SEDGNasdaqSemiconductors & Related DevicesUS GAAP · USD

SolarEdge Technologies, Inc

SolarEdge Technologies is a U.S.-based smart energy company built around DC-optimized photovoltaic systems for residential, commercial, and small utility-scale solar installations. Its product set combines inverters, power optimizers, monitoring hardware and cloud software, and related smart energy devices such as batteries, EV chargers, and load controllers.

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Revenue1,184m USD
+31.4 %y/y
Operating profit (EBIT)-302m USD
+82.3 %y/y
EBIT margin-25.5%
+164.0 ppy/y
Net income-405m USD
+77.6 %y/y
Free cash flow80.8m USD
+119.2 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-2,000-1,00001,0002,0003,0004,000m USD2020: 1,459 m USD2020: EBIT 143 m USD20202021: 1,964 m USD2021: EBIT 207 m USD20212022: 3,110 m USD2022: EBIT 166 m USD20222023: 2,977 m USD2023: EBIT 40 m USD20232024: 901 m USD2024: EBIT -1,708 m USD20242025: 1,184 m USD2025: EBIT -302 m USD20251,184-302
RevenueOperating profit (EBIT)
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Business

Share of revenue
PV inverter systems45 %

Inverters and related system hardware that convert and manage solar power output.

Power optimizers30 %

Module-level electronics that maximize energy harvest and enable system monitoring.

Batteries and storage10 %

Battery products and storage-related hardware for PV applications.

Software and monitoring8 %

Cloud monitoring, energy management, and control software for installed systems.

Ancillary solar products7 %

Other solar-related hardware and accessories sold through the channel.

Products

Reported · share of revenue
41.4%28.2%24.1%FY2025100 %
  • Optimizers41.4 %
  • Inverters28.2 %
  • Batteries for Pv Applications24.1 %
  • Other Products4.5 %
  • Energy Storage Systems1.4 %
  • Communication0.5 %

Source: 10-K/A FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

SolarEdge sells primarily through solar distributors, electrical equipment wholesalers, EPC contractors, and installers. Its end customers are residential solar buyers, commercial solar users, and small utility-scale project owners that want higher energy yield, safety features, and remote monitoring. The company also serves channel partners that stock and resell its products across the markets where it operates.

Solar distributors and wholesalers

Buy inverters, optimizers, and accessories for resale through local solar channels.

Installers and EPC contractors

Buy complete system components for rooftop and small-scale PV installations.

Residential solar end customers

Use SolarEdge systems for home solar where optimization, safety, and monitoring matter.

Commercial and small utility PV customers

Buy higher-capacity systems and software for business and small utility projects.

Strategy

SolarEdge is focusing its resources on core solar and smart energy products while pruning non-core businesses and product lines. It is also concentrating manufacturing in the United States and aligning its channel strategy around major distributors, wholesalers, EPCs, and installers to support domestic-content demand and improve operational control.

Core portfolio focusShort term

Concentrating on the main PV and smart energy platform improves execution and brand clarity.

U.S.-based manufacturingMedium term

Domestic production supports IRA-related customer demand and supply-chain control.

Channel and installer penetrationMedium term

SolarEdge depends on distributors and installers to reach end customers at scale.

Software and energy management expansionLong term

Software and control layers deepen system value and customer stickiness.

Geography

Q1/2026

SolarEdge is a global business, but its manufacturing footprint is concentrated in the United States, with additional activity in Israel and third-party manufacturing in Vietnam. Outside the U.S., the company sells through international solar channels, and recent filings show that non-U.S. revenue remains a meaningful part of the mix.

United States100 %

Risks

SolarEdge faces demand and channel risks tied to solar industry cycles, customer consolidation, and policy incentives such as net metering and domestic-content support. It also has exposure to supply-chain, geopolitical, cyber, and execution risks because its products depend on global logistics, manufacturing transitions, and complex software-enabled hardware systems.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Solar incentive and net metering changes1Customer concentration and industry consolidation2Israel geopolitical and operational disruption3Supply chain and ocean transportation dependence4Cybersecurity and ERP implementation risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Solar incentive and net metering changesImpact: HighLikelihood: High

    Demand for PV systems is sensitive to subsidies and utility compensation rules.

    Exposure: Residential and commercial solar markets

  2. Customer concentration and industry consolidationImpact: HighLikelihood: High

    Fewer distributors/installers can increase reliance on a small set of buyers.

    Exposure: Channel sales

  3. Israel geopolitical and operational disruptionImpact: HighLikelihood: High

    A large share of employees and R&D activity is based in Israel.

    Exposure: R&D and corporate functions

  4. Supply chain and ocean transportation dependenceImpact: MediumLikelihood: High

    Products must move through global logistics to reach installers on time.

    Exposure: International distribution

  5. Cybersecurity and ERP implementation riskImpact: MediumLikelihood: Low

    The business relies on cloud monitoring, data systems, and enterprise software.

    Exposure: Operations and customer service

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Accounting

Judgemental items
Revenue recognition timing

Hardware sales and channel shipments can create quarter-to-quarter timing differences.

Impact: Reported revenue depends on shipment timing and product mix.

Goodwill impairment

The company tests goodwill using discounted cash flow models with Level 3 inputs.

Impact: Forecast changes can trigger non-cash impairment charges.

Intangible assets

Acquired technologies and product lines require ongoing valuation support.

Impact: Amortization and impairment can affect earnings.

Warranty and product-related estimates

Solar hardware carries performance and reliability obligations.

Impact: Reserve changes can affect gross profit and operating results.

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Last updated: 24/09/2026