PVTIME – SolarEdge, a major Israeli solar inverter firm, has published its Q1 2026 financial results, highlighting its ongoing recovery with strong revenue growth and a significantly narrowed loss. The firm recorded revenue of USD 310.5 million in Q1, marking a 46% year-on-year increase. Meanwhile, the net loss attributable to the parent company narrowed by 41.8% year-on-year to USD 57.4 million. This follows a period of restructuring during which time losses fell from USD 1.8 billion in 2024 to USD 405 million in 2025.
Picture: SolarEdge
Core operating metrics improved in Q1 2026, with volume growth supporting the reduction of losses. The 7.4% quarter-on-quarter decline in revenue to USD 310.5 million from USD 335.4 million in Q4 2025 was attributed to seasonal factors, following the year-end rush linked to the US Investment Tax Credit (25D policy). Product shipments recovered steadily, with 50,500 inverters, 2.4 million optimisers, and 331 MWh of batteries sold.
Losses narrowed by 56.55% quarter-on-quarter, from USD 132.1 million to USD 11.9 million when excluding a one-time restructuring charge of USD 14 million. This demonstrates a clear upturn in profitability. Gross margin stood at 22%, down slightly from 22.2% in Q4 2025. SolarEdge CEO Shuki Nir noted that the results reflected strong execution and accelerating momentum, with six consecutive quarters of gross margin expansion underpinning future profitability.
The company adopted a cautious outlook for Q2 2026, projecting revenue of USD 325–355 million and a non-GAAP gross margin of 23–27%. In order to reverse losses, the company implemented an aggressive restructuring programme for 2024–2025, cutting over 2,200 jobs in four rounds, representing more than 40% of its peak workforce. This included targeted cuts and divestments, reducing quarterly operating expenses from USD 200 million to USD 123 million.
Restructuring measures also included the disposal of non-core assets, such as energy storage, in order to refocus on inverters and power optimisers. Inefficient capacity was closed and global supply chains were optimised in order to cut costs. While these steps have helped to reduce losses, it remains uncertain whether SolarEdge will be able to sustain its market position and transition to profitability amid changes in the global PV market.
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