New York, Feb 18, 2026, 10:17 EST — Regular session
SolarEdge Technologies dropped 4.3% to $35.54 Wednesday morning, giving up an early surge that had lifted shares to $43.40. Investors reacted to the solar-inverter company’s latest quarterly report and guidance.
SolarEdge’s situation has turned into a bellwether for the solar hardware space, with investors watching for any sign that demand might finally be finding its footing—particularly on the U.S. residential side, where financing costs remain a critical factor for homeowners.
The update arrives with investors wanting more than just revenue—they’re zeroing in on margins and cash flow for proof of a real turnaround. The stock’s sudden swing made it clear: positioning is still on a knife-edge.
SolarEdge posted fourth-quarter revenue of $335.4 million, a 1.4% dip from the previous quarter. Non-GAAP gross margin moved up, hitting 23.3% versus 18.8% prior. (Those figures exclude things like stock-based pay and certain one-time charges.) Free cash flow landed at $43.3 million—cash after capex. Looking ahead, the company projected first-quarter revenue between $290 million and $320 million, with a non-GAAP gross margin in the 20% to 24% range. CEO Shuki Nir described the strategy this way: SolarEdge is “shifting decisively to offense” for 2026.
The GAAP net loss was steep: SolarEdge reported a $132.1 million hit. That figure, the company noted, factors in a one-off, non-cash finance charge of $70.5 million, reflecting both currency fluctuations and the near-final winding down of its Korean unit.
The split was clear: better operating metrics, but plenty of GAAP noise. Early on, buyers pushed the stock higher, but sellers took over later, dragging shares below Tuesday’s close and marking the session’s low.
Nir told analysts that 2026 will be about driving “profitable growth,” with a Nexis platform launch set for March 19 in Germany. CFO Asaf Alperovitz highlighted improved gross margins tied to stronger sales of U.S.-made products, and said the company pocketed $12 million from selling off the last of its E-Mobility segment after year-end. He also pointed out a “volatile tariff environment” and the drag from a stronger Israeli shekel. (MarketScreener)
Now, investors are eyeing that crucial 20% gross margin mark and want to see operating expenses stay close to guidance. Working capital is also in focus, particularly inventory, as fresh product ramps get underway.
The risks here aren’t hard to spot. Softer demand, skittish installers easing back on orders, or sharper hits from tariffs and currency moves—any of those could push SolarEdge outside its revenue target and drag margins lower.
SolarEdge is up against established rivals like Enphase in the module-level solar electronics space. Broader sentiment around solar stocks, though, often moves in step with shifts in rate expectations and specific policy news.
