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Get filing alertsSolarEdge reports Q1 revenue of $310.5M, guides Q2 to near breakeven on $325M–$355M
Filed May 6, 2026 · Period ending May 6, 2026 · ~1 min read
Key Changes
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Q1 revenues fell 7.4% sequentially to $310.5M with non-GAAP operating loss of $24.8M ($11M excluding a $14M one-time charge). Company guided Q2 revenues to $325M–$355M and expects to approach breakeven operating profitability at the midpoint.
Exhibit 99.1 view on EDGAR → -
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Non-GAAP gross margin improved to 23.5% in Q1 (up from 23.3% prior quarter), marking the sixth consecutive quarter of margin expansion. Q2 gross margin guided to 23%–27% range.
Exhibit 99.1 view on EDGAR → -
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Management announced strategic shift to offense, focusing on SolarEdge Nexis platform rollout and AI data-center power roadmap as company nears return to profitability.
Exhibit 99.1 view on EDGAR → -
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Generated $20.7M free cash flow in Q1 (down from $43.3M prior quarter) while maintaining net cash and investments of $246.2M after debt, up $2M sequentially.
Exhibit 99.1 view on EDGAR → -
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Incurred undisclosed one-time expense of approximately $14M in Q1, which inflated reported operating and net losses by that amount.
Exhibit 99.1 view on EDGAR →
Summary
SolarEdge reported Q1 2026 revenues of $310.5 million, down 7.4% sequentially, but guided Q2 revenues to $325–$355 million with expectations to reach near-breakeven operating profitability at the midpoint. This marks a potential inflection after six consecutive quarters of losses. Non-GAAP gross margin improved to 23.5%, the sixth straight quarter of expansion, and is guided to 23–27% for Q2.
The company incurred a $14 million one-time expense (nature undisclosed) that inflated Q1 losses; excluding this item, non-GAAP operating loss was approximately $11 million, flat with the prior quarter. Management announced a strategic shift to offense, focusing on the SolarEdge Nexis platform and an AI data-center power roadmap as the company approaches profitability.
Cash generation remained positive with $20.7 million in free cash flow, though down from $43.3 million in Q4, and net cash after debt stood at $246.2 million. For investors, the key watch is whether Q2 delivers the guided breakeven and whether the new strategic initiatives can drive growth beyond the traditional solar inverter market. The sequential revenue decline and undisclosed one-time charge warrant attention, but the margin trajectory and near-term profitability guidance suggest operational stabilization.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
The Company reported revenues of $310.5 million, down 7.4% from $335.4 million in the prior quarter.
Non-GAAP revenues1 were $309.9 million, down 7.1% from $333.8 million the prior quarter.
First quarter revenue does not include significant one-time or pull forward of revenue from safe harbor nor from the 25D rush towards the end of the year.
During the quarter approximately 50.5 thousand inverters, 2.4 million optimizers and 331 MWh of batteries for PV applications were recognized as revenue.
GAAP gross margin was 22.0%, compared to 22.2% in the prior quarter.
Non-GAAP gross margin1 was 23.5%, compared to 23.3% in the prior quarter.
GAAP operating ... loss was $55.0 million, compared to $48.3 million in the prior quarter.
Non-GAAP operating loss1 was $24.8 million, compared to $11.0 million in the prior quarter. Excluding a one-time expense of approximately $14 million, our operating loss was approximately $11 million, approximately flat with the prior quarter. ... GAAP net loss was $57.4 million, compared to $132.1 million in the prior quarter.
Non-GAAP net loss1 was $26.3 million, compared to $8.2 million in the prior quarter. Excluding a one-time expense of approximately $14 million, our net loss was approximately $11.9 million.
GAAP net loss per share was $0.95, compared to $2.21 in the prior quarter.
Non-GAAP net loss per share1 was $0.43, compared to $0.14 in the prior quarter. Excluding a one-time expense of approximately $14 million, our net loss per share was approximately $0.20.
SolarEdge reported Q1 2026 revenues of $310.5 million, down 7.4% sequentially, with non-GAAP gross margin improving slightly to 23.5%. The company remains unprofitable with a non-GAAP operating loss of $24.8 million ($11 million excluding a one-time $14 million expense), and non-GAAP net loss per share of $0.43 ($0.20 excluding the one-time item). Management noted this was the sixth consecutive quarter of margin expansion and highlighted 46% year-over-year revenue growth.
Added in current filing · view on EDGAR →
Revenues to be within the range of $325 million to $355 million; this range does not include significant one-time or pull forward of revenue. ... Non-GAAP gross margin* expected to be within the range of 23% to 27% ... Non-GAAP operating expenses* to be within the range of $86 million to $91 million.
SolarEdge guided Q2 2026 revenues to $325–$355 million (midpoint $340 million, up ~9% sequentially), non-GAAP gross margin of 23–27%, and non-GAAP operating expenses of $86–$91 million. Management stated that at the midpoint of guidance, the company expects to be close to breakeven operating profitability, marking a potential inflection point after six quarters of losses.
Added in current filing · view on EDGAR →
With a return to profitability in sight, we have shifted decisively to offense and are focused on rolling out the SolarEdge Nexis platform and advancing our AI data-center power roadmap.
Management announced a strategic shift to offense, focusing on two key initiatives: the SolarEdge Nexis platform rollout and an AI data-center power roadmap. This signals the company's intention to expand beyond traditional solar inverter markets into higher-growth segments, though no financial details or timelines were provided.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 1, 2026 · How we verify