Revenue growth of 41.5% in 2026Q1 masks ongoing profitability challenges, as evidenced by a gross margin of 22.0% that remains significantly below historical levels.
| 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 | 1.28B | 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 % | 39.16% | 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 | 1.04B | 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 | 232.22M | 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 % | 18.21% | 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 | 460.39M | 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 | 222.01M | 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 | 209.41M | 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 | -228.17M | -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 % | -17.89% | -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 | -210.19M | -261.11M | -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 % | -16.48% | -22.05% | -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 % | 86.7% | 84.16% | -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) | 17.98M | 24.04M | 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 | -217.31M | -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 | -78.92M | -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 | 3.04M | 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 | 81.96M | 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 | -127.18M | -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 | -355.35M | -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 % | -27.86% | -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 | 8.94M | 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 % | -2.52% | -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 | -364.29M | -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 % | -28.56% | -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 % | 79.15% | 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) | -364.29M | -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) | -6.09 | -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 % | 79.56% | 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 | 59.83M | 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 | 59.83M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Inventory Glut and Margin Erosion
As reported in recent financial statements, SolarEdge's revenue trajectory remains highly erratic, with a 41.5% year-over-year growth rate in 2026Q1 following a period of severe contraction, suggesting that the company is struggling to find a stable baseline amidst ongoing channel inventory adjustments and shifting regional demand.
The recent revenue fluctuations appear to reflect a volatile recovery rather than a return to sustainable growth. Investors should monitor whether this growth is driven by genuine end-market demand or merely the clearing of legacy inventory through aggressive discounting.
According to the company's latest quarterly filings, gross margins have improved to 22.0% from the catastrophic negative levels seen in 2024, yet this recovery remains significantly below historical norms, indicating that pricing power continues to be constrained by intense competition and high manufacturing overhead absorption costs.
The shift from negative gross margins back to positive territory suggests that the most severe inventory write-downs may be in the rearview mirror. However, the inability to return to historical 30%+ levels implies that the company's premium pricing strategy is under sustained pressure from lower-cost alternatives.
Based on reported figures, SolarEdge continues to struggle with negative operating leverage, as evidenced by a 2026Q1 operating margin of -14.7%, which demonstrates that the company's current cost structure is not yet optimized to support its reduced revenue base following the recent period of severe contraction.
The persistence of negative operating income despite revenue growth suggests that fixed costs, including R&D and SG&A, remain disproportionately high relative to current sales volumes. This misalignment warrants further investigation into management's ability to right-size the organization without compromising its long-term technological competitive advantage.
As disclosed in recent income statements, the company has demonstrated a notable reduction in quarterly R&D and SG&A expenditures from their 2024 peaks, reflecting a necessary pivot toward expense discipline as the firm attempts to navigate a challenging environment of persistent operating losses and inventory glut.
While the reduction in operating expenses is a positive signal of management's intent to preserve liquidity, the absolute level of spending remains high relative to the current gross profit generation. Investors should monitor whether these cost-cutting measures are sustainable or if they risk eroding the company's future innovation pipeline.
Based on an analysis of the income statement, the primary risk remains the potential for permanent margin compression, as the company's 22.0% gross margin in 2026Q1 significantly trails industry peers like Enphase, suggesting that SolarEdge may be losing its ability to command a premium for its hardware.
Short-term improvements in margins may be masking a more fundamental shift in the competitive landscape where commoditization is accelerating. If the company cannot differentiate its offering through software or ecosystem integration, it may remain trapped in a low-margin cycle that limits future profitability.
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.