SolarEdge achieved its 3rd straight quarter of revenue growth in Q3 2025, reaching $340.2 million, up 18% YoY
GAAP operating and net losses narrowed significantly compared to the previous quarter
Gross margins doubled to 21.2% QoQ, while operating expenses declined by over $40 million
From Q4 2025, SolarEdge will shift to reporting revenue-recognized units instead of shipment volumes
The year has been going well for Israel-headquartered SolarEdge Technologies as it reported a strong Q3 2025, its 3rd consecutive quarter of revenue growth, reaching $340.2 million and representing an 18% year-on-year (YoY) growth.
The company was also able to narrow its GAAP operating loss from $115.5 million and net loss from $124.7 million in the previous quarter to $35.2 million and $50.1 million, respectively (see SolarEdge’s Q2 2025 Revenues Increased By Over 9% YoY).
SolarEdge’s GAAP gross margins went up quarter-on-quarter (QoQ) to 21.2% from 11.1%, while operating expenses also declined from $147.6 million to $107.3 million.
“We’re making steady progress in our turnaround, with three consecutive quarters of revenue growth and improving margins, and we’re not done yet,” said SolarEdge CEO Shuki Nir. “With energy taking an increasingly vital role in powering the global economy, we believe that SolarEdge is positioned for continued growth, sustained profitability, and leadership in smart energy solutions.”
During the reporting quarter, SolarEdge shipped 1.471 GW AC of solar inverters and 269 MWh of batteries for PV applications. However, it recognized revenues on the sale of approximately 92.7 thousand inverters, 2.95 million optimizers, and 230 MWh of batteries for PV applications.
Starting from Q4 2025, the management said it will not be reporting the shipment volumes of inverters, optimizers, batteries, and MWs shipped, as it does not consider these as the company’s key performance metrics. Instead, it will now only report inverters, optimizers, and MWh of batteries recognized as revenues, since revenue recognition is a more accurate measurement than products shipped.
For Q4 2025, SolarEdge projects its revenues to fall within a range of $310 million to $340 million, with non-GAAP gross margin ranging from 19% to 23%, including a tariff impact of close to 2%.
According to ROTH, SolarEdge shared on its earnings call that the company can fully offset the tariff headwind in 2026 by optimizing the supply chain and potentially raising prices. It also sees potential upside in 2026 gross margin due to benefits from economies of scale and products with better cost structures.
Coinciding with its financial results announcement, SolarEdge also announced a partnership with German semiconductor manufacturer Infineon Technologies. The duo will work together on SolarEdge’s Solid-State Transformer (SST) platform for next-generation AI and hyperscale data centers. This new SST, explains SolarEdge, will be designed as a modular 2 MW to 5 MW building block using advanced silicon carbide (SiC) switching technology from Infineon and SolarEdge’s power-conversion and control topology. It will enable direct medium-voltage to 800-1,500 V DC conversion with over 99% efficiency and reduced size, weight, and carbon footprint.
“Collaborations like this are key to enabling the next generation of 800 Volt DC data-center power systems and further driving decarbonization,” said Infineon Technologies’ Chief Marketing Officer, Andreas Urschitz.
Infineon is a long-time partner of SolarEdge. In 2023, it secured a multi-year Capacity Reservation Agreement (CRA) with the Israeli company to supply some critical components for its products (see SolarEdge Strengthens Solar Supply Chain).
