | 2.70 | 25 | 61 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3674 Semiconductors & Related Devices, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1184444000 | USD | 2025 | 2026-03-23 | | Net income | -405448000 | USD | 2025 | 2026-03-23 | | Assets | 2182194000 | USD | 2025 | 2026-03-23 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001419612.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 489,843,000 | 607,045,000 | 937,237,000 | 1,425,660,000 | 1,459,271,000 | 1,963,865,000 | 3,110,279,000 | 2,976,528,000 | 901,456,000 | 1,184,444,000 | | Net income | 76,609,000 | 84,172,000 | 128,833,000 | 146,549,000 | 140,322,000 | 169,170,000 | 441,725,000 | 34,329,000 | -1,806,357,000 | -405,448,000 | | Operating income | 71,759,000 | 91,086,000 | 139,420,000 | 189,946,000 | 142,561,000 | 207,139,000 | 166,120,000 | 40,205,000 | -1,708,288,000 | -301,679,000 | | Gross profit | 151,956,000 | 214,766,000 | 319,236,000 | 479,338,000 | 461,359,000 | 629,318,000 | 844,648,000 | 703,823,000 | -877,204,000 | 196,281,000 | | Diluted EPS | 1.73 | 1.85 | 2.69 | 2.90 | 2.66 | 3.06 | 1.65 | 0.60 | -31.64 | -6.88 | | Operating cash flow | 52,530,000 | 136,665,000 | 189,079,000 | 259,000,000 | 222,655,000 | 214,129,000 | 31,284,000 | -180,113,000 | -313,319,000 | 104,261,000 | | Capital expenditures | 15,690,000 | 21,382,000 | 38,608,000 | 72,562,000 | 126,790,000 | 149,251,000 | 169,341,000 | 170,523,000 | 108,163,000 | 23,467,000 | | Share buybacks | | | | | | | 0.00 | 0.00 | 50,194,000 | 0.00 | | Assets | 424,743,000 | 641,305,000 | 964,472,000 | 1,494,624,000 | 2,437,109,000 | 2,900,953,000 | 4,265,949,000 | 4,587,731,000 | 2,646,453,000 | 2,182,194,000 | | Stockholders' equity | 288,778,000 | 397,467,000 | 562,408,000 | 811,670,000 | 1,085,757,000 | 1,310,039,000 | 2,176,366,000 | 2,411,909,000 | 658,342,000 | 427,464,000 | | Cash and cash equivalents | 104,683,000 | 163,163,000 | 187,764,000 | 223,901,000 | 827,146,000 | 530,089,000 | 783,112,000 | 338,468,000 | 274,611,000 | 455,075,000 | | Free cash flow | 36,840,000 | 115,283,000 | 150,471,000 | 186,438,000 | 95,865,000 | 64,878,000 | -138,057,000 | -350,636,000 | -421,482,000 | 80,794,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 15.64% | 13.87% | 13.75% | 10.28% | 9.62% | 8.61% | 14.20% | 1.15% | | -34.23% | | Operating margin | 14.65% | 15.00% | 14.88% | 13.32% | 9.77% | 10.55% | 5.34% | 1.35% | | -25.47% | | Return on equity | 26.53% | 21.18% | 22.91% | 18.06% | 12.92% | 12.91% | 20.30% | 1.42% | -274.38% | -94.85% | | Return on assets | 18.04% | 13.13% | 13.36% | 9.81% | 5.76% | 5.83% | 10.35% | 0.75% | -68.26% | -18.58% | | Liabilities / equity | 0.47 | 0.61 | 0.71 | 0.84 | 1.24 | 1.21 | 0.96 | 0.90 | 3.02 | 4.10 | | Current ratio | 4.82 | 3.67 | 3.00 | 2.14 | 3.94 | 3.26 | 3.26 | 3.70 | 1.94 | 2.17 | ## As-reported value updates 3 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/SEDG/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001419612.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.43 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 2.35 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 2.03 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 725,305,000 | -61,176,000 | -1.08 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 316,044,000 | -162,383,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 204,399,000 | -157,311,000 | -2.75 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 265,405,000 | -130,818,000 | -2.31 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 260,903,000 | -1,205,321,000 | -21.13 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 170,749,000 | -312,907,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 219,480,000 | -98,523,000 | -1.70 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 289,429,000 | -124,744,000 | -2.13 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 340,177,000 | -50,060,000 | -0.84 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 335,358,000 | -132,121,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 310,501,000 | -57,366,000 | -0.95 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 346,245,000 | -30,753,000 | -0.50 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from SEDG's latest 10-K: [/company/SEDG/business/](/company/SEDG/business/). ## Risk Factors Verbatim Item 1A Risk Factors from SEDG's latest 10-K: [/company/SEDG/risk-factors/](/company/SEDG/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1419612/000117891326003854/zk2635807.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-05 Report date: 2026-06-30 ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Statements contained in this Form 10-Q or statements incorporated by reference from documents we have filed with the Securities and Exchange Commission may contain forward-looking statements that are based on our management’s expectations, estimates, projections, beliefs and assumptions and on information currently available to our management. The forward-looking statements should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included in Part 1, Item 1 of this report. This discussion contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, technology developments, new products and services, financing and investment plans, competitive position, backlog, industry and regulatory environment, effects of acquisitions, growth opportunities, potential future impairments, and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negatives of those terms.  Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on forward-looking statements. Forward-looking and other statements regarding our sustainability efforts and aspirations are not an indication that these statements are necessarily material to investors or requiring disclosure in our filing with the Securities and Exchange Commission (“SEC”). In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve and assumptions that are subject to change in the future, including future rule-making. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this filing. Important factors that could cause actual results to differ materially from our expectations include: [[GREPCENT_TABLE]] [["\u2022","Future demand for renewable energy, including solar energy solutions;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","our ability to be profitable in the future;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","the rapidly evolving and competitive nature of the solar industry;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","changes in tax laws, tax treaties, regulations, guidance or the interpretation of them, including the Inflation Reduction Act and the H.R.1;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","fluctuations in demand for solar energy solutions, including if demand for solar energy solutions does not resume growth or grows at a slower rate than anticipated;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","macroeconomic conditions in our domestic and international markets, such as inflation concerns, interest rates and recessionary concerns;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","changes in the U.S. and global trade environments, including the imposition and/or increase of import tariffs or other restrictive trade measures;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","the retail price of electricity derived from the utility grid or alternative energy sources;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","interest rates and supply of capital in the global financial markets in general and in the PV market specifically;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","competition, including introduction of power optimizers and inverters, electric vehicle (\u201cEV\u201d) chargers, batteries and photovoltaic (\u201cPV\u201d) system monitoring products by our competitors;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","our reliance on distributors and large installers to assist in selling our products, and the failure of these customers to perform as expected;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","developments in alternative technologies or improvements in distributed solar energy generation;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","historic cyclicality of the solar industry and periodic downturns;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","product quality or performance problems in our products;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","changes in our geographic footprint or product and service offerings;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","our dependence upon a small number of outside contract manufacturers and limited or single source suppliers;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","delays, disruptions, and quality control problems in manufacturing;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","shortages, delays, price changes, or cessation of operations or production affecting our suppliers of key components;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","changing political, geopolitical conditions, and the conditions of the global energy market;"]] [[/GREPCENT_TABLE]] SOLAREDGE TECHNOLOGIES INC. | 2026 Form 10-Q | 3 [[GREPCENT_TABLE]] [["\u2022","performance of distributors and large installers in selling our products;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","consolidation in the solar industry among our customers and distributors;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","our ability to implement our new Enterprise Resource Planning (\"ERP\") system;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","discontinuation of our e-Mobility business, energy storage business, and PV Tracker business;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","our ability to successfully operate our global operations with a reduced work force;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","our ability to recognize expected benefits from restructuring plans;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","any unauthorized access to, disclosure, or theft of personal information or unauthorized access to our network or other similar cyber incidents;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","attempts by third parties, our employees, or our vendors to gain unauthorized access to our network or seek to compromise our products and services;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","emerging issues related to the development and use of artificial intelligence;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","loss of key executives, and our ability to retain key personnel and attract additional qualified personnel;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","disruption to our business operations due to the evolving conflict in Israel and other conditions in Israel that affect our operations;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","tax benefits that are available to us under Israeli law require us to meet various conditions and may be terminated or reduced in the future;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","difficulty to enforce a judgment of a U.S. court against our officers and directors, to assert U.S. securities laws claims in Israel;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","our dependence on ocean transportation to timely deliver our products in a cost-effective manner;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","entry into business engagements with South Korean military bodies;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","fluctuations in global currency exchange rates;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","the impact of evolving legal and regulatory requirements including emerging corporate social responsibility requirements;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","existing and future responses to and effects of pandemics, epidemics or other health crises;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar electricity applications;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","changes to net metering policies may reduce demand for electricity from PV systems;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","stringent and changing data privacy and security laws, rules, regulations and other obligations;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","existing electric utility industry regulations and changes to regulations may present technical, regulatory, and economic barriers to the purchase and use of PV systems;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","business practices and regulatory compliance of our raw material suppliers;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","our ability to maintain our brand and to protect and defend our intellectual property;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","claims for remuneration or royalties for assigned service invention rights by our employees;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","impairment of our goodwill or other long-lived and intangible assets;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","volatility of our stock price;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","provisions in our certificate of incorporation and by-laws may have the effect of delaying or preventing a change of control or changes in our management;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","our certificate of incorporation includes a forum selection clause, which could limit our stockholders\u2019 ability to obtain a favorable judicial forum;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","our customers\u2019 financial stability, creditworthiness, and debt leverage ratio;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["\u2022","our liquidity and ability to service our debt; and"]] [[/GREPCENT_TABLE]] the other factors set forth below in Part II, Item 1A under “Risk Factors” and in Part I, Item 1A under ”Risk Factors” in our Annual Report on Form 10-K/A for the year ended December 31, 2025 and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. SOLAREDGE TECHNOLOGIES INC. | 2026 Form 10-Q | 4 Overview We a [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1419612/000117891326000632/zk2634374.htm Complete FY 2025 MD&A: /company/SEDG/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-25 Report date: 2025-12-31 ITEM 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the section of this Annual Report on Form 10-K captioned “Business” and our consolidated financial statements and the related notes to those statements included elsewhere in this Form 10-K. In addition to historical financial information, the following discussion and analysis contains forward looking statements that involve risks, uncertainties, and assumptions. Our actual results and timing of selected events may differ materially from those anticipated in these forward looking statements as a result of many factors, including those discussed under the sections of this Annual Report captioned “Special Note Regarding Forward Looking Statements” and “Risk Factors”. For discussion related to changes in financial condition and the results of operations for the year ended December 31, 2024, refer to Item 7- Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 25, 2025. Overview We are a global smart energy technology company. We develop, manufacture, and sell products that address a broad range of energy market segments through our diversified product offering, including residential, commercial and large scale photovoltaic or PV, energy storage and backup solutions, electric vehicle or EV charging capabilities, home energy management, grid services and virtual power plants. By leveraging engineering capabilities and with a focus on innovation, safety and reliability, we create smart energy solutions that power our lives and drive future progress. We launched or ramped up sales of several new products in 2025. Most notably, we launched our next-generation residential product portfolio, called SolarEdge Nexis, with initial units delivered toward the end of 2025. We also expanded our commercial energy storage business with CSS-OD, a 102.4 kWh rated solution scalable up to megawatt hour size sites, suitable for outdoor or indoor installations. At the end of 2025, we transitioned our inverter products to a Single SKU concept. This is a software-defined platform that significantly reduces the complexity of our business for residential and commercial applications globally. It allows us to manufacture and ship one SKU of an inverter to the market, which can then be programmed to the desired kilowatt rating in the field. This framework simplifies forecasting, manufacturing, inventory management, logistics, service and support, for both us and our customers. It also adds flexibility for home and business owners who can boost the inverter rating if a larger system is needed in the future. In light of the IRA legislation in the United States, which incentivizes the local manufacturing of renewable energy products by providing benefits to installers for the purchase and installation of products with domestic content, as well as by incentivizing local manufacturing of our products, we manufacture the vast majority of our products in the United States. This includes inverters in Texas, optimizers and inverters in Florida, and manufacturing of batteries in Utah. As part of our effort to streamline and centralize, we have discontinued manufacturing in China, Mexico, and Hungary. We continue to manufacture a minor portion of our products in Israel, at our Sella 1 facility. We also continue to maintain manufacturing capabilities in Vietnam, with a third-party manufacturer. In 2025, we began to strategically focus on our core markets and product lines to better align resources with markets and product lines that exhibit the strongest potential. As part of this strategic portfolio rationalization, we are concentrating our operations in key jurisdictions while discontinuing local activities in certain countries. Following the sale of Automation Machines and the discontinuation of the Company's Energy Storage activity in 2024, we operate as one operating segment that constitutes consolidated results. Further information regarding our business is provided in “Part I, Item 1. Business” of this Annual Report. For the year ended December 31, 2025, one customer accounted for 18.6% of our revenues and our top three customers together represented 35.8% of our revenues. Our revenues were $1,184.4 million and $901.5 million for the year ended December 31, 2025 and 2024, respectively. For the year ended December 31, 2025 our gross profit was 16.6% as compared to gross loss of 97.3% for the year ended December 31, 2024. For the year ended December 31, 2025, our net loss was $405.4 million as compared to our net loss of $1,806.4 million for the year ended December 31, 2024. 47 Performance Measures In managing our business and assessing financial performance, we supplement the information provided by the financial statements with other operating metrics. These operating metrics are utilized by our management to evaluate our business, measure our performance, identify trends affecting our business and formulate projections. As discussed in our quarterly report on Form 10-Q for the third quarter of 2025, we re-evaluated the key operating metrics that we have historically used to measure our operating performance to improve their accuracy and relevance to the Company's business. This process included our application of new data, technologies, and/or product changes that may allow us to identify metrics that we view to be the most reflective of our business. Specifically, the markets that we serve are increasingly transitioning away from discreet product purchases and toward more comprehensive systems and solutions. This trend is occurring across all of our regions and end markets. As a result of these market trends, we are adjusting our technology platform and go to market strategies to cater to this trend by offering more comprehensive solutions. These trends also result in the cost of our inverter, optimizer, and energy storage products becoming a widely varying fraction of the overall value of the solutions that we provide. In addition, the ASP calculation for these units also widely varies due to diverse end market exposure. As such, trends in costs and selling prices per megawatt and megawatt hour are less representative of our overall business performance. We believe that this trend will only continue to become more prevalent in the future. Additionally, the Company believes that revenue recognition is a more accurate measurement than products shipped, for the purpose of assessing the Company’s actual earnings rather than mere operational activity. In some cases, products shipped may not be recognized as revenue in a specific quarter due to timing of delivery, and results may differ as such in the metrics previously used in our financial statements. Accordingly, and further to the Company's quarterly report on Form 10-Q for the third quarter of 2025, management determined that the third quarter of 2025 would be the last report in which it would include i) inverters shipped, ii) optimizers shipped, and iii) MWh of batteries shipped, as metrics, before being discontinued in this annual report on Form 10-K. Management has replaced these key operating metrics with i) inverters recognized as revenue, ii) optimizers recognized as revenue, and iii) MWh of batteries recognized as revenue, which management believes more accurately reflect the Company’s actual operations. In addition, we have begun disclosing revenue derived from inverters, optimizers and batteries on a quarterly basis within our quarterly reports on Form 10Q and in this annual report on Form 10K. In an effort to simplify the Company’s product portfolio and streamline our business, we have reduced the variety of SKUs, in a manner in which we are no longer  able to track Megawatts shipped as a metric. The move to our Single SKU concept means that the Company is not able to determine the AC power rating of inverters at the time of shipment. The AC power rating can only be determined once it is installed in the field, which typically occurs at least 6 months after shipment and can be altered in accordance with an end user's needs. As a result, the Company  no longer provides Megawatts shipped as key operating metrics, starting with this fourth quarter of 2025. [[GREPCENT_TABLE]] [["","","Year ended December 31,"],["","","2025","","","2024"],["Inverters recognized as revenue (in thousands)","","","349.6","","","","245.7"],["Power optimizers recognized as revenue (in thousands)","","","10,571.4","","","","6,645.8"],["Megawatt hours recognized as revenue - batteries","","","897.4","","","","556.2"]] [[/GREPCENT_TABLE]] Limited Market Portfolio Rationalization In 2025, we began to strategically focus on our core markets and product lines to better align resources with markets and product lines that exhibit the strongest potential. As part of this strategic portfolio rationalization, we are concentrating our operations in key jurisdictions while discontinuing local activities in certain countries. 48 Global Circumstances Influencing our Business and Operations Demand for Products A prolonged slowdown in demand in the global market for PV products has continued to adversely impact the solar industry. Additionally, uncertainty related to changes in tariffs, trade policies, legislation, and guidance including from H.R.1, may further contribute to market volatility and adversely impact customer demand for our products, pricing and our financial performance. Despite a prolonged softness in demand, we have seen an increase in sales, in 2025, due to more normalized channel inventory in both the United States and in Europe. Additionally, the attachment rate of batteries within solar installations is rising globally, which we believe has led an increase in demand for our batteries. Impact of the H.R.1 on U.S. Tax Incentives In August 2022, the U.S. government enacted the IRA, which contains several provisions intended to accelerate U.S. manufacturing and adoption of clean energy such as solar, wind, hydrogen and electric vehicles and therefore had positive impacts on our business and operations along with the overall US solar market. Some of the applicable provisions in the IRA that are positively impacting the market for renewable energy include the extension of 48E, the tech-neutral investment tax credit ITC, and 45Y, the tech-neutral PTC. The IRA includes incentives for residential and commercial solar customers and developers through the inclusion of ITCs for qualifying energy projects of up to 30% with a potential to gain further bonus credits such as through the utilization of Domestic Content. Section 45X of the IRA offers AMPTCs, that incentivize the production of eligible components within the United States. In light of such incentives, we established manufacturing capabilities in the United States starting in 2023, and further expanded such capabilities in 2024 and 2025. On October 24, 2024, regulations concerning the application of Section 45X were published by the U.S. Treasury Department which contain detailed rules concerning eligibility, qualifying and accounting for AMPTCs. Of particular relevance to the Company are the tax credits that we generate as a result of rules concerning the qualification and measurement of AMPTCs to Residential Inverters, Commercial Inverters and DC-Optimized Inverter Systems that we manufacture in the United States. In 2024 and 2025, we sold a significant part of the AMPTCs that we generated from our U.S. production of eligible components. On July 4, 2025, H.R.1, was enacted into law introducing amendments to the clean energy tax credits contained in the IRA. The IRA provides energy tax credits that are significant to SolarEdge and its U.S. based custom [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/SEDG/mda/fy2025/ All MD&A years: /company/SEDG/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/SEDG/mda/fy2024/): filed 2025-02-25; accession 0001178913-25-000605 (https://www.sec.gov/Archives/edgar/data/1419612/000117891325000605/zk2532709.htm) - [FY 2023 MD&A](/company/SEDG/mda/fy2023/): filed 2024-02-26; accession 0001178913-24-000717 (https://www.sec.gov/Archives/edgar/data/1419612/000117891324000717/zk2431010.htm) - [FY 2022 MD&A](/company/SEDG/mda/fy2022/): filed 2023-02-22; accession 0001178913-23-000707 (https://www.sec.gov/Archives/edgar/data/1419612/000117891323000707/zk2329263.htm) - [FY 2021 MD&A](/company/SEDG/mda/fy2021/): filed 2022-02-22; accession 0001178913-22-000760 (https://www.sec.gov/Archives/edgar/data/1419612/000117891322000760/zk2227328.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 3674 Semiconductors & Related Devices) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/SEDG.md · JSON record: /company/SEDG.json · verified financials: /company/SEDG/financials.json / /company/SEDG/financials.csv · machine TOC for the whole site: /llms.txt