Israel-headquartered inverter producer SolarEdge has reported revenue of US$1.1 billion in 2025, while reducing its net loss from the previous year.
This represents a 31% year-over-year revenue increase from the US$901.5 million registered in 2024, a year marked by severe challenges for SolarEdge and the Western inverter market.
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Even though the company posted a net loss – in accordance with generally accepted accounting principles (GAAP) – of US$405.4 million for 2025, this is a stark improvement from the US$1.81 billion registered in 2024.
At a more granular level, in 2025, SolarEdge’s quarterly revenues increased each quarter compared to the same period last year. Spending on research and development (R&D), on the other hand, has decreased compared to the same period in 2024.
“Our fourth quarter results delivered 70% year-over-year revenue growth, marking our fourth consecutive quarter of year-over-year revenue growth and fifth consecutive quarter of margin expansion,” said Shuki Nir, CEO of SolarEdge and who was appointed as CEO at the end of 2024.
“In 2025 we restored discipline, generated strong free cash flow, and rebuilt margins,” added Nir.
In previous years, as the company’s revenue increased, so did its R&D spending. This has not been the case in 2025, and the trend has continued downward since Q3 2023, as shown in the chart below.
Moreover, the company stopped disclosing the MW volume of shipped inverters and only mentioned that, for Q4, it shipped 98,800 inverters, slightly up from the 92,700 shipped in the previous quarter. SolarEdge did disclose a figure for the volume of inverters shipped in Q3 2025, which was 1.4GW.
Overall for the entire 2025 fiscal year, the company shipped a total of 465,700 inverters and 10.8 million optimisers. In terms of batteries for PV applications, the company shipped 280MWh in Q4 2025, up from 269MWh in the previous month.
The optimiser segment accounted for the largest share of the company’s revenue in the last quarter of 2025 and throughout the year. Revenues from SolarEdge’s optimisers have increased continuously since Q4 2024, as have revenues from its PV batteries.
Despite a quarterly increase in inverter shipments, its revenue dropped by nearly US$20 million in the last quarter of 2025, from US$100 million in Q3 2025 to US$82.2 million.
Looking ahead, the company expects its revenue for Q1 2026 to range from US$290-320 million
Regarding the company’s focus for 2026, Nir said: “We will focus on moving towards profitable growth, gaining share, scaling Nexis, and investing in new high-growth adjacencies such as AI data centre power.”
Mollie McCorkindale, analyst at PV Tech Research, recently wrote an analysis piece on PV Tech on the state of the PV inverter market, to coincide with the launch of the new PV InverterTech Bankability Ratings report. The report analyses, on a quarterly basis, the leading PV inverter manufacturers in the sector.
