New York, May 6, 2026, 12:02 (EDT)
Shares of SolarEdge Technologies slipped roughly 6% by late Wednesday morning. The solar-equipment firm posted a deeper adjusted first-quarter loss than Wall Street had braced for, even as sales came in ahead of estimates and guidance pointed to near-breakeven operations next quarter. SolarEdge was changing hands at $41.91, having dipped to $37.83 earlier in the session.
It’s a key moment for SolarEdge, which wants to prove its turnaround isn’t just about slashing expenses. The solar firm is navigating a rough patch—demand has sagged, inventories piled up, and according to Reuters in January 2025, it was lining up its fourth round of job cuts in a year.
SolarEdge posted revenue of $310.5 million for the quarter, up 46% year-over-year but down 7.4% from the previous period. According to a filing, GAAP net loss landed at $57.4 million, while the non-GAAP loss came in at 43 cents a share. Non-GAAP results exclude certain accounting and other costs.
StockStory, citing FinancialContent, noted that revenue beat the Street’s $304.5 million forecast, but the adjusted per-share loss exceeded analysts’ 27-cent estimate. The stronger sales figure wasn’t enough to prevent shares from sliding, thanks to that earnings miss.
Chief Executive Shuki Nir pointed to “46% year-over-year revenue growth” for the quarter, noting it marked a sixth consecutive period of margin improvement. Nir added that SolarEdge was targeting to be “close to breakeven operating profitability” at the midpoint of its second-quarter forecast.
The company is now projecting second-quarter revenue between $325 million and $355 million, with non-GAAP gross margin expected to land somewhere in the 23% to 27% range. That’s versus last quarter’s non-GAAP gross margin of 23.5%. Free cash flow came in at $20.7 million—still positive, but down sharply from $43.3 million the previous quarter.
Product mix came in lopsided. Supplemental figures showed inverter revenue dropping to $63.3 million, down from $82.2 million in the previous quarter. Batteries for photovoltaic uses picked up, hitting $94.9 million versus $88.5 million before. Photovoltaic, or PV, refers to solar power from panels.
Geography delivered mixed results. Chief Financial Officer Asaf Alperovitz reported a 20% sequential drop in U.S. revenue, landing at $158 million. Over in Europe, revenue climbed 14% to $114 million. Alperovitz pointed to robust battery demand and a rebound in March following a sluggish kickoff to the year as drivers for the European uptick.
SolarEdge is banking on fresh offerings to fuel its rebound. Nir told investors the company had “shifted from defense to offense,” and said European customers have already snapped up all planned second-quarter Nexis output. He highlighted a budding AI data-center power segment, which centers on high-voltage direct-current systems. MarketScreener
Still, the quarter didn’t resolve everything. The U.S. side remains sluggish, and adjusted earnings took a $14 million hit from a doubtful-debt charge. Alperovitz clarified that the charge stemmed from a single U.S. customer, “not to Freedom Forever.” SolarEdge, he added, isn’t exposed on the balance sheet to Freedom, though it does hold a lien of about $100 million and remains uncertain about any possible recovery. MarketScreener
Competition remains fierce. SolarEdge flags Enphase Energy and Tesla as key rivals in the North American residential space for storage and inverters. Reuters has pointed to sluggish residential solar uptake in Europe and stiff U.S. competition as ongoing headaches for the company.
Now comes the real test: hold margins steady, push Q2 growth to hit operating breakeven, and show that Nexis demand can balance out the U.S. weakness. Judging by Wednesday’s share reaction, investors aren’t convinced SolarEdge’s bounce will last.
