SolarEdge Technologies (SEDG)
NASDAQ:SEDG
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SolarEdge Technologies
(NASDAQ:SEDG)
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Rating:62Neutral
Price Target:
$44.00
▲(5.36% Upside)
Action:ReiteratedDate:03/21/26
The score reflects an improving turnaround narrative (earnings call and cash-flow rebound) and strong technical uptrend, partially offset by still-weak underlying profitability and a challenged valuation profile due to ongoing losses and no dividend support.
Positive Factors
Free cash flow recovery
A large swing to positive free cash flow provides durable financial flexibility: it funds working capital, R&D and manufacturing ramp without immediate external financing, reduces liquidity risk and supports the company’s multi-quarter turnaround while management executes margin and product initiatives.
Negative Factors
Persisting loss-making operations
Despite stabilization, deep net losses and negative margins imply ongoing reliance on improving revenue mix and margin expansion to reach sustained profitability; prolonged losses erode equity, constrain reinvestment and increase sensitivity to demand shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow recovery
A large swing to positive free cash flow provides durable financial flexibility: it funds working capital, R&D and manufacturing ramp without immediate external financing, reduces liquidity risk and supports the company’s multi-quarter turnaround while management executes margin and product initiatives.
Read all positive factors
SolarEdge Technologies (SEDG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.52B
Dividend YieldN/A
Average Volume (3M)3.44M
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-0.14%
EPS Growth66.71%
CountryUS
Employees3,961
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)-0.14
Shares Outstanding60,366,290
10 Day Avg. Volume2,967,098
30 Day Avg. Volume3,439,818
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 Cap1.02
Enterprise Value/Revenue2.18
Enterprise Value/Gross Profit14.19
Enterprise Value/Ebitda-10.30
Forecast
1Y Price Target
$37.31Price Target Upside-10.66% Downside
Rating ConsensusHold
Number of Analyst Covering18
EPS Forecast (FY)0.05
Revenue Forecast (FY)$1.39B
SolarEdge Technologies Business Overview & Revenue Model
Company Description
SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. It operates through five segments: Solar, Energy Storage...
How the Company Makes Money
SolarEdge primarily makes money by selling hardware and software solutions used in solar PV and broader energy systems, with revenue recognized largely from product sales through a network of solar distributors, installers, and equipment partners....
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 Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call emphasized a clear and measurable financial turnaround in 2025 — strong Q4 revenue growth (+70% YoY), consecutive quarterly margin expansion (Q4 gross margin 23.3%), and a full-year free cash flow recovery (+$77M vs -$421M in 2024). Management highlighted market-share gains, successful product initiatives (Single SKU, Nexis), continued U.S. manufacturing ramp and a large long-term AI data center opportunity. Notable near-term headwinds and execution items include one-time charges (~$60M Kokam expense), residual non-GAAP losses, inventory build to support Nexis, currency pressure from a stronger ILS, a still-slow European market and multi-year uncertainty around SST commercialization. Overall, the positives (revenue and margin momentum, cash-flow turnaround, product and market positioning) materially outweigh the lowlights, though execution risk remains on longer-term initiatives.Positive Updates
Q4 Revenue Surge
Non-GAAP Q4 revenue of $334M, up 70% year-over-year and slightly down quarter-over-quarter, outperforming the typical seasonal decline (normally -10% to -15%).
Negative Updates
One-Time Charges and Portfolio Actions
Recorded a one-time noncash finance expense of ~ $60M related to closure of Kokam battery manufacturing and sold remainder of E‑Mobility business for $12M (resulting in GAAP net loss of ~ $8M). These items weighed on GAAP results.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue Surge
Non-GAAP Q4 revenue of $334M, up 70% year-over-year and slightly down quarter-over-quarter, outperforming the typical seasonal decline (normally -10% to -15%).
Read all positive updates
Company Guidance
SolarEdge guided Q1 2026 revenues of $290–$320 million (midpoint reflecting a better‑than‑normal seasonal trend and explicitly excluding any significant one‑time pull‑forward of revenue), non‑GAAP gross margin of 20%–24%, and non‑GAAP operating expenses of $88–$93 million, and said it expects to be free‑cash‑flow positive in Q1; management noted that if revenue growth and margin expansion continue they are “on target” for EBIT profitability later in 2026. For context they reported Q4 non‑GAAP revenue of $334 million (up 70% year‑over‑year), Q4 non‑GAAP gross margin of 23.3%, Q4 free cash flow of ~$43 million and FY‑2025 free cash flow of ~$77 million (vs. ‑$421 million in 2024), Q4 non‑GAAP operating loss of $11 million and non‑GAAP net loss of $8.2 million (‑$0.14/sh), cash & equivalents of ~$581 million (12/31/25), and a Q4 revenue mix of US $198M (59%), Europe $99M (30%) and International $37M (11%); management also cited sales mix shifts (more U.S.‑made products), single‑SKU and supply‑chain actions as drivers to help achieve the guided margins.SolarEdge Technologies Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
48
Neutral
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.18B | 901.46M | 2.98B | 3.11B | 1.96B |
| Gross Profit | 181.59M | -877.20M | 703.82M | 844.65M | 629.32M |
| EBITDA | -286.82M | -1.64B | 142.49M | 231.28M | 230.27M |
| Net Income | -405.45M | -1.81B | 34.33M | 93.78M | 169.17M |
Balance Sheet | |||||
| Total Assets | 2.18B | 2.63B | 4.59B | 4.27B | 2.90B |
| Cash, Cash Equivalents and Short-Term Investments | 577.94M | 585.89M | 860.04M | 1.02B | 697.82M |
| Total Debt | 423.42M | 757.35M | 732.05M | 735.54M | 713.83M |
| Total Liabilities | 1.75B | 1.97B | 2.18B | 2.09B | 1.59B |
| Stockholders Equity | 427.46M | 658.34M | 2.41B | 2.18B | 1.31B |
Cash Flow | |||||
| Free Cash Flow | 80.79M | -421.48M | -350.64M | -138.06M | 64.88M |
| Operating Cash Flow | 104.26M | -313.32M | -180.11M | 31.28M | 214.13M |
| Investing Cash Flow | 379.88M | 416.29M | -268.89M | -417.04M | -484.21M |
| Financing Cash Flow | -348.89M | -20.13M | -11.96M | 654.61M | -15.18M |
SolarEdge Technologies Technical Analysis
Neutral
41.76
Price Trends
40.23
Positive
36.25
Positive
34.16
Positive
Market Momentum
1.10
Positive
45.96
Neutral
8.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEDG, the sentiment is Neutral. The current price of 41.76 is below the 20-day moving average (MA) of 46.31, above the 50-day MA of 40.23, and above the 200-day MA of 34.16, indicating a neutral trend. The MACD of 1.10 indicates Positive momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 8.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SEDG.
SolarEdge Technologies Risk Analysis
SolarEdge Technologies disclosed 16 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $2.52B | -4.26 | -80.50% | ― | -0.14% | 66.71% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.15B | -0.75 | -18.83% | 10.19% | -34.29% | -732.90% | |
58 Neutral | $1.17B | 42.34 | 5.78% | ― | 2.68% | 2.90% | |
55 Neutral | $4.09B | 27.11 | 18.25% | ― | 20.97% | 226.98% | |
53 Neutral | $1.09B | -26.92 | -15.43% | ― | 35.75% | 37.97% | |
40 Underperform | $845.86M | -15.38 | -3.69% | ― | -4.46% | 1645.26% |
* Technology Sector Average
SEDG
SolarEdge Technologies
41.76
27.84
200.00%
CSIQ
Canadian Solar
12.63
4.99
65.31%
ENPH
Enphase Energy
31.19
-23.37
-42.83%
JKS
JinkoSolar
22.91
8.37
57.53%
ARRY
Array Technologies
7.16
2.93
69.27%
SHLS
Shoals Technologies Group
6.98
3.65
109.61%
SolarEdge Technologies Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
SolarEdge CFO Resignation and Guidance Reaffirmation Announced
Neutral
Mar 11, 2026
SolarEdge Technologies announced on March 10, 2026, that Chief Financial Officer Asaf Alperovitz will resign effective June 9, 2026, as he departs to take a CFO role at a public company outside the solar industry. The board has begun a search for ...
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.