Loss narrows sharply. SolarEdge Technologies reported an adjusted loss of $0.14 per share for Q4 2025, narrower than the expected loss of $0.24 per share by 40.5%. The stock surged 10.2% on the result, trading at $38.11 with volume of 4.6 million shares. The company posted a GAAP net loss of $132.1 million, or $2.21 per share, compared to an adjusted net loss of just $8.2 million. The sequential improvement marks the fourth consecutive quarter of narrowing losses, with Q4’s $0.14 adjusted loss improving from Q3’s $0.31 loss.
Revenue holds steady. Q4 revenue came in at $335.4 million, essentially flat versus Q3’s $340.2 million but up 52.8% from Q2’s $289.4 million. Gross profit reached $74.5 million with a gross margin of 22.2%, while operating loss narrowed to $24.0 million from Q3’s deeper losses. EBITDA loss of $166.6 million reflects continued restructuring charges as the solar inverter maker navigates industry headwinds. The company generated $52.6 million in operating cash flow and $43.3 million in free cash flow during the quarter, with capital expenditures of $9.3 million. The balance sheet shows $455.1 million in cash against $415.9 million in total debt, with working capital of $936.4 million.
Guidance signals caution. Management issued Q1 2026 revenue guidance of $290 million to $320 million, representing a potential sequential decline at the midpoint of $305 million versus Q4’s $335.4 million. The midpoint would mark a 9% sequential drop, suggesting the solar market recovery remains uneven despite the company’s improving cost structure and narrowing losses.
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