SolarEdge forecasts weaker Q3 as US residential market remains challenging

Energy Renewable Energy Written by: Emily Jarvie 12:53 Wed 05 Aug 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The Canberra Times, and... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. SolarEdge forecasts weaker Q3 as US residential market remains challenging Published: 12:53 05 Aug 2026 EDT SolarEdge Technologies (NASDAQ:SEDG) shares fell about 24% on Wednesday after the solar technology company issued a weaker-than-expected third quarter outlook, overshadowing better-than-expected second quarter results. The company guided for Q3 2026 revenue of $310 million to $340 million, with a midpoint of $325 million, below analyst expectations of roughly $368 million to $372 million. The lighter forecast reflected ongoing uncertainty in residential solar demand, particularly in the US, and weighed on investor sentiment. SolarEdge reported second quarter revenue of $346.2 million, ahead of Wall Street expectations of about $342 million and up 19.6% from $289.4 million a year earlier. Adjusted earnings per share came in at $0.05 to $0.06, compared with analyst expectations for approximately break-even results. The company reported continued improvement in profitability during the quarter, with non-GAAP gross margin expanding to 28.6% from 13.1% in the year-ago period. Non-GAAP operating income reached $10.2 million, compared with an operating loss of $48.3 million in Q2 2025, while non-GAAP net income was $3.6 million versus a loss of $47.7 million a year earlier. On a GAAP basis, SolarEdge posted a net loss of $30.8 million, or $0.50 per diluted share, narrowing from a net loss of $124.7 million, or $2.13 per share, in the prior-year quarter. “Our second-quarter results mark an important milestone in SolarEdge’s turnaround,” the company’s CEO Shuki Nir said in a statement. “Revenue grew 20% year over year, GAAP operating loss narrowed significantly, and we returned to non-GAAP operating profitability for the first time since the second quarter of 2023, while continuing to generate positive free cash flow.” Nir highlighted stronger demand in Europe and growth in US commercial and industrial markets, which helped offset industry-wide weakness in US residential solar. SolarEdge ended the quarter with $264.6 million in cash and investments, net of debt, compared with $244.2 million at the end of 2025. Free cash flow was $3.1 million in the quarter, compared with negative free cash flow of $9.1 million in the second quarter of 2025. Continue reading