US solar inverter maker SolarEdge posted revenue of $346.2 million in the second quarter of 2026, driven by European demand, while returning to non-GAAP operating profitability for the first time since 2023.
SolarEdge Technologies, a US-based smart energy technology group, announced its financial results for the second quarter ended June 30, 2026. GAAP revenue reached $346.2 million, up 20% year-over-year according to the company, driven by an 11.5% increase from the first quarter of 2026. Non-GAAP revenue stood at $345.5 million, up 23.0% year-over-year. This marks the sixth consecutive quarter of year-over-year gross margin expansion for the inverter and power optimizer manufacturer.
According to Shuki Nir, CEO of SolarEdge, strong demand in Europe combined with strength in US commercial and industrial activity more than offset a slowdown in the US residential market, driving overall quarterly growth. These results come as the global solar sector continues to announce new projects, such as DYCM raising capital to build a one-gigawatt solar factory in California, Colombia approving two solar farms totaling 557 MW in Cesar, and Zelestra securing $181 million for its Skull Creek solar project in Texas.
The executive described the quarter as an “important milestone” in the group’s turnaround. GAAP operating loss narrowed significantly, while non-GAAP operating profitability turned positive for the first time since the second quarter of 2023. SolarEdge also reported generating positive free cash flow during the period, a goal the group has pursued for several quarters.
GAAP gross margin climbed to 27.5%, compared with 22.0% in the first quarter of 2026 and 11.1% a year earlier. Non-GAAP gross margin stood at 28.6%, compared with 23.5% and 13.1% respectively. These results include a $13.3 million benefit related to tariff matters under the International Emergency Economic Powers Act (IEEPA), the US law governing emergency economic powers. GAAP operating expenses declined to $111.2 million, from $123.3 million in the prior quarter and $147.6 million a year earlier.
GAAP operating loss reached $16.0 million, compared with $55.0 million in the first quarter of 2026 and $115.5 million in the second quarter of 2025. Non-GAAP operating income turned positive at $10.2 million, after a loss of $24.8 million in the prior quarter. GAAP net loss reached $30.8 million, while non-GAAP net income came in at $3.6 million, compared with a loss of $26.3 million in the first quarter. Free cash flow stood at $3.1 million, compared with $20.7 million in the prior quarter and negative $9.1 million a year earlier.
As of June 30, 2026, the group’s cash and investments portfolio, net of debt, stood at $264.6 million, up from $244.2 million as of December 31, 2025, an increase of $20.4 million. For the third quarter of 2026, SolarEdge expects revenue of between $310 million and $340 million, a non-GAAP gross margin of 22% to 26%, and non-GAAP operating expenses of $86 million to $91 million. This guidance excludes potential IEEPA refunds, with the company noting it had already received $11.5 million in such refunds in July. Including that amount, the midpoint of the guidance would imply positive non-GAAP operating income in the third quarter.
The CEO also indicated that the group intends to continue scaling its Nexis platform in its core markets, while advancing the SolarEdge SST technology aimed at the energy needs of artificial intelligence data centers.
Solar EPC contractor GRS, part of Grupo Gransolar, will build the 235 MWp Fleming Solar Farm for Acciona Energía in Kentucky, marking the company's renewed push into the US market.
The reference media for the energy transition: markets, projects, regulation and jobs.

source