SolarEdge Reports Q3 Revenue Decline, Expects Q4 Drop

The solar inverter maker posted a 4.1% year-over-year revenue decline in the third quarter of 2026 and guided lower for the fourth quarter.

Updated on Nov. 9, 2026 in Public Companies

Dark rooftop solar panels in a row under a pale overcast sky, with a plain grey inverter box mounted on a white house wall below. — SolarEdge reported third-quarter 2026 revenue of $326.08 million, down 4.1 percent from a year earlier, and projected lower fourth-quarter sales of $245 million to $275 million. AI Illustration. Upload story photo >

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SolarEdge reported third-quarter 2026 revenue of $326.08 million, down 4.1% from $340.18 million a year earlier, and narrowly missed analyst expectations. The company also projected fourth-quarter 2026 revenue of $245 million to $275 million.

Why it matters

The results reflect weak U.S. residential solar demand, seasonal softness in Europe, and elevated interest rates that have strained financing for home solar systems. The guidance signals continued pressure on the company's core residential business heading into 2027.

Third-quarter adjusted EBITDA was $31.75 million, compared with negative $14.09 million a year earlier, while the net loss narrowed to $8.385 million, or $0.14 per share. Management expects projected 2026 capital expenditures of $45 million to $55 million, though the report did not detail the margin outlook beyond a projected fourth-quarter non-GAAP gross margin of 17% to 21%.

The players

SolarEdge Technologies

An Israeli manufacturer of solar inverters, power optimizers and battery storage systems, with a strong position in U.S. rooftop commercial and industrial solar.

The details

SolarEdge attributed the revenue decline to weak U.S. residential demand and seasonal softness in Europe, and said its Nexis platform, rolled out in the U.S. in July, generated more than $100 million in revenue, supported by higher battery storage sales. The company cited tariff refunds, U.S. manufacturing tax credits and cost controls as margin improvements, and announced restructuring to reduce its presence in underperforming markets.

Q3 2025 — baseline quarter for year-over-year comparison.
July 2026 — SolarEdge began rolling out the Nexis platform in the U.S.
Q3 2026 — quarter reported, with revenue down 4.1% year-over-year.
Q4 2026 — expected revenue of $245 million to $275 million.
Q1 2027 — expected sequential revenue decline of more than 10%.

Market Landscape

SolarEdge's softness in U.S. residential solar contrasts with its more than 50% share of the U.S. rooftop commercial and industrial segment, where it competes against other inverter makers. The company's shift toward battery storage through Nexis reflects a broader industry move away from residential solar hardware alone.

Homeowners considering rooftop solar may see financing and installation options shift as residential demand softens and companies restructure. Buyers weighing battery storage should watch how the Nexis platform and its pricing develop in the U.S. market.

The takeaway

SolarEdge's results show that battery storage and cost controls are cushioning a weak residential solar market, but guidance points to flat growth into 2027. Readers tracking the solar sector should watch whether residential demand stabilizes as interest rates and policy conditions evolve.