The large EPS miss vs consensus will likely pressure the stock near-term, but the strong YoY revenue growth (+41.5%) and Q2 guidance above Q1 levels suggest the turnaround narrative remains intact. Watch for the conference call for details on the $14M one-time OpEx item and the trajectory toward breakeven profitability.
Price Chart
Executive Summary
SolarEdge reported Q1 2026 revenue of $310.5M (+41.5% YoY) but a GAAP net loss of $57.4M ($-0.95/share), missing the consensus EPS estimate of $-0.27 by a wide margin. The company guided Q2 revenue to $325-355M (above Q1) and expects to be near breakeven operating profitability, but the sequential revenue decline (-7.4% QoQ) and deepening non-GAAP operating loss (-$24.8M vs -$11.0M in Q4 2025) temper the positive YoY growth narrative.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $310.5M, up 41.5% YoY from $219.5M but down 7.4% QoQ from $335.4M
- GAAP net loss per share of $0.95 vs consensus estimate of $-0.27 (miss of 252%)
- Non-GAAP net loss per share of $0.43 vs consensus estimate of $-0.27 (miss of 59%)
- GAAP gross margin 22.0%, roughly flat vs 22.2% in Q4 2025
- Non-GAAP gross margin 23.5%, up slightly from 23.3% in Q4 2025
- GAAP operating loss widened to $55.0M from $48.3M in Q4 2025
- Non-GAAP operating loss of $24.8M vs $11.0M in Q4 2025; excluding a $14M one-time expense, was ~$11M
- Operating cash flow $24.4M, down from $52.6M in Q4 2025
- Free cash flow $20.7M, down from $43.3M in Q4 2025
- Q2 2026 guidance: revenue $325M-$355M, non-GAAP gross margin 23%-27%, non-GAAP OpEx $86M-$91M
- Cash and investments net of debt grew $2.0M to $246.2M
Financial Impact
EPS miss of $0.68 vs consensus (-252%) is significant; revenue beat of $5M (+1.6%) is modest. The sequential revenue decline and widening operating loss are negative, but YoY growth and Q2 guidance above Q1 levels provide some offset.
Risk Factors
- Sequential revenue decline of 7.4% QoQ suggests demand may be plateauing after a strong recovery
- Non-GAAP operating loss more than doubled QoQ excluding the one-time item, indicating cost pressures
- Operating cash flow halved QoQ, raising questions about sustainability of free cash flow generation
- The company remains unprofitable on both GAAP and non-GAAP basis, with no clear timeline to GAAP profitability
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001178913-26-002404 |
| Document: zk2635207.htm | 0001178913-26-002404 |
| Document: 0001178913-26-002404-index-headers.html | 0001178913-26-002404 |
| Document: 0001178913-26-002404-index.html | 0001178913-26-002404 |
| Document: 0001178913-26-002404.txt | 0001178913-26-002404 |
| 8-K Data (Synthetic) | 0001178913-26-002404 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 22d ago | 8-K | $36.75 $36.00 | ▼ −2.04% | ▼ −1.54% | $33.09 (−9.96%) |
Aug 5, 2026 8w ago | 8-K | $33.90 $32.02 | ▼ −5.55% | ▼ −5.90% | $33.09 (−2.39%) |
May 11, 2026 20w ago | 8-K | $41.38 $54.84 | ▲ +32.53% | ▲ +32.61% | $33.09 (−20.03%) |
May 6, 2026 21w ago | 8-K | $40.27 $40.42 | ▲ +0.38% | ▼ −0.76% | $33.09 (−17.83%) |
Apr 23, 2026 23w ago | DEFA14A | $46.88 $41.58 | ▼ −11.30% | ▼ −12.78% | $33.09 (−29.41%) |
Feb 28, 2026 30w ago | Institutional Cluster | $40.52 $34.37 | ▼ −15.18% | ▼ −13.97% | $33.09 (−18.33%) |
US Market Status
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