Operational cash flow has improved through inventory liquidation, contributing $48.7 million in working capital inflows during 2026Q1, though the OCF/NI ratio of -0.43 indicates a continued decoupling of earnings from cash generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Jun'16 | Jun'15 | Jun'14 | Jun'13 |
|---|
| Cash from Operations | 94.87M | 104.26M | -313.32M | -180.11M | 31.28M | 214.13M | 222.66M | 259M | 189.08M | 136.66M | 49.1M | 52.53M | 12.05M | -17.84M | -23.11M |
| Operating CF Margin % | - | 8.8% | -34.76% | -6.05% | 1.01% | 10.9% | 15.26% | 18.17% | 20.17% | 22.51% | 10.23% | 10.72% | 3.71% | -13.4% | -29.24% |
| Operating CF Growth % | 521.5% | 133.28% | -73.96% | -675.74% | -85.39% | -3.83% | -14.03% | 36.98% | 38.35% | 178.35% | -6.53% | 335.79% | 167.55% | 22.77% | - |
| Net Income | -364.29M | -405.45M | -1.81B | 34.33M | 93.78M | 169.17M | 140.32M | 144.96M | 128.05M | 84.17M | 50.76M | 76.61M | 21.12M | -21.38M | -28.18M |
| Depreciation & Amortization | 17.98M | 30.51M | 59.87M | 57.2M | 49.68M | 39.53M | 31.83M | 26.89M | 12.62M | 7.16M | 5.52M | 3.85M | 2.25M | 1.98M | 1.84M |
| Stock-Based Compensation | 41.15M | 92.55M | 137.25M | 149.94M | 145.54M | 102.59M | 67.31M | 60.35M | 30.62M | 17.56M | 11.63M | 9.09M | 2.96M | 1.08M | 1.08M |
| Deferred Taxes | 19K | 0 | 79.21M | -43.07M | -11.05M | -12.04M | -2.74M | -6.04M | -7.09M | -5.46M | 3.65M | 0 | 5.45M | -53K | 40K |
| Other Non-Cash Items | 219.68M | 164.39M | 992.7M | 12.08M | 133.05M | 33.06M | 8.21M | 8.27M | 1.79M | 1.07M | -10.94M | 363K | 4.46M | 422K | 814K |
| Working Capital Changes | 180.34M | 222.26M | 224.02M | -390.59M | -379.71M | -118.19M | -22.29M | 24.57M | 23.1M | 32.16M | 10.03M | -37.38M | -18.74M | 51K | 1.34M |
| Change in Receivables | -91.61M | -105.92M | 451.71M | 296.43M | -457.61M | -247.72M | 86.54M | -124.07M | -60.51M | -38.14M | 1.55M | -37.27M | -16.33M | -9.91M | -1.04M |
| Change in Inventory | 46.61M | 97.23M | 67.8M | -690.85M | -341.08M | -43.05M | -149.66M | -22.54M | -20.18M | -15.69M | 14.02M | -7.36M | -48.51M | -10.68M | -1.16M |
| Change in Payables | 267.09M | 164.81M | -285.5M | -67.8M | 194.52M | 91.71M | 3.33M | 47.84M | 31.48M | 35.45M | -14.46M | -32.2M | 41.11M | 19.44M | -7.93M |
| Cash from Investing | 291.85M | 379.88M | 416.29M | -268.89M | -417.04M | -484.21M | -236.64M | -152.85M | -156.61M | -85.41M | -19.78M | -128.65M | -13.94M | -3.15M | -2.78M |
| Capital Expenditures | -17.06M | -23.47M | -108.16M | -170.52M | -169.34M | -149.25M | -126.79M | -72.56M | -38.61M | -21.38M | -11.63M | -16.49M | -11.77M | -2.99M | -1.54M |
| CapEx % of Revenue | 1.34% | 1.98% | 12% | 5.73% | 5.44% | 7.6% | 8.69% | 5.09% | 4.12% | 3.52% | 2.42% | 3.37% | 3.62% | 2.24% | 1.95% |
| Acquisitions | 3.83M | 0 | -10.42M | -23.34M | 24.36M | -16.64M | 0 | -38.44M | -94.74M | 0 | 0 | -3.61M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 44.18M | 80.81M | -20.06M | -58.82M | 3.9M | -1.22M | 26.77M | -29.41M | -112K | -619K | -77K | -800K | -2.17M | -157K | -1.24M |
| Cash from Financing | -340.67M | -348.89M | -20.13M | -11.96M | 654.61M | -15.18M | 640.48M | -73.02M | -7.96M | 7.24M | 1.28M | 2.78M | 136.95M | 17.68M | 19.68M |
| Debt Issued (Net) | -684.5M | -347.34M | 61.31M | -2.92M | -138K | -17.38M | 619.22M | -9.27M | -3.79M | 0 | 0 | 0 | -19.25M | 6.96M | 9.33M |
| Equity Issued (Net) | 3.85M | 0 | -50.19M | -9.26M | 650.53M | 6.49M | 21.5M | 0 | 0 | 0 | 1.28M | 0 | 156.11M | 10.66M | 10.31M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -50.19M | -9.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 339.99M | -1.55M | -31.25M | 226K | 4.22M | -4.28M | -234K | -63.76M | -4.17M | 7.24M | 1.31M | 2.78M | 84K | 51K | 41K |
| Net Change in Cash | 47.54M | 129.91M | 71.47M | -444.64M | 253.02M | -297.06M | 603.25M | 36.14M | 24.6M | 58.48M | -39.17M | -73.43M | 135M | -3.39M | -6.29M |
| Free Cash Flow | 77.81M | 80.79M | -421.48M | -350.64M | -138.06M | 64.88M | 95.86M | 186.44M | 150.47M | 115.28M | 37.47M | 36.04M | 289K | -20.84M | -24.65M |
| FCF Margin % | 6.1% | 6.82% | -46.76% | -11.78% | -4.44% | 3.3% | 6.57% | 13.08% | 16.05% | 18.99% | 7.81% | 7.36% | 0.09% | -15.64% | -31.18% |
| FCF Growth % | 147.33% | 119.17% | -20.21% | -153.98% | -312.79% | -32.32% | -48.58% | 23.9% | 30.52% | 207.64% | 3.98% | 12370.59% | 101.39% | 15.46% | - |
| FCF per Share | 1.30 | 1.35 | -7.38 | -6.13 | -2.38 | 1.16 | 1.82 | 3.71 | 3.14 | 2.54 | 0.85 | 0.81 | 0.01 | -0.66 | -0.78 |
| FCF Conversion (FCF/Net Income) | -0.21x | -0.26x | 0.17x | -5.25x | 0.33x | 1.27x | 1.59x | 1.77x | 1.47x | 1.62x | 0.97x | 0.69x | 0.57x | 0.83x | 0.82x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 36K | 0 | 1.1M | 143K | 0 | 0 | 0 | 896K | 1.08M | 1.06M |
| Taxes Paid | 0 | 0 | 17M | 137.98M | 74.69M | 45.98M | 38.99M | 41.08M | 15.37M | 3.1M | 0 | 1.18M | 4.04M | 92K | 8K |
Inventory Glut and Margin Erosion
Based on recent financial disclosures, SolarEdge exhibits a persistent disconnect between net losses and operating cash flow, with the company reporting a negative OCF/NI ratio of -0.43 in 2026Q1, suggesting that non-cash charges and working capital adjustments are currently masking the underlying severity of operational cash burn.
The divergence between accounting losses and cash generation indicates that the company's reported net income is heavily influenced by non-cash items, which may obscure the true cash-generative capacity of the core business. Investors should monitor whether this trend of negative conversion persists as the company attempts to stabilize its manufacturing footprint.
As reported in quarterly filings, SolarEdge has transitioned from a period of severe cash burn in 2024 to a positive free cash flow of $20.7 million in 2026Q1, reflecting a significant reduction in capital intensity and a pivot toward preserving liquidity during this cyclical downturn.
The shift toward positive free cash flow appears driven more by aggressive capital expenditure curtailment than by a fundamental improvement in operating margins. This trajectory suggests that management is prioritizing balance sheet preservation over growth, which may limit the company's ability to innovate in the competitive solar hardware landscape.
According to recent SEC filings, SolarEdge has drastically reduced its capital intensity, with CapEx as a percentage of revenue falling to 1.2% in 2026Q1 from a peak of 18.2% in 2024Q3, signaling a strategic retreat from the aggressive capacity expansion that characterized the company's previous growth phase.
This sharp decline in capital spending suggests that the company has reached a saturation point in its manufacturing infrastructure or is intentionally deferring maintenance to conserve cash. Such a reduction warrants further investigation into whether the current asset base is sufficient to support future demand if market conditions improve.
Based on reported figures, working capital changes contributed $48.7 million to operating cash flow in 2026Q1, confirming that the company is successfully converting its bloated inventory levels into cash, a trend that has been a primary driver of the recent improvement in liquidity metrics.
The reliance on working capital releases to bolster cash flow suggests that the company is effectively clearing channel inventory, though this is a finite source of liquidity. Analysts should monitor the sustainability of these inflows, as they are likely to diminish once inventory levels reach a normalized state.
Quick answers to the most common questions about buying SEDG stock.
SolarEdge Technologies, Inc. (SEDG) generated $104.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SolarEdge Technologies, Inc. (SEDG) generated $80.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
SolarEdge Technologies, Inc. (SEDG) spent $23.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.