Israel-based solar inverter producer SolarEdge reduced its net losses and maintained a broadly steady margin in Q1 2026.
SolarEdge’s net loss was US$57.4 million in the first three months of 2026, down from US$132.1 million in Q4 2025. Gross margin was 22%, down slightly from 22.2% in the previous quarter, according to the company’s Q1 financial results, released yesterday.
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Q1 revenues were US$310.5 million, down 7.4% from US$335.4 million in the prior quarter. SolarEdge specified that its Q1 revenues do not include “significant one-time or pull forward of revenue” as a result of policy shifts in the US, namely “safe harbour, nor from the 25D [residential solar tax credit] rush towards the end of the year”.
These results continue SolarEdge’s recent trend of reducing its net losses, which dropped from over US$1.8 billion in 2024 to around US$405 million in 2025.
“Our first quarter results reflect strong execution, continued innovation and business acceleration, with 46% year-over-year revenue growth and a sixth consecutive quarter of margin expansion,” said Shuki Nir, CEO of SolarEdge.
In terms of products, SolarEdge recorded revenues from 50.5 thousand inverters, 2.4 million optimisers and 331MWh of batteries for solar applications.
Speaking on SolarEdge’s earnings call, Nir said: “Last quarter, I spoke about SolarEdge shifting from defence to offence, with 2026 being a year of transformation and acceleration for the company. Our priorities are clear: driving towards profitable growth, expanding global market share, scaling SolarEdge Nexis, and investing in high-growth adjacencies such as AI data centre power.”
Looking forward, he added that the company expects to “approach break-even operating profit” at the “midpoint” of its guidance for the second quarter. It expects revenues between US$325 million and US$355 million in Q2, and Non-GAAP gross margin within the range of 23% to 27%.
“The next area of transformation is market share gains, starting with the US residential market,” Nir said. He continued to say that SolarEdge was “well-positioned” to benefit in the US residential solar market, despite the policy changes and predicted slowdown after the removal of tax incentives. “The anticipated market evolution towards the 48E tax credit and higher battery attach rates are expected to play directly to our strength,” Nir said.
He added that SolarEdge is able to produce products for the US market that are “designed to be both domestic content and FEOC compliant”, from its US manufacturing bases, which could provide it an additional edge.
In December, PV Tech spoke with SolarEdge GM of SolarEdge North America, about the “turbulence and legislative hurdles” defining the US solar market in 2026.
Transcript from Seeking Alpha
