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SolarEdge Technologies
(NASDAQ:SEDG)
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Rating:49Neutral
Price Target:
$58.00
▲(51.44% Upside)
Action:Reiterated
Date:06/26/26
Overall score reflects a company in operational recovery but still financially stressed: losses and higher leverage weigh heavily, despite a return to positive operating/free cash flow. Near-term technicals are bearish and reinforce caution. The earnings call improves the outlook with guidance toward breakeven and expected full-year positive cash flow, but credit and demand uncertainty remain meaningful headwinds.
Positive Factors
Product Momentum (Nexis)
A fully booked Nexis Q2 Europe production run provides multi-quarter revenue visibility and validates product-market fit in larger residential segments. Durable demand for a differentiated module-level offering supports higher attach rates, steadier top-line cadence and long-term share gains versus commodity competitors.
Negative Factors
Elevated Leverage
Materially higher leverage versus historical levels reduces financial flexibility and increases interest and refinancing risk if markets tighten. With returns still negative, the balance sheet constrains capital deployment and raises the bar for consistent cash generation to deleverage while funding growth initiatives and CapEx.
Read all positive and negative factors
Positive Factors
Negative Factors
Product Momentum (Nexis)
A fully booked Nexis Q2 Europe production run provides multi-quarter revenue visibility and validates product-market fit in larger residential segments. Durable demand for a differentiated module-level offering supports higher attach rates, steadier top-line cadence and long-term share gains versus commodity competitors.
Read all positive factors
SolarEdge Technologies Key Performance Indicators (KPIs)
Any
Optimizers Shipped
Measures the quantity of optimizers distributed, showcasing the adoption of technology that enhances solar panel efficiency and the company's innovation in solar energy management.
Measures the quantity of optimizers distributed, showcasing the adoption of technology that enhances solar panel efficiency and the company's innovation in solar energy management.
Data provided by:
The Fly
The FlySolarEdge Technologies (SEDG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.19B
Dividend YieldN/A
Average Volume (3M)3.03M
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth35.40%
EPS Growth79.65%
CountryUS
Employees3,961
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)-6.16
Shares Outstanding60,818,203
10 Day Avg. Volume2,364,218
30 Day Avg. Volume3,034,541
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)4.04
Price to Sales (P/S)1.46
P/FCF Ratio21.36
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit13.68
Enterprise Value/Ebitda-15.23
Forecast
1Y Price Target
$42.12Price Target Upside9.97% Upside
Rating ConsensusHold
Number of Analyst Covering18
EPS Forecast (FY)<0.01
Revenue Forecast (FY)$1.39B
SolarEdge Technologies Business Overview & Revenue Model
Company Description
SolarEdge Technologies, Inc. (SEDG) is a company specializing in the design, development, and sale of direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations globally. The company operates through five key segments...
How the Company Makes Money
SolarEdge makes money primarily by selling solar PV system electronics and related solutions to customers in the solar supply chain (e.g., installers, distributors, and equipment providers). The main revenue stream is product revenue from its inve...
SolarEdge Technologies Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveys a cautiously optimistic and constructive tone: management reported strong year-over-year revenue growth (+46% YoY), margin expansion, solid product momentum (Nexis fully booked in planned Q2 production for Europe), U.S. C&I share gains, and a clear path toward breakeven in Q2, supported by disciplined cost control and a healthy cash position (~$583M and positive FCF in Q1). Key risks remain — notably a widened non-GAAP net loss impacted by a $14M doubtful-debt charge, a 20% QoQ decline in U.S. revenue, inventory build, and customer credit/bankruptcy uncertainties (Freedom Forever and another U.S. customer). Management emphasized execution on new product rollouts, onshoring benefits, and a large AI data-center opportunity which together with operational discipline tilt the narrative positive despite the near-term headwinds and uncertainties.Positive Updates
Strong Year-over-Year Revenue Growth
Non-GAAP revenue of $310 million in Q1 2026, up 46% year-over-year (fifth consecutive quarter of YoY growth), outperforming typical seasonality (QOQ -7% vs typical -10% to -15%).
Negative Updates
Widening Non-GAAP Net Loss and One-Time Charge
Non-GAAP net loss of $26.3 million in Q1 (vs. $8.2 million in Q4); non-GAAP net loss per share $0.43 vs $0.14 in Q4. Results were impacted by a onetime $14 million doubtful-debt charge related to a U.S. customer (not Freedom Forever).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Year-over-Year Revenue Growth
Non-GAAP revenue of $310 million in Q1 2026, up 46% year-over-year (fifth consecutive quarter of YoY growth), outperforming typical seasonality (QOQ -7% vs typical -10% to -15%).
Read all positive updates
Company Guidance
SolarEdge guided Q2 non‑GAAP revenue of $325–$355 million, non‑GAAP gross margin of 23%–27% and non‑GAAP operating expenses of $86–$91 million (midpoint implying an ~ $3.5M EBIT loss, i.e., near breakeven); the guidance excludes any material one‑time pull‑forward revenue and does not assume potential IEEPA tariff refunds (management estimates possible refunds of ~ $55M). For context, Q1 non‑GAAP revenue was $310M (+46% YoY, -7% QoQ) with 23.5% gross margin, a non‑GAAP operating loss of ≈$25M (≈$11M excluding a $14M doubtful‑debt charge), non‑GAAP net loss of $26.3M (EPS $0.43), and regional mix of US $150M (51%), Europe $114M (37%) and International $38M (12%). Balance‑sheet and cash metrics: cash & investments ≈$583M, Q1 free cash flow ≈$21M (net cash +$2M in the quarter), AR net $223M (down from $267M), inventory up $44M, cash conversion cycle at its fastest in many years, Q1 CapEx $4M and FY CapEx guidance $60–$80M, and management expects to generate positive cash flow for full‑year 2026.SolarEdge Technologies Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
46
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.28B | 1.18B | 901.46M | 2.98B | 3.11B | 1.96B |
| Gross Profit | 232.22M | 181.59M | -877.20M | 703.82M | 844.65M | 629.32M |
| EBITDA | -208.63M | -286.82M | -1.64B | 142.49M | 231.28M | 230.27M |
| Net Income | -364.29M | -405.45M | -1.81B | 34.33M | 93.78M | 169.17M |
Balance Sheet | ||||||
| Total Assets | 2.26B | 2.18B | 2.63B | 4.59B | 4.27B | 2.90B |
| Cash, Cash Equivalents and Short-Term Investments | 582.63M | 577.94M | 585.89M | 860.04M | 1.02B | 697.82M |
| Total Debt | 404.35M | 423.42M | 757.35M | 732.05M | 735.54M | 713.83M |
| Total Liabilities | 1.85B | 1.75B | 1.97B | 2.18B | 2.09B | 1.59B |
| Stockholders Equity | 410.72M | 427.46M | 658.34M | 2.41B | 2.18B | 1.31B |
Cash Flow | ||||||
| Free Cash Flow | 77.81M | 80.79M | -421.48M | -350.64M | -138.06M | 64.88M |
| Operating Cash Flow | 94.87M | 104.26M | -313.32M | -180.11M | 31.28M | 214.13M |
| Investing Cash Flow | 291.85M | 379.88M | 416.29M | -268.89M | -417.04M | -484.21M |
| Financing Cash Flow | -340.67M | -348.89M | -20.13M | -11.96M | 654.61M | -15.18M |
SolarEdge Technologies Technical Analysis
Positive
38.30
Price Trends
55.85
Negative
48.94
Positive
41.82
Positive
Market Momentum
-1.26
Positive
48.19
Neutral
42.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEDG, the sentiment is Positive. The current price of 38.3 is below the 20-day moving average (MA) of 55.32, below the 50-day MA of 55.85, and below the 200-day MA of 41.82, indicating a neutral trend. The MACD of -1.26 indicates Positive momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 42.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEDG.
SolarEdge Technologies Risk Analysis
SolarEdge Technologies disclosed 19 risk factors in its most recent earnings report. SolarEdge Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SolarEdge Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $975.26M | -7.70 | -20.64% | ― | 13.19% | 54.98% | |
57 Neutral | $1.64B | 50.27 | 5.67% | ― | 37.75% | 77.43% | |
56 Neutral | $5.67B | 43.58 | 13.28% | ― | -1.64% | -6.91% | |
49 Neutral | $3.19B | -8.89 | -79.58% | ― | 35.40% | 79.65% | |
46 Neutral | $1.00B | -9.93 | -3.60% | ― | -6.56% | -886.40% | |
45 Neutral | $768.96M | -0.39 | -17.23% | 10.19% | -22.00% | -92.74% |
* Technology Sector Average
SEDG
SolarEdge Technologies
54.76
27.19
98.62%
CSIQ
Canadian Solar
14.99
0.90
6.39%
ENPH
Enphase Energy
44.89
1.92
4.47%
JKS
JinkoSolar
15.66
-6.83
-30.38%
ARRY
Array Technologies
6.46
-1.18
-15.45%
SHLS
Shoals Technologies Group
10.08
4.30
74.39%
SolarEdge Technologies Corporate Events
Executive/Board Changes
SolarEdge Grants Special Bonus Amid CFO Transition
Positive
Jun 25, 2026
SolarEdge Technologies reported that Asaf Alperovitz, who had previously notified the company on March 10, 2026 of his intention to step down, ended his tenure as Chief Financial Officer effective May 31, 2026 and then remained in a transitional r...
Executive/Board ChangesShareholder Meetings
SolarEdge Shareholders Approve Directors, Pay at Annual Meeting
Neutral
Jun 4, 2026
SolarEdge Technologies, Inc. held its annual meeting of stockholders on June 3, 2026, where shareholders re-elected seven directors to serve until the 2027 annual meeting and ratified the appointment of Kost Forer Gabbay Kasierer, a member of EY ...
Business Operations and StrategyExecutive/Board Changes
SolarEdge Names New CFO to Drive Strategic Growth
Positive
May 11, 2026
On May 11, 2026, SolarEdge Technologies announced that it had appointed Maoz Sigron as its new Chief Financial Officer, effective May 31, 2026, succeeding outgoing CFO Asaf Alperovitz, who is leaving to pursue an opportunity outside the industry a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.