Israel-based solar inverter manufacturer SolarEdge reported revenue of $335.36 million in the fourth quarter (Q4) of 2025, an increase of 71% year-over-year  (YoY) from $196.21 million.

Loss after tax stood at $132.12 million, improving 54% YoY from $287.44 million.

Earnings per share (EPS) came in at a negative $2.21, compared to negative $5 in the same quarter of the previous year.

The company attributed the performance to operational improvement and enhanced customer experience. Better financial and operational discipline, strong free cash flow, and rebuilt margins also contributed to improved performance.

In Q3, SolarEdge had reported revenue of $340.2 million in Q3 2025.

Full Year 2025

SolarEdge earned revenue of $1.18 billion during 2025, increasing 31.4% YoY from $901.45 million.

Loss after tax stood at $405.44 million, improving 77.6% YoY from $1.8 billion.

EPS came in at a negative $6.88, compared to $31.64 in 2024.

Yehoshua Nir, CEO and Director at SolarEdge, said, “In the third quarter of 2025, we achieved the number one share position across the entire U.S. commercial and industrial (C&I) market, even when including ground mount.”

Operational Highlights

In Q4, SolarEdge recognized sales revenue from 98,800 inverters, 2.87 million optimizers, and 280 MWh of batteries for solar applications.

For the full year 2025, it recognized sales revenue from 465,700 inverters, 10.8 million optimizers, and 928 MWh of batteries for solar applications.

The company said its new solar-plus-storage inverter platform, Nexis, will be launched in Germany on March 19, 2026. It has begun rolling out its single-sock keeping unit (SKU) framework.

SolarEdge stated that it is transitioning its battery chemistry from nickel-manganese-cobalt to lithium-iron-phosphate to optimize costs and performance.

The company expects battery attach rates to continue growing worldwide. On SolarEdge’s battery offerings, Nir stated, “Our DC-coupled architecture delivers as much as 6% higher efficiency, which can result in up to 24 more days of energy per year than AC-coupled alternatives.”

It is continuing to make progress on its solid-state transformer (SST) platform. The SST platform aims to convert 34.5 kV of electricity directly into 800 V DC with over 99% efficiency.

The company’s U.S. revenues accounted for 59% of its total, totaling $198 million. Its growth in this market was supported by domestic content and by products compliant with the Foreign Entity of Concern requirements.

SolarEdge’s European revenue stood at $99 million, accounting for 30% of its total. Most of 2025 was spent clearing channel inventory, which pressured growth. However, it added that inventory levels have normalized.

Outlook

SolarEdge stated that demand for battery storage is rising globally in residential and C&I markets. It believes that with its products, including the Nexis platform, storage will account for a significant part of SolarEdge’s sales.

SolarEdge said it is also investing in AI data center power solutions.

Asaf Alperovitz, CFO and Principal Accounting Officer at SolarEdge, said the company sees a significant opportunity in the sector. SolarEdge is developing SST solutions for future 800 V DC AI data centers and is already in technical discussions and early-stage testing with industry members. Prototype trials for its SST solutions will follow, with no revenue from this segment expected before 2027, and wider adoption is likely to commence from 2028.

Speaking about SolarEdge’s plans for 2026, Nir said, “We will be selling our products in a more selected number of key markets where we believe we can win and where winning will have a meaningful impact on our results. Such a change allows us to roll out the single SKU concept globally, to consolidate warehouses, and to streamline our supply chain.”

In the U.S. market, SolarEdge plans to gain further share in the country’s residential and C&I markets, benefiting from the shift toward third-party ownership financing under the 48E provision of the U.S. Internal Revenue Code, established by the Inflation Reduction Act.

For Europe, SolarEdge expects its revenue to exceed 2025 levels. It is exporting U.S.-manufactured products to Europe at lower costs.