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SolarEdge Technologies
(NASDAQ:SEDG)
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Rating:51Neutral
Price Target:
$33.00
▲(10.44% Upside)
Action:Reiterated
Date:08/27/26
The score reflects an improving but still higher-risk setup: cash flow has turned positive and the earnings call indicates operational progress toward profitability, but financial performance remains constrained by significant ongoing losses and a reduced equity cushion. Technicals are notably weak with the stock below major moving averages and negative MACD, while valuation is difficult to support given the negative P/E and no dividend yield data.
Positive Factors
Revenue Recovery
Strong year-over-year revenue growth indicates improving product demand and execution after the downturn. If sustained across residential, commercial and European markets, higher volumes can support better fixed-cost absorption and a durable recovery.
Negative Factors
Persistent GAAP Losses
Despite better revenue and gross margin, SolarEdge remains materially unprofitable under GAAP. Continued losses could erode equity, constrain investment capacity and weaken the recovery if operating improvements do not translate into durable margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
Strong year-over-year revenue growth indicates improving product demand and execution after the downturn. If sustained across residential, commercial and European markets, higher volumes can support better fixed-cost absorption and a durable recovery.
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
$2.04B
Dividend YieldN/A
Average Volume (3M)2.27M
Price to Earnings (P/E)―
Beta (1Y)0.39
Revenue Growth37.91%
EPS Growth84.96%
CountryUS
Employees3,576
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)-4.51
Shares Outstanding61,525,750
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
$34.87Price Target Upside16.70% Upside
Rating ConsensusHold
Number of Analyst Covering17
EPS Forecast (FY)-0.35
Revenue Forecast (FY)$1.32B
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 primarily makes money by selling solar PV hardware and related software/services used to build and operate solar energy systems. The largest revenue stream is product sales tied to PV system deployments—most notably (1) power optimizers ...
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 | 295.25M | 181.59M | -877.20M | 703.82M | 844.65M | 629.32M |
| EBITDA | -158.46M | -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 | 2.30B | 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 | 1.89B | 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
Negative
29.88
Price Trends
44.28
Negative
48.27
Negative
42.25
Negative
Market Momentum
-3.76
Negative
43.44
Neutral
60.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEDG, the sentiment is Negative. The current price of 29.88 is below the 20-day moving average (MA) of 33.85, below the 50-day MA of 44.28, and below the 200-day MA of 42.25, indicating a bearish trend. The MACD of -3.76 indicates Negative momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 60.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $5.08B | 38.48 | 12.28% | ― | -10.41% | -22.03% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $1.23B | 39.74 | 5.29% | ― | 46.88% | 50.24% | |
52 Neutral | $725.38M | -4.77 | -47.02% | ― | 1.18% | 44.68% | |
51 Neutral | $2.04B | -7.43 | -62.50% | ― | 37.91% | 84.96% | |
46 Neutral | $686.54M | -0.35 | -17.23% | 18.78% | -22.19% | -31.11% | |
44 Neutral | $941.73M | -9.26 | -3.60% | ― | -6.56% | -886.40% |
* Technology Sector Average
SEDG
SolarEdge Technologies
33.51
0.26
0.78%
CSIQ
Canadian Solar
13.98
4.47
47.00%
ENPH
Enphase Energy
39.25
1.67
4.44%
JKS
JinkoSolar
13.51
-6.93
-33.91%
ARRY
Array Technologies
4.67
-4.44
-48.74%
SHLS
Shoals Technologies Group
7.42
0.83
12.59%
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 ...
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.