SolarEdge Q3 Revenue Slips 4% as It Guides Q4 to $245–275 Million

• SolarEdge's third-quarter revenue fell to $326.1 million, down 5.8% from the prior quarter and 4.1% year on year.
• A $36.0 million IEEPA tariff benefit lifted GAAP gross margin to 33.2%; non-GAAP net income was $21.1 million.
• The company guided fourth-quarter revenue to $245–275 million and said it is taking steps to reduce costs amid softer demand.

SolarEdge Technologies reported third-quarter revenue of $326.1 million on Nov. 4, down 5.8% from the prior quarter and 4.1% from a year earlier. It guided fourth-quarter revenue to $245 million to $275 million.

The Milpitas, California-based inverter and power optimizer maker posted a GAAP gross margin of 33.2%, against 27.5% in the second quarter and 21.2% a year earlier. That figure includes a $36.0 million benefit related to IEEPA tariff matters, SolarEdge said in its earnings statement. Without it, the GAAP margin would have been about 22%, by list.solar's calculation.

The GAAP net loss narrowed to $8.4 million, or 14 cents a share, from $50.1 million a year earlier. Non-GAAP net income was $21.1 million, or 29 cents a share. Free cash flow came to $7.8 million, the fifth positive quarter in a row.

The quarter in numbers

• $326.1 million of revenue, against the $310 million to $340 million range SolarEdge guided in August.
• 33% of the $108.2 million GAAP gross profit came from the IEEPA tariff benefit (list.solar calculation).
• $49.3 million of IEEPA-related benefits over two quarters: $13.3 million in the second and $36.0 million in the third (list.solar calculation).
• $260 million at the midpoint of the fourth-quarter guide, 20% below third-quarter revenue (list.solar calculation).
• 17% to 21% non-GAAP gross margin guided for the fourth quarter, excluding potential IEEPA refunds, after 34.7% in the third.
• $555.1 million in cash and cash equivalents at Sept. 30; net of debt, cash and investments stood at $260.9 million.
• 16% more revenue in the first nine months of 2026 than a year earlier, at $982.8 million (list.solar calculation).

The guide follows a weak outlook from rival Enphase Energy. On Oct. 27, Enphase guided fourth-quarter revenue to $225 million to $255 million, a midpoint 18% below its third quarter.

"As near-term market uncertainty persists and given reduced revenue expectations for the fourth quarter, we are taking decisive steps to reduce costs, sharpen our focus, and support profitability amid softer demand," Chief Executive Officer Shuki Nir said in the statement.

Nir cited momentum in the Nexis platform and rising storage adoption. SolarEdge is also speeding up work on power infrastructure for AI data centers, where live demonstrations of its solid-state transformer are drawing interest from potential partners and customers, he said. The company expects fourth-quarter non-GAAP operating expenses of $87 million to $91 million.