What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-08 compared with 2024-11-07 · 300 added, 520 removed, 490 unchanged (63% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

September 30,

CURRENT ASSETS:

Cash and cash equivalents

Restricted cash

Marketable securities

5 unchanged sentences

Marketable securities

Deferred tax assets, net

Property, plant and equipment, net

1 unchanged sentence

Intangible assets, net

Loan receivables, net

Other long-term assets

1 unchanged sentence

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Cont.)

| 2025 Form 10-Q | F - 1

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEET S (Unaudited) (Cont.)

(in thousands, except per share data)

September 30,

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Trade payables, net

Trade payables

Employees and payroll accruals

16 unchanged sentences

125,000,000 shares;

57,935,436 shares at September 30, 2024 and 57,123,437 shares at December 31, 2023;

57,182,072 shares at September 30, 2024 and 57,123,437 shares at December 31, 2023.

59,043,817 shares on

March 31, 2025 and 58,780,490 shares on December 31, 2024;

58,290,453 shares on

March 31, 2025 and 58,027,126 shares on December 31, 2024.

Additional paid-in capital

2 unchanged sentences

Accumulated other comprehensive loss

Retained earnings (Accumulated deficit)

Accumulated deficit

Total stockholders’ equity

2 unchanged sentences

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited)

| 2025 Form 10-Q | F - 2

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Unaudited)

(in thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

Cost of revenues

6 unchanged sentences

Total operating expenses

Operating income (loss)

Operating loss

Financial income (expense), net

Other income (loss), net

Income (loss) before income taxes

Other income, net

Loss before income taxes

Tax benefits (income taxes)

Net loss from equity method investments

Net income (loss)

Net basic earnings (loss) per share of common stock

Net diluted earnings (loss) per share of common stock

Weighted average number of shares used in computing net basic earnings (loss) per share of common stock

Weighted average number of shares used in computing net diluted earnings (loss) per share of common stock

Net basic and diluted loss per share of common stock

Weighted average number of shares used in computing net basic and diluted loss per share of common stock

The accompanying notes are an integral part of the condensed consolidated financial statements.

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

| 2025 Form 10-Q | F - 3

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)

(in thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

Net income (loss)

Other comprehensive income (loss), net of tax:

4 unchanged sentences

Total other comprehensive income (loss)

Comprehensive income (loss)

Comprehensive loss

The accompanying notes are an integral part of the condensed consolidated financial statements.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 4

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

3 unchanged sentences

other comprehensive

Retained earnings (Accumulated deficit)

Accumulated deficit

Balance as of January 1, 2025

1 unchanged sentence

Stock based compensation

Repurchase of common stock

Other comprehensive loss adjustments

Balance as of March 31, 2024

Issuance of common stock upon exercise of stock-based awards

Issuance of common stock under employee stock purchase plan

Stock based compensation

Repurchase of common stock

Capped call transactions related to notes 2029

Other comprehensive loss adjustments

Balance as of June 30, 2024

Issuance of common stock upon exercise of stock-based awards

Stock based compensation

Capped call transactions related to notes 2029

Other comprehensive gain adjustments

Balance as of September 30, 2024

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

(in thousands, except per share data)

Balance as of March 31, 2025

Additional paid in

Treasury stock

other comprehensive

3 unchanged sentences

Stock based compensation

Repurchase of common stock

Other comprehensive loss adjustments

Balance as of March 31, 2024

Issuance of common stock upon exercise of stock-based awards

Issuance of common stock under employee stock purchase plan

Stock based compensation

Other comprehensive loss adjustments

Balance as of June 30, 2023

Issuance of common stock upon exercise of stock-based awards

Stock based compensation

Other comprehensive loss adjustments

Balance as of September 30, 2023

* Represents an amount less than $1.

1 unchanged sentence

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 5

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands, except per share data)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities:

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

Provision to write down inventories to net realizable value

Loss on impairment and disposal of property, plant and equipment

Stock-based compensation expenses

Impairment of goodwill and intangible assets

Deferred income taxes, net

Gain from repurchasing of convertible notes

Loss (gain) from exchange rate fluctuations

4 unchanged sentences

Operating lease right-of-use assets, net

Trade payables, net

Trade payables

Warranty obligations

1 unchanged sentence

Operating lease liabilities

Accrued expenses and other liabilities, net

Net cash used in operating activities

Accrued expenses and other liabilities

Net cash provided by (used in) operating activities

Cash flows from investing activities:

1 unchanged sentence

Proceeds from maturities of available-for-sale marketable securities

Proceeds from sales of available-for-sale marketable securities

Purchase of property, plant and equipment

Business combinations, net of cash acquired

Purchase of intangible assets

Repayment related to governmental grant

Disbursements for loans receivables

Investment in privately-held companies

Proceeds from loan receivables

Other investing activities

Net cash provided by (used in) investing activities

Net cash provided by investing activities

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Cont.)

| 2025 Form 10-Q | F - 6

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands, except per share data)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from financing activities:

Repurchase of common stock

Partial repurchase of Notes 2025

Proceeds from issuance of Notes 2029, net of issuance costs

Capped call transactions related to Notes 2029

Tax withholding in connection with stock-based awards, net

Payments on account of repurchase of common stock

Repurchase of convertible debt

Other financing activities

Net cash used in financing activities

Effect of exchange rate differences on cash and cash equivalents

Decrease in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

Effect of exchange rate changes on cash, cash equivalents and restricted cash

Increase (decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash, beginning of period

Cash, cash equivalents and restricted cash, end of period

Supplemental disclosure of non-cash activities:

Purchase of intangible assets and business combinations

Right-of-use asset recognized with a corresponding lease liability

1 unchanged sentence

The accompanying notes are an integral part of the condensed consolidated financial statements.

The following table reconciles cash, cash equivalents and restricted cash per the statement of cash flows to the balance sheet:

Three Months Ended

Cash and cash equivalents

Restricted cash

Cash, cash equivalents and restricted cash, end of period

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 7

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1 unchanged sentence

SolarEdge Technologies Inc.

(the “Company”) and its subsidiaries design, develop, and sell an intelligent inverter solution designed to maximize power generation at the individual photovoltaic (“PV”) module level while lowering the cost of energy produced by the solar PV system and providing comprehensive and advanced safety features.

The Company’s products consist mainly of (i) power optimizers designed to maximize energy throughput from each and every module through constant tracking of Maximum Power Point individually per module, (ii) inverters which invert direct current ("DC") from the PV module to alternating current ("AC") including the Company’s future ready Energy Hub inverter which supports, among other things, connection to a DC-coupled battery for full or partial home backup capabilities, and optional connection to the Company's smart EV charger, (iii) a remote cloud-based monitoring platform, that collects and processes information from the power optimizers and inverters to enable customers and system owners, to monitor and manage the solar PV system (iv) batteries for PV applications that are used to increase energy independence and maximize self-consumption for PV system's owners including a battery and (v) additional smart energy management solutions.

(the “Company”) and its subsidiaries design, develop, and sell intelligent inverter solutions designed to maximize power generation at the individual photovoltaic ("PV") module level while lowering the cost of energy produced by the solar PV system and providing comprehensive and advanced safety features.

The Company’s products consist mainly of (i) power optimizers designed to maximize energy throughout each and every module through constant tracking of maximum power points individually per module, (ii) inverters which invert direct current (“DC”) from the PV module to alternating current (“AC”) including the Company’s future ready Energy Hub inverter which supports, among other things, connection to a DC-coupled battery for full or partial home backup capabilities, and optional connection to the Company's smart EV charger, (iii) a remote cloud-based monitoring platform, that collects and processes information from the power optimizers and inverters to enable customers and system owners, to monitor and manage the solar PV system (iv) batteries for PV applications that are used to increase energy independence and maximize self-consumption for PV system's owners including a battery and (v) additional smart energy management solutions.

The Company and its subsidiaries sell products worldwide through large distributors, electrical equipment wholesalers, as well as directly to large solar installers and engineering, procurement, and construction firms.

The Company has expanded its activity to other areas of smart energy technology organically and through acquisitions.

The Company offers a variety of energy solutions, which include lithium-ion cells, batteries, and energy storage systems (“Energy Storage”), automated machines for industrial use (“Automation Machines”), as well as cloud-based energy management solutions.

Basis of Presentation:

8 unchanged sentences

Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties.

In accordance with ASC 360-10, the Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that long-lived assets may be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets.

During the third quarter of 2024, the Company's share price continued to deteriorate and a major slowdown in operations occurred, leading the Company to perform an impairment test.

For detailed information on impairments related to long-lived assets, refer to Notes 7 and 8.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 8

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

3 unchanged sentences

Reliance on these vendors makes the Company vulnerable to possible capacity constraints and reduced control over component availability, delivery schedules, manufacturing yields, and costs.

As of September 30, 2024 none of the Company's contract manufacturers account for more than 10% of the Company’s total trade payables, net.

As of December 31, 2023, two contract manufacturers collectively accounted for 58.5 % of the Company’s total trade payables, net.

The Company's own manufacturing facility, Sella 1, located in the North of Israel, is primarily used in the Company's Solar segment operations.

Additionally, Sella 2, a Company owned manufacturing facility in South Korea, together with a smaller Company owned facility, are used for the Energy Storage segment.

As of March 31, 2025 two contract manufacturers jointly accounted for 64.3 % of the Company’s total trade payables.

As of December 31, 2024, two contract manufacturers jointly accounted for 43.4 % of the Company’s total trade payables.

The Company's own manufacturing facility, Sella 1, located in the North of Israel, is used in the Company' ongoing operations.

New accounting standards updates:

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures” (“ASU 2023-07”).

Additional segment reporting information required by ASU 2023-07 includes:

disclosing the title and position of the individual or the name of the group or committee identified as the CODM, provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually, and additional disclosures regarding significant segment expenses.

ASU 2023-07 is effective for fiscal periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Since ASU 2023-07 addresses only disclosures, the adoption of ASU 2023-07 is not expected to have a significant impact on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

5 unchanged sentences

Since ASU 2023-09 addresses only disclosures, the adoption of ASU 2023-09 is not expected to have a significant impact on its consolidated financial statements.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

BUSINESS COMBINATIONS

In January 2023, the Company completed an investment of $ 5,500 in the common stock of Weev Energy B.F.

Ltd., ("Wevo"), an Israel-based software startup, specializing in EV charging optimization and management for sites with large quantities of EV chargers, which represented 34.8 % of Wevo's outstanding shares.

Wevo's solution will also be part of the SolarEdge ONE energy optimization system for the Commercial and Industrial ("C&I") segment, designed to offer SolarEdge customers a single energy optimization solution that orchestrates and integrates between on-site solar generation, battery storage and large-scale EV charging.

On April 1, 2024, the Company completed the acquisition of all remaining outstanding shares of Wevo for approximately $ 13,331 in cash.

Pursuant to ASC 805, "Business Combination", the Company accounted for the Wevo acquisition as a business combination using the acquisition method of accounting.

Identifiable assets and liabilities of Wevo, including identifiable intangible assets, were recorded based on their estimated fair values as of the date of the closing of the acquisition.

The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill.

The Company recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date.

Such preliminary valuation required estimates and assumptions including, but not limited to, estimating future cash flows and direct costs in addition to developing the appropriate discount rates and current market profit margins.

The Company’s management believes the fair values recognized for the assets acquired and the liabilities assumed were based on reasonable estimates and assumptions.

From the initial investment through to the purchase of all remaining shares, the Company's share of net losses were $ 646 .

The fair value of the original investment was determined by multiplying the total fair value of Wevo, as outlined below, by the Company's 34.8 % ownership stake and applying a discount to account for lack of control.

The Company determined that the acquisition date fair value of the original investment on April 1, 2024 was $ 5,979 , resulting in a gain of $ 1,125 .

The following table summarizes the preliminary fair values estimation of assets acquired and liabilities assumed as of the date of the acquisition:

Weighted Average Useful Life (In years)

Net liabilities assumed

Identified intangible assets:

Customer relationships

Acquisition costs were immaterial and are included in general and administrative expenses in the consolidated statements of income (loss).

Goodwill generated from this acquisition was primarily attributable to expected post-acquisition synergies from combining Wevo's platform with the Company's product offering to its commercial and industrial customers.

All of the Goodwill was assigned to the Solar segment (see Note 24).

Goodwill is not deductible for tax purposes.

The fair values of technology, customer relationships and trade name were derived by applying the multi-period excess earnings method, with-and-without method, and the relief-from-royalty method, respectively, all of which are under the income approach whose underlying inputs are considered Level 3.

The fair values assigned to assets acquired and liabilities assumed were based on management's estimates and assumptions.

The results of Wevo have been included in the Company's consolidated statements of income (loss) since its acquisition date and are not material.

Pro forma financial information has not been presented because the impact of the acquisition was not material to the Company's statements of income (loss).

In November 2024, the FASB issued ASU 2024-03, “Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40):

“Disaggregation of Income (loss) Statement Expenses” (“ASU 2024-03”).

ASU 2024-03 requires disaggregation of certain costs and expenses included in each relevant expense caption on the Company's consolidated income (loss) statements in a separate note to the financial statements at each interim and annual reporting period, including amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization.

ASU 2024-04 is effective fiscal years beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The Company is currently evaluating the impact from ASU 2024-03 on its consolidated financial statements disclosures.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

INVESTMENTS IN PRIVATELY-HELD COMPANIES

In January 2024, the Company completed an investment of $ 6,075 in the preferred stock of Ivy Energy, Inc, ("Ivy"), a privately-held U.S.

The Company accounted for the Ivy investment as an equity investment that does not have readily determinable fair values.

As such, the Company’s non-marketable equity securities had a carrying value of $ 6,075 as of September 30, 2024.

As of March 2024, the Company completed an investment of $ 5,000 in the preferred stock of Stardust Solution, Inc, ("Stardust"), a privately-held U.S.

The Company accounted for the Stardust investment as an equity investment that does not have a readily determinable fair market value.

In April 2024, the Company completed an investment of approximately $ 17,000 in the preferred stock of Ampeers Energy GmbH ("Ampeers"), a privately-held German company, which represented 28.23 % of Ampeers' outstanding shares.

The Company accounted for its investment in Ampeers using the equity method of accounting.

Under this method, the investment, which was initially recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the investee as they occur, rather than when dividends or other distributions are received.

Investments in privately-held companies are included within other long-term assets in the condensed consolidated balance sheets.

As of September 30, 2024 and December 31, 2023 the carrying value of investments in privately-held companies was $ 22,574 and $ 7,650 , respectively.

In September 2024, the Company impaired its investment in Stardust in the amount of $ 5,000 .

This impairment was recorded under Other income (loss), net in the consolidated statements of income (loss).

There were no impairment charges for the three and nine months ended September 30, 2023 associated with these equity investments.

| 2025 Form 10-Q | F - 9

SOLAREDGE TECHNOLOGIES INC.

2 unchanged sentences

MARKETABLE SECURITIES

The following is a summary of available-for-sale marketable securities as of September 30, 2024:

Amortized cost

Gross unrealized gains

Gross unrealized losses

The following is a summary of available-for-sale marketable securities as of March 31, 2025:

Gross unrealized

Matures within one year:

7 unchanged sentences

The following is a summary of available-for-sale marketable securities as of December 31, 2024:

Amortized cost

Gross unrealized gains

Gross unrealized losses

Gross unrealized

Matures within one year:

2 unchanged sentences

Government agency securities

Government securities

Matures after one year:

Corporate bonds

Treasury securities

Government agency securities

Government securities

Proceeds from sales of available-for-sale marketable securities during the three months ended September 30, 2024 were $ 18,724 which led to realized gains of $ 777 .

The Company did not sell any available-for-sale marketable securities during the three months ended September 30, 2023.

Proceeds from sales of available-for-sale marketable securities during the nine months ended September 30, 2024 and 2023 were $ 70,642 and $ 2,807 , which led to realized gains of $ 2,747 and losses of $ 125 , respectively.

As of September 30, 2024, and December 31, 2023, the Company did not record an allowance for credit losses for its available-for-sale marketable securities.

The Company did not sell any available-for-sale marketable securities during the three months ended March 31, 2025 and 2024.

As of March 31, 2025, and December 31, 2024, the Company did not record an allowance for credit losses for its available-for-sale marketable securities.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 10

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1 unchanged sentence

INVENTORIES, NET

September 30,

Raw materials

2 unchanged sentences

Total inventories, net

The Company records inventory write-downs for excess or obsolete inventory or when it believes that the net realizable value of inventory is less than its carrying value.

As of September 30, 2024, the Company examined its current inventory balances, analyzed inventory in its channels and evaluated future installation rates.

The Company concluded that significant write-downs are necessary, primarily due to slowdown in the Company's products demand, excess inventory in the channels, repeated price reductions and the introduction of a new generation of products.

The Company records write-downs under Cost of revenues, in the consolidated statements of income (loss).

During the three and nine months ended September 30, 2024, the Company recorded write-downs of $ 627,905 and $ 638,966 , respectively.

During the three and nine months ended September 30, 2023, the Company recorded write-downs of $ 8,728 and $ 20,674 , respectively.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

September 30,

Government authorities

Vendor non-trade receivables 1

Government authorities 2

Loan receivables, net

Assets held for sale

Total prepaid expenses and other current assets

2 unchanged sentences

The Company does not reflect the sale of these components to the contract manufacturers in its revenues.

2 Loan receivables are loans to third parties.

The loan repayments are expected on a monthly or annual basis as per the contractual terms of each loan agreement.

The loan is measured at its amortized cost and is subjected to the Company's credit risk policy.

The loans bear interest that represents market interest rate.

As of September 30, 2024, the Company's provision for credit loss was $ 11,578 which was recorded under Financial income (expense), net.

The amortized cost of the loan receivable approximates its fair value as of September 30, 2024.

As of September 30, 2024 and December 31, 2023 the Company granted loans to a customer in the amounts of $ 80,000 and $ 43,000 , respectively.

Considering the loan amounts, the customer's balance would potentially expose the Company to a concentration of credit risk.

See Note 10 for more information regarding the long-term portion of the loan.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

PROPERTY, PLANT AND EQUIPMENT, NET

September 30,

Buildings and plants

Computers and peripheral equipment

Office furniture and equipment

Laboratory and testing equipment

Machinery and equipment

Leasehold improvements

Assets under construction and payments on account

Gross property, plant and equipment

Less - accumulated depreciation

Total property, plant and equipment, net

The Company evaluates the recoverability of the carrying amount of its property, plant and equipment when events or circumstances indicate the carrying amount of an asset or asset group may not be recoverable.

If the Company determines the carrying amount of an asset or asset group is not recoverable based upon the expected undiscounted future cash flows of the asset or asset group, an impairment loss is recorded equal to the excess of the carrying amounts over the estimated fair values of the property, plant and equipment.

During the third quarter of 2024, the Company identified certain conditions in which, events or changes in circumstances indicated that the carrying value of certain long-lived assets may not be recoverable and as a result conducted impairment assessments.

Upon completion of such assessments, the Company disposed by abandonment and impaired certain property, plants and equipment, including but not limited to, machinery, buildings, plants, and assets under construction in the Solar and Energy Storage asset groups.

During the three and nine months ended September 30, 2024, the Company recorded impairment and abandonment by disposal of property, plant and equipment in the amount of $ 204,888 and $ 206,620 , respectively, under Other operating expense (income), net in the consolidated statements of income (loss) section.

Depreciation expenses for the three months ended September 30, 2024 and 2023, were $ 13,965 and $ 12,627 , respectively.

Depreciation expenses for the nine months ended September 30, 2024, and 2023, were $ 40,464 and $ 36,118 , respectively.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

INTANGIBLE ASSETS, NET

In September 2024, an impairment test for the Solar and Energy Storage asset group's long-lived assets was performed.

The test included comparing the sum of the estimated undiscounted future cash flow attributable to the identified assets group and its carrying amounts, and recognizing an impairment for the amount to which the carrying amount exceeds the fair value of the assets groups.

The Company impaired and disposed intangible assets in the amount of $ 22,474 , which mainly relates to patents and licenses under the Solar asset group that are no longer relevant for the Company's continued and future operations, and technology related to the Energy Storage asset group.

Acquired intangible assets consisted of the following as of September 30, 2024, and December 31, 2023:

September 30,

Intangible assets with finite lives:

Customer relationships

Assembled workforce

Patents and licenses

Gross intangible assets

Less - accumulated amortization

Total intangible assets, net

For the three months ended September 30, 2024 and 2023, the Company recorded amortization expenses related to intangible assets in the amount of $ 2,823 and $ 2,663 , respectively.

For the nine months ended September 30, 2024 and 2023, the Company recorded amortization expenses related to intangible assets in the amount of $ 6,751 and $ 5,901 , respectively.

Expected future amortization expenses of intangible assets as of September 30, 2024 are as follows:

2029 and thereafter

2 I ncluding (1) Advanced Manufacturing Production Tax Credits (“AMPTC”), which incentivize the production of eligible components within the U.S.

under IRC Section 45X, (2) income tax receivables and (3) value-added tax receivables from tax authorities.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

Goodwill is assessed annually for impairment in the fourth quarter of each year and is examined between annual tests if events or circumstances arise that indicate that the carrying amount may be impaired.

In light of impairment indicators which include, among other factors, a sustained decline in the Company's stock price and, as a result, the Company's market capitalization, the Company decided to conduct an impairment test as of September 30, 2024.

The fair value of the reporting units was estimated using a discounted cash flow analysis.

When performing this analysis, the Company also considered multiples of earnings from comparable public companies.

The Company performed a qualitative assessment of its Energy Storage reporting unit in order to determine whether it was necessary to conduct the quantitative goodwill impairment test.

Based on the results of this assessment, the Company acknowledged that it was more likely than not, that the fair value of said reporting unit is lower than its carrying value, and as such a quantitative goodwill impairment test was performed.

Based on the results of the quantitative test, the Energy Storage reporting unit's goodwill was impaired in its entirety.

This goodwill impairment was recorded under Other operating expense (income), net in the consolidated statements of income (loss) section.

The Solar reporting unit was also examined.

As a result of such quantitative testing, the Company determined that its fair value exceeds its carrying amount, and therefore no impairment was recorded.

Changes in the carrying amount of goodwill for the period ended September 30, 2024 were as follows:

Energy Storage

Goodwill at December 31, 2023

Changes during the year:

Accumulated impairment losses

Foreign currency adjustments

Goodwill at September 30, 2024

For the three and nine months ended September 30, 2024, the Company recorded goodwill impairment losses in the amount of $ 2,251 .

The Company did not record any goodwill impairment losses for the three and nine months ended September 30, 2023.

As of September 30, 2024 and December 31, 2023 accumulated goodwill impairment amounted to $ 92,355 and $ 90,104 , respectively.

| 2025 Form 10-Q | F - 11

SOLAREDGE TECHNOLOGIES INC.

2 unchanged sentences

OTHER LONG TERM ASSETS

September 30,

Loan receivables

Cloud computing arrangements

Severance pay fund

Investments in privately held companies

Severance pay fund

Prepaid expenses and other

1 unchanged sentence

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 12

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1 unchanged sentence

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

During the nine months ended September 30, 2024, the Company instituted a foreign currency cash flow hedging program to reduce the risk of a forecasted increase in the value of foreign currency cash flows, resulting from payment of salaries in Israeli currency, the New Israeli Shekels (“NIS”).

During the three months ended March 31, 2025, the Company instituted a foreign currency cash flow hedging program to reduce the risk of a forecasted increase in the value of foreign currency cash flows, resulting from payment of salaries in Israeli currency, the New Israeli Shekels (“NIS”).

The Company hedges portions of the anticipated payroll denominated in NIS for a period of one to nine months with hedging contracts.

These hedging contracts are designated as cash flow hedges, as defined by ASC 815 and are all effective hedges.

As of September 30, 2024, the Company entered into forward contracts and put and call options to sell U.S.

dollars (“USD”) both, in the amounts of NIS 148 million.

As of March 31, 2025, the Company entered into forward contracts and put and call options to sell U.S.

dollars (“USD”) in the amounts of NIS 44 million and NIS 74 million, respectively.

In addition to the above-mentioned cash flow hedge transactions, the Company occasionally enters into derivative instrument arrangements to hedge the Company’s exposure to currencies other than USD.

These derivative instruments are not designated as cash flow hedges, as defined by ASC 815, and therefore all gains and losses, resulting from fair value remeasurement, were recorded immediately in the statement of income (loss), under "Financial income (expense), net".

The Company classifies cash flows related to its hedging as operating activities in its condensed consolidated statement of cash flows.

1 unchanged sentence

Balance sheet location

September 30,

Derivative assets of options and forward contracts:

1 unchanged sentence

Prepaid expenses and other current assets

Non-designated hedges

Prepaid expenses and other current assets

Total derivative assets

Derivative liabilities of options and forward contracts:

Designated cash flow hedges

Accrued expenses and other current liabilities

Gains (losses) on derivative instruments are summarized below:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Affected line item

1 unchanged sentence

Non Designated Hedging Instruments

Condensed Consolidated Statements of Income (loss) - Financial income (expense), net

Condensed Consolidated Statements of Loss - Financial income (expense), net

Designated Hedging Instruments

Condensed Consolidated Statements of Comprehensive Income (loss) - Cash flow hedges

Condensed Consolidated Statements of Comprehensive Loss - Cash flow hedges

See Note 15 for information regarding losses from designated hedging instruments reclassified from accumulated other comprehensive loss.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 13

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

4 unchanged sentences

Marketable securities and foreign currency derivative contracts are classified within level 2 due to these assets being valued by alternative pricing sources and models utilizing market observable inputs.

The following table sets forth the Company’s assets that were measured at fair value as of September 30, 2024 and December 31, 2023, by level within the fair value hierarchy:

The following table sets forth the Company’s assets that were measured at fair value as of March 31, 2025 and December 31, 2024, by level within the fair value hierarchy:

Fair value measurements as of

Fair Value Hierarchy

September 30,

Cash and cash equivalents:

Money market mutual funds

Restricted cash

Derivative instruments

6 unchanged sentences

Corporate bonds

Treasury securities

Government agency securities

Government securities

In addition to assets and liabilities that are recorded at fair value on a recurring basis, impairment indicators may subject goodwill and long-lived assets to nonrecurring fair value measurements.

The implied fair values of the Solar and Energy Storage reporting units were estimated using the discounted cash flow approach (see Notes 8 and 9).

The inputs to these models are considered Level 3.

Derivative instruments

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 14

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

WARRANTY OBLIGATIONS

Changes in the Company’s product warranty obligations for the three and nine months ended September 30, 2024 and 2023, were as follows:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Changes in the Company’s product warranty obligations for the three months ended March 31, 2025 and 2024, were as follows:

Three Months Ended March 31,

Balance, at the beginning of the period

5 unchanged sentences

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 15

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

4 unchanged sentences

Changes in the balances of deferred revenues and customer advances during the period are as follows:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Three Months Ended March 31,

Balance, at the beginning of the period

4 unchanged sentences

Long term portion

The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2024:

The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2025:

Total deferred revenues

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

September 30,

Accrued expenses

4 unchanged sentences

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 16

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

28 unchanged sentences

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 17

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

9 unchanged sentences

The Company also used approximately $ 267,900 of the net proceeds from this offering to repurchase $ 285,000 principal amount of its Notes 2025.

The Company recorded under other income a gain of $ 15,456 from the repurchase of Notes 2025.

In June 2025, the Company recorded under other income a gain of $ 15,456 from the repurchase of Notes 2025.

The Company accounts for the Notes 2029 at amortized cost, as a single unit of account on the balance sheet.

11 unchanged sentences

The additional Notes 2029 were sold pursuant to the Initial Purchasers’ exercise of the option granted by the Company to the Initial Purchasers to purchase additional Notes 2029, solely to cover over-allotments, under the purchase agreement described in the Company's Form 8-K filed on June 28, 2024.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 18

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

The net proceeds from the exercise of the option granted by the Company to the Initial Purchasers of the Notes 2029 were approximately $ 36,237 , after deducting fees and estimated expenses.

2 unchanged sentences

The Company intends to use the remainder of the net proceeds from the offering for general corporate purposes.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

The convertible senior notes consisted of the following as of September 30, 2024 and December 31, 2023:

September 30,

In March 2025 the Company repurchased $ 5,250 principal amount of its Notes 2025.

The Company recorded a net gain of $ 146 , under other income, net, from the repurchase.

The convertible senior notes consisted of the following as of March 31, 2025 and December 31, 2024:

Unamortized issuance costs

3 unchanged sentences

Total notes carrying amount

Costs related to the Notes 2025 and the Notes 2029 for the three and nine months ended September 30, 2024 were as follows:

Costs related to the Notes 2025 and the Notes 2029 for the three months ended March 31, 2025 and March 31, 2024 were as follows:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Debt issuance cost

1 unchanged sentence

Contractual interest expense

As of September 30, 2024, the unamortized issuance costs of the Notes 2025 and Notes 2029 will be amortized over the remaining term of approximately 1 and 4.8 years, respectively.

The annual effective interest rate of Notes 2025 and Notes 2029 is 0.47 %.

As of March 31, 2025, the unamortized issuance costs of the Notes 2025 and Notes 2029 will be amortized over the remaining term of approximately 6 months and 4.3 years, respectively.

The annual effective interest rates of the Notes 2025 and the Notes 2029 are 0.47 %.

and 2.75 %, respectively.

As of September 30, 2024, the estimated fair value of Notes 2025 and Notes 2029, which the Company has classified as Level 2 financial instruments, is $ 324,044 and $ 306,633 , respectively.

The estimated fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period.

As of September 30, 2024, the if-converted value of the Notes 2025 and Notes 2029 did not exceed the principal amount.

As of March 31, 2025, the estimated fair values of Notes 2025 and Notes 2029, both of which the Company has classified as Level 2 financial instruments, are $ 331,983 and $ 279,973 , respectively.

The estimated fair values were determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period.

As of March 31, 2025, the if-converted value of the Notes 2025 and Notes 2029 did not exceed the principal amount.

OTHER LONG TERM LIABILITIES

Tax liabilities

Long term accrued expenses

Accrued severance pay

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 19

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

6 unchanged sentences

The 2007 Plan terminated upon the Company’s IPO on March 31, 2015 and no further awards may be granted thereunder.

All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grants were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan.

All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grants were transferred to the Company’s Amended and Restated 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 Plan.

The 2015 Plan became effective upon the consummation of the IPO.

The 2015 Plan provides for the grant of options, restricted stock units (“RSU”), performance stock units (“PSU”), and other share-based awards to directors, employees, officers, and non-employees of the Company and its subsidiaries.

As of September 30, 2024, a total of 23,709,926 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”), an aggregate of 12,392,004 shares are still available for future grants.

As of March 31, 2025, a total of 26,648,950 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”), an aggregate of 13,058,763 shares are still available for future grants.

The Share Reserve will automatically increase on January 1 st of each year during the term of the 2015 Plan, commencing on January 1 st of the year following the year in which the 2015 Plan becomes effective, in an amount equal to 5 % of the total number of shares of capital stock outstanding on December 31 st of the preceding calendar year;

1 unchanged sentence

Under its 2015 Plan, the Company granted PSU awards to certain employees and officers which vest upon the achievement of certain performance or market conditions subject to their continued employment with the Company.

The market condition for the PSUs is based on the Company’s share price target or total shareholder return ("TSR") compared to the TSR of companies listed in the S&P 500 index over a one to three year performance period.

The market condition for the PSUs is based on either the Company’s share price target or total shareholder return (“TSR”) compared to the TSR of companies listed in the S&P 500 index over a two to three year performance period or the 30-day successive average trading price of the Company’s common stock, and are subject to a three-year vesting period.

The Company uses a Monte-Carlo simulation to determine the grant date fair value for these awards, which takes into consideration the market price of a share of the Company’s common stock on the date of grant less the present value of dividends expected during the requisite service period, as well as the possible outcomes pertaining to the TSR market condition.

1 unchanged sentence

The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is 10,000,000 .

As of September 30, 2024, an aggregate of 8,617,974 options are still available for future grants under the 2015 Plan.

As of March 31, 2025, an aggregate of 8,617,974 options are still available for future grants under the 2015 Plan.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 20

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

6 unchanged sentences

Outstanding as of December 31, 2024

Forfeited or expired

Outstanding as of September 30, 2024

Vested and expected to vest as of September 30, 2024

Exercisable as of September 30, 2024

The intrinsic value is the amount by which the closing price of the Company’s common stock on September 30, 2024 or the price on the day of exercise exceeds the exercise price of the stock options multiplied by the number of in-the-money options.

A summary of the activity in the RSUs and related information is as follows:

Number of RSUs

Outstanding as of March 31, 2025

Vested and expected to vest as of March 31, 2025

Exercisable as of March 31, 2025

The intrinsic value is the amount by which the closing price of the Company’s common stock on March 31, 2025 or the price on the day of exercise exceeds the exercise price of the stock options multiplied by the number of in-the-money options.

A summary of the activity in the RSUs and PSUs and related information is as follows

Weighted average grant date fair value

Unvested as of December 31, 2023

Unvested as of September 30, 2024

A summary of the activity in the PSUs and related information is as follows:

Number of PSUs

Weighted average grant date fair value

Unvested as of December 31, 2024

Unvested as of September 30, 2024

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

Unvested as of March 31, 2025

Employee Stock Purchase Plan ("ESPP"):

The Company adopted an ESPP effective upon the consummation of the IPO.

As of September 30, 2024, a total of 4,638,023 shares were reserved for issuance under this plan.

As of March 31, 2025, a total of 5,125,666 shares were reserved for issuance under this plan.

The number of shares of common stock reserved for issuance under the ESPP will increase automatically on January 1 st of each year, for ten years, by the lesser of 1 % of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or 487,643 shares.

3 unchanged sentences

The price of an ordinary share purchased under the ESPP is equal to 85 % of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date.

As of September 30, 2024, 1,183,310 shares of common stock have been purchased under the ESPP.

As of September 30, 2024, 3,454,713 shares of common stock were available for future issuance under the ESPP.

As of March 31, 2025, 1,798,312 shares of common stock have been purchased under the ESPP.

As of March 31, 2025, 3,327,354 shares of common stock were available for future issuance under the ESPP.

In accordance with ASC No.

718, the ESPP is compensatory and, as such, results in recognition of compensation cost.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 21

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

Stock-based compensation expenses:

The Company recognized stock-based compensation expenses related to all stock-based awards in the consolidated statement of income (loss) for the three and nine months ended September 30, 2024, and 2023, as follows:

The Company recognized stock-based compensation expenses related to all stock-based awards in the condensed consolidated statement of loss for the three months ended March 31, 2025, and 2024, as follows:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Stock-based compensation expenses:

1 unchanged sentence

Research and development

Sales and marketing

Selling and marketing

General and administrative

3 unchanged sentences

Total stock-based compensation capitalized

The Company did not recognize any tax benefits realized with stock-based compensation for the three and nine months ended September 30, 2024.

The total tax benefit associated with stock-based compensation for the three months ended September 30, 2023 was $ 3,124 .

The tax benefit realized from stock-based compensation for the three months ended September 30, 2023 was $ 1,589 .

The total tax benefit associated with stock-based compensation for the nine months ended September 30, 2023 was $ 11,422 .

The tax benefit realized from stock-based compensation for the nine months ended September 30, 2023 was and $ 7,050 .

For the three months ended March 31, 2025 no amounts were recorded in regard to tax benefits associated with share-based compensation.

The total tax benefit associated with share-based compensation for the three months ended March 31, 2024 was $ 5,366 .

The tax benefit realized from share-based compensation for three months ended March 31, 2024 was $ 1,341 .

As of March 31, 2025, there were total unrecognized compensation expenses in the amount of $ 197,511 related to non-vested equity-based compensation arrangements granted.

These expenses are expected to be recognized during the period from April 1, 2025 through May 31, 2029.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

As of September 30, 2024, there were total unrecognized compensation expenses in the amount of $ 264,268 related to non-vested equity-based compensation arrangements granted.

These expenses are expected to be recognized during the period from October 1, 2024, through August 31, 2028.

Repurchase of Common Stock:

On November 1, 2023, the Company announced the approval by the Board of Directors of a share repurchase program which authorizes the repurchase of up to $ 300,000 of the Company’s common stock.

Under the share repurchase program, repurchases can be made using a variety of methods, which may include open market purchases, block trades, privately negotiated transactions, accelerated share repurchase programs and/or a non-discretionary trading plan or other means, including through 10b5-1 trading plans, all in compliance with the rules of the SEC and other applicable legal requirements.

The timing, manner, price and amount of any common share repurchases under the share repurchase program are determined by the Company in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions.

The program does not obligate the Company to acquire any amount of common stock, it may be suspended, extended, modified, discontinued or terminated at any time at the Company’s discretion without prior notice, and will expire on December 31, 2024.

During the nine months ended September 30, 2024, the Company repurchased 753,364 shares of common stock from the open market at an average cost of $ 66.79 per share for a total of $ 50,315 .

| 2025 Form 10-Q | F - 22

SOLAREDGE TECHNOLOGIES INC.

2 unchanged sentences

COMMITMENTS AND CONTINGENT LIABILITIES

As of September 30, 2024, contingent liabilities exist regarding guarantees in the amounts of $ 10,871 , and $ 1,502 in respect of office rent lease agreements and other transactions, respectively.

As of March 31, 2025, contingent liabilities exist regarding guarantees in the amounts of $ 102,644 , $ 10,806 and $ 1,540 , for each of securing projects with customers, office rent lease agreements, and other transactions, respectively.

Contractual purchase obligations:

2 unchanged sentences

In addition, the Company acquires raw materials or other goods and services, including product components, by issuing authorizations to its suppliers to purchase materials based on its projected demand and manufacturing needs.

As of September 30, 2024, the Company had non-cancellable purchase obligations totaling approximately $ 443,830 , out of which the Company recorded a provision for loss in the amount of $ 46,617 .

As of September 30, 2024, the Company had contractual obligations for capital expenditures totaling approximately $ 18,452 .

As of March 31, 2025, the Company had non-cancellable purchase obligations totaling approximately $ 234,017 , out of which the Company recorded a provision for loss in the amount of $ 25,811 .

As of March 31, 2025, the Company had contractual obligations for capital expenditures totaling approximately $ 32,432 .

These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s general manufacturing process and are primarily for its new manufacturing sites in the U.S.

4 unchanged sentences

These accruals are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter.

On November 3, 2023, Daphne Shen, a purported stockholder of the Company, filed a proposed class action complaint for violation of federal securities laws, individually and punitively on behalf of all others similarly situated, in the U.S.

District Court of the Southern District of New York against the Company, the Company’s CEO and the Company’s CFO.

On November 3, 2023, Daphne Shen, a purported stockholder of the Company, filed a proposed class action complaint for violation of federal securities laws, individually and putatively on behalf of all others similarly situated, in the U.S.

District Court of the Southern District of New York against the Company, the Company’s former CEO and the Company’s former CFO.

The complaint alleges violations of Section 10(b) and Rule 10b-5 of the Exchange Act, as well as violations of Section 20(a) of the Exchange Act against the individual defendants.

1 unchanged sentence

On December 13, 2023, Javier Cascallar filed a similar proposed class action.

On January 2, 2024, six purported lead plaintiffs filed motions in the Shen litigation seeking to consolidate the Cascallar and Shen litigations and appoint lead plaintiffs and lead counsel pursuant to the procedures of the Private Securities Litigation Reform Act of 1995.

On February 7, 2024, the Court consolidated the two actions (the “Consolidated Securities Litigation”), and appointed co-lead plaintiffs (the “Plaintiffs”) and lead counsel.

On April 22, 2024, the co-lead Plaintiffs filed an amended complaint adding two additional officers.

The amended complaint makes substantially similar allegations and claims.

Defendants moved to dismiss the amended complaint on July 15, 2024 (the “Motion”).

The Motion was fully briefed as of September 16, 2024, and the parties are awaiting a decision.

Due to the early stage of this proceeding, the Company cannot reasonably estimate the potential range of loss, if any, or the likelihood of a potential adverse outcome.

The Company disputes the allegations of wrongdoing and intends to vigorously defend against them.

The amended complaint made substantially similar allegations and claims.

Defendants moved to dismiss the amended complaint on July 15, 2024 (the “Motion”), and the motion was fully briefed as of September 17, 2024.

On December 4, 2024, the Court issued an order granting in part the Motion, dismissing all allegations except those relating to two purported misstatements, characterizing inventory levels as low.

The Court allowed the Plaintiffs to again amend their complaint, and they filed a second amended complaint (the “Second Amended Complaint”) on January 3, 2025.

On February 10, 2025, Defendants moved to dismiss the Second Amended Complaint insofar as it attempts to resurrect any of the allegations dismissed in the Court’s December 4 order.

On April 7, 2025, a judge issued an order granting in part the Motion, and dismissing all allegations except those characterizing inventory levels as “low” and those relating to demand in Europe.

The judge again granted the Plaintiffs the opportunity to file a further amended complaint, which is due on May 7, 2025.

Discovery remains stayed pending the Court’s ultimate decision on the motion to dismiss the Second Amended Complaint.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 23

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

On March 15, 2024, Abdul Hirani (“Hirani”) filed a purported derivative complaint in the United States District Court for the Southern District of New York against certain current and former Company executive officers and board members, including Zvi Lando, Ronen Faier, Nadav Zafrir, Betsy Atkins, Marcel Gani, Dana Gross, Dirk Hoke, Avery More, and Tal Payne (collectively, “Defendants”).

The Hirani complaint makes largely the same allegations as those in the Consolidated Securities Litigation described above, namely, that the Company failed to disclose information about its inventory in Europe and cancellation rates from European distributors, which allegedly resulted in material misstatements about the Company’s business and prospects in its quarterly filings.

On June 10, 2024, Jonathan Blaufarb (“Blaufarb”) filed a second purported derivative complaint in the United States District Court for the Southern District of New York against the same Defendants as those named in the Hirani Complaint.

The Blaufarb complaints makes largely the same allegations as well.

On March 15, 2024, Abdul Hirani filed a purported derivative complaint (the “Hirani Complaint”) in the United States District Court for the Southern District of New York against certain current and former SolarEdge executive officers and board members, including Zvi Lando, Ronen Faier, Nadav Zafrir, Betsy Atkins, Marcel Gani, Dana Gross, Dirk Hoke, Avery More, and Tal Payne.

The Hirani Complaint makes largely the same allegations as those in the Consolidated Securities Litigation, namely, that the Company failed to disclose information about SolarEdge’s inventory in Europe and cancellation rates from European distributors, which allegedly resulted in material misstatements about the Company’s business and prospects in its quarterly filings.

The Hirani Complaint contends that defendants’ role in allowing those alleged misstatements to be made constitutes (i) breach of fiduciary duty, (ii) aiding and abetting breach of fiduciary duty, (iii) unjust enrichment, (iv) waste of corporate assets, and (v) securities fraud under Section 10(b) of the Exchange Act.

The complaint seeks compensatory and punitive damages, interest, attorneys’ fees, and other relief.

On June 10, 2024, Jonathan Blaufarb filed a second purported derivative complaint in the United States District Court for the Southern District of New York against the same defendants as those named in the Hirani Complaint as well as Lior Danziger and J.B.

The Blaufarb complaint makes largely the same allegations as those in the complaint in the Consolidated Securities Litigation and seeks declaratory relief, corporate governance reforms, damages, restitution, attorneys’ fees, and other relief.

It also pleads the same counts as those in the Hirani Complaint, as well as additional counts for abuse of control and gross mismanagement.

Defendants accepted service of the Hirani and Blaufarb complaints via stipulation that was so-ordered on July 12, 2024, and the two cases were consolidated (the “Consolidated Derivative Actions”) with the Hirani matter designated as the lead case.

Defendants accepted service of the Hirani and Blaufarb complaints via stipulation that was so-ordered on July 12, 2024, and the two cases were consolidated with the Hirani matter designated as the lead case.

On September 9, 2024, the parties agreed to stay the Consolidated Derivative Actions pending a decision on the motion to dismiss in the Consolidated Securities Litigation.

On August 7, 2024, Edwin Isaac (“Isaac”) filed a purported derivative complaint in the United States District Court for the District of Delaware against the same Defendants as those named in the Consolidated Securities Litigation.

The Isaac complaint makes largely the same allegations as those included in the amended complaint in the Consolidated Securities Litigation and Consolidated Derivative Actions.

It also pleads the similar counts to those in the Consolidate Securities Litigation, including (i) breach of fiduciary duty, (ii) contribution, (iii) violation of Section 14(a) of the Exchange Act and SEC Rule 14a-9, (iv) unjust enrichment, (v) waste of corporate assets, and (vi) aiding and abetting breach of fiduciary duty.

The parties have agreed to keep the stay in place pending a decision on the motion to dismiss the plaintiffs’ Second Amended Complaint in the Consolidated Securities Litigation.

On August 7, 2024, Edwin Isaac filed a purported derivative complaint (the “Isaac Complaint”) in the United States District Court for the District of Delaware against the same defendants as those named in the Consolidated Derivative Actions.

The Isaac Complaint makes largely the same allegations as those in the Consolidated Securities Litigation.

It also pleads the similar counts to those in the Consolidated Securities Litigation, including (i) breach of fiduciary duty, (ii) contribution, (iii) violation of Section 14(a) of the Exchange Act and SEC Rule 14a-9, (iv) unjust enrichment, (v) waste of corporate assets, and (vi) aiding and abetting breach of fiduciary duty.

The complaint seeks declaratory relief, damages, interest, unspecified equitable relief, attorneys’ fees, and other relief.

The parties are conferring on service of process and a possible stay of proceedings pending resolution of the motion to dismiss in the Consolidated Securities Litigation.

In August 2019, the Company was served with a lawsuit filed in the civil courts of Milan, Italy against the Italian subsidiary of SolarEdge e-Mobility S.r.l (previously SMRE S.p.A) that purchased the shares of SolarEdge e-Mobility S.r.l in the tender offer that followed the SolarEdge e-Mobility S.r.l Acquisition by certain former shareholders of SolarEdge e-Mobility S.r.l who tendered their shares.

Due to the early stage of these proceedings, we cannot reasonably estimate the potential range of loss, if any, or the likelihood of a potential adverse outcome.

The Company disputes the allegations of wrongdoing and intends to vigorously defend against them.

In August 2019, the Company was served with a lawsuit filed in the civil courts of Milan, Italy against the Italian subsidiary of SolarEdge e-Mobility S.r.l (previously SMRE S.p.A) that purchased the shares of SolarEdge e-Mobility in the tender offer that followed the SolarEdge e-Mobility Acquisition by certain former shareholders of SolarEdge e-Mobility who tendered their shares.

The lawsuit asked for damages of approximately $ 3,000 , representing the difference between the amount for which they tendered their shares ( 6 Euro per share) and 6.7 Euros per share.

In December 2023, the court of Milan, rendered a decision ordering SolarEdge to pay, in favor of each plaintiff, the difference between the price paid ( 6 Euro per share) and 6.44 Euro per share, (i.e.

0.44 euros per share) for a total payment of approximately $ 1,700 , which consists, in addition to the shareholders' compensation, legal expenses, court fees, VAT, and CPA expenses per local law.

The Company filed an appeal to this decision on May 30, 2024 in the Court of Appeals of Milan, First Civil Chamber.

As of September 30, 2024, the Company recorded an accrual of $ 391 for legal claims which was recorded under accrued expenses and other current liabilities.

On December 6, 2023, the courts of Milan rendered a decision ordering SolarEdge to pay, in favor of each plaintiff, the difference between the price paid ( 6 Euro per share) and 6.44 Euro per share, i.e.

0.44 euros per share for a total payment of approximately $ 1.6 million Euros.

The Company has paid the amount due under the judgement and appealed this decision.

The first hearing was held on November 27, 2024, and the case was adjourned to January 14, 2026.

On January 13, 2025, Stellantis Europe S.p.A.

(“Stellantis”) submitted an application for injunctive relief, to the Court of Turin, Italy, claiming that SolarEdge e-Mobility was allegedly in breach of contract.

The application for injunctive relief is aimed at obtaining the following interim measures:

i) order the Company to resume supply of spare parts and technical assistance activities in favor of Stellantis;

and ii) to order the Company to pay a penalty of 100,000 Euro for each day of delay in fulfilling the order above.

At a hearing on February 25, 2025 the parties discussed the case and the judge reserved any decision.

We are waiting for the Court decision.

The Company disputes the allegations of wrongdoing and intends to vigorously defend against them.

As of March 31, 2025, the Company recorded an accrual of $ 449 for legal claims which was recorded under accrued expenses and other current liabilities.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 24

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

2 unchanged sentences

The following table summarizes the changes in accumulated balances of other comprehensive gain (loss), net of taxes:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Three Months Ended March 31,

Unrealized gains (losses) on available-for-sale marketable securities

1 unchanged sentence

Tax on revaluation

Other comprehensive income before reclassifications

Reclassification

Tax on reclassification

Losses (gains) reclassified from accumulated other comprehensive income (loss)

Net current period other comprehensive income

6 unchanged sentences

Tax on reclassification

Losses (gains) reclassified from accumulated other comprehensive income (loss)

Net current period other comprehensive income (loss)

Gains reclassified from accumulated other comprehensive income (loss)

Net current period other comprehensive loss

Ending balance

6 unchanged sentences

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 25

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

The following table summarizes the reclassification out of "Accumulated other comprehensive loss", net of taxes:

Details about Accumulated Other

Comprehensive Loss Components

The following table summarizes the reclassifications from “Accumulated other comprehensive loss” into the statement of loss:

Details about Accumulated Other Comprehensive Loss Components

Three Months Ended

September 30,

Nine Months Ended

September 30,

Affected Line Item in the

Statement of Income

Unrealized gains (losses) on available-for-sale marketable securities

Financial income (expense), net

Total, net of income taxes

Unrealized gains (losses) on cash flow hedges, net

Affected Line Item in the Statement of Loss

Cash flow hedges

Cost of revenues

3 unchanged sentences

Total, before income taxes

Total, net of income taxes

Tax benefits (income taxes)

Total reclassifications for the period

Total, net of tax benefits (income taxes)

OTHER OPERATING EXPENSE (INCOME)

The following table presents the expenses (income) recorded in the three and nine months ended September 30, 2024, and 2023:

The following table presents the expenses (income) recorded in the three months ended March 31, 2025, and 2024:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Impairment of intangible assets and goodwill

Income from settlement agreements associated with contractual commitments

Impairment and disposal by abandonment of property, plant and equipment

Loss (gain) from sales of assets

Total other operating expense (income), net

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 26

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

2 unchanged sentences

On January 21, 2024, the Company announced the adoption of a restructuring plan in response to challenging industry conditions (the “Restructuring Plan”).

Under the Restructuring Plan, the Company reduced its headcount by approximately 16% over the first half of 2024 in an involuntary workforce reduction.

Under the Restructuring Plan, the Company reduced its headcount by approximately 900 employees over the first half of 2024 in an involuntary workforce reduction.

The adoption of the Restructuring Plan follows the Company’s previous measures taken to align with current market conditions, including termination of manufacturing in Mexico, reduction of manufacturing capacity in China, and discontinuation of the Company’s light commercial vehicle e-mobility activity.

Restructuring and other exit charges for the three months ended September 30, 2024, by segment and type of cost were as follows:

Employee termination costs

Contract termination and other

Employee termination costs

Inventory write-down

On July 15, 2024, the Company announced additional workforce reductions, resulting in the layoff of 400 employees.

On November 27, 2024, the Company announced the closure of its Energy Storage Division.

In connection with the closure, the Company expects to reduce its headcount by approximately 500 employees, primarily in manufacturing positions in South Korea.

This closure and associated headcount reduction represented approximately 12% of the Company’s overall employee population, at the time, almost all of whom will be dismissed over the first half of 2025.

The Company has determined that the discontinuation of its Energy Storage activity does not represent a strategic shift that will have a major effect on the Company's operations and financial results and therefore it did not meet the criteria for discontinued operations classification.

Restructuring and other exit charges for the three months ended March 31, 2025, by type of cost were as follows:

termination costs

Contract termination and other

3 unchanged sentences

General and administrative

Restructuring and other exit charges for the nine months ended September 30, 2024, by segment and type of cost were as follows:

Employee termination costs

Contract termination and other

Employee termination costs

Inventory write-down

Other operating expenses

Restructuring and other exit charges for the three months ended March 31, 2024, by type of cost were as follows:

termination costs

Contract termination and other

3 unchanged sentences

General and administrative

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 27

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

The Company’s liability balance for the restructuring and other exit charges is as follows:

Employee termination costs

Inventory write-down 1

Employee termination

Contract termination and other

2 unchanged sentences

Non-cash utilization and other

Balance as of September 30, 2024

1 Inventory write-down is included under Inventories, net on the balance sheet.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

For the three months ended September 30, 2024, the Company reported income taxes at an effective tax rate of ( 11.2 )%, compared to the three months ended September 30, 2023, where the Company reported income taxes at an effective tax rate of ( 143.6 )%.

The change in effective tax rate in the three months ended September 30, 2024 compared to the corresponding period in 2023 is mainly due to the impairments and disposals, which significantly increased the quarterly loss before income tax, offset by higher tax expenses resulting from an increase in the valuation allowance during the quarter.

For the nine months ended September 30, 2024, the Company reported income taxes at an effective tax rate of ( 6.0 )%, compared to the nine months ended September 30, 2023, where the Company reported income taxes at an effective tax rate of 33.6 %.

The change in effective tax rate in the nine months ended September 30, 2024 compared to the corresponding period in 2023 is mainly due to the Company transitioning to a loss position in 2024 which has increased significantly as a result of impairments and disposals, in addition to higher tax expenses due to valuation allowance.

Balance as of March 31, 2025

For the three months ended March 31, 2025, the Company reported income taxes at an effective tax rate of negative 6.2 % including discrete items, compared to the three months ended March 31, 2024, where the Company reported income taxes at an effective tax rate of 13.1 %.

The negative effective tax rate in the three months ended March 31, 2025 resulted primarily from the valuation allowance on current losses, coupled with withholding taxes incurred on certain intra-group interest payments and additional tax payable as a result of the settlement with the Israeli Taxes Authority (as further detailed below).

The effective tax rate in the corresponding period in 2024 was mainly due to impairments and disposals, which significantly increased the quarterly loss before income tax, partially offset by higher tax expenses resulting from an increase in the valuation allowance during that quarter.

Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent that the Company believes they will not be realized.

1 unchanged sentence

Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions.

Based primarily on the negative evidence outweighing the positive evidence, including the Company's three year cumulative, consolidated GAAP loss, historical tax losses and the difficulty in forecasting excess tax benefits related to equity-based compensation, the Company believes there is uncertainty as to when it will be possible to utilize certain net operating losses (each a "NOL"), credit carryforwards and other deferred tax assets.

Based primarily on the negative evidence outweighing the positive evidence, including the Company's three year cumulative, consolidated GAAP loss, historical tax losses and the difficulty in forecasting excess tax benefits related to equity-based compensation, the Company believes there is uncertainty as to when it will be possible to utilize certain net operating losses (each an “NOL”), credit carryforwards and other deferred tax assets.

Therefore, the Company recorded a valuation allowance against the deferred tax assets for which it is more-likely-than-not they will not be realized.

1 unchanged sentence

If this were to occur, any reversal of the valuation allowance would result in a corresponding non-cash income tax benefit, thereby increasing total DTAs.

As of September 30, 2024, and December 31, 2023, the Company recorded valuation allowance in the amount of $ 217,314 and $ 51,245 , respectively.

As of September 30, 2024, and December 31, 2023, unrecognized tax benefits were valued at $ 21,992 and $ 15,908 , respectively.

If recognized, such benefits would favorably affect the Company’s effective tax rate.

During March 2025, SolarEdge Technologies, Ltd.

(the “Israeli Subsidiary”) reached a settlement agreement with the Israeli Tax Authority settling all issues in dispute for tax years 2016 - 2018, in consideration for a payment of NIS 100 million (approximately $ 27 million).

Accordingly, the Israeli Subsidiary recorded a current tax payable for the settlement amount and released approximately $ 25 million of its provision for uncertain tax positions for these years (including related accruals for interest and penalties).

The settlement amount is payable in monthly payments over 3 years and can be prepaid in full at any point.

The amount payable bears interest and is linked to the Consumer Prices Index.

The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes.

The total amount of penalties and interest as of September 30, 2024 and December 31, 2023 were $ 5,543 and $ 2,927 , respectively.

In August 2022, the U.S.

government enacted the Inflation Reduction Act of 2022 (the “IRA”), which includes several incentives intended to promote clean energy, battery and energy storage, electrical vehicles, and other solar products, and is expected to impact our business and operations.

As part of such incentives, the IRA will, among other things, extend the investment tax credit (“ITC”) through 2034 and is therefore expected to increase the demand for solar products.

The IRA is expected to further incentivize residential and commercial solar customers and developers due to the inclusion of significant tax credits for qualifying energy projects, and Advanced Manufacturing Production Tax Credits ("AMPTC") for U.S.

manufacturing of eligible components (under IRC §45X), including PV inverters and DC-optimized systems.

The Company has been manufacturing eligible products in the U.S.

since the fourth quarter of 2023.

In the three and nine months ended September 30, 2024, the Company manufactured and sold products that entitle it to $ 13,963 and $ 44,084 of AMPTCs, respectively, which were recorded as a reduction in of cost of revenues.

As of September 30, 2024 and December 31, 2023 benefits from AMPTCs of $ 68,001 and $ 6,020 , respectively, were recorded as a tax prepayment within prepaid expenses and other current assets.

On October 24, 2024, final regulations concerning the application of IRC §45X were published.

The regulations contain detailed rules concerning the eligibility, qualifying and accounting for AMPTCs.

Of particular relevance to the Company are the rules concerning the qualification and measurement of AMPTCs to Residential Inverters, Commercial Inverters and DC-Optimized Inverter Systems, that are included in the definition of Microinverters.

The total amount of penalties and interest as of March 31, 2025 and December 31, 2024 were $ 2,032 and $ 9,165 , respectively.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 28

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

EARNINGS (LOSS) PER SHARE

The following table presents the computation of basic and diluted earnings (loss) per share (“EPS”):

Three Months Ended

September 30,

Nine Months Ended

September 30,

Net income (loss)

Shares used in computing net earnings (loss) per share of common stock, basic

Net income (loss) attributable to common stock, basic

Net income (loss) attributable to common stock, diluted

Shares used in computing net earnings (loss) per share of common stock, basic

Effect of stock-based awards

Shares used in computing net earnings (loss) per share of common stock, diluted

Earnings (loss) per share:

LOSS PER SHARE

The following table presents the computation of basic and diluted loss per share (“EPS”):

Three Months Ended March 31,

Shares used in computing net loss per share of common stock, basic

Net loss attributable to common stock, diluted

Shares used in computing net loss per share of common stock, diluted

Loss per share:

Basic and Diluted

The following outstanding shares of common stock equivalents were excluded from the calculation due to their antidilutive nature:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Three Months Ended March 31,

Stock-based awards

Notes due 2025

Notes due 2029 1

Total shares excluded

1 In conjunction with the issuance of the Notes 2029 in June 2024, the Company used approximately $ 25,230 of the net proceeds from this offering to pay the cost of the capped call transactions.

I n July 2024, following an additional issuance of the Notes 2029, $ 3,111 of net proceeds were used to pay the cost of capped call transactions.

1 In conjunction with the issuance of the Notes 2029, in June 2024, the Company used approximately $ 25,230 of its net proceeds from this offering to pay the cost of the capped call transactions.

In July 2024, following a subsequent issuance of the Notes 2029, $ 3,111 of net proceeds were used to pay the cost of capped call transactions.

In accordance with FASB ASC 260, antidilutive contracts, such as purchased call options are excluded from the computation of diluted net income (loss) per share.

Accordingly, any potential impact resulting from capped call transaction is excluded from our computation of diluted net income (loss) per share.

Accordingly, any potential impact resulting from capped call transaction is excluded from the Company's computation of diluted net income (loss) per share.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 29

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1 unchanged sentence

SEGMENT INFORMATION

Following the discontinuation of its e-Mobility LCV activity, the Company operates in three different operating segments:

Solar, Energy Storage and Automation Machines.

The Company’s Interim Chief Executive Officer, who is the chief operating decision maker (“CODM”), makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the operating segments.

The Company does not allocate to its operating segments revenue recognized due to advance payments received for performance obligations that extend for a period greater than one year (“financing component”), related to Accounting Standard Codification 606, “Revenue from Contracts with Customers” (ASC 606).

Segment profit (loss) is comprised of gross profit (loss) for the segment less operating expenses that do not include amortization, disposal by abandonment and impairment of long-lived assets, and impairment of purchased intangible assets, stock based compensation expenses, restructuring charges, discontinued activity charges and certain other items.

The Company manages its assets on a group basis, not by segments, as many of its assets are shared or co-mingled.

The Company’s CODM does not regularly review asset information by segments and, therefore, the Company does not report asset information by segment.

The Company identified two operating segments as reportable, the Solar segment and the Energy Storage segment.

The other operating segments are insignificant individually and therefore their results are presented together under “All other”.

The Solar segment includes the design, development, manufacturing, and sales of an intelligent inverter solution designed to maximize power generation at the individual PV module level and batteries for PV applications.

The Solar segment solution consists mainly of the Company’s power optimizers, inverters, batteries, energy management solutions, and cloud‑based monitoring platform.

The Energy Storage segment includes the design, development, manufacturing, and sales of high-energy, high-power, lithium-ion cells and racks and containerized battery systems for commercial and industrial ("C&I") and utility markets.

The Energy Storage segment provides purpose-built components and solutions, hardware and software, as well as pre and post sales engineering support to design, build, and manage battery and system solutions according to the customer’s use cases and mission profiles.

The “All other” category includes automated machines and e-Mobility (in prior periods).

Following the sale of Automation Machines and the discontinuation of the Energy Storage activity in 2024, the Company now operates as one operating segment that constitutes consolidated results.

The Company recast its comparative numbers to conform to current period presentation.

The Company's Chief Executive Officer, who is the chief operating decision maker (“CODM”), makes resource allocation decisions and assesses performance based on financial information presented on a consolidated net loss, accompanied by disaggregated information about significant expenses.

The Company’s CODM does not regularly review asset information and, therefore, the Company does not report asset information.

The segment includes the design, development, manufacturing, and sales of an intelligent inverter solution designed to maximize power generation at the individual PV module level and batteries for PV applications.

The segment solution consists mainly of the Company’s power optimizers, inverters, batteries and cloud‑based monitoring platform.

The following tables present information on reportable loss for the period presented:

Three Months Ended March 31,

Direct costs of goods

Inventory costs

Shipment and logistics

Depreciation and amortization

Directly related overhead costs

Financial (income) expense, net

Income taxes (tax benefit)

Net loss from equity method investments

1 Including stock-based compensation expenses.

2 Represents indirect costs of goods, consultants and sub-contractors, marketing and bad debt.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

The following tables present information on reportable segments profit (loss) for the period presented:

Energy Storage

Three Months Ended September 30, 2024

Cost of revenues

Gross profit (loss)

Research and development

Sales and marketing

General and administrative

Segments profit (loss)

Three Months Ended September 30, 2023

Cost of revenues

Gross profit (loss)

Research and development

Sales and marketing

General and administrative

Segments profit (loss)

Nine Months Ended September 30, 2024

Cost of revenues

Gross profit (loss)

Research and development

Sales and marketing

General and administrative

Segments profit (loss)

Nine Months Ended September 30, 2023

Cost of revenues

Gross profit (loss)

Research and development

Sales and marketing

General and administrative

Segments profit (loss)

| 2025 Form 10-Q | F - 30

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

The following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Solar segment revenues

Energy Storage segment revenues

All other segment revenues

Revenues from finance component

Consolidated revenues

The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Solar segment profit (loss)

Energy Storage segment loss

All other segment profit (loss)

Segments operating profit (loss)

Amounts not allocated to segments:

Stock based compensation expenses

Restructuring and other exit activities

Impairment and disposal by abandonment of long-lived assets

Amortization and depreciation of acquired assets

Other unallocated income (expenses)

Consolidated operating income (loss)

Financial income (expense), net

Other income (loss), net

Income (loss) before income taxes

The following table presents revenues disaggregated by geographical location:

Three Months Ended March 31,

United States

International markets

Total revenues

SUBSEQUENT EVENTS

On November 4, 2024, the Company announced that it closed its first transaction for the sale of §45X Advanced Manufacturing Production Tax Credits in consideration for a cash payment of $ 40,000 , net of discounts and fees to Genworth Financial Inc.

(the "Tax Credits").

The credits were generated from the sales of inverters, produced during the first half of 2024, at the Company's facility in Austin, Texas.

On April 1, 2025, the Company sold one of its battery cell manufacturing facilities and certain other related assets, in South Korea for $ 10,000 .

On April 30, 2025, the Company divested from its PV tracker business, in order to focus on the Company's core solar business.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 31

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements