Revenue growth accelerated to 19.6% year-over-year in 2026Q2, with gross margin improving to 27.5% from -80.7% in 2024Q4, yet operating margin remains negative at -4.6% and net loss persists at -$30.8M.
SolarEdge Technologies, Inc. (SEDG) annual income statement — 14-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 1.32B | 1.18B | 901.46M | 2.98B | 3.11B | 1.96B | 1.46B | 1.43B | 937.24M | 607.04M | 479.99M | 489.84M | 325.08M | 133.22M | 79.03M |
| Revenue Growth % | 29.25% | 31.39% | -69.71% | -4.3% | 58.38% | 34.58% | 2.36% | 52.11% | 54.39% | 26.47% | -2.01% | 50.68% | 144.02% | 68.55% | - |
| Cost of Goods Sold | 972.27M | 1B | 1.78B | 2.27B | 2.27B | 1.33B | 997.91M | 946.32M | 618M | 392.28M | 318.1M | 337.89M | 243.29M | 111.25M | 74.63M |
| COGS % of Revenue | - | 84.67% | 197.31% | 76.35% | 72.84% | 67.96% | 68.38% | 66.38% | 65.94% | 64.62% | 66.27% | 68.98% | 74.84% | 83.51% | 94.42% |
| Gross Profit | 345.91M | 181.59M | -877.2M | 703.82M | 844.65M | 629.32M | 461.36M | 479.34M | 319.24M | 214.77M | 161.89M | 151.96M | 81.78M | 21.97M | 4.41M |
| Gross Margin % | 26.24% | 15.33% | -97.31% | 23.65% | 27.16% | 32.04% | 31.62% | 33.62% | 34.06% | 35.38% | 33.73% | 31.02% | 25.16% | 16.49% | 5.58% |
| Gross Profit Growth % | - | 120.7% | -224.63% | -16.67% | 34.22% | 36.41% | -3.75% | 50.15% | 48.64% | 32.66% | 6.54% | 85.8% | 272.23% | 398.32% | - |
| Operating Expenses | 441.39M | 466.75M | 831.08M | 663.62M | 678.53M | 422.18M | 318.8M | 289.39M | 179.82M | 123.68M | 94.82M | 80.2M | 53.53M | 40.34M | 31.87M |
| OpEx % of Revenue | - | 39.41% | 92.19% | 22.3% | 21.82% | 21.5% | 21.85% | 20.3% | 19.19% | 20.37% | 19.75% | 16.37% | 16.47% | 30.28% | 40.32% |
| Selling, General & Admin | 227.22M | 218.37M | 294.32M | 310.82M | 272.18M | 201.2M | 159.1M | 145.65M | 97.57M | 68.71M | 54.26M | 46.97M | 31.51M | 22.09M | 16.05M |
| SG&A % of Revenue | - | 18.44% | 32.65% | 10.44% | 8.75% | 10.24% | 10.9% | 10.22% | 10.41% | 11.32% | 11.3% | 9.59% | 9.69% | 16.58% | 20.3% |
| Research & Development | 207.12M | 221.25M | 277.24M | 321.48M | 289.81M | 219.63M | 163.12M | 121.35M | 82.25M | 54.97M | 40.56M | 33.23M | 22.02M | 18.26M | 15.82M |
| R&D % of Revenue | - | 18.68% | 30.75% | 10.8% | 9.32% | 11.18% | 11.18% | 8.51% | 8.78% | 9.05% | 8.45% | 6.78% | 6.77% | 13.7% | 20.02% |
| Other Operating Expenses | 1000K | 27.13M | 259.53M | 31.31M | 116.54M | 1.35M | -3.43M | 22.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -95.48M | -285.15M | -1.71B | 40.2M | 166.12M | 207.14M | 142.56M | 189.95M | 139.42M | 91.09M | 67.08M | 71.76M | 28.26M | -18.37M | -27.46M |
| Operating Margin % | -7.24% | -24.07% | -189.5% | 1.35% | 5.34% | 10.55% | 9.77% | 13.32% | 14.88% | 15% | 13.97% | 14.65% | 8.69% | -13.79% | -34.74% |
| Operating Income Growth % | - | 83.31% | -4348.94% | -75.8% | -19.8% | 45.3% | -24.95% | 36.24% | 53.06% | 35.8% | -6.53% | 153.95% | 253.81% | 33.1% | - |
| EBITDA | -77.82M | -254.64M | -1.65B | 97.4M | 215.8M | 246.67M | 174.4M | 216.84M | 152.04M | 98.24M | 72.59M | 75.61M | 30.51M | -16.39M | -25.62M |
| EBITDA Margin % | -5.9% | -21.5% | -182.86% | 3.27% | 6.94% | 12.56% | 11.95% | 15.21% | 16.22% | 16.18% | 15.12% | 15.43% | 9.39% | -12.31% | -32.41% |
| EBITDA Growth % | 84.63% | 84.55% | -1792.41% | -54.86% | -12.52% | 41.45% | -19.57% | 42.62% | 54.76% | 35.33% | -3.98% | 147.81% | 286.12% | 36.01% | - |
| D&A (Non-Cash Add-back) | 17.66M | 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 |
| EBIT | -127.9M | -310.86M | -1.7B | 85.3M | 181.6M | 190.73M | 166.85M | 183.41M | 139.66M | 100.24M | 62.57M | 72.23M | 23.97M | -19.15M | -27M |
| Net Interest Income | -93.15M | -67.81M | 15.67M | 17.77M | -251K | -7.71M | -5.66M | -1.36M | 2.43M | 2.69M | 0 | 1.11M | -1.27M | 2.01M | 1.07M |
| Interest Income | 0 | 13.11M | 34.32M | 33.16M | 10.55M | 2.97M | 4.9M | 4.47M | 5.63M | 4.4M | 4.07M | 1.11M | 0 | 2.01M | 1.07M |
| Interest Expense | 93.15M | 80.92M | 18.65M | 15.39M | 10.8M | 10.68M | 10.56M | 5.83M | 2.54M | 1.71M | 0 | 0 | 895K | 0 | 0 |
| Other Income/Expense | -125.57M | -106.63M | -23K | 40.54M | 11.04M | -19.91M | 21.11M | -11.34M | -2.3M | 9.16M | -5.88M | 471K | -5.18M | -2.79M | -612K |
| Pretax Income | -221.05M | -391.78M | -1.71B | 80.75M | 177.16M | 187.22M | 163.67M | 178.6M | 137.12M | 100.24M | 61.2M | 72.23M | 23.08M | -21.16M | -28.07M |
| Pretax Margin % | -16.77% | -33.08% | -189.51% | 2.71% | 5.7% | 9.53% | 11.22% | 12.53% | 14.63% | 16.51% | 12.75% | 14.75% | 7.1% | -15.88% | -35.52% |
| Income Tax | 7.58M | 13.67M | 96.15M | 46.42M | 83.38M | 18.05M | 23.34M | 33.65M | 9.08M | 16.07M | 10.43M | -4.38M | 1.96M | 220K | 108K |
| Effective Tax Rate % | -3.43% | -3.49% | -5.63% | 57.49% | 47.06% | 9.64% | 14.26% | 18.84% | 6.62% | 16.03% | 17.05% | -6.06% | 8.47% | -1.04% | -0.38% |
| Net Income | -228.63M | -405.45M | -1.81B | 34.33M | 93.78M | 169.17M | 140.32M | 146.55M | 128.83M | 84.17M | 50.76M | 76.61M | 21.12M | -21.38M | -28.18M |
| Net Margin % | -17.34% | -34.23% | -200.38% | 1.15% | 3.02% | 8.61% | 9.62% | 10.28% | 13.75% | 13.87% | 10.58% | 15.64% | 6.5% | -16.05% | -35.66% |
| Net Income Growth % | 61% | 77.55% | -5361.9% | -63.39% | -44.57% | 20.56% | -4.25% | 13.75% | 53.06% | 65.82% | -33.74% | 262.71% | 198.8% | 24.14% | - |
| Net Income (Continuing) | -228.62M | -405.45M | -1.8B | 34.33M | 93.78M | 169.17M | 140.32M | 144.96M | 128.05M | 84.17M | 50.76M | 76.61M | 21.12M | -21.38M | -28.18M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.32M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -3.71 | -6.90 | -31.64 | 0.60 | 1.65 | 3.06 | 2.66 | 2.92 | 2.69 | 1.85 | 1.16 | 1.73 | 0.51 | -0.68 | -0.89 |
| EPS Growth % | 60.68% | 78.19% | -5373.33% | -63.64% | -46.08% | 15.04% | -8.9% | 8.55% | 45.41% | 59.48% | -32.95% | 239.22% | 175% | 23.6% | - |
| EPS (Basic) | - | -6.90 | -31.64 | 0.61 | 1.70 | 3.24 | 2.79 | 3.06 | 2.69 | 1.99 | 1.24 | 1.92 | 0.55 | -0.72 | -0.95 |
| Diluted Shares Outstanding | 61.65M | 59.83M | 57.08M | 57.24M | 58.1M | 55.97M | 52.8M | 50.2M | 47.98M | 45.43M | 43.84M | 44.38M | 41.27M | 31.64M | 31.64M |
| Basic Shares Outstanding | 61.65M | 59.83M | 57.08M | 56.56M | 55.09M | 52.2M | 50.22M | 47.92M | 47.89M | 42.3M | 41.03M | 39.99M | 38.61M | 29.7M | 29.7M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying SEDG stock.
For fiscal year 2025, SolarEdge Technologies, Inc. (SEDG) reported total revenue of $1.18B. This represents a 1398.6% increase compared to $79.0M in 2012.
SolarEdge Technologies, Inc. (SEDG) reported a net loss of $405.4M for the fiscal year ending 2025.
SolarEdge Technologies, Inc. (SEDG) reported an operating income of $-285.2M, resulting in an operating profit margin of -24.1%. This margin reflects the operational efficiency of the business before interest and taxes.
SolarEdge Technologies, Inc. (SEDG) generated $181.6M in gross profit for the year, representing a gross profit margin of 15.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Inventory write-downs and margin recovery
Metrics are mathematically derived from official filings.
Revenue Rebound from Cyclical Trough
SEDG's revenue grew 19.6% year-over-year in 2026Q2 to $346.2M, marking the third consecutive quarter of sequential expansion after a 78% decline in 2024Q1, according to quarterly financial statements.
The revenue trajectory shows a clear inflection from the 2024 trough, with 2025Q4's 96.4% year-over-year growth and 2026Q1's 41.5% growth indicating a strong recovery. However, the absolute revenue level remains well below the pre-downturn peak, suggesting the recovery is still in early stages. The sequential growth from 2025Q4 to 2026Q2 (from $335.4M to $346.2M) is modest, implying that the pace of recovery may be stabilizing rather than accelerating sharply.
Gross Margin Recovery Marred by Inventory Charges
Gross margin improved from -80.7% in 2024Q4 to 27.5% in 2026Q2, but the 2024 quarters were distorted by massive inventory write-downs, as reported in income statements, indicating a return to positive but still sub-par profitability.
The gross margin trajectory is dramatic: from -80.7% in 2024Q4 to 27.5% in 2026Q2, reflecting the clearing of obsolete inventory and a return to more normal cost structures. However, the current 27.5% margin is still below peer averages (ENPH at 46.6%, FSLR at 40.6%), suggesting SEDG lacks the pricing power or cost efficiency of its closest competitors. The 2024Q3 gross loss of $702.3M on $260.9M revenue indicates the severity of the inventory crisis, and while margins have recovered, the sustainability of the 27.5% level warrants monitoring given the competitive solar market.
Operating Leverage Still Negative but Improving
Operating income improved from -$289.1M in 2024Q4 to -$16.0M in 2026Q2, with operating margin rising from -169.3% to -4.6%, based on reported quarterly data, indicating a narrowing loss but no positive operating leverage yet.
The operating leverage is still negative, as SEDG has not achieved operating profitability. However, the trend is encouraging: operating losses have shrunk from over $1.1B in 2024Q3 to just $16.0M in 2026Q2. The improvement is driven by both gross margin recovery and disciplined cost control, with R&D and SG&A expenses declining from their 2024 peaks. The 2026Q2 operating margin of -4.6% is close to breakeven, suggesting that if revenue continues to grow, SEDG could reach operating profitability in the near term, but the company's ability to scale without proportional cost increases remains unproven.
Net Losses Persist Despite Revenue Recovery
Net income improved from -$312.9M in 2024Q4 to -$30.8M in 2026Q2, but the company remains loss-making, with EPS of -$0.50, according to financial statements, and stock-based compensation of $19.7M adds to the drag.
The earnings quality is poor, as SEDG has reported negative net income for ten consecutive quarters. The 2026Q2 net loss of $30.8M is the smallest in the period, but it still represents a -8.9% net margin. Stock-based compensation of $19.7M in 2026Q2 is a significant non-cash expense that inflates the reported loss, but it also indicates that the company is using equity to compensate employees, which could dilute shareholders. The 2024Q3 net loss of $1.2B was driven by the inventory write-downs, and while the current losses are smaller, the company has not demonstrated a clear path to sustained profitability.
Cost Discipline Emerges After Inventory Crisis
R&D and SG&A expenses have been cut from $75.4M and $68.8M in 2024Q1 to $52.8M and $51.8M in 2026Q2, respectively, as reported in income statements, showing a 30% reduction in overhead costs.
The cost structure shows significant discipline, with R&D and SG&A expenses declining by roughly 30% from their 2024 peaks. This reduction is critical to the narrowing operating losses, as the company has managed to cut fixed costs while revenue recovers. However, the R&D expense of $52.8M in 2026Q2 is still substantial relative to revenue of $346.2M, representing 15.3% of sales, which may indicate continued investment in product development. The SG&A reduction suggests management is prioritizing cost control, but the sustainability of these cuts and their impact on future growth remains a question.
2024Q3 Inventory Write-Down Reshaped Cost Base
The 2024Q3 gross loss of $702.3M, driven by a $963.2M COGS on $260.9M revenue, marked the operational inflection point, as reported in financial statements, forcing a strategic reset in inventory and cost management.
The 2024Q3 quarter was the most significant inflection in SEDG's income statement history, with a gross margin of -2.7% and an operating loss of $1.1B. This was primarily due to massive inventory write-downs, as the company had to recognize the obsolescence of its products amid a demand collapse. The lasting impact is visible in the subsequent quarters: the company has maintained lower inventory levels, as evidenced by the recovery to positive gross margins in 2025Q1 and beyond. This inflection forced SEDG to reset its cost structure, which is now reflected in the lower R&D and SG&A expenses, but it also highlighted the company's vulnerability to demand volatility in the solar market.
Margin Recovery May Be Unsustainable
Despite the gross margin recovery to 27.5% in 2026Q2, SEDG's margins remain below peers like ENPH at 46.6%, and the company's reliance on cost cuts raises questions about growth sustainability, according to peer comparisons.
The most compelling counter-argument is that SEDG's margin recovery is not yet proven to be durable. The 27.5% gross margin in 2026Q2 is still significantly below the peer average, and the company's operating margin remains negative. The cost cuts in R&D and SG&A may have been achieved at the expense of future growth, as reduced R&D spending could hamper product innovation. Additionally, the solar industry is highly competitive, and SEDG's pricing power may be limited, as evidenced by its lower gross margins compared to Enphase and First Solar. Investors should monitor whether the company can sustain its revenue growth without further margin deterioration, especially given the historical volatility in demand.