SolarEdge Technologies (NASDAQ:SEDG) Announces Earnings Results

Key Points

• SolarEdge reported Q1 revenue of about $310M (up ~41.5% YoY) which beat expectations, but posted EPS of ($0.43) vs. consensus ($0.23), leaving margins and ROE negative; management says the Q2 midpoint implies they are approaching break-even (~$3.5M implied EBIT loss).
• Operational catalysts include strong demand for the new SolarEdge Nexis (Q2 Europe production fully booked), U.S. onshoring now >90% of inverter/optimizer output, and cash & investments of ~$583M, with the company expecting positive full‑year free cash flow despite $60–$80M CapEx and a potential ~$55M tariff refund if favorable rulings materialize.
• Key risks and market view: the company has counterparty exposure to the Freedom Forever bankruptcy (UCC lien ~$100M with unclear recoverability) and a $14M doubtful‑debt hit, while analyst sentiment is mixed (consensus "Reduce," average target ~$30.40) and the stock trades near ~$40.50.

SolarEdge Technologies (NASDAQ:SEDG - Get Free Report) posted its quarterly earnings data on Wednesday. The semiconductor company reported ($0.43) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.23) by ($0.20), FiscalAI reports. The firm had revenue of $309.90 million for the quarter, compared to analysts' expectations of $305.49 million. SolarEdge Technologies had a negative return on equity of 38.66% and a negative net margin of 28.56%.SolarEdge Technologies's revenue was up 41.5% compared to the same quarter last year. During the same period in the prior year, the firm earned ($1.14) earnings per share.

Here are the key takeaways from SolarEdge Technologies' conference call:

• Q1 non-GAAP revenue was $310M (up 46% YoY) with gross margin at 23.5%, and management says the Q2 midpoint implies they are approaching break-even (~$3.5M implied EBIT loss), signaling progress toward profitable growth.
• The SolarEdge Nexis launch generated strong installer demand (≈1,000 attendees) and the company's entire planned Q2 Nexis production for Europe is fully booked, with capacity being expanded to meet additional demand.
• U.S. onshoring is largely ramped (management says >90% of inverter/optimizer production is U.S.-made), exports to Europe should improve cost/margin profile, and cash & investments were about $583M with the company expecting positive full-year free cash flow despite $60–$80M CapEx.
• Counterparty risk remains: SolarEdge reports net-zero recognized exposure to the Freedom Forever bankruptcy but holds a UCC lien (~$100M) with unclear recoverability, and it took a one-time $14M doubtful-debt charge on a separate U.S. customer.
• A favorable Supreme Court ruling on IEEPA tariffs could yield roughly $55M in refunds (not included in Q2 guidance), providing potential upside to cash/results if and when refunds are realized.

SolarEdge Technologies Stock Performance

SolarEdge Technologies stock traded up $1.91 during midday trading on Friday, reaching $40.52. The stock had a trading volume of 2,597,134 shares, compared to its average volume of 3,496,702. SolarEdge Technologies has a 12 month low of $13.73 and a 12 month high of $53.75. The firm's 50-day moving average price is $42.79 and its 200 day moving average price is $37.22. The firm has a market capitalization of $2.46 billion, a PE ratio of -6.62 and a beta of 1.18. The company has a quick ratio of 1.48, a current ratio of 2.02 and a debt-to-equity ratio of 0.85.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on SEDG shares. The Goldman Sachs Group reaffirmed a "sell" rating and set a $31.00 price objective (down from $36.00) on shares of SolarEdge Technologies in a report on Wednesday, April 15th. Royal Bank Of Canada cut their price objective on shares of SolarEdge Technologies from $32.00 to $30.00 and set a "sector perform" rating on the stock in a report on Thursday. Jefferies Financial Group raised shares of SolarEdge Technologies from an "underperform" rating to a "hold" rating and lifted their price objective for the stock from $30.00 to $49.00 in a report on Friday, March 20th. UBS Group lifted their price objective on shares of SolarEdge Technologies from $36.00 to $41.00 and gave the stock a "neutral" rating in a report on Thursday. Finally, Bank of America raised shares of SolarEdge Technologies from an "underperform" rating to a "neutral" rating and lifted their price objective for the stock from $17.00 to $40.00 in a report on Tuesday, March 10th. One research analyst has rated the stock with a Buy rating, sixteen have assigned a Hold rating and seven have assigned a Sell rating to the stock. According to MarketBeat.com, SolarEdge Technologies has a consensus rating of "Reduce" and an average target price of $30.40.

Key Stories Impacting SolarEdge Technologies

Here are the key news stories impacting SolarEdge Technologies this week:

• Positive Sentiment: UBS issued a more constructive view — raising SolarEdge’s price target to $41 and issuing commentary that the stock deserves a more positive near-term forecast, supporting optimism around the company’s recovery and contributing to the intraday lift. UBS Group Issues Positive Forecast for SolarEdge Technologies NASDAQ: SEDG Stock Price
• Positive Sentiment: Operational update: SolarEdge beat revenue expectations in Q1 and management emphasized a push to breakeven as U.S. manufacturing ramps up — this execution narrative and improving supply/production mix are a near-term positive catalyst. SolarEdge hits Q1 beat, targets breakeven as U.S. manufacturing ramps up
• Neutral Sentiment: Analyst roundups and note compilations summarize mixed broker views after the Q1 release — helpful for context but not a single directional trigger. Analyst Estimates: Here's What Brokers Think Of SolarEdge Technologies, Inc. NASDAQ: SEDG After Its First-Quarter Report
• Neutral Sentiment: Company commentary and full earnings/call transcripts reiterate a strategic shift toward profitable growth — useful for medium-term thesis but Q1 results were mixed (revenue up, EPS still negative). SolarEdge (SEDG) Q1 2026 Earnings Transcript
• Negative Sentiment: Citigroup cut its price target to $27 and placed a "sell" rating, signaling a significant downside view that can pressure sentiment and selling flows. Citigroup lowers SEDG price target to $27, sell
• Negative Sentiment: BMO Capital issued a sell on SolarEdge, adding to downward analyst pressure and increasing short-term uncertainty. SolarEdge Technologies (SEDG) Gets a Sell from BMO Capital
• Negative Sentiment: Other brokers trimmed targets/ratings (RBC, Deutsche Bank) and commentary highlighted the Q1 EPS miss and margin/ tariff headwinds — these keep downside risk elevated until margins visibly improve. RBC/Deutsche Bank adjust SEDG targets/ratings
• Negative Sentiment: Coverage and valuation pieces point out the stock’s large run-up (one-year +175%) and the risk of a valuation reset given negative net margins and continued loss-per-share, a reminder that upside depends on execution against margin targets. Is SolarEdge Technologies (SEDG) Pricing Looked At Again After 175% One Year Surge

Institutional Investors Weigh In On SolarEdge Technologies

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SEDG. UBS Group AG raised its stake in SolarEdge Technologies by 234.8% in the 3rd quarter. UBS Group AG now owns 3,554,504 shares of the semiconductor company's stock valued at $131,517,000 after acquiring an additional 2,492,776 shares during the period. Electron Capital Partners LLC raised its stake in SolarEdge Technologies by 107.8% in the 3rd quarter. Electron Capital Partners LLC now owns 1,732,566 shares of the semiconductor company's stock valued at $64,105,000 after acquiring an additional 898,802 shares during the period. ION Fund Management Ltd bought a new stake in SolarEdge Technologies in the 4th quarter valued at about $22,965,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in SolarEdge Technologies in the 3rd quarter valued at about $21,595,000. Finally, Invesco Ltd. raised its stake in SolarEdge Technologies by 28.6% in the 4th quarter. Invesco Ltd. now owns 2,169,822 shares of the semiconductor company's stock valued at $62,599,000 after acquiring an additional 483,052 shares during the period. 95.10% of the stock is currently owned by institutional investors.

SolarEdge Technologies Company Profile

SolarEdge Technologies NASDAQ: SEDG is a global provider of solar energy solutions focused on optimizing photovoltaic (PV) power generation. The company's core offerings include power optimizers, inverters and cloud-based monitoring platforms designed to maximize energy output and improve safety across residential, commercial and utility-scale installations. By coupling module-level electronics with centralized inverters, SolarEdge's technology enables real-time performance monitoring and rapid fault detection to enhance system reliability.

In recent years, SolarEdge has expanded its product portfolio beyond solar PV to include energy storage systems, electric vehicle (EV) charging solutions and smart energy management tools.

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