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SolarEdge Technologies
(NASDAQ:SEDG)
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Rating:53Neutral
Price Target:
$49.00
▲(15.02% Upside)
Action:Reiterated
Date:08/05/26
SEDG scores in the low-to-mid range primarily because profitability remains weak despite improving revenue and gross margins, and the balance sheet has a reduced equity cushion. Offsetting this, cash flow has turned positive and the latest earnings call indicates operational progress and a path toward non-GAAP operating profitability, though near-term demand softness and sequentially lower guidance temper the outlook. Technically, momentum is mixed with neutral RSI but a negative MACD and price below key intermediate moving averages.
Positive Factors
Improved cash generation
Sustained positive operating and free cash flow materially improves financial flexibility versus prior years. Durable cash generation funds R&D, product rollouts and the $60–$80M capex plan, reduces immediate refinancing risk and gives management room to execute the turnaround without relying on external equity issuance.
Negative Factors
Ongoing GAAP losses and weak profitability
Despite non-GAAP improvements, persistent GAAP losses and a deeply negative net margin show the company has not yet restored full profitability. Continued GAAP losses limit reinvestment capacity, can erode equity further, and require sustained operational improvement to convert cash gains into durable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Sustained positive operating and free cash flow materially improves financial flexibility versus prior years. Durable cash generation funds R&D, product rollouts and the $60–$80M capex plan, reduces immediate refinancing risk and gives management room to execute the turnaround without relying on external equity issuance.
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
$2.51B
Dividend YieldN/A
Average Volume (3M)2.27M
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth35.40%
EPS Growth79.65%
CountryUS
Employees3,576
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)-3.05
Shares Outstanding60,818,203
10 Day Avg. Volume1,953,842
30 Day Avg. Volume2,271,941
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$40.49Price Target Upside-4.94% Downside
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:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call emphasized a clear operational turnaround: material year-over-year revenue growth, significant margin expansion, return to non-GAAP profitability for the first time in nearly three years, strengthened balance sheet and tangible product momentum (Nexis rollouts and SST demonstrations). Offsetting risks include near-term U.S. residential softness driven by tax-equity and FEOC uncertainty, channel destocking, Q3 seasonality (especially in Europe) and remaining GAAP losses and modest free cash flow. On balance, the company demonstrated meaningful progress against its transformation priorities while acknowledging near-term demand and timing headwinds.Positive Updates
Revenue Growth
GAAP revenue of $346.2M in Q2 2026, up 11.5% quarter-over-quarter and 19.6% year-over-year; non-GAAP revenue $345.5M, up 11.5% QoQ and 23% YoY (above midpoint of guidance).
Negative Updates
U.S. Residential Market Softness
U.S. residential demand remained weak due to slower tax-equity funding and FEOC uncertainty, reducing purchases from distributors and installers; U.S. GAAP revenue was $154.9M, down 2% QoQ and representing 44.7% of total revenue. Management does not expect the typical Q3 pickup in the U.S.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
GAAP revenue of $346.2M in Q2 2026, up 11.5% quarter-over-quarter and 19.6% year-over-year; non-GAAP revenue $345.5M, up 11.5% QoQ and 23% YoY (above midpoint of guidance).
Read all positive updates
Company Guidance
For Q3 the company guided revenue of $310–$340 million (stating no significant pull‑forward of revenue), non‑GAAP gross margin of ~22%–26% (guidance range excludes any potential IEEPA refunds; Q2 non‑GAAP gross margin was 28.6% including a $13.3M IEEPA benefit), and non‑GAAP operating expenses of ~$86–$91 million (Q2 non‑GAAP OpEx was $88.5M). Management said most of the expected sequential revenue decline from Q2’s GAAP revenue of $346.2M (non‑GAAP $345.5M) is seasonal Europe weakness—about $15M at the midpoint—and that U.S. residential softness limits the usual Q3 U.S. pickup; including $11.5M of IEEPA refunds received in July the midpoint of the Q3 guide implies non‑GAAP operating profitability. The company reiterated full‑year capex of $60–$80M (H1 capex $12M), cash and marketable securities of $601.6M as of June 30, and an expectation of positive free cash flow for the year (Q2 FCF $3.1M).SolarEdge Technologies Financial Statement Overview
Summary
Income Statement
26
Negative
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 1.18B | 901.46M | 2.98B | 3.11B | 1.96B |
| Gross Profit | 295.36M | 181.59M | -877.20M | 703.82M | 844.65M | 629.32M |
| EBITDA | -179.09M | -286.82M | -1.64B | 142.49M | 231.28M | 230.27M |
| Net Income | -270.30M | -405.45M | -1.81B | 34.33M | 93.78M | 169.17M |
Balance Sheet | ||||||
| Total Assets | 435.39M | 2.18B | 2.63B | 4.59B | 4.27B | 2.90B |
| Cash, Cash Equivalents and Short-Term Investments | 546.94M | 577.94M | 585.89M | 860.04M | 1.02B | 697.82M |
| Total Debt | 393.88M | 423.42M | 757.35M | 732.05M | 735.54M | 713.83M |
| Total Liabilities | 971.12M | 1.75B | 1.97B | 2.18B | 2.09B | 1.59B |
| Stockholders Equity | 412.08M | 427.46M | 658.34M | 2.41B | 2.18B | 1.31B |
Cash Flow | ||||||
| Free Cash Flow | 90.00M | 80.79M | -421.48M | -350.64M | -138.06M | 64.88M |
| Operating Cash Flow | 114.08M | 104.26M | -313.32M | -180.11M | 31.28M | 214.13M |
| Investing Cash Flow | 225.16M | 379.88M | 416.29M | -268.89M | -417.04M | -484.21M |
| Financing Cash Flow | -331.50M | -348.89M | -20.13M | -11.96M | 654.61M | -15.18M |
SolarEdge Technologies Technical Analysis
Positive
42.60
Price Trends
56.10
Negative
50.75
Negative
42.73
Positive
Market Momentum
-3.14
Negative
50.03
Neutral
58.35
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 42.6 is below the 20-day moving average (MA) of 48.20, below the 50-day MA of 56.10, and below the 200-day MA of 42.73, indicating a neutral trend. The MACD of -3.14 indicates Negative momentum. The RSI at 50.03 is Neutral, neither overbought nor oversold. The STOCH value of 58.35 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% | |
60 Neutral | $4.96B | 36.80 | 12.28% | ― | -10.41% | -22.03% | |
56 Neutral | $1.47B | 43.59 | 5.29% | ― | 37.75% | 77.43% | |
55 Neutral | $802.97M | -6.23 | -20.64% | ― | 13.19% | 54.98% | |
53 Neutral | $2.51B | -6.69 | -79.58% | ― | 35.40% | 79.65% | |
46 Neutral | $1.02B | -9.99 | -3.60% | ― | -6.56% | -886.40% | |
45 Neutral | $760.92M | -0.37 | -17.23% | 18.78% | -22.00% | -92.74% |
* Technology Sector Average
SEDG
SolarEdge Technologies
33.90
8.11
31.45%
CSIQ
Canadian Solar
15.40
3.68
31.40%
ENPH
Enphase Energy
38.95
8.84
29.36%
JKS
JinkoSolar
15.78
-4.81
-23.36%
ARRY
Array Technologies
5.64
-0.09
-1.57%
SHLS
Shoals Technologies Group
8.68
4.06
87.88%
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.