SolarEdge Technologies, Inc. (NASDAQ:SEDG), a global leader in smart energy technology, today announced its financial results for the first quarter ended March 31, 2025.

"I am pleased with the steady progress we made on the SolarEdge turnaround this quarter," said Shuki Nir, CEO of SolarEdge. "We delivered a second straight quarter of positive free cash flow and are executing on our strategic priorities. Despite an uncertain tariff and regulatory environment, we remain relentlessly focused on elevating our execution across our business."

First Quarter 2025 Summary

The Company reported revenues of $219.5 million, up 12% from $196.2 million in the prior quarter.

Non-GAAP revenues², which exclude $7.4 million of revenues related to discontinued operations, were $212.1 million.

The Company shipped 1,208 MW (AC) of inverters and 180 MWh of batteries for PV applications.

GAAP gross margin was 8.0%¹, compared to negative 57.2%¹in the prior quarter.

Non-GAAP gross margin² was 7.8%, compared to negative 39.5%¹ in the prior quarter.

GAAP operating expenses were $120.3 million, compared to $151.4¹ million in the prior quarter.

Non-GAAP operating expenses² were $89.1 million, compared to $106.8 million in the prior quarter.

GAAP operating loss was $102.7¹ million, compared to $263.7¹ million in the prior quarter.

Non-GAAP operating loss² was $72.4 million, compared to $184.1¹ million in the prior quarter.

GAAP net loss was $98.5¹ million, compared to $287.4¹ million in the prior quarter.

Non-GAAP net loss² was $66.1 million, compared to $202.5¹ million in the prior quarter.

GAAP net loss per share was $1.70¹, compared to a GAAP net loss per share of $5.00¹ in the prior quarter.

Non-GAAP net loss per share² was $1.14, compared to a Non-GAAP net loss per share of $3.52¹ in the prior quarter.

Cash provided by operating activities was $33.8 million, compared with $37.8 million provided in the prior quarter.

Free cash flow²generated, excluding cash flow from discontinued operations at our Kokam battery manufacturing business, was $19.8 million, compared with $25.5 generated in the prior quarter.

As of March 31, 2025, cash, cash equivalents, restricted cash, bank deposits, restricted bank deposits and marketable securities totaled $113.2 million, net of debt, compared to $81.9 million as of December 31, 2024.

Outlook for the Second Quarter 2025

The Company also provides guidance for the second quarter ending June 30, 2025 as follows:

Revenues to be within the range of $265 million to $285 million;
Non-GAAP gross margin* expected to be within the range of 8% to 12%, including approximately two percentage points of new tariff impact;
Non-GAAP operating expenses* to be within the range of $90 million to $95 million.

*Non-GAAP gross margin and Non-GAAP operating expenses are non-GAAP financial measures, and these forward-looking measures have not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures. Forward-looking estimates of Non-GAAP gross margin and Non-GAAP operating expenses are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.

Conference Call

The Company will host a conference call to discuss its results for the first quarter ended March 31, 2025 at 8:00 a.m. ET on Tuesday, May 6, 2025. The call will be available, live, to interested parties by dialing +1 800-579-2543. For international callers, please dial +1 785-424-1789. The Conference ID is SEDG. To avoid a delay in connecting to the call, please dial in 10 minutes prior to the start time. A live webcast will also be available in the Investors Relations section of the Company's website at: http://investors.solaredge.com.

A replay of the webcast will be available in the Investor Relations section of the Company's web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.

______________________________________________________________________

¹ Includes impairments, write offs and discontinued operation. See financials and reconciliation for details.

² Non-GAAP financial measure. See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.

About SolarEdge

SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, and grid services solutions. SolarEdge is online at www.solaredge.com.

Use of Non-GAAP Financial Measures

To provide investors and others with additional information regarding SolarEdge's results, SolarEdge has disclosed in this earnings release the following non-GAAP financial measures: non-GAAP revenue, non-GAAP operating income (loss), non-GAAP operating expenses, non-GAAP gross margin, non-GAAP net income (loss), non-GAAP net earnings (loss) per share, and non-GAAP net free cash flow. SolarEdge has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure below. These non-GAAP financial measures differ from GAAP in that they exclude stock-based compensation, amortization and impairment of acquired intangible assets, restructuring and impairment charges, acquisition, disposition and other items, certain litigation and other contingencies, amortization of debt issuance cost, non-cash interest expense and non-cash revenue recognized from significant financing component, certain foreign currency exchange rates, gains and losses on investments, income and losses from equity method investments and discrete items that impacted our GAAP tax rate. Our non-GAAP financial measures also reflect the application of our non-GAAP tax rate.

SolarEdge's management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, to calculate bonus payments and to evaluate SolarEdge's financial performance, the performance of its individual functional groups and the ability of operations to generate cash. Management believes these non-GAAP financial measures reflect SolarEdge's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in SolarEdge's business, as they exclude charges and gains that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating SolarEdge's operating results and future prospects from the same perspective as management and in comparing financial results across accounting periods.

The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense that affect SolarEdge's operations. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP and should not be considered measures of SolarEdge's liquidity. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review SolarEdge's financial information in its entirety and not rely on a single financial measure.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements contained in this press release contains may contain forward-looking statements that are based on our management's expectations, estimates, projections, beliefs and assumptions in accordance with information currently available to our management. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include information, among other things, concerning our possible or assumed future results of operations, return to positive free cash flow generation, future demands for solar energy solutions, business strategies, technology developments, new products and services, financing and investment plans; dividend policy; competitive position, industry and regulatory environment, general economic conditions; potential growth opportunities; cancellations and pushouts of existing backlog; installation rates; goodwill impairment; and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "could," "seek," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or similar expressions and the negatives of those terms.

Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date of this release. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to: future demand for renewable energy including solar energy solutions; our ability to maintain a return to free cash flow positive generation; our ability to forecast demand for our products accurately and to match production to such demand as well as our customers' ability to forecast demand based on inventory levels; changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act; changes in the U.S. or global trade environment, including the recent imposition of import tariffs by the U.S. and any future increase in such tariffs and/or subsequent retaliatory tariffs or other restrictive trade measures that other countries have taken or may take in response; our ability to estimate the impact of tariffs on our operations; our ability to successfully operate our global operations with a reduced work force; macroeconomic conditions in our domestic and international markets, as well as inflation concerns, rising interest rates, and recessionary concerns; changes, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; the retail price of electricity derived from the utility grid or alternative energy sources; interest rates and supply of capital in the global financial markets in general and in the solar market specifically; competition, including introductions of power optimizer, inverter and solar photovoltaic system monitoring products by our competitors; developments in alternative technologies or improvements in distributed solar energy generation; historic cyclicality of the solar industry and periodic downturns; product quality or performance problems in our products; shortages, delays, price changes, or cessation of operations or production affecting our suppliers of key components; our dependence upon a small number of outside contract manufacturers and limited or single source suppliers; changes to net metering policies or the reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components; performance of distributors and large installers in selling our products; consolidation in the solar industry among our customers and distributors; our ability to effectively manage changes in our organization and expansion into new markets; our ability to recognize expected benefits from restructuring plans; any unauthorized access to, disclosure, or theft of personal information or unauthorized access to our network or other similar cyber incidents; our ability to implement our new ERP system; our ability to integrate acquired businesses; disruption to our business operations due to the evolving state of war in Israel and political conditions related to the Israeli government's plans to significantly reduce the Israeli Supreme Court's judicial oversight; our dependence on ocean transportation to timely deliver our products in a cost-effective manner; fluctuations in global currency exchange rates; the impact of evolving legal and regulatory requirements, including emerging corporate social responsibility and sustainability requirements; existing and future responses to and effects of pandemics, epidemics or other health crises; federal, state, and local regulations governing the electric utility industry with respect to solar energy; business practices and regulatory compliance of our raw material suppliers; our ability to maintain our brand and to protect and defend our intellectual property; volatility of our stock price; our customers' financial stability, creditworthiness, and debt leverage ratio; our ability to effectively design, launch, market, and sell new generations of our products and services; our ability to retain, and events affecting, our major customers; our ability to service our debt; impairment of our goodwill or other long-lived and intangible assets; our liquidity and ability to service our debt; and the other factors set forth under "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 25, 2025, in subsequent Quarterly Reports on Form 10Q and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Statements in this press release speak only as of the date they were made. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or changes in its expectations or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

SOLAREDGE TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF LOSS (in thousands, except per share data)

	Three Months Ended March 31,
	2025			2024
	Unaudited
Revenues	$	219,480		$	204,399
Cost of revenues		201,944			230,586
Gross profit (loss)		17,536			(26,187	)
Operating expenses:
Research and development		61,997			75,351
Sales and marketing		31,657			38,911
General and administrative		30,183			30,865
Other operating expense (income), net		(3,575	)		2,391
Total operating expenses		120,262			147,518
Operating loss		(102,726	)		(173,705	)
Financial income (expense), net		10,068			(7,064	)
Other income, net		148			—
Loss before income taxes		(92,510	)		(180,769	)
Tax benefits (income taxes)		(5,726	)		23,754
Net loss from equity method investments		(287	)		(296	)
Net loss	$	(98,523	)	$	(157,311	)

SOLAREDGE TECHNOLOGIES INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data)

	March 31, 2025			December 31, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	401,364		$	274,611
Restricted cash		104,459			135,328
Marketable securities		250,267			311,279
Trade receivables, net of allowances of $35,970 and $43,038, respectively		132,577			160,423
Inventories, net		636,597			645,897
Prepaid expenses and other current assets		464,419			523,027
Total current assets		1,989,683			2,050,565
LONG-TERM ASSETS:
Marketable securities		34,051			42,597
Property, plant and equipment, net		339,824			343,438
Operating lease right-of-use assets, net		48,639			41,393
Intangible assets, net		8,874			9,666
Goodwill		48,626			48,380
Loan receivables, net		—			45,678
Other long-term assets		55,476			64,736
Total long-term assets		535,490			595,888
Total assets		2,525,173			2,646,453
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables	$	135,435		$	107,543
Employees and payroll accruals		76,360			76,292
Warranty obligations		125,172			140,249
Deferred revenues and customers advances		76,491			140,870
Accrued expenses and other current liabilities		219,496			246,078
Convertible senior notes, net		341,472			346,305
Total current liabilities		974,426			1,057,337
LONG-TERM LIABILITIES:
Convertible senior notes, net		330,389			330,006
Warranty obligations		287,530			292,116
Deferred revenues		243,649			231,049
Finance lease liabilities		37,862			39,159
Operating lease liabilities		33,325			30,018
Other long-term liabilities		23,779			8,426
Total long-term liabilities		956,534			930,774
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY:
Common stock of $0.0001 par value - Authorized: 125,000,000 shares; issued: 59,043,817 shares on March 31, 2025 and 58,780,490 shares on December 31, 2024; outstanding: 58,290,453 shares on March 31, 2025 and 58,027,126 shares on December 31, 2024.		6			6
Additional paid-in capital		1,845,719			1,813,198
Treasury stock, at cost; 753,364 shares held		(50,194	)		(50,194	)
Accumulated other comprehensive loss		(74,604	)		(76,477	)
Accumulated deficit		(1,126,714	)		(1,028,191	)
Total stockholders' equity		594,213			658,342
Total liabilities and stockholders' equity	$	2,525,173		$	2,646,453

SOLAREDGE TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, except per share data)

	Three Months Ended March 31,
	2025			2024
Cash flows from operating activities:
Net loss	$	(98,523	)	$	(157,311	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		12,001			14,988
Stock-based compensation expenses		31,426			37,606
Deferred income taxes, net		(1,029	)		(41,847	)
Loss (gain) from exchange rate fluctuations		(2,930	)		7,799
Other items		2,271			4,371
Changes in assets and liabilities:
Trade receivables, net		29,247			210,376
Inventories, net		12,285			(105,810	)
Prepaid expenses and other assets		100,361			52,187
Operating lease right-of-use assets, net		3,659			5,255
Trade payables		30,275			(215,120	)
Warranty obligations		(19,745	)		(15,582	)
Deferred revenues and customers advances		(51,970	)		(523	)
Operating lease liabilities		(3,571	)		(5,219	)
Accrued expenses and other liabilities		(9,934	)		(8,189	)
Net cash provided by (used in) operating activities		33,823			(217,019	)
Cash flows from investing activities:
Investment in available-for-sale marketable securities		(72,465	)		(129,221	)
Proceeds from maturities of available-for-sale marketable securities		142,931			319,605
Purchase of property, plant and equipment		(10,109	)		(26,347	)
Repayment related to governmental grant		(6,643	)		—
Disbursements for loans receivables		—			(7,500	)
Investment in privately-held companies		—			(8,831	)
Proceeds from loan receivables		13,653			1,625
Other investing activities		230			(323	)
Net cash provided by investing activities		67,597			149,008
Cash flows from financing activities:
Repurchase of common stock		—			(33,222	)
Payments on account of repurchase of common stock		—			(16,778	)
Repurchase of convertible debt		(5,093	)		—
Other financing activities		(1,144	)		(987	)
Net cash used in financing activities		(6,237	)		(50,987	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		701			(5,241	)
Increase (decrease) in cash, cash equivalents and restricted cash		95,884			(124,239	)
Cash, cash equivalents and restricted cash, beginning of period		409,939			338,468
Cash, cash equivalents and restricted cash, end of period	$	505,823		$	214,229

SOLAREDGE TECHNOLOGIES INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages)

	Three months ended															Year ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2024			December 31, 2023			December 31, 2022
Gross profit (loss) (GAAP)	$	17,536		$	(112,254	)	$	(727,794	)	$	(10,969	)	$	(26,187	)	$	(877,204	)	$	703,823		$	844,648
Revenues from finance component		(264	)		(254	)		(250	)		(246	)		(234	)		(984	)		(834	)		(614	)
Discontinued operation revenues		(7,098	)		—			—			—			—			—			—			—
Discontinued operation cost of revenues		792			26,118			(6	)		(757	)		(434	)		24,921			36,648			4,314
Stock-based compensation		4,372			3,727			6,039			6,218			5,968			21,952			23,200			21,818
Amortization of stock-based compensation capitalized in inventories		381			1,095			1,484			362			197			3,138			1,100			—
Amortization and depreciation of acquired asset		491			484			2,034			1,343			1,551			5,412			6,038			7,429
Restructuring charges		430			3,770			1,216			4,519			5,822			15,327			23,154			—
Gross profit (loss) (Non-GAAP)	$	16,640		$	(77,314	)	$	(717,277	)	$	470		$	(13,317	)	$	(807,438	)	$	793,129		$	877,595

Gross margin (loss) (GAAP)		8.0	%		(57.2	)%		(309.1	)%		(4.1	)%		(12.8	)%		(97.3	)%		23.6	%		27.2	%
Revenues from finance component		0.0			(0.1	)		(0.1	)		0.0			(0.1	)		(0.1	)		0.0			0.0
Discontinued operation revenues		(3.2	)		—			—			—			—			—			—			—
Discontinued operation cost of revenues		0.4			13.3			0.0			(0.3	)		(0.2	)		2.8			1.2			0.1
Stock-based compensation		2.0			1.9			2.6			2.3			2.9			2.4			0.9			0.7
Amortization of stock-based compensation capitalized in inventories		0.2			0.6			0.6			0.1			0.1			0.3			0.0			—
Amortization and depreciation of acquired asset		0.2			0.2			1.0			0.5			0.8			0.6			0.2			0.2
Restructuring charges		0.2			1.9			1.0			1.7			2.8			1.7			0.8			—
Gross margin (loss) (Non-GAAP)		7.8	%		(39.4	)%		(304.0	)%		0.2	%		(6.5	)%		(89.6	)%		26.7	%		28.2	%

Operating expenses (GAAP)	$	120,262		$	151,413		$	382,940		$	149,213		$	147,518		$	831,084		$	663,618		$	678,528
Stock-based compensation - R&D		(15,911	)		(10,653	)		(17,115	)		(17,639	)		(17,139	)		(62,546	)		(66,944	)		(63,211	)
Stock-based compensation - S&M		(4,742	)		(4,452	)		(6,816	)		(8,149	)		(7,911	)		(27,328	)		(30,987	)		(31,017	)
Stock-based compensation - G&A		(6,401	)		(5,600	)		(6,672	)		(6,565	)		(6,588	)		(25,425	)		(28,814	)		(29,493	)
Amortization and depreciation of acquired assets - R&D		—			(189	)		(270	)		(271	)		(270	)		(1,000	)		(989	)		(1,206	)
Amortization and depreciation of acquired assets - S&M		(424	)		(442	)		(566	)		(467	)		(124	)		(1,599	)		(927	)		(822	)
Amortization and depreciation of acquired assets - G&A		—			—			(2	)		(2	)		(2	)		(6	)		(15	)		(21	)
Discontinued operation		(1,522	)		(3,350	)		11			—			47			(3,293	)		(388	)		—
Restructuring charges		(2,613	)		—			(1,299	)		(366	)		(3,943	)		(5,607	)		—			—
Assets impairment and disposal by abandonment		(224	)		(17,989	)		(232,102	)		—			(1,732	)		(251,823	)		(30,790	)		(119,141	)
Gain (loss) from assets sales		662			(1,910	)		(1,827	)		(951	)		(1,058	)		(5,746	)		1,262			2,603
Certain litigation and other contingencies		—			—			—			—			399			399			(1,786	)		—
Acquisition costs		—			—			—			—			(9	)		(9	)		(135	)		(350	)
Operating expenses (Non-GAAP)	$	89,087		$	106,828		$	116,282		$	114,803		$	109,188		$	447,101		$	503,105		$	435,870

SOLAREDGE TECHNOLOGIES INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages)

	Three months ended															Year ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2024			December 31, 2023			December 31, 2022
Operating income (loss) (GAAP)	$	(102,726	)	$	(263,667	)	$	(1,110,734	)	$	(160,182	)	$	(173,705	)	$	(1,708,288	)	$	40,205		$	166,120
Revenues from finance component		(264	)		(254	)		(250	)		(246	)		(234	)		(984	)		(834	)		(614	)
Discontinued operation		(4,784	)		29,468			(17	)		(757	)		(481	)		28,214			37,036			4,314
Stock-based compensation		31,426			24,432			36,642			38,571			37,606			137,251			149,945			145,539
Amortization of stock-based compensation capitalized in inventories		381			1,095			1,484			362			197			3,138			1,100			—
Amortization and depreciation of acquired assets		915			1,115			2,872			2,083			1,947			8,017			7,969			9,478
Restructuring charges		3,043			3,770			2,515			4,885			9,765			20,934			23,154			—
Assets impairment and disposal by abandonment		224			17,989			232,102			—			1,732			251,823			30,790			119,141
Loss (gain) from assets sales		(662	)		1,910			1,827			951			1,058			5,746			(1,262	)		(2,603	)
Certain litigation and other contingencies		—			—			—			—			(399	)		(399	)		1,786			—
Acquisition costs		—			—			—			—			9			9			135			350
Operating income (loss) (Non-GAAP)	$	(72,447	)	$	(184,142	)	$	(833,559	)	$	(114,333	)	$	(122,505	)	$	(1,254,539	)	$	290,024		$	441,725

Financial income (expense), net (GAAP)	$	10,068		$	(12,199	)	$	5,558		$	(865	)	$	(7,064	)	$	(14,570	)	$	41,212		$	3,750
Non cash interest expense		4,051			3,920			3,785			3,636			3,536			14,877			12,703			9,954
Unrealized losses		—			—			—			—			—			—			—			119
Currency fluctuation related to lease standard		(1,633	)		1,089			966			(1,523	)		(1,276	)		(744	)		(3,055	)		(11,187	)
Discontinued operation		(276	)		—			—			—			—			—			—			—
Financial income (expense), net (Non-GAAP)	$	12,210		$	(7,190	)	$	10,309		$	1,248		$	(4,804	)	$	(437	)	$	50,860		$	2,636

Other income (loss) (GAAP)	$	148		$	(76	)	$	(3,928	)	$	18,551		$	—		$	14,547		$	(318	)	$	7,285
Loss (gain) from sale of equity and debt investments		(2	)		76			(1,072	)		(1,970	)		—			(2,966	)		193			(8,008	)
Gain from business combination		—			—			—			(1,125	)		—			(1,125	)		—			—
Gain from the repurchase of convertible notes		(146	)		—			—			(15,456	)		—			(15,456	)		—			—
Loss from impairment of private held companies		—			—			5,000			—			—			5,000			—			—
Other income (loss) (Non-GAAP)	$	—		$	—		$	—		$	—		$	—		$	—		$	(125	)	$	(723	)

Income tax benefit (expense) (GAAP)	$	(5,726	)	$	(11,041	)	$	(121,108	)	$	12,245		$	23,754		$	(96,150	)	$	(46,420	)	$	(83,376	)
Income tax adjustment		(155	)		(176	)		44,602			(357	)		(5,062	)		39,007			(45,896	)		(9,067	)
Income tax benefit (expense) (Non-GAAP)	$	(5,881	)	$	(11,217	)	$	(76,506	)	$	11,888		$	18,692		$	(57,143	)	$	(92,316	)	$	(92,443	)

Equity method investments loss (GAAP)	$	(287	)	$	(456	)	$	(577	)	$	(567	)	$	(296	)	$	(1,896	)	$	(350	)	$	—
Loss from equity method investments		287			456			577			567			296			1,896			350			—
Equity method investments loss (Non-GAAP)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

SOLAREDGE TECHNOLOGIES INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages)

	Three months ended															Year ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2024			December 31, 2023			December 31, 2022
Net income (loss) (GAAP)	$	(98,523	)	$	(287,439	)	$	(1,230,789	)	$	(130,818	)	$	(157,311	)	$	(1,806,357	)	$	34,329		$	93,779
Revenues from finance component		(264	)		(254	)		(250	)		(246	)		(234	)		(984	)		(834	)		(614	)
Discontinued operation		(5,060	)		29,468			(17	)		(757	)		(481	)		28,214			37,036			4,314
Stock-based compensation		31,426			24,432			36,642			38,571			37,606			137,251			149,945			145,539
Amortization of stock-based compensation capitalized in inventories		381			1,095			1,484			362			197			3,138			1,100			—
Amortization and depreciation of acquired assets		915			1,115			2,872			2,083			1,947			8,017			7,969			9,478
Restructuring charges		3,043			3,770			2,515			4,885			9,765			20,934			23,154			—
Assets impairment and disposal by abandonment		224			17,989			232,102			—			1,732			251,823			30,790			119,141
Loss (gain) from assets sales		(662	)		1,910			1,827			951			1,058			5,746			(1,262	)		(2,603	)
Certain litigation and other contingencies		—			—			—			—			(399	)		(399	)		1,786			—
Acquisition costs		—			—			—			—			9			9			135			350
Non cash interest expense		4,051			3,920			3,785			3,636			3,536			14,877			12,703			9,954
Unrealized losses		—			—			—			—			—			—			—			119
Currency fluctuation related to lease standard		(1,633	)		1,089			966			(1,523	)		(1,276	)		(744	)		(3,055	)		(11,187	)
Loss (gain) from sale of equity and debt investments		(2	)		76			(1,072	)		(1,970	)		—			(2,966	)		193			(8,008	)
Gain from business combination		—			—			—			(1,125	)		—			(1,125	)		—			—
Gain from the repurchase of convertible notes		(146	)		—			—			(15,456	)		—			(15,456	)		—			—
Loss from impairment of private held companies		—			—			5,000			—			—			5,000			—			—
Income tax adjustment		(155	)		(176	)		44,602			(357	)		(5,062	)		39,007			(45,896	)		(9,067	)
Loss from equity method investments		287			456			577			567			296			1,896			350			—
Net income (loss) (Non-GAAP)	$	(66,118	)	$	(202,549	)	$	(899,756	)	$	(101,197	)	$	(108,617	)	$	(1,312,119	)	$	248,443		$	351,195

SOLAREDGE TECHNOLOGIES INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages)

	Three months ended															Year ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2024			December 31, 2023			December 31, 2022
Net basic earnings (loss) per share (GAAP)	$	(1.70	)	$	(5.00	)	$	(21.58	)	$	(2.31	)	$	(2.75	)	$	(31.64	)	$	0.61		$	1.70
Revenues from finance component		0.00			(0.01	)		(0.01	)		0.00			(0.01	)		(0.02	)		(0.02	)		(0.01	)
Discontinued operation		(0.09	)		0.52			0.00			(0.02	)		(0.01	)		0.49			0.66			0.08
Stock-based compensation		0.54			0.42			0.65			0.69			0.66			2.41			2.65			2.64
Amortization of stock-based compensation capitalized in inventories		0.01			0.02			0.02			0.00			0.01			0.05			0.02			—
Amortization and depreciation of acquired assets		0.02			0.02			0.05			0.04			0.03			0.14			0.14			0.17
Restructuring charges		0.05			0.07			0.05			0.08			0.17			0.37			0.41			—
Assets impairment and disposal by abandonment		0.00			0.31			4.07			—			0.03			4.41			0.54			2.17
Loss (gain) from assets sales		(0.01	)		0.03			0.03			0.02			0.02			0.10			(0.02	)		(0.05	)
Certain litigation and other contingencies		—			—			—			—			(0.01	)		(0.01	)		0.03			—
Acquisition costs		—			—			—			—			0.00			0.00			0.00			0.01
Non cash interest expense		0.07			0.07			0.07			0.07			0.06			0.26			0.23			0.18
Unrealized losses		—			—			—			—			—			—			—			0.00
Currency fluctuation related to lease standard		(0.03	)		0.02			0.01			(0.04	)		(0.02	)		(0.01	)		(0.06	)		(0.21	)
Loss (gain) from sale of equity and debt investments		0.00			0.00			(0.02	)		(0.03	)		—			(0.05	)		0.01			(0.14	)
Gain from business combination		—			—			—			(0.02	)		—			(0.02	)		—			—
Gain from the repurchase of convertible notes		0.00			—			—			(0.27	)		—			(0.27	)		—			—
Loss from impairment of private held companies		—			—			0.09			—			—			0.09			—			—
Income tax adjustment		0.00			0.00			0.78			(0.01	)		(0.09	)		0.68			(0.81	)		(0.16	)
Loss from equity method investments		0.00			0.01			0.01			0.01

SolarEdge Announces First Quarter 2025 Financial Results