SolarEdge Technologies, Inc.

Second-quarter GAAP revenue was $346.2 million, up 11.5% sequentially and 19.6% year over year; non-GAAP revenue was $345.5 million, up 23% year over year. GAAP gross margin was 27.5% versus 11.1% in Q2 last year, and non-GAAP gross margin was 28.6% versus 13.1% last year; management said this included a $13.3 million gross benefit from IEEPA tariff refunds. GAAP operating loss improved to $16 million from $115.5 million last year, while non-GAAP operating income was $10.2 million versus a $48.3 million loss last year; non-GAAP EPS was $0.05 versus a $0.81 loss last year. For Q3, SolarEdge guided to revenue of $310 million to $340 million, non-GAAP gross margin of approximately 22% to 26%, and non-GAAP operating expenses of approximately $86 million to $91 million. Management said the midpoint of guidance implies non-GAAP operating profit, including the $11.5 million of IEEPA refunds already received in July.

Shuki Nir framed 2026 as a transformation year focused on profitable growth, market share gains, Nexis scaling, and AI factory power infrastructure. He said Q2 marked an important turnaround milestone, citing non-GAAP operating profitability for the first time in nearly three years and growth across all four priorities. His tone was confident but cautious on the U.S. residential market, emphasizing that the company believes it is well positioned for a rebound if funding and FEOC clarity improve.

Maoz Sigron highlighted improving financial execution: Q2 revenue of $346.2 million, non-GAAP gross margin of 28.6%, non-GAAP operating income of $10.2 million, and non-GAAP net income of $3.6 million. He noted cash, cash equivalents and marketable securities of $601.6 million at June 30, 2026, free cash flow of $3.1 million in Q2, and first-half capex of $12 million, while reaffirming full-year capex of $60 million to $80 million and positive full-year free cash flow. He said Q3 gross margin is expected to be lower mainly because of business scale and fixed cost absorption, and that the company is maintaining disciplined opex at $86 million to $91 million.

Analysts focused on the Q3 gross margin step-down, U.S. distributor inventory, the durability of Q4 demand, safe-harbor activity versus peers, the FCC inverter action, storage pricing, supply chain pressures, and the SST timeline. Management said channel inventory is normalized, that U.S. residential softness should continue until FEOC clarity and better financing conditions return, and that the company is not guiding Q4. On the FCC issue, management said Nexis is made in the U.S., already compliant with the FCC Covered List, and will not need an exemption or face rollout delays; on SST, they said the near-term focus is a fully working proof-of-concept by year-end, with pilots in 2027 and revenue expected to start in 2028.