SolarEdge Technologies (SEDG) Q4 2025 earnings summary

Executive summary

• Achieved 70% year-over-year revenue growth in Q4 and 30% for the full year 2025, with four consecutive quarters of revenue growth and five consecutive quarters of margin expansion.

• Gross margins expanded each quarter, and positive free cash flow was generated after a challenging 2024.

• Gained market share in all U.S. segments and stabilized or grew share in Europe, ahead of the Nexus Pro platform rollout.

• 2025 focused on restoring discipline and rebuilding margins; 2026 strategy shifts to profitable growth and global market share expansion via the Nexus platform and investments in AI data center power solutions.

Financial highlights

• Q4 non-GAAP revenue was $334 million, up 70% year-over-year, slightly down sequentially; full-year 2025 revenues reached $1.18 billion, up 31% year-over-year.

• Q4 non-GAAP gross margin rose to 23.3% from 18.8% in Q3, exceeding guidance; GAAP gross margin was 22.2%.

• Q4 non-GAAP operating loss was $11 million; Q4 GAAP operating loss was $48.3 million.

• Q4 non-GAAP net loss was $8.2 million; net loss per share was $0.14.

• Free cash flow for Q4 was $43 million and $77 million for 2025, reversing a $421 million outflow in 2024.

Outlook and guidance

• Q1 2026 revenue expected between $290 million and $320 million, above normal seasonality at midpoint, with no significant one-time or pull-forward revenue included.

• Q1 non-GAAP gross margin guidance is 20%-24%; operating expenses expected at $88-$93 million, with higher OpEx due to currency effects.

• Positive free cash flow expected in Q1 2026, with continued investment in working capital to support growth.