Why Is SolarEdge (SEDG) Up 30.6% Since Last Earnings Report?

It has been about a month since the last earnings report for SolarEdge Technologies (SEDG). Shares have added about 30.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is SolarEdge due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

SolarEdge Technologies Q4 Earnings Top Estimates, Revenues Rise Y/Y

SolarEdge reported a fourth-quarter 2025 adjusted loss of 14 cents per share, narrower than the Zacks Consensus Estimate of a loss of 63 cents. The bottom line also improved from the prior-year quarter’s loss of $3.52 per share.

Barring one-time adjustments, the company incurred a GAAP loss of $2.21 per share compared with a GAAP loss of $5.00 in the year-ago period.

For 2024, the company incurred an adjusted loss of $2.38 per share, which was narrower than the Zacks Consensus Estimate of a loss of $2.65. The full-year bottom line also improved from the prior-year loss of $22.99 per share.

SEDG’s Revenues

The company’s revenues of $335.4 million surpassed the Zacks Consensus Estimate of $325 million by 3.2%. The top line also increased 70.9% from the year-ago quarter’s $196.2 million.

For 2024, the company generated revenues worth $1.18 billion, significantly higher than the prior-year figure of $0.90 billion. The full-year revenues are in line with the Zacks Consensus Estimate.

SEDG’s Operational Highlights

SolarEdge Technologies shipped approximately 98.8 thousand inverters, 2.87 million optimizers and 280 MWh of batteries for PV applications in the fourth quarter.

The company reported an adjusted gross profit of $74.5 million against an adjusted gross loss of $112.3 million in the prior-year period.

Adjusted operating expenses declined 18.9% year over year to $122.8 million.

SEDG incurred an adjusted operating loss of $48.3 million compared with an operating loss of $263.7 million in the prior-year quarter.

SEDG’s Financial Performance

As of Dec. 31, 2025, SolarEdge Technologies had cash and cash equivalents worth $455.1 million compared with $274.6 million as of Dec. 31, 2024.

As of the same date, total long-term liabilities were $951.2 million compared with $930.8 million as of Dec. 31, 2024.

The net cash provided by operating activities during 2025 amounted to $104.3 million against the cash used of $313.3 million in the year-ago period.

SEDG’s Q1 2026 Guidance

SEDG expects revenues to be in the range of $290-$320 million for the first quarter of 2026. The Zacks Consensus Estimate is pegged at $291.7 million, lower than the midpoint of the company’s guided range.

Adjusted operating expenses are projected to be in the range of $88-$93 million, while the adjusted gross margin is expected to be between 20% and 24%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 6.54% due to these changes.

VGM Scores

At this time, SolarEdge has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, SolarEdge has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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SolarEdge Technologies, Inc. (SEDG): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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