Solaredge Technologies, Inc. (NASDAQ: SEDG) recently reported its financial results for the fourth quarter and full year ended December 31, 2025. The company's fourth quarter results demonstrated a 70% year-over-year revenue growth, marking its fourth consecutive quarter of year-over-year revenue growth and fifth consecutive quarter of margin expansion.
In the fourth quarter of 2025, the company reported revenues of $335.4 million, which was a 1.4% decrease from the previous quarter. Non-GAAP revenues were $333.8 million, down 1.8% from the prior quarter. However, the company recognized approximately 98.8 thousand inverters, 2.87 million optimizers, and 280 MWh of batteries for PV applications as revenue during the quarter.
The GAAP gross margin for the fourth quarter was 22.2%, compared to 21.2% in the prior quarter, while the non-GAAP gross margin was 23.3%, a significant increase from 18.8% in the prior quarter. GAAP operating expenses were $122.8 million, up from $107.3 million in the prior quarter, and non-GAAP operating expenses were $88.7 million, compared to $87.7 million in the prior quarter.
The GAAP net loss was $132.1 million, compared to $50.1 million in the prior quarter. However, the non-GAAP net loss was $8.2 million, a significant improvement from $18.3 million in the prior quarter. Cash flow from operating activities was $52.6 million, compared with $25.6 million in the prior quarter, and free cash flow generated was $43.3 million, up from $22.8 million in the prior quarter.
For the full year 2025, Solaredge reported total revenues of $1.18 billion, representing a 31% increase from $901.5 million in 2024. The company recognized approximately 465.7 thousand inverters, 10.8 million optimizers, and 928 MWh of batteries for PV applications as revenue during the year. The GAAP gross margin for the full year was 16.6%, compared to a negative 97.3% in 2024, while the non-GAAP gross margin was 16.7%, compared to a negative 89.7% in 2024.
Additionally, the company's GAAP operating expenses were $498.0 million, down from $831.1 million in 2024, and non-GAAP operating expenses were $350.7 million, compared to $447.1 million in 2024. Solaredge reported a GAAP net loss of $405.4 million for the full year, compared to $1.81 billion in 2024, and a non-GAAP net loss of $140.3 million, compared to $1.31 billion in 2024.
Looking ahead, the company provided guidance for the first quarter ending March 31, 2026, with revenues expected to be within the range of $290 million to $320 million. Non-GAAP gross margin is anticipated to be within the range of 20% to 24%, and non-GAAP operating expenses are expected to be within the range of $88 million to $93 million.
Solaredge Technologies, Inc. is focused on moving towards profitable growth and capturing global market share through the rollout of the Solaredge Nexis platform. The company's cash and investments portfolio, net of debt, grew by $35.4 million to $244.2 million as of December 31, 2025, compared to $208.8 million as of September 30, 2025.
Solaredge Technologies, Inc. is a global leader in smart energy technology, aiming to create smart energy solutions that power lives and drive progress. Following these announcements, the company's shares moved 0.21%, and are now trading at a price of $33.91. For the full picture, make sure to review SOLAREDGE TECHNOLOGIES, INC.'s 8-K report.
