SEDG

SolarEdge’s second quarter results were marked by notable year-over-year revenue growth and a return to non-GAAP operating profitability, but the market responded negatively, reflecting lingering concerns about the company’s near-term trajectory. Management attributed the quarter’s performance to progress in operational efficiency, product rollouts, and increasing demand for storage solutions—particularly in Europe, where anticipation of electricity price hikes and policy changes fueled both solar and retrofit activity. CEO Yehoshua Nir described the quarter as “an important milestone in our turnaround,” highlighting that non-GAAP gross margin expanded for the sixth consecutive quarter, driven by disciplined cost control and a favorable product mix. Is now the time to buy SEDG? Find out in our full research report (it’s free). Revenue: $346.2 million vs analyst estimates of $342.2 million (19.6% year-on-year growth, 1.2% beat) Adjusted EPS: $0.05 vs analyst estimates of $0 (significant beat) Revenue Guidance for Q3 CY2026 is $325 million at the midpoint, below analyst estimates of $371.8 million Operating Margin: -4.6%, up from -39.9% in the same quarter last year Market Capitalization: $2.05 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Christine Cho (Barclays) asked about the drivers behind lower sequential gross margins and inventory trends. CFO Maoz Sigron attributed the margin decline mainly to fixed cost absorption on lower volumes and said channel inventory levels appear normalized, with distributors remaining cautious due to ongoing regulatory uncertainty. Brian Lee (Goldman Sachs) inquired about the components of Q3 guidance, especially storage volumes and potential for further sequential declines. CEO Yehoshua Nir said European seasonality and U.S. residential softness will weigh on results, and highlighted growing storage attach rates as a positive long-term trend. Philip Shen (ROTH Capital Partners) questioned whether the FCC inverter restrictions and exemptions could delay Nexis rollout or provide a tailwind for C&I sales. CEO Nir clarified that Nexis is U.S.-made and not subject to exemption requirements, and sees compliance as an advantage in the commercial segment. Colin Rusch (Oppenheimer) asked about storage pricing trends and supply chain pressures. CEO Nir explained that pricing has remained stable, with mix shifts driving minor fluctuations, and noted that component cost increases (especially memory) have had limited impact due to proactive supply chain management. Corinne Blanchard (Deutsche Bank) probed for details on the SST data center project timeline and revenue contribution. Management indicated a fully working prototype is targeted by year-end, pilots in 2027, and initial revenues in 2028, with more detail expected at the upcoming Investor Day. Looking ahead, StockStory analysts will be watching (1) the pace and breadth of Nexis platform adoption in both Europe and the U.S.; (2) signs of stabilization or recovery in the U.S. residential solar market, particularly as regulatory and funding dynamics evolve; and (3) progress on the AI data center power infrastructure initiative, including achieving technical milestones and securing pilot customers. The ability to maintain margin discipline as volumes fluctuate will also be key. SolarEdge currently trades at $33.24, down from $48.76 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:00 a.m. ET Chief Executive Officer - Shuki Nir Chief Financial Officer - Maoz Sigron Co-Founder - Meir Adest Sapphire Investor Relations - Erica Mannion Operator: Hello, and welcome to the SolarEdge Conference Call for the Second Quarter ended June 30, 2026. This call is being webcast live on the company's website at www.solaredge.com in the Investors section on the Event Calendar page. This call is the sole property and copyright of SolarEdge with all rights reserved and any recording, reproduction or transmission of this call without the expressed written consent of SolarEdge is prohibited. You may listen to a webcast replay of this call by visiting the Event Calendar page of the SolarEdge investor website. I would now like to turn the call over to Erica Mannion at Sapphire Investor Relations. Please go ahead. Erica Mannion: Good morning, and thank you for joining us to discuss SolarEdge's operating results for the second quarter June 30, 2026, as well as the company's outlook for the third quarter of 2026. With me today are Shuki Nir, Chief Executive Officer; Maoz Sigron, Chief Financial Officer; and Meir Adest, Co-Founder of SolarEdge. Shuki will begin with a brief review of the results for the second quarter ended June 30, 2026. Maoz will review the financial results for the second quarter, followed by the company's outlook for the third quarter of 2026. We will then open the call for questions. Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statements contained in our earnings press release and our filings with the SEC for a more complete description of such risks and uncertainties. We disclaim any obligation to update any forward-looking statements. Please note, during this earnings call, we may refer to certain non-GAAP measures, which are not measures prepared in accordance with U.S. GAAP. The non-GAAP measures are being presented because we believe that they provide investors with a means of evaluating and understanding how the company's management evaluates the company's operating performance. Reconciliation of these measures can be found in our earnings press release and SEC filings. These non-GAAP measures should not be considered in isolation from, as substitutes for or superior to financial measures prepared in accordance with U.S. GAAP. Listeners who do not have a copy of the quarter ended June 30, 2026 press release may obtain a copy by visiting the Investor Relations section of the company's website. With that, I will turn the call over to Shuki. Yehoshua Nir: Thank you, Erica. Good morning, everyone, and thank you for joining our call today. On our last call, I discussed how 2026 would be a year of transformation and acceleration for the company, built around 4 main priorities: driving profitable growth, expanding global market share, scaling the SolarEdge Nexis platform and advancing our opportunity in power infrastructure for the AI factories of the future. This quarter, we saw tangible progress across each of these priorities, and I'm pleased to say that we reached an important milestone in our turnaround. Starting with our execution towards profitable growth. Since the beginning of 2025, we have grown our quarterly revenue year-over-year and have just delivered a strong second quarter. Revenue grew 20% year-over-year to $346 million, once again, with no significant pull-forward of revenue and non-GAAP gross margin expanded for the sixth consecutive quarter. Combined with our continued expense discipline, we delivered non-GAAP operating profitability for the first time in nearly 3 years, an important milestone in our transformation and a reflection of the relentless focus our team has maintained on operational efficiency and customer centricity. Looking to the third quarter, we expect revenue to be in the range of $310 million to $340 million. Most of the sequential decline is expected in Europe at approximately $15 million at the midpoint, mainly due to seasonality. At the same time, given the continued softness in the market, we do not expect the typical third quarter pickup in the U.S. Shifting to our second priority: market share gains. Our objective in 2026 has been to grow market share through product innovation, operational focus and improved customer satisfaction. The U.S. resi market demand remained soft in the second quarter as customers navigated a slower tax equity funding environment and continued uncertainty around FEOC. This environment has resulted in less funds available to start new projects and to pay for the completion of existing ones. It has put a strain on installers' businesses and cash flows and led to lower purchases from distributors who have also reduced the amount of inventory they carry. We expect this softness to continue in the third quarter as the market awaits further clarity and better funding environment. With that said, when the market rebounds, we believe we are well positioned to gain share. This is due to our fit with the TPO business model and the amount of safe harbor transactions closed ahead of the July 4 deadline. We will share more information about the safe harbor transactions in both resi and C&I during our Investor Day on September 10. In U.S. C&I, we have seen strong momentum. Better execution across EPCs, small C&I customers and enterprise accounts has helped increase our market share to more than 50% of U.S. C&I rooftop installations in the most recent report. In addition, SolarEdge systems are now installed on rooftops of more than 60% of Fortune 100 companies. The outlook for this market remains positive, supported by rising electricity prices and data center-driven demand. We have been the only major C&I inverter vendor to deliver U.S.-manufactured products at scale designed to meet domestic content, non-FEOC and FCC Covered List requirements. Together with the safe harbor agreements we have secured, we believe that we can gain further share in the coming years. In Europe, we more than doubled our revenue year-over-year as demand for solar grew in anticipation of higher electricity prices and demand for storage increased in anticipation of the phaseout of net metering across several major markets. We believe the excitement around Nexis, along with the orders we have received in recent months are positive indicators of our ability to gain share in the DACH region in the coming quarters. We expect a similar momentum across Europe with the planned rollout of the single-phase Nexis in Q1 2027. In addition, in recent quarters, we have launched retrofit campaigns in the Netherlands and the DACH region, where our combined installed base is greater than 1 million homes. In Q2, we generated more than $20 million in upsell activities, and we expect this opportunity to continue growing. Turning to our third priority: scaling the Nexis platform. At Intersolar in Germany this June, the highlight for us was the fantastic feedback we received from installers about Nexis. As discussed in previous calls, the platform was designed from the ground up to be a leading PV and storage solution in an environment where the grid is congested and utilities introduce dynamic tariffs. Recently, an independent renewable energy engineering consultant benchmarked Nexis against a leading competitor in Europe from the homeowners perspective. The analysis shows that Nexis is expected to deliver EUR 5,000 in additional savings over 15 years, driven by superior round trip efficiency across all power levels and higher PV production. In the second quarter, we began to meaningfully roll out the 3-phase version of Nexis in Europe with shipments exceeding $60 million. In the U.S., initial feedback from installers and TPOs has been very positive, and we expect Nexis installations to grow as we begin to roll out in volume. Nexis has been approved on a growing list of U.S. financing platforms, spanning TPO, prepaid PPA and loan products, giving installers and homeowners more ways to access SolarEdge Nexis regardless of how they choose to finance. Turning to our fourth priority in the AI factory market, where we believe there is a substantial long-term opportunity. In the second quarter, our data center business shifted from development to demonstrations as we continue to advance our solution and to engage with prospects and the ecosystem. Prospective customers, which importantly included their technical and engineering teams, had the opportunity to see live demonstrations of our SST in our labs. These demonstrations validated several critical elements of the system, including 99% efficiency across a range of power levels, direct conversion from medium-voltage AC to a regulated DC bus and encouraging installation results. In a number of RFIs we have responded to, efficiency is a key area of focus. Efficiency directly translates into greater compute capacity within a fixed-power envelope. And this additional compute leads to higher revenue, lower cost per token and improved return on investment for the data center. Our technical progress and customer evaluations and feedback have increased our confidence in both the size of this opportunity and the strength of our position. We believe SolarEdge is developing a highly differentiated solution that addresses the growing need for greater power efficiency and increased compute capacity within data centers. We remain focused on our next planned milestones: getting to a working system in our lab by the end of this year, followed by pilot installations in 2027 and volume shipments in 2028. To summarize, the second quarter marked a meaningful point in our turnaround. We returned to non-GAAP operating profitability and made progress in all 4 priorities. While we are pleased with this progress, our team continues to focus on maintaining the operating and financial discipline, driving profitable growth, gaining share in our core markets, scaling up the Nexis platform and advancing our SST to capture the AI factory opportunity. Lastly, I would like to welcome our new CFO, Maoz. His experience across finance, operations, capital markets and organizational transformation is highly relevant as we continue our journey from turnaround to profitable growth. I'm confident that his leadership, together with the strength of our finance organization, will serve us well as we enter this next phase. With that, I will hand it over to Maoz. Maoz Sigron: Thank you, Shuki, and good morning, everyone. I'm very pleased to join SolarEdge and to speak with you today on my first earnings call as CFO of the company. I'm excited about the opportunities ahead in residential and C&I as well as the vast emerging opportunity in AI factories. I have spent time with teams across the organization and have been impressed by the extent of the company's technology, the quality of its people and the operational discipline that has been established. My immediate priorities are continuity and execution, including: first, supporting profitable growth of our core business by ensuring our investments in Nexis and in our offering in the AI factory market are aligned with clear milestones and returns; second, focusing on operational excellence by driving cost discipline and cost structure while strengthening execution rigor across manufacturing and the supply chain; third, managing cash by prioritizing free cash flow generation, maintaining a strong balance sheet and liquidity position. Starting with our quarterly results. GAAP revenue for the second quarter was $346.2 million, up 11.5% quarter-over-quarter and 19.6% year-over-year. Non-GAAP revenue was $345.5 million, up 11.5% quarter-over-quarter and 23% year-over-year, above the midpoint of our guidance range. This result does not include any significant pull forward of revenue from safe harbor. GAAP revenue from the U.S. amounted to $154.9 million, down 2% quarter-over-quarter and representing 44.7% of our revenue. Revenue from Europe was $154.4 million, up 36% quarter-over-quarter, representing 44.6% of our revenue. International market revenue was $36.9 million, down 5% quarter-over-quarter, representing 10.7% of our revenue. GAAP gross margin was 27.5% this quarter compared to 22% in the first quarter and 11.1% in the second quarter of last year. Non-GAAP gross margin was 28.6% this quarter compared to 23.5% in the first quarter and 13.1% in the second quarter of last year, above the high end of our guidance range. These results include a gross benefit of $13.3 million related to IEEPA tariff refunds. The improvement was driven by continued cost discipline, favorable product mix, the IEEPA refunds and the improved operational leverage as fixed costs were absorbed over higher volume. GAAP operating expenses for the second quarter were $111.2 million compared to $123.3 million in the first quarter and $147.6 million in the second quarter of last year. Non-GAAP operating expenses for the second quarter were $88.5 million, the exact midpoint of our guidance range, compared to $97.7 million in the first quarter and $85.2 million in the second quarter of last year. Despite the continued headwinds we faced from a strengthening new Israeli shekel against the U.S. dollar, we are maintaining our ongoing cost control and leveraging efficiency measures to ensure profitable growth. GAAP operating losses for the second quarter were $16 million compared to GAAP operating losses of $55 million in the first quarter and $115.5 million in the second quarter of last year. Non-GAAP operating income for the second quarter was $10.2 million compared to non-GAAP operating losses of $24.8 million in the first quarter and $48.3 million in the second quarter of last year. Our GAAP net loss was $30.8 million in the second quarter compared to GAAP net losses of $57.4 million in the first quarter and GAAP net losses of $124.7 million in the second quarter of last year. Our non-GAAP net income was $3.6 million in the second quarter compared to a non-GAAP net loss of $26.3 million in the first quarter and non-GAAP net loss of $47.7 million in the second quarter of last year, positive for the first time since the second quarter of 2023. GAAP net loss per share was $0.50 in the second quarter compared to a loss of $0.95 in the first quarter and a loss of $2.13 in the second quarter of last year. Non-GAAP net profit per diluted share was $0.05 in the second quarter compared to a loss of $0.43 in the first quarter and a loss of $0.81 in the second quarter of last year. Turning now to our balance sheet. As of June 30, 2026, cash, cash equivalents and marketable securities were $601.6 million, up from $581.1 million as of December 31, 2025. During the second quarter, we generated $3.1 million of free cash flow compared to $20.7 million in the first quarter and a negative free cash flow of $9.1 million in the second quarter of last year. Our capital expenditure in the first half was $12 million. For the full year 2026, we continue to expect capital expenditure within the range of $60 million to $80 million with our principal investment areas remaining: first, increased production capacity in the U.S. for both PV and batteries; second, investment in our new headquarters in Israel, largely related to advanced R&D facilities; third, investment related to our AI factory offering; and lastly, ongoing maintenance CapEx. We continue to expect positive free cash flow for the full year, reflecting our improving operating performance, continued discipline in managing expenses and capital investments and our ongoing ability to monetize 45X credit. Turning to our working capital items. Our rigorous focus on cash management continued to yield positive results. In the second quarter, the net AR decreased once again, driven by strong collection. Combined with lower DSO and higher DPO, our conversion cycle continues to improve. Turning now to our guidance for the third quarter of 2026. We expect revenue to be within the range of $310 million to $340 million. This range does not include any significant pull-forward of revenue. We expect a non-GAAP gross margin of approximately 22% to 26%. This range does not include any impact from potential IEEPA refunds. We expect non-GAAP operating expenses of approximately $86 million to $91 million, in line with our second quarter run rate of $88.5 million, and reflecting continued discipline in our core operations and planned investment in Nexis and AI factory SST. Including the $11.5 million of IEEPA refunds we have already received in July, the midpoint of our guidance imply a non-GAAP operating profit in the third quarter. We believe the combination of our operational discipline, market share gains and the introduction of new innovative products, including Nexis, will continue to drive profitable growth in the years ahead. I will now turn the call over to the operator to open it up for questions. Operator? Operator: [Operator Instructions] We take our first question from Christine Cho with Barclays. Christine Cho: I wanted to start off with -- so I understand you kind of gave some reasons for the top line sequential decline. Can we talk about what's driving the lower sequential gross margins? Is that mostly driven by U.S., Europe? Just any color on that as well. Maoz Sigron: So thank you for the question. Yes, the gross margin for Q3, we're expecting 24%. The main reason for that is the scale of the business that is different in Q3 and very much in line with our fixed cost that we have in the cost of goods. And this is actually the main reason. If you take this out, you actually can see a small improvement quarter-over-quarter. Christine Cho: Okay. And then in the prepared remarks, you mentioned that with the current backdrop in the U.S., distributors are coming down on inventory. Do you have a sense of how many weeks they have on hand currently and how that compares to how much they typically like to carry? And I know you mentioned that you don't expect to see 3Q pickup in the U.S., but should we think that there's enough inventory in the channel that they can continue to come down in 4Q and so it's possible that there's a sequential decline in 4Q as well? And how much of this is also being driven by people wanting to destock ahead of purchasing Nexis? Yehoshua Nir: Yes. So thank you, Christine. For the channel inventory, as we said, due to the softness in the market, everybody is becoming a little bit more cautious and a little bit more careful. Our channel inventory, to the best of our knowledge, is normalized. It's moving between products and between distributors, both in Europe and the U.S., but overall, it's normalized. And we don't have a reason to believe that something is going to be materially different going into the quarter. We did mention that because in conversations with distributors and channel partners, they are stating that they are trying to be careful about how much inventory they bring because nobody -- because it's not yet clear to everybody when the clarity around the FEOC definition is going to happen. Operator: We will move next with Brian Lee with Goldman Sachs. Brian Lee: Maybe just to kind of piggyback off of Christine's questions. How much -- well, for the 3Q guide, can you kind of walk us through the pieces? It sounds like you're calling out some European seasonality, some softness in the resi market for the U.S. And curious kind of what your view is embedded for storage volumes in the 3Q? And then how much of this sort of persists into 4Q? Kind of, can you maybe -- I know you don't want to give guidance, but kind of the setup for European seasonality and the channel as well as U.S. resi and storage into year-end? Yehoshua Nir: Yes. Thank you, Brian. So what we have is there are 2 or 3 factors that are in play here and some of them are going in one direction and the others on the other one. If you think about seasonality, then usually, the fourth quarter -- and we are not guiding for fourth quarter right now. Usually, fourth quarter is seasonally lower than Q3. However, going into the third quarter, what we said was that we expect Europe to go down -- in the midpoint to go down by $15 million, mainly due to seasonality. And it's a combination of PV and storage. And in the U.S., the softness in the resi, we expect it to continue. And again, it's both resi -- it's both PV and storage. One thing that people may want to pay attention to is the growth of storage in the revenue, both in Q2, and we expect that to, over time, without any particular quarter -- any particular quarter can be up or down a little bit. But overall, the industry is moving into higher attach rates of storage. We've seen it in the U.S. We've seen it in Germany. We've seen it in other places. And the retrofit activities in anticipation of the phaseout of feed-in tariff is also a main driver for storage when -- in a retrofit installation, it's mostly storage. So all in all, we are expecting storage to become a bigger piece of our business. So that's the second piece. The third piece is you asked about what will happen in future quarters. As we said, it ties into clarity around the FEOC definition and the ability of the financing companies to secure investments that then will actually allow additional money to flow into the market, into installers. And when that happens, we will see that the market rebounds. And when the market rebounds, we feel that we are very well positioned to benefit from that. Our engagements with the TPOs and safe harbors that we signed and the Nexis with all of its advantages, we believe, position us well to benefit from that. Brian Lee: Helpful. I appreciate that. And then maybe just a second question. I know you've been clear for the past several quarters, including on this call, that there's no significant pull-forward revenue, no safe harbor. I'm just curious on that dynamic because I know your peer has seen a significant amount of safe harbor over the course of the entirety of 2026. So can you kind of walk us through what's the difference between your go-to-market or your safe harbor strategy or maybe customers as to why that's happening? And then also maybe kind of, in relation to that, any thoughts on the recent FCC foreign inverter ban? How does SolarEdge kind of fit into that? And do you need waivers? And what's sort of the potential implications that you think that you have to contemplate? Yehoshua Nir: Thank you, Brian. It was a little bit more than one question. So if I forget something, please remind me. When you refer to our peer and what they've done, you should definitely ask them. But in our conversations with our customers, with our partners, both on the C&I side and the resi side, the strong preference is obviously to go with the physical walk test. The physical walk test allows them to align their purchases with their demand basically. So when they need the equipment, they are pulling it or they are buying it from us. That will align our revenue with their purchases, with their installations, and it's a healthier flow of the channel, if you will. And because of that and due to the fact that many of them have seen Nexis, believe in the value that it brings to the table and they understand very well that even in 3 or 4 years from now, it will still be a leading product in the market, because of all of these reasons, they felt comfortable going with the physical walk test safe harbor deals with us. We've signed, as I mentioned, both on C&I side and the resi side, a significant amount of safe harbor transactions, and we will elaborate on that and share more information during Investor Day. As it pertains to the FCC ruling, so as you know, SolarEdge is a Delaware company, we're listed in NASDAQ, the majority of our manufacturing is done in the U.S., in Utah, in Florida and in Texas. To the best of our understanding, the FCC Covered List is something that we comply with, and we plan to continue being in compliance with. So from that perspective, it's a step in the right direction maybe from -- for the safety of the energy market in the U.S., but SolarEdge being an American company is definitely part of that, and we see no reason that we won't be in compliance with it. Operator: Our next question comes from Philip Shen with ROTH Capital Partners. Philip Shen: I have a follow-up on Brian's question about the FCC inverter action. And so they talked about exemptions, I think. Well, actually, we wrote about potential for exemptions coming. I don't know if they talked about it. But the point here is that we see potential for the FCC, near term, to issue exemptions and approve exemptions, but it still might take a few weeks. And so I was wondering, like, let's say, this takes 3 weeks, like have you guys already applied for Nexis, for example, to be exempted? And if not, do you think that this could -- like, this process could delay the rollout of Nexis in the U.S.? And then ultimately, this is, I think, a tailwind more for your C&I business as there's not much Chinese inverter penetration in the resi business. I just want to confirm that you see if there is a tailwind for you guys that's more of a C&I tailwind as opposed to resi. And if you could quantify where you think that tailwind would be, that would be great as well. Yehoshua Nir: So let me -- thank you, Phil. And let me take the first thing out of the way. I don't know where it's coming from. I'd like to be very, very clear. Nexis is made in the U.S. by a U.S. company. There is no need or reason to ask for exemption. It's [ apart ] of the FCC list. Period. And I don't know where that comes from, but it's not true. So it's not going to delay the Nexis rollout in any way, shape or form. And as we said, we are actually starting to roll out Nexis in the U.S. as well in the third quarter. It's already been approved by many financing companies, and we expect Nexis to gain traction this quarter and in future quarters. As for the C&I opportunity due to the FCC Covered List, so it's not yet clear. As you said, it's not yet clear when it is going to impact companies that are not going to be approved for their new product. It's not yet clear whether their existing products can actually continue to be imported into the U.S. or not and when, if at all, it will stop. We have actually -- in the last report, we've actually gained share in the C&I market to the point of 50% of the rooftop C&I installations in that quarter. And the reason for that was the superiority of our technology as well as the FEOC and domestic content compliance. And as you know, and you know it very well, Phil, there have been 3 leaders in the C&I market: SMA, Chint and SolarEdge. The other 2, to the best of our knowledge, are not complying with both. And because of that, we've seen a good traction towards the SolarEdge and that traction, if at all, should continue with the FCC ruling actually. Operator: Our next question comes from Colin Rusch with Oppenheimer. Colin Rusch: Can you talk a little bit about the trend lines on storage pricing? It looks like you're seeing a little bit of improvement on that. And I just want to get a sense of whether that's mix related or if you're actually monetizing a little bit more effectively in the market. Yehoshua Nir: Yes. Thank you, Colin. So storage pricing, as always, is a combination of 3 different products that we are selling at the moment on the storage side. One is the C&I storage in Europe, which has a higher power density. The other ones are the single-phase and the 3-phase residential storage, but each one of them is slightly different, and it depends on the market. Overall, our storage prices have remained stable per product. What you're seeing, the differences that you're seeing quarter-to-quarter are mainly due to product mix, I would say. But as I mentioned earlier, we definitely are seeing a growing demand for storage products in general in the market and for our own storage products specifically. The C&I storage in Europe continues to improve. And with Nexis that was designed from the ground up to be a PV plus storage solution, we believe that we're going to continue benefiting from that trend. Colin Rusch: Great. And then on the supply chain side, I want to get a sense of any sort of shifts that you're seeing in terms of component availability, pricing, inflationary pressures that we should be thinking about as we get into the back half of 2026. Yehoshua Nir: Yes. So component suppliers, they've always said that shortages are coming. As you know, the data center demand is actually creating some strain on some of the components, memory in particular. Our supply chain team has worked diligently in order to secure supply. In some cases, like memory, we have to actually absorb some of the price increases, but these are -- in the grand scheme of things, these are not something that is significant. We are working together with our partners to secure supply and to make sure that we are able to support our customers to the best of our ability. Operator: [Operator Instructions] We will move next with Corinne Blanchard with Deutsche Bank. Corinne Blanchard: Maybe shifting gears a little bit here, can you talk about the SST? And I know you have talked previously about the time line and trying to get more like a proof of concept by the end of this year and then pilot program [indiscernible] in 2027. But can you just maybe tell us what we should be expecting in the next 6 months for that one? Unknown Executive: Okay. So thank you for the question. I think the first thing to start with is the fact that we spent the last couple of weeks demonstrating a working prototype of the SST to prospective customers. And really, it was interesting to see the difference between slide shows and presentations and having them see an actual working model at going from medium voltage to 800-volt DC regulated. So I think that alleviates, from their perspective, a lot of the concerns they had about the maturity of the product. Where we're going from here is we're going to spend the next few months until the end of the year to get the proof-of-concept prototype fully working at the full 3-phase 34.5 kilovolt voltage. And then 2026 will be pilots in -- at the data centers -- sorry, 2027 will be pilots at the data centers so that we could have a meaningful revenue in 2028. Corinne Blanchard: Do you -- just to rebound on that quantifying revenues, when do you expect to be in a position to share maybe like a ballpark of expectation and how much it can contribute to the portfolio? Yehoshua Nir: Yes. So as we've said, we -- it's a transition that the industry is going through, right? And with NVIDIA actually sharing with the entire ecosystem, their road map for GPUs that will require 800 volt, that will be step 1. The second step is whether people are going to use sidecar or other inefficient solutions or when they will transition into SSTs. And we expect revenue to start in 2028. During our Investor Day on September 10, we are actually going to share more information about how we think about the opportunity and evolution of revenue in that part of the business. Operator: We will move next with Maheep Mandloi with Mizuho. Maheep Mandloi: Maybe just on Q4, so obviously not looking for guidance there, but just in terms of seasonality, anything which would be different or similar to what we've seen historically for you guys? Yehoshua Nir: Yes. So as you know, we don't guide beyond the current quarter. And when we talk about Q4, I think that, as I mentioned earlier, on one hand, we are seeing the improvement on the storage side. More and more in the Netherlands, for example, people are in anticipation of the elimination of net metering, more and more people would like to upgrade their existing systems into storage. So one can expect that maybe there will be some upside coming from there. Usually, it's a seasonal -- from seasonality, there is a decline between -- in the market between Q3 and Q4. And in our case, actually, we are going to see the ramp-up of Nexis. So between these 3 moving parts, we are not providing guidance at this stage, and we'll share with you, obviously, everything as we come closer to Q4. Maheep Mandloi: I appreciate that. And just maybe a follow-up on Europe. We're hearing about potential inverter bans on the Chinese players over there. So what have you heard on that? What are customers talking about that thing over there? Yehoshua Nir: Yes. So there is one directive that was already issued in Europe that for projects that are funded by the European Bank, they cannot use unauthorized inverters. And that has been the case so far, the only thing that has been actually out and being official. This, as we said in the past, is mainly applicable for utility and maybe some C&I business opportunity for us. For other segments of the market, namely the C&I and the residential market, there is some sentiment that maybe there will be a ban, but we don't want to speculate about if and when. Operator: And at this time, there are no further questions in queue. I will now turn the meeting back to Shuki Nir for closing comments. Yehoshua Nir: Thank you. Thank you, everyone, for joining us for today's call. We -- I'd like to thank the SolarEdge team for working really, really hard and after almost 3 years, moving back to profitability, and thank you all. Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. Before you buy stock in SolarEdge Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SolarEdge Technologies wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. SolarEdge (SEDG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

SolarEdge (SEDG) stock tanked on Aug. 5 even though the solar energy equipment company posted better-than-expected financials for its Q2. The company recorded $346.2 million in revenue, up 19.6% on a year-over-year basis, and $0.05 in earnings per share (EPS) versus a loss of $0.81 per share in the same quarter last year. SolarEdge shares have been rather painful for investors in recent weeks, now trading roughly 55% below their price in early June. Nat-Gas Prices Edge Higher on Warmer US Weather Forecasts Crude Prices Pressured by Growing Optimism the Strait of Hormuz to Soon Reopen Progress Toward Reopening the Strait of Hormuz Weighs on Oil Prices Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Investors bailed on SEDG stock mostly because management’s forward guidance failed to impress. At the top end of its range, the company now sees its revenue printing at $340 million in the current quarter, significantly lower than nearly $370 million that analysts had forecasted. Crucially, the firm’s guidance suggests a sequential decline, reflecting ongoing softness in the U.S. residential solar sector. SolarEdge tanked also because it remained at a loss of $0.50 per share on a GAAP basis, further spooking investors already concerned about tightening gross margins. Note that SEDG has a history of closing both September and October in the red, a seasonal pattern that further dulls its appeal for the near term. SolarEdge’s turnaround is nonetheless demonstrating signs of life; European revenue more than doubled on a year-over-year basis in Q2. U.S. commercial and industrial demand also remains fairly resilient, and the recent launch of the firm’s Nexis platform offers long-term potential. That said, with residential solar adoption stalling under higher-for-longer interest rate environments and regulatory headwinds, revenue visibility in the near term remains cloudy. Until SEDG showcases sustainable revenue expansion and transitions to true GAAP profitability, the post-earnings pullback looks more like a warning sign than an immediate buying opportunity. And SolarEdge shares do not currently pay a dividend to incentivize ownership despite these risks either. Heading into the quarterly print, Wall Street had a consensus “Hold” rating on SolarEdge and a mean price target of about $42. However, it’s reasonable to expect “downward revisions” in the weeks ahead, as analysts move to bake in management’s updated guidance into their estimates. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

The smart energy technology company delivered its strongest profitability improvement in several quarters, driven by higher revenue, expanding margins, and continued progress in its turnaround strategy. SolarEdge Technologies (NASDAQ:SEDG) increased second-quarter revenue 20% year over year to $346.2 million, exceeding the prior year’s performance. The company returned to non-GAAP operating profitability for the first time since the second quarter of 2023, reporting non-GAAP operating income of $10.2 million. Gross margin expanded for a sixth consecutive quarter year over year, reaching 27.5% on a GAAP basis. Strong demand in Europe and the U.S. commercial and industrial (C&I) market offset continued weakness in the U.S. residential solar segment. Positive free cash flow and a higher net cash position reinforced the company’s improving financial profile, although third-quarter revenue guidance points to a sequential slowdown. SolarEdge Technologies (NASDAQ:SEDG) reported second-quarter 2026 revenue of $346.2 million, an increase of 19.6% from a year earlier and 11.5% from the previous quarter. The company continued to improve profitability. GAAP gross margin expanded to 27.5% from 11.1% in the prior-year quarter, while non-GAAP gross margin increased to 28.6%. Gross margin benefited from a $13.3 million impact related to IEEPA tariff matters. GAAP operating loss narrowed substantially to $16.0 million from $115.5 million a year ago. On a non-GAAP basis, SolarEdge generated operating income of $10.2 million, marking its first return to non-GAAP operating profitability since the second quarter of 2023. Non-GAAP net income also returned to positive territory at $3.6 million, compared with a loss of $47.7 million in the prior-year period. The company generated positive free cash flow of $3.1 million and increased its cash and investments, net of debt, to $264.6 million as of June 30, 2026. Management attributed the quarter’s performance to strong demand in Europe and continued strength in the U.S. commercial and industrial solar market, which more than offset softer conditions in the U.S. residential segment. The company also highlighted continued investment in its Nexis platform and SolarEdge SST technology targeting AI factory applications. For the third quarter, SolarEdge expects revenue between $310 million and $340 million, with non-GAAP gross margin of 22% to 26%. Management noted that the guidance excludes potential IEEPA refunds beyond the $11.5 million received in July. The latest results suggest SolarEdge’s turnaround strategy is gaining traction after an extended period of operational challenges. The combination of stronger revenue, improving margins, and a return to non-GAAP operating profitability indicates that cost reductions and improved business conditions are beginning to translate into better financial performance. Positive free cash flow and a stronger net cash position also provide additional financial flexibility. However, investors may note that third-quarter revenue guidance implies a potential sequential decline from the second quarter, reflecting a business that remains exposed to varying regional demand trends. Continued softness in the U.S. residential solar market could remain a headwind even as Europe and commercial installations provide support. Management’s emphasis on the Nexis platform and SolarEdge SST also highlights emerging growth opportunities beyond its traditional residential solar business, although those initiatives remain in the earlier stages of commercialization. Investors will likely monitor: Execution against third-quarter revenue and margin guidance. Continued demand trends in Europe and the U.S. commercial and industrial solar markets. Whether profitability and positive free cash flow can be sustained in future quarters. Progress scaling the Nexis platform and SolarEdge SST technologies, including opportunities tied to AI infrastructure. SolarEdge Technologies stock price

Interested in SolarEdge Technologies, Inc.? Here are five stocks we like better. SolarEdge returned to profitability: Second-quarter revenue rose 19.6% year over year to $346.2 million, while non-GAAP operating income reached $10.2 million and non-GAAP net income turned positive for the first time since Q2 2023. Gross margins also improved substantially, helped by cost controls, product mix and $13.3 million in IEEPA-related refunds. Europe offset U.S. residential weakness: European revenue increased 36% sequentially, while U.S. revenue fell 2% as installers faced tax-equity funding constraints and FEOC uncertainty. Management expects U.S. residential softness and no typical seasonal recovery in Q3, but sees potential for market-share gains when demand improves. Nexis and data-center initiatives are advancing: European Nexis shipments exceeded $60 million in Q2, with broader U.S. rollout planned, while storage demand and retrofit upsells are growing. SolarEdge is also developing solid-state transformers for data centers, targeting pilot installations in 2027 and volume shipments in 2028. Solar Flare: A Perfect Storm for Solar Stocks SolarEdge Technologies (NASDAQ:SEDG) reported second-quarter results that marked a return to non-GAAP operating profitability, as higher revenue, improving margins and cost controls offset continued softness in the U.S. residential solar market. Revenue for the quarter ended June 30 was $346.2 million on a GAAP basis, up 11.5% sequentially and 19.6% from a year earlier. Non-GAAP revenue was $345.5 million, exceeding the midpoint of the company’s guidance range, according to Chief Financial Officer Maoz Sigron. Management said the quarter did not include significant revenue pulled forward from safe-harbor transactions. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control SolarEdge: A Surprising Bright Spot in a Troubled Solar Industry? “We returned to non-GAAP operating profitability and made progress in all four priorities,” Chief Executive Officer Shuki Nir said, referring to the company’s focus on profitable growth, market-share expansion, scaling its Nexis platform and developing power infrastructure for data centers. GAAP gross margin rose to 27.5% from 22% in the first quarter and 11.1% a year earlier. Non-GAAP gross margin reached 28.6%, compared with 23.5% in the prior quarter and 13.1% in the second quarter of 2025. → 3 Drone Stocks That Should Soar After the Summer Slump MarketBeat Week in Review – 12/16 - 12/20 The margin result included a gross benefit of $13.3 million related to refunds under the International Emergency Economic Powers Act, or IEEPA. Sigron said margin improvement also reflected cost discipline, favorable product mix and better absorption of fixed costs as volume increased. GAAP operating expenses declined to $111.2 million from $123.3 million in the first quarter and $147.6 million a year earlier. Non-GAAP operating expenses were $88.5 million, down from $97.7 million sequentially. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure The company reported a GAAP operating loss of $16 million, narrowing from a $55 million loss in the first quarter. Non-GAAP operating income was $10.2 million, compared with a non-GAAP operating loss of $24.8 million in the prior quarter and a $48.3 million loss a year earlier. GAAP net loss was $30.8 million, or $0.50 per share. Non-GAAP net income was $3.6 million, or $0.05 per diluted share. SolarEdge said non-GAAP net income was positive for the first time since the second quarter of 2023. Cash, cash equivalents and marketable securities totaled $601.6 million at June 30, up from $581.1 million at the end of 2025. Free cash flow was $3.1 million during the quarter. U.S. revenue totaled $154.9 million, down 2% sequentially and representing 44.7% of revenue. European revenue was $154.4 million, up 36% from the first quarter and accounting for 44.6% of sales. Revenue from other international markets was $36.9 million, down 5% sequentially. Nir said U.S. residential demand remained soft as customers navigated a slower tax-equity funding environment and uncertainty around foreign entity of concern, or FEOC, rules. He said funding constraints have pressured installers’ cash flows and reduced distributor purchases and inventory levels. Management expects U.S. residential softness to continue in the third quarter and said it does not anticipate the typical seasonal pickup in the U.S. market. However, Nir said the company believes it is positioned to gain share when the market recovers, citing its fit with third-party ownership financing models, safe-harbor agreements and the rollout of Nexis products. In U.S. commercial and industrial solar, SolarEdge said its market share exceeded 50% of rooftop installations in the most recent report. Nir also said SolarEdge systems are installed on the rooftops of more than 60% of Fortune 100 companies. The company expects continued support for the C&I market from higher electricity prices and data center-driven electricity demand. Management said SolarEdge has been the only major C&I inverter vendor delivering U.S.-manufactured products at scale designed to meet domestic-content, non-FEOC and FCC Covered List requirements. Nir said the company does not expect FCC requirements to delay the U.S. Nexis rollout and stated that Nexis is made in the United States by SolarEdge. SolarEdge said it more than doubled European revenue year over year, aided by demand for solar ahead of anticipated higher electricity prices and rising storage demand as net-metering programs are phased out in several markets. The company began meaningful European shipments of its three-phase Nexis platform during the second quarter, with shipments exceeding $60 million. Nir said installer feedback at the Intersolar trade event in Germany was favorable and that the company expects momentum in the DACH region to continue. SolarEdge plans to roll out single-phase Nexis in Europe in the first quarter of 2027. In the U.S., Nexis has been approved on financing platforms spanning third-party ownership, prepaid power-purchase agreements and loan products, according to the company. SolarEdge expects installations to grow as it begins rolling out the platform in volume. SolarEdge also cited an installed base of more than 1 million homes in the Netherlands and DACH region, where it has launched retrofit campaigns. The company generated more than $20 million in upsell activity during the second quarter. On storage pricing, Nir said prices have remained stable by product, with quarter-to-quarter differences primarily driven by mix. He said storage is expected to become a larger portion of the company’s revenue over time as attachment rates rise and homeowners add batteries to existing solar systems. For the third quarter, SolarEdge projected revenue of $310 million to $340 million. Management said the expected sequential decline is primarily tied to Europe, where revenue is expected to decline by about $15 million at the midpoint due largely to seasonality. The company expects non-GAAP gross margin of approximately 22% to 26%, excluding potential IEEPA refunds, and non-GAAP operating expenses of $86 million to $91 million. Sigron said the lower gross-margin outlook primarily reflects lower business scale and associated fixed costs in cost of goods sold. Including $11.5 million in IEEPA refunds received in July, the midpoint of the outlook implies non-GAAP operating profit, he said. SolarEdge maintained its expectation for positive free cash flow for the full year and projected 2026 capital expenditures of $60 million to $80 million, including investments in U.S. PV and battery capacity, Israeli research and development facilities, its AI factory offering and maintenance spending. Separately, the company said it is advancing its solid-state transformer, or SST, offering for data centers. Management said live lab demonstrations validated 99% efficiency across power levels and direct conversion from medium-voltage alternating current to a regulated direct-current bus. SolarEdge plans to have a working full three-phase 34.5-kilovolt system in its lab by year-end, followed by pilot installations in 2027 and volume shipments in 2028. SolarEdge Technologies (NASDAQ: SEDG) is a global provider of solar energy solutions focused on optimizing photovoltaic (PV) power generation. The company's core offerings include power optimizers, inverters and cloud-based monitoring platforms designed to maximize energy output and improve safety across residential, commercial and utility-scale installations. By coupling module-level electronics with centralized inverters, SolarEdge's technology enables real-time performance monitoring and rapid fault detection to enhance system reliability. In recent years, SolarEdge has expanded its product portfolio beyond solar PV to include energy storage systems, electric vehicle (EV) charging solutions and smart energy management tools. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SolarEdge Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

SolarEdge Technologies (NASDAQ: SEDG) stock, the Israeli maker of power inverters for solar panels, short-circuited despite delivering a strong earnings beat last night. Heading into the report, analysts expected SolarEdge to report a loss of $0.02 per share, but the company delivered a pleasant surprise instead: a $0.05 per share profit. Sales likewise didn't disappoint, with SolarEdge edging past a $342 million forecast to report sales of $346.2 million. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Despite all this good news, SolarEdge stock sold off today and is down 24.6% through 12:45 p.m. ET. Why? SolarEdge grew its sales 20% year over year in Q2 -- that's the good news. The bad news is that SolarEdge's apparent "profit" was an illusion. While non-GAAP, pro forma earnings were positive for the quarter, earnings calculated under generally accepted accounting principles (GAAP) were still deeply negative -- $0.50 per share. That was still better than the $0.95 SolarEdge lost in Q1 2026, and much better than the $2.13 it lost in Q2 2025. But a loss is still a loss -- and the fact remains that SolarEdge lost money in Q2. SolarEdge is trying to turn things around, and CEO Shuki Nir says it's making progress as solar demand remains strong in Europe, and is improving in the commercial and industrial sectors of the U.S. Just don't expect the turnaround to happen immediately. Demand remains weak in the U.S. residential sector, and SolarEdge forecasts Q3 2026 sales to fall sequentially, to $310 million to $340 million. That whole range is below Q2 sales -- and way below Wall Street forecasts for more than $370 million in Q3 sales. Earnings "beat" or no, with negative GAAP profit and sales still weak, SolarEdge remains a "sell" for me, for now. Before you buy stock in SolarEdge Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SolarEdge Technologies wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $396,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,300,820!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 5, 2026. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why SolarEdge Stock Crashed After Earnings was originally published by The Motley Fool

SolarEdge Technologies, Inc. SEDG reported a second-quarter 2026 adjusted earnings of 6 cents per share, which beat the Zacks Consensus Estimate of 4 cents by 50%. The result marked a sharp improvement from the year-ago loss of 81 cents per share.Barring one-time adjustments, the company incurred a GAAP loss of 50 cents per share compared with a GAAP loss of $2.13 in the year-ago period. Revenues increased 19.6% year over year to $346.2 million and surpassed the consensus estimate of $343 million by 1.3%. Strong European demand and U.S. commercial and industrial activity offset softness in the U.S. residential market. Battery volume reached 426 megawatt-hours. SolarEdge Technologies, Inc. price-consensus-eps-surprise-chart | SolarEdge Technologies, Inc. Quote Adjusted gross profit rose to $98.7 million from $36.9 million in the prior-year quarter. The adjusted gross margin expanded to 28.6% from 13.1%, representing the sixth consecutive quarter of year-over-year gross margin improvement.The reported margin included a $13.3 million benefit related to tariff matters under the International Emergency Economic Powers Act. Even with that contribution, the widening margin and stronger revenue base helped SolarEdge return to adjusted operating profitability for the first time since the second quarter of 2023.Adjusted operating expenses were $88.5 million compared with $85.2 million a year earlier. However, the improvement in gross profit more than offset the modest increase in expenses, resulting in adjusted operating income of $10.2 million.SEDG had recorded an adjusted operating loss of $48.3 million in the prior-year period. SEDG recognized revenues from approximately 62,600 inverters during the quarter, up from 50,500 in the first quarter. Optimizer volume increased sequentially to nearly 2.49 million units from roughly 2.44 million.Battery volume climbed to 426 megawatt-hours from 331 megawatt-hours in the preceding quarter. The sharp sequential increase supports the strong battery revenue performance and highlights the product category’s growing importance within SEDG’s sales mix. Cash and cash equivalents reached $527.3 million as of June 30, 2026, up from $455.1 million at the end of 2025.As of the same date, total long-term liabilities were $971.1 million compared with $951.2 million as of Dec. 31, 2025.The net cash provided by operating activities in the first six months of 2026 amounted to $35.84 million compared with $26.02 million in the year-ago period. For the third quarter of 2026, the company expects revenues to be between $310 million and $340 million. The midpoint of $325 million implies a sequential decline from the second-quarter level. The Zacks Consensus Estimate is pegged at $377.18 million, higher than the company’s guided range.Adjusted gross margin is projected between 22% and 26%, while adjusted operating expenses are expected in the range of $86 million to $91 million. The guidance excludes potential third-quarter tariff refunds and assumes no significant revenue pull-forward. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. First Solar, Inc. FSLR reported second-quarter 2026 earnings of $3.92 per share, which beat the Zacks Consensus Estimate of $2.74 by 43.1%. The bottom line increased 23.3% from $3.18 in the year-ago quarter. FSLR’s net sales of $1.06 billion missed the consensus estimate of $1.061 billion by 0.4% and declined 3.7% year over year.Enphase Energy, Inc. ENPH reported second-quarter 2026 adjusted earnings of 46 cents per share, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 33.3% from 69 cents in the prior-year quarter.ENPH’s second-quarter revenues of $291.9 million missed the Zacks Consensus Estimate of $295 million by 1%. The top line also decreased 19.6% from the prior-year quarter’s reported figure of $363.2 million. Canadian Solar Inc. CSIQ is slated to report second-quarter 2026 results on Aug. 27, before market open. The Zacks Consensus Estimate for CSIQ’s second-quarter loss is pegged at $1.01 per share, indicating a year-over-year decline of 90.6%.The Zacks Consensus Estimate for CSIQ’s second-quarter sales is pegged at $1.17 billion, implying a year-over-year decline of 31.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report First Solar, Inc. (FSLR) : Free Stock Analysis Report Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SolarEdge Technologies (SEDG) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to a loss of $0.81 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +50.00%. A quarter ago, it was expected that this photovoltaic products maker would post a loss of $0.23 per share when it actually produced a loss of $0.43, delivering a surprise of -86.96%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. SolarEdge, which belongs to the Zacks Solar industry, posted revenues of $346.25 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.34%. This compares to year-ago revenues of $289.43 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. SolarEdge shares have added about 69% since the beginning of the year versus the S&P 500's gain of 13%. While SolarEdge has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for SolarEdge was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.20 on $377.18 million in revenues for the coming quarter and $0.05 on $1.4 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Solar is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Canadian Solar (CSIQ), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 27. This solar wafers manufacturer is expected to post quarterly loss of $1.01 per share in its upcoming report, which represents a year-over-year change of -90.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Canadian Solar's revenues are expected to be $1.17 billion, down 31.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved non-GAAP operating profitability for the first time in nearly three years, driven by a 20% year-over-year revenue increase and six consecutive quarters of gross margin expansion. Attributed U.S. residential market softness to a slower tax equity funding environment and uncertainty regarding FEOC definitions, which has constrained installer cash flows and distributor inventory levels. Expanded U.S. C&I market share to over 50% of rooftop installations, benefiting from being the only major inverter vendor delivering U.S.-manufactured products that meet domestic content and FCC requirements. Doubled European revenue year-over-year as demand surged ahead of anticipated electricity price hikes and the phase-out of net metering in major markets. Launched the Nexis platform in Europe with over $60 million in initial shipments, leveraging independent benchmarks that show significant long-term savings over competitors due to superior round-trip efficiency. Advanced the AI factory strategy by transitioning from development to live demonstrations of the Solid State Transformer (SST) system, validating 99% efficiency for data center power infrastructure. Q3 revenue guidance of $310 million to $340 million assumes a $15 million sequential decline in Europe due to seasonality and continued softness in the U.S. residential market. Anticipates a volume rollout of the Nexis platform in the U.S. during the second half of 2026, supported by approvals across major financing platforms including TPO and prepaid PPA products. Expects to reach a fully working SST system in the lab by year-end 2026, followed by pilot installations in 2027 and volume shipments to the data center market in 2028. Projects positive free cash flow for the full year 2026, supported by the monetization of 45X credits and continued discipline in managing capital investments. Plans to share detailed safe harbor transaction data and the long-term AI factory revenue roadmap during the upcoming Investor Day on September 10. Q2 non-GAAP gross margins included a $13.3 million benefit from IEEPA tariff refunds, which are excluded from the Q3 margin guidance range. Management clarified that the Nexis platform is manufactured in the U.S. and complies with the FCC Covered List, dismissing concerns regarding potential regulatory delays or the need for exemptions. Capital expenditure for 2026 is targeted at $60 million to $80 million, focused on U.S. production capacity for PV and batteries and advanced R&D facilities in Israel. Identified a $20 million upsell opportunity in Q2 from retrofit campaigns in the Netherlands and DACH region, targeting an installed base of over 1 million homes. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The expected decline to 24% at the midpoint is primarily due to lower business scale in Q3, which impacts the absorption of fixed costs in the cost of goods sold. Excluding the impact of scale and one-time items, management noted that underlying operational margins show a small sequential improvement. Channel inventory is currently considered normalized, though distributors are being cautious with new purchases until there is more clarity on FEOC definitions. Management does not believe there is a material destocking trend specifically tied to the transition to the Nexis product line. SolarEdge customers have shown a strong preference for the 'physical work test' over 'safe harbor' pull-forwards, allowing them to align equipment purchases with actual project demand. This strategy results in a healthier channel flow and aligns revenue more closely with actual installation activity rather than artificial inventory spikes. Management views the FCC ruling as a potential tailwind for their C&I business, as competitors may struggle to meet new security and domestic content requirements. Confirmed that as a U.S.-based company with domestic manufacturing, SolarEdge is inherently compliant and does not require waivers for its new product launches.

This article first appeared on GuruFocus. Revenue: GAAP revenue of $346.2 million, up 11.5% quarter-over-quarter and 19.6% year-over-year. Non-GAAP Revenue: $345.5 million, up 11.5% quarter-over-quarter and 23% year-over-year. Revenue by Region: US revenue of $154.9 million (44.7% of revenue); Europe revenue of $154.4 million (44.6% of revenue); International revenue of $36.9 million (10.7% of revenue). GAAP Gross Margin: 27.5%, compared to 22% in Q1 and 11.1% in the year-ago quarter. Non-GAAP Gross Margin: 28.6%, compared to 23.5% in Q1 and 13.1% in the year-ago quarter. GAAP Operating Expenses: $111.2 million, down from $123.3 million in Q1 and $147.6 million in the year-ago quarter. Non-GAAP Operating Expenses: $88.5 million, compared to $97.7 million in Q1 and $85.2 million in the year-ago quarter. GAAP Operating Loss: $16 million, compared to a loss of $55 million in Q1 and a loss of $115.5 million in the year-ago quarter. Non-GAAP Operating Income: $10.2 million, compared to a loss of $24.8 million in Q1 and a loss of $48.3 million in the year-ago quarter. GAAP Net Loss: $30.8 million, compared to a loss of $57.4 million in Q1 and a loss of $124.7 million in the year-ago quarter. Non-GAAP Net Income: $3.6 million, compared to a loss of $26.3 million in Q1 and a loss of $47.7 million in the year-ago quarter. GAAP Net Loss Per Share: $0.50, compared to a loss of $0.95 in Q1 and a loss of $2.13 in the year-ago quarter. Non-GAAP Net Profit Per Diluted Share: $0.05, compared to a loss of $0.43 in Q1 and a loss of $0.81 in the year-ago quarter. Cash and Marketable Securities: $601.6 million as of June 30, 2026, up from $581.1 million as of December 31, 2025. Free Cash Flow: $3.1 million generated in Q2, compared to $20.7 million in Q1 and negative $9.1 million in the year-ago quarter. Capital Expenditure: $12 million in the first half of 2026; full-year guidance remains $60 million-$80 million. Nexis Shipments: Exceeded $60 million in Q2 for the three-phase version in Europe. Upsell Activities: Generated more than $20 million in Q2 from retrofit campaigns. Q3 2026 Guidance: Revenue expected between $310 million and $340 million; non-GAAP gross margin of approximately 22% to 26%; non-GAAP operating expenses of approximately $86 million to $91 million. Warning! GuruFocus has detected 4 Warning Signs with SEDG. Is SEDG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SolarEdge Technologies Inc (NASDAQ:SEDG) achieved non-GAAP operating profitability for the first time in nearly three years, with non-GAAP operating income of $10.2 million in Q2 2026. Revenue grew 20% year-over-year to $346 million, with non-GAAP gross margin expanding for the sixth consecutive quarter to 28.6%. The company gained significant market share in the US C&I rooftop segment, now holding more than 50% of installations, and has systems on rooftops of over 60% of Fortune 100 companies. The Nexis platform is gaining traction, with shipments exceeding $60 million in Q2 and positive feedback from installers, including an independent benchmark showing EUR5,000 in additional savings over 15 years. The company is making progress in the AI factory market, with live demonstrations of its SST validating 99% efficiency and direct medium voltage AC to regulated DC conversion, and expects to have a working system by end of 2026. SolarEdge generated positive free cash flow of $3.1 million in Q2, and expects positive free cash flow for the full year, supported by strong cash management and monetization of 45X credits. The US residential market remains soft due to slower tax equity funding and uncertainty around FEOC, leading to lower purchases from distributors and strained installer cash flows. The company expects a sequential revenue decline in Q3 2026, with guidance of $310-$340 million, primarily due to European seasonality and continued US softness. Non-GAAP gross margin is expected to decline to 22%-26% in Q3, down from 28.6% in Q2, due to lower scale and fixed cost absorption. The company faces headwinds from a strengthening Israeli shekel against the US dollar, which impacts operating expenses. There is uncertainty regarding the timing of market recovery, as clarity on FEOC definitions and funding environment is needed for the US resi market to rebound. The company is experiencing some component supply chain pressures, particularly in memory, due to data center demand, leading to price increases that need to be absorbed. Q: Can you walk us through the pieces of the 3Q guide, including European seasonality, US resi softness, and storage volumes? How much of this persists into 4Q? A: Shuki Nir, CEO: The sequential decline is driven by two main factors. We expect Europe to decline by approximately $15 million at the midpoint, mainly due to seasonality, affecting both PV and storage. In the US, we expect the softness in the residential market to continue, also impacting both PV and storage. We are not guiding for Q4, but we see storage becoming a larger piece of our business over time due to higher attach rates and retrofit activities. The market rebound is tied to clarity around FEOC and the financing environment, and we believe we are well-positioned to benefit when that happens. Q: You mentioned no significant pull-forward revenue from safe harbor, but your peer has seen significant amounts. What is the difference in your strategy, and how does the recent FCC foreign inverter ban impact SolarEdge? A: Shuki Nir, CEO: Our customers strongly prefer the physical work test, which aligns their purchases with demand and creates a healthier channel flow. They are comfortable with this approach because they believe in the long-term value of Nexis. We have signed significant safe harbor transactions on both the C&I and resi sides and will share more details at our Investor Day. Regarding the FCC ruling, SolarEdge is a US company with manufacturing in Utah, Florida, and Texas. We are in compliance with the FCC Covered List and see no reason we won't remain so. This is a step in the right direction for the safety of the US energy market. Q: Regarding the FCC inverter action, have you applied for exemptions for Nexis, and could this delay its US rollout? Is this more of a tailwind for your C&I business? A: Shuki Nir, CEO: To be very clear, Nexis is made in the US by a US company, so there is no need or reason to ask for an exemption. It is part of the FCC list, and this will not delay the Nexis rollout in any way. We are starting to roll out Nexis in the US in Q3. For the C&I opportunity, the impact on non-compliant companies is not yet clear. We have already gained share in the C&I market to over 50% of rooftop installations due to our technology and FEOC/domestic content compliance. The other major C&I players are not complying with both, so we expect this traction to continue with the FCC ruling. Q: Can you talk about the trend lines on storage pricing? Is the improvement mix-related or are you monetizing more effectively? A: Shuki Nir, CEO: Storage pricing is a combination of three products: C&I storage in Europe, single-phase residential, and three-phase residential storage. Overall, our storage prices have remained stable per product. The differences you see quarter-to-quarter are mainly due to product mix. We are seeing growing demand for storage products in general, and with Nexis, which was designed from the ground up as a PV plus storage solution, we believe we will continue to benefit from this trend. Q: What shifts are you seeing in component availability, pricing, and inflationary pressures for the back half of 2026? A: Shuki Nir, CEO: Component suppliers have always said shortages are coming, and data center demand is creating strain on some components, particularly memory. Our supply chain team has worked diligently to secure supply. In some cases, like memory, we have to absorb some price increases, but these are not significant in the grand scheme of things. We are working with partners to secure supply and support our customers. Q: Can you talk about the SST and what we should expect in the next six months? A: Maoz Sigron, CFO: We spent the last couple of weeks demonstrating a working prototype of the SST to prospective customers. Seeing an actual working model that goes from medium voltage to 800-volt DC regulated alleviated many concerns about product maturity. Over the next few months, we will work to get the proof-of-concept prototype fully working at the full three-phase 34.5-kilovolt voltage. Then 2027 will be pilots at data centers, with meaningful revenue expected in 2028. Q: When do you expect to be in a position to share a ballpark of revenue expectations for the SST? A: Shuki Nir, CEO: The industry is transitioning, and with NVIDIA sharing its roadmap for GPUs that will require 800 volts, that is step one. The second step is whether people will use sidecar or other inefficient solutions or transition to SSTs. We expect revenue to start in 2028. During our Investor Day on September 10, we will share more information about how we think about the opportunity and revenue evolution in that part of the business. Q: Regarding Q4, is there anything different or similar to historical seasonality? A: Shuki Nir, CEO: We don't guide beyond the current quarter. For Q4, we are seeing improvement on the storage side, particularly in the Netherlands where people are anticipating the elimination of net metering and upgrading existing systems. Usually, there is a seasonal decline between Q3 and Q4, but we will also see the ramp-up of Nexis. With these three moving parts, we are not providing guidance at this stage and will share more as we get closer to Q4. Q: What have you heard about potential inverter bans on Chinese players in Europe? A: Shuki Nir, CEO: There is one directive already issued in Europe that projects funded by the European Bank cannot use unauthorized inverters. This is mainly applicable to utility and some C&I business opportunities for us. For other segments like C&I and residential, there is some sentiment that a ban might happen, but we don't want to speculate about if and when. Q: What is driving the lower sequential gross margins in Q3, and is it mostly US or Europe? A: Maoz Sigron, CFO: The expected gross margin for Q3 is 24%. The main reason is the scale of the business, which is different in Q3 and aligned with our fixed costs in the cost of goods. If you take this out, you can actually see a small improvement quarter-over-quarter. For the complete transcript of the earnings call, please refer to the full earnings call transcript.