What changed in this filing

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Item 1. Financial Statements

2025-11-06 compared with 2025-08-07 · 259 added, 598 removed, 687 unchanged (56% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

September 30,

CURRENT ASSETS:

19 unchanged sentences

(in thousands, except per share data)

September 30,

LIABILITIES AND STOCKHOLDERS’ EQUITY

19 unchanged sentences

125,000,000 shares;

59,374,556 shares on June 30, 2025 and 58,780,490 shares on December 31, 2024;

59,134,050 shares on June 30, 2025 and 58,027,126 shares on December 31, 2024.

59,800,052 shares as

of September 30, 2025 and 58,780,490 shares as of December 31, 2024;

shares as of September 30, 2025 and 58,027,126 shares as of December 31, 2024.

Additional paid-in capital

Treasury stock, at cost;

240,506 and 753,364 stocks held, respectively

240,506 and 753,364 stocks held as of September 30, 2025 and December 31, 2024, respectively

Accumulated other comprehensive loss

9 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Cost of revenues

4 unchanged sentences

General and administrative

Other operating expense, net

Other operating expense (income), net

Total operating expenses

1 unchanged sentence

Financial income (expense), net

Other income (expense), net

Loss before income taxes

Tax benefits (income taxes)

Net loss from equity method investments

8 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Other comprehensive income (loss), net of tax:

25 unchanged sentences

Balance as of June 30, 2025

Issuance of common stock upon exercise of stock-based awards

Stock based compensation

Other comprehensive loss adjustments

Balance as of September 30, 2025

SOLAREDGE TECHNOLOGIES INC.

3 unchanged sentences

(in thousands, except per share data)

Additional paid in

Treasury stock

other comprehensive

Retained earnings

Retained earnings (Accumulated deficit)

Balance as of January 1, 2024

11 unchanged sentences

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

* Represents an amount less than $1.

5 unchanged sentences

(in thousands, except per share data)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities:

1 unchanged sentence

Depreciation and amortization

Loss on impairment and disposal of property, plant and equipment

Provision to write down inventories to net realizable value

Impairment of asset held-for-sale

Impairment of goodwill and intangible assets

Impairment of privately-held companies

Stock-based compensation expenses

3 unchanged sentences

Loss from exchange rate fluctuations

Loss (gain) from sale of property, plant and equipment

Changes in assets and liabilities:

28 unchanged sentences

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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

(in thousands, except per share data)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from financing activities:

2 unchanged sentences

Capped call transactions related to Notes 2029

Payment for settlement of convertible notes

Repurchase of convertible debt

7 unchanged sentences

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

Six Months Ended

Nine Months Ended

September 30,

Cash and cash equivalents

10 unchanged sentences

The Company and its subsidiaries sell products worldwide through large distributors, electrical equipment wholesalers, 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 has expanded its activity to other areas of smart energy technology both organically and through acquisitions.

Basis of Presentation:

18 unchanged sentences

Foreign currency translation

Balance as of June 30, 2025

Balance as of September 30, 2025

SOLAREDGE TECHNOLOGIES INC.

9 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 June 30, 2025 two contract manufacturers jointly accounted for 38.3 % of the Company’s total trade payables.

As of September 30, 2025 two contract manufacturers jointly accounted for 48.1 % 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.

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

Investment in privately-held companies:

The Company's equity investments are investments in equity securities of privately-held companies, that are not traded and therefore not supported with observable market prices.

The Company elected to account for its equity investments without readily determinable market values that either (i) do not meet the definition of in-substance common stock or (ii) do not provide the Company with control or significant influence using Accounting Standards Update (“ASU”) 2016-01.

The Company accounts for equity investments through which it exercise significant influence but do not have control over the investee under the equity method.

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.

The Company adjusts the carrying value of its investments to fair value upon observable transactions for identical or similar investments of the same issuer.

The Company periodically evaluates the carrying value of the investments in privately-held companies when events and circumstances indicate that the carrying amount of the investment may not be recovered.

The maximum loss the Company can incur for its investments is their carrying value.

The Company may determine the fair value by reviewing equity valuation reports, current financial results, long-term plans of the privately-held companies, the amount of cash that the privately-held companies have on-hand, the ability to obtain additional financing and overall market conditions in which the privately-held companies operate or based on the price observed from the most recent completed financing.

All gains and losses, whether due to an impairment or revaluation, on investments in privately-held companies, realized and unrealized, are recognized in other income (expense), net.

During the three and nine months ended September 30, 2025, the Company determined that an other-than-temporary impairment had occurred in its investment in Ampeers Energy GmbH ("Ampeers").

Accordingly, the Company reduced the carrying amount of its investment to its estimated fair value and recognized an impairment loss of $ 15,057 .

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 10

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

New accounting standards updates:

17 unchanged sentences

The Company is currently evaluating the timing of adoption and impact of this amendment on its Consolidated Financial Statements and related disclosures.

In September 2025, the FASB issued ASU 2025-06, “Goodwill and Other-Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025-06”), which simplifies the capitalization guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods.

ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods.

Early adoption is permitted.

ASU 2025-06 permits an entity to apply the new guidance using a prospective, retrospective or modified transition approach.

The Company is currently evaluating the impact from ASU 2025-06 on its consolidated financial statements.

Revision to previously issued financial statements :

Subsequent to filing Form 10-Q for the third quarter of 2024, the Company identified an immaterial error related to an amended agreement with a customer, which was signed on December 21, 2024, resulting in an overstatement of loans receivables and revenues as of and for the three and nine months ended September 30, 2024.

The Company has adjusted the relevant previously reported financial information for such immaterial revision, for the three and nine months ended September 30, 2024, as applicable.

The following table provides a summary of the revisions made to the Company’s condensed consolidated statements of loss, for the periods presented:

Three Months Ended September 30, 2024

Nine Months Ended September 30, 2024

Operating loss

The following table provides a summary of the revisions made to the Company’s condensed consolidated statements of cash flows for the period presented:

Nine Months Ended September 30, 2024

Cash flows provided by operating activities:

Net cash used in operating activities

Net cash provided by investing activities

The following table provides a summary of the revisions made to the Company’s condensed consolidated statements of stockholders' equity for the period presented:

As of September 30, 2024

Accumulated deficit

Total stockholders’ equity

SOLAREDGE TECHNOLOGIES INC.

4 unchanged sentences

MARKETABLE SECURITIES

The following is a summary of available-for-sale marketable securities as of June 30, 2025:

The following is a summary of available-for-sale marketable securities as of September 30, 2025:

Amortized cost

5 unchanged sentences

Government agency securities

Government securities

Matures after one year:

Corporate bonds

Government agency securities

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

9 unchanged sentences

Government agency securities

The Company did not sell any available-for-sale marketable securities during the three and six months ended June 30, 2025.

Proceeds from sales of available-for-sale marketable securities during the three and six months ended June 30, 2024 were $ 51,918 which led to realized gains of $ 1,970 .

As of June 30, 2025, and December 31, 2024, the Company did not record an allowance for credit losses for its available-for-sale marketable securities.

Proceeds from the sale of available-for-sale marketable securities, during the three and nine months ended September 30, 2025, was $ 76,288 , which did not lead to realized gains or losses.

Proceeds from sales of available-for-sale marketable securities, during the three and nine months ended September 30, 2024, were $ 18,724 and $ 70,642 , which led to realized gains of $ 777 and $ 2,747 , respectively.

As of September 30, 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.

4 unchanged sentences

INVENTORIES, NET

September 30,

Raw materials

3 unchanged sentences

PREPAID EXPENSES AND OTHER CURRENT ASSETS

September 30,

Vendor non-trade receivables 1

Government authorities 2

Loan receivables, net

Asset held for sale

11 unchanged sentences

OTHER LONG TERM ASSETS

September 30,

Cloud computing arrangements

9 unchanged sentences

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

During the six months ended June 30, 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”).

During the nine months ended September 30, 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 June 30, 2025, the Company entered into forward contracts and put and call options to sell U.S.

As of September 30, 2025, the Company entered into forward contracts as well as put and call options to sell U.S.

dollars (“USD”) in the amounts of NIS 24 million and NIS 138 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 loss, under “Financial income (expense), net”.

As of June 30, 2025, the Company entered into forward contracts and put and call options to sell Euro (“EUR”) in the amounts of USD 60 million and USD 20 million, respectively.

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 condensed consolidated statement of loss, under “ Financial income (expense), net ” .

As of September 30, 2025, the Company entered into forward contracts and put and call options to sell Euro (“EUR”) in the amounts of USD 30 million and USD 10 million, respectively.

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:

3 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Affected line item

14 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 June 30, 2025, and December 31, 2024, by level within the fair value hierarchy:

The following table sets forth the Company’s assets that were measured at fair value as of September 30, 2025, and December 31, 2024, by level within the fair value hierarchy:

Fair value measurements as of

September 30,

Cash and cash equivalents:

6 unchanged sentences

Government agency securities

Government securities

Long-term marketable securities:

8 unchanged sentences

WARRANTY OBLIGATIONS

Changes in the Company’s product warranty obligations for the three and six months ended June 30, 2025 and 2024, were as follows:

Three Months Ended June 30,

Six Months Ended June 30,

Changes in the Company’s product warranty obligations for the three and nine months ended September 30, 2025 and 2024, were as follows:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Balance, at the beginning of the period

13 unchanged sentences

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

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

Balance, at the beginning of the period

4 unchanged sentences

Long term portion

The following table includes estimated revenues that the Company expects to be recognized in the future, related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2025:

Total deferred revenues

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

September 30,

Accrued expenses

2 unchanged sentences

Accrual for sales incentives

Provision for legal claims

Total accrued expenses and other current liabilities

8 unchanged sentences

Bank National Association, as trustee.

The Notes 2025 do not bear regular interest and mature on September 15, 2025 , unless earlier repurchased or converted in accordance with their terms.

The Notes 2025 are general senior unsecured obligations of the Company.

Holders may convert their Notes 2025 prior to the close of business on the business day immediately preceding June 15, 2025 in multiples of $ 1,000 principal amount, only under the following circumstances:

(1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

(2) during the five-business-day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes 2025 for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day;

or (3) upon the occurrence of specified corporate events as described in the Indenture.

In addition, holders may convert their Notes 2025, in multiples of $1,000 principal amount, at their option at any time beginning on or after June 15, 2025, and prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Notes 2025, without regard to the foregoing circumstances.

The initial conversion rate for the Notes 2025 was 3.5997 shares of common stock per $ 1,000 principal amount of Notes 2025, which is equivalent to an initial conversion price of approximately $ 277.80 per share of common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture.

Upon conversion, the Company may choose to pay or deliver, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock.

In addition, upon the occurrence of a fundamental change (as defined in the Indenture), holders of the Notes 2025 may require the Company to repurchase all or a portion of their Notes 2025, in multiples of $ 1,000 principal amounts, at a repurchase price of 100% of the principal amount of the Notes 2025, plus any accrued and unpaid special interest to, but excluding the fundamental change repurchase date.

If certain fundamental changes referred to as make-whole fundamental changes occur, the conversion rate for the Notes 2025 may be increased.

The Notes 2025 did not bear regular interest and matured on September 15, 2025 .

The Notes 2025 were general senior unsecured obligations of the Company.

The initial conversion rate for the Notes 2025 was 3.5997 shares of common stock per $ 1,000 principal amount of Notes 2025, which was equivalent to an initial conversion price of approximately $ 277.80 per share of common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture.

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 Company settled all of its remaining Notes 2025 on September 15, 2025.

As part of the settlement, the Company paid $ 342,250 in cash towards principal amount of the Notes 2025 and no shares were issued in connection with the settlement as the conversion value was less than the principal amount of the Notes 2025.

Following the settlement, there were no Notes 2025 outstanding as of September 30, 2025.

On June 28, 2024, the Company sold an aggregate principal amount of $ 300,000 of its 2.25 % convertible senior notes, due in 2029 (the “Notes 2029”).

10 unchanged sentences

The initial conversion rate for the Notes 2029 is 29.1375 shares of common stock per $ 1,000 principal amount of Notes 2029, which is equivalent to an initial conversion price of approximately $ 34.32 per share of common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture 2029.

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)

Upon conversion, the Company may choose to pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock.

3 unchanged sentences

On or after July 6, 2027, the Company may redeem the Notes 2029 at its option if the last reported sale price of the common stock has been at least 130% of the conversion price, then in effect, for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including the trading day immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the Notes 2029 to be redeemed, plus accrued and unpaid interest, if any, up to, but excluding, the redemption date.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 19

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

The net proceeds from the offering of the Notes 2029 were approximately $ 293,200 , after deducting fees and estimated expenses.

16 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.

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.

Congruently, the Company has entered into additional capped call transactions.

The Company used approximately $ 3,111 of the net proceeds from this offering to pay the cost of the additional capped call transactions.

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

SOLAREDGE TECHNOLOGIES INC.

3 unchanged sentences

(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.

Congruently, the Company has entered into additional capped call transactions.

The Company used approximately $ 3,111 of the net proceeds from this offering to pay the cost of the additional capped call transactions.

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

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 June 30, 2025 and December 31, 2024:

The convertible senior notes consisted of the following as of September 30, 2025 and December 31, 2024:

September 30, 2025

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 six months ended June 30, 2025 and June 30, 2024 were as follows:

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

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Debt issuance cost

1 unchanged sentence

Contractual interest expense

As of June 30, 2025, the unamortized issuance costs of the Notes 2025 and Notes 2029 will be amortized over the remaining term of approximately 2.4 months and 4 years, respectively.

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

and 2.75 %, respectively.

As of June 30, 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 $ 255,473 , 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 June 30, 2025, the if-converted value of the Notes 2025 and Notes 2029 did not exceed the principal amount.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 20

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

As of September 30, 2025, the unamortized issuance costs of the Notes 2029 will be amortized over the remaining term of approximately 3.8 years.

The annual effective interest rates of the Notes 2029 is 2.75 %.

As of September 30, 2025, the estimated fair value of the Notes 2029, which the Company has classified as Level 2 financial instruments, is $ 460,848 .

The estimated fair value was determined based on the quoted bid price of the Notes 2029 in an over-the-counter market on the last trading day of the reporting period.

As of September 30, 2025, the if-converted value of the Notes 2029 exceeded the principal amount by $ 26,316 .

OTHER LONG TERM LIABILITIES

September 30,

Tax liabilities

Long term accrued expenses

Accrued severance pay

Long term accrued expenses

SOLAREDGE TECHNOLOGIES INC.

7 unchanged sentences

Equity Incentive Plans:

The Company’s Amended and Restated 2015 Global Incentive Plan (the “2015 Plan”) became effective upon the consummation of the IPO.

The C ompany’s Amended and Restated 2015 Global Incentive Plan (the “2015 Plan”) became effective upon the consummation of the Company's IPO.

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

As of June 30, 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 12,054,092 shares are still available for future grants.

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.

As of September 30, 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 12,318,881 shares are still available for future grants.

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

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.

2 unchanged sentences

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 June 30, 2025, an aggregate of 8,628,224 options are still available for future grants under the 2015 Plan.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 22

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

As of September 30, 2025, an aggregate of 8,699,806 options are still available for future grants under the 2015 Plan.

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

Number of options

Weighted average

exercise price

Weighted average

remaining contractual

term in years

Aggregate intrinsic

intrinsic Value

Outstanding as of December 31, 2024

Forfeited or expired

Outstanding as of June 30, 2025

Vested and expected to vest as of June 30, 2025

Exercisable as of June 30, 2025

The intrinsic value is the amount by which the closing price of the Company’s common stock on June 30, 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.

Outstanding as of September 30, 2025

Vested and expected to vest as of September 30, 2025

Exercisable as of September 30, 2025

The intrinsic value is the amount by which the closing price of the Company’s common stock on September 30, 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.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 22

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

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

Weighted average

grant date fair value

Weighted average

grant date fair value

Weighted average grant date fair value

Unvested as of December 31, 2024

Unvested as of June 30, 2025

Unvested as of September 30, 2025

Employee Stock Purchase Plan (“ESPP”):

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

As of June 30, 2025, a total of 5,125,666 shares were reserved for issuance under this plan.

As of September 30, 2025, a total of 5,125,666 shares were reserved for issuance under this plan.

The ESPP is implemented through an offering every six months.

1 unchanged sentence

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 June 30, 2025, 2,311,170 shares of common stock have been purchased under the ESPP.

As of June 30, 2025, 2,814,496 shares of common stock were available for future issuance under the ESPP.

As of September 30, 2025, 2,311,170 shares of common stock have been purchased under the ESPP.

As of September 30, 2025, 2,814,496 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 - 23

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 loss for the three and six months ended June 30, 2025, and 2024, as follows:

The Company recognized stock-based compensation expenses related to all stock-based awards in the consolidated statement of loss for the three and nine months ended September 30, 2025, and 2024, as follows:

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Stock-based compensation expenses:

7 unchanged sentences

Total stock-based compensation capitalized

For the three and six months ended June 30, 2025 no amounts of tax benefits were recorded in regard to stock-based compensation.

The total tax benefit associated with stock-based compensation for the three months ended June 30, 2024 was $ 4,744 .

The tax benefit realized from stock-based compensation for the three months ended June 30, 2024 was $ 1,283 .

The total tax benefit associated with stock-based compensation for the six months ended June 30, 2024 was $ 10,110 .

The tax benefit realized from stock-based compensation for the six months ended June 30, 2024 was and $ 2,624 .

As of June 30, 2025, there were total unrecognized compensation expenses in the amount of $ 170,810 related to non-vested equity-based compensation arrangements granted.

These expenses are expected to be recognized during the period from July 1, 2025, through September 30, 2029.

For the three and nine months ended September 30, 2025 and 2024, no amounts of tax benefits were recorded in regard to stock-based compensation.

As of September 30, 2025, there were total unrecognized compensation expenses in the amount of $ 141,367 related to non-vested equity-based compensation arrangements granted.

These expenses are expected to be recognized during the period from October 1, 2025, through September 30, 2029.

SOLAREDGE TECHNOLOGIES INC.

4 unchanged sentences

COMMITMENTS AND CONTINGENT LIABILITIES

As of June 30, 2025, contingent liabilities exist regarding guarantees in the amounts of $ 21,320 , $ 6,323 and $ 1,560 , for each of securing projects with customers, office rent lease agreements, and other transactions, respectively.

As of September 30, 2025, contingent liabilities exist regarding guarantees in the amounts of $ 43,455 , $ 4,564 and $ 1,522 , for each of securing projects with customers and vendors, office rent lease agreements, and other transactions, respectively.

Contractual purchase obligations:

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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 June 30, 2025, the Company had non-cancellable purchase obligations totaling approximately $ 349,135 , out of which the Company recorded a provision for loss in the amount of $ 26,512 .

As of June 30, 2025, the Company had contractual obligations for capital expenditures totaling approximately $ 18,489 .

As of September 30, 2025, the Company had non-cancellable purchase obligations totaling approximately $ 530,674 , out of which the Company recorded a provision for loss in the amount of $ 25,493 .

As of September 30, 2025, the Company had contractual obligations for capital expenditures totaling approximately $ 26,513 .

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.

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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.

As of June 30, 2025, the Company recorded an accrual of $ 9,257 for legal claims which was recorded under accrued expenses and other current liabilities.

As of September 30, 2025, the Company recorded an accrual of $ 11,648 for legal claims which was recorded under accrued expenses and other current liabilities.

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.

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Discovery is ongoing.

Plaintiffs filed a motion for class certification on October 17, 2025.

Defendants’ deadline to file an opposition to Plaintiffs’ motion is January 16, 2025.

SOLAREDGE TECHNOLOGIES INC.

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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 U.S.

On June 10, 2024, Jonathan Blaufarb filed a second purported derivative complaint (the “Blaufarb Complaint”) in the U.S.

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.

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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.

On June 30, 2025, the parties agreed to stay the Isaac matter through the close of fact discovery in the Consolidated Securities Litigation.

On June 30, 2025, t he parties agreed to stay the Isaac matter through the close of fact discovery in the Consolidated Securities Litigation.

On May 22, 2025, Mike Maddox (a purported shareholder) filed a derivative complaint (the “Maddox Complaint”) in the U.S.

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

The parties filed a stipulation on July 21, 2025, agreeing to stay the Maddox Complaint through the close of fact discovery in the Consolidated Securities Litigation.

On September 3, 2025, Jerald F.

Chauncey, Jr.

filed a derivative complaint (the “Chauncey Complaint”) in the court of Chancery in the state of Delaware, against the same Defendants as those named in the Consolidated Derivative Actions and in the Isaac and Maddox matters.

The Chauncey Complaint makes largely the same allegations as those in the Consolidated Securities Litigation, the Consolidated Derivative Actions, and the Isaac and Maddox matters.

It also pleads similar counts to those in the Consolidated Derivative Actions and the Isaac matter, including (i) breach of fiduciary duty, (ii) unjust enrichment, and (iii) waste of corporate assets.

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

The parties filed a stipulation on July 21, 2025, agreeing to stay the Maddox matter through the close of fact discovery in the Consolidated Securities Litigation.

On October 7, 2025, the court granted the parties joint motion to stay the Chauncey Complaint through the close of fact discovery in the Consolidated Securities Litigation.

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

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

On September 15, 2025, Ampt, LLC (“Ampt”) filed a lawsuit in the District of Delaware seeking to enforce an agreement between Ampt and the Company.

The Company had invoked a force majeure clause in relation to its performance of the agreement, valued at $ 54 million over a period of five years , in October 2023.

The Company has not yet filed an answer, the case remains in its very preliminary stages, and it is too early to reasonably determine the outcome of the lawsuit.

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

SOLAREDGE TECHNOLOGIES INC.

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

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

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

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

Details about Accumulated Other Comprehensive Loss Components

Three Months Ended June 30,

Six Months Ended June 30,

Affected Line Item in the Statement of Income

Details about Accumulated Other

Comprehensive Loss Components

Three Months Ended

September 30,

Nine Months Ended

September 30,

Affected Line Item in the

Statement of Loss

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

Financial income (expense), net

Tax benefits (income taxes)

Total, net of income taxes

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Total, before income taxes

Tax benefits (income taxes)

Total, net of income taxes

Total reclassifications for the period

OTHER OPERATING EXPENSE, NET

The following table presents the expenses (income) recorded in the three and six months ended June 30, 2025, and 2024:

OTHER OPERATING EXPENSE (INCOME), NET

The following table presents the expenses (income) recorded in the three and nine months ended September 30, 2025 , and 2024 :

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Impairment of asset-held for sale

1 unchanged sentence

Loss (gain) from sale of property, plant and equipment

Income from discontinued operations

Total other operating expense, net

Impairment of intangible assets and goodwill

Impairment and disposal by abandonment of property, plant and equipment

Total other operating expense (income), net

SOLAREDGE TECHNOLOGIES INC.

6 unchanged sentences

Under this 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 this restructuring plan followed 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.

The adoption of this restructuring plan followed the Company’s previous measures taken to align with current market conditions, including termination of our manufacturing in Mexico and China, and discontinuation of the Company’s light commercial vehicle e-mobility activity.

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

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This closure and associated headcount reduction represented approximately 12% of the Company’s overall employee population, at the time, almost all of whom were dismissed over the first half of 2025 (together with the 2024 workforce reductions, the “Restructuring Plans”).

On September 4, 2025, as part of the decision to close its Energy Storage Division, the Company, sold its last battery cell manufacturing facility in South Korea.

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 June 30, 2025 and June 30, 2024, by type of cost were as follows:

Three Months Ended June 30, 2025

Three Months Ended June 30, 2024

Employee termination

Contract termination and

Employee termination

Contract termination and

Restructuring and other exit charges for the three months ended September 30, 2025 and September 30, 2024, by type of cost were as follows:

Three Months Ended September 30, 2025

Three Months Ended September 30, 2024

Employee termination costs

Contract termination and other

Employee termination costs

Contract termination and other

Cost of revenues

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General and administrative

Restructuring and other exit charges for the six months ended June 30, 2025, and June 30, 2024, by type of cost were as follows:

Six Months Ended June 30, 2025

Six Months Ended June 30, 2024

Employee termination

Contract termination and

Employee termination

Contract termination and

Restructuring and other exit charges for the nine months ended September 30, 2025 , and September 30, 2024, by type of cost were as follows:

Nine Months Ended September 30, 2025

Nine Months Ended September 30, 2024

Employee termination costs

Contract termination and other

Employee termination costs

Contract termination and other

Cost of revenues

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Other operating expenses

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

Employee termination

Contract termination and

Balance as of December 31, 2024

Cash payments

Non-cash utilization and other

Balance as of June 30, 2025

SOLAREDGE TECHNOLOGIES INC.

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(in thousands, except per share data)

For the three months ended June 30, 2025, the Company reported income taxes at an effective tax rate of negative 4.8 % including discrete items, compared to the three months ended June 30, 2024, where the Company reported income taxes at an effective tax rate of 8.6 %.

For the six months ended June 30, 2025, the Company reported income taxes at an effective tax rate of negative 5.4 % including discrete items, compared to the six months ended June 30, 2024, where the Company reported income taxes at an effective tax rate of 11.1 %.

The negative effective tax rate in the three and six months ended June 30, 2025 resulted primarily from the valuation allowance on current losses and capital losses, coupled with an increase in the provision for uncertain tax positions.

The effective tax rate in the corresponding periods 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.

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

Employee termination costs

Contract termination and other

Balance as of December 31, 2024

Cash payments

Non-cash utilization and other

Balance as of September 30, 2025

For the three months ended September 30, 2025 , the Company reported income taxes at an effective tax rate of negative 5.4 % including discrete items, compared to the three months ended September 30, 2024 , where the Company reported income taxes at an effective tax rate of negative 10.9 % .

For the nine months ended September 30, 2025 , the Company reported income taxes at an effective tax rate of negative 5.4 % including discrete items, compared to the nine months ended September 30, 2024 , where the Company reported income taxes at an effective tax rate of negative 5.9 % .

The negative effective tax rate in the three and nine months ended September 30, 2025 resulted primarily from the valuation allowance on current losses and capital losses, coupled with profits in certain jurisdictions and an increase in the provision for uncertain tax positions.

The effective tax rate in the corresponding periods in 2024 was mainly caused by the valuation allowance the Company booked on its losses and deferred tax assets to date, impairments and disposals.

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.

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

In July 2025, the One Big Beautiful Bill Act (the “OBBB”) was enacted into law modifying clean energy tax credits contained in the Inflation Reduction Act (“IRA”) and imposing new eligibility criteria related thereto.

As the OBBB was signed into law after June 30, 2025, the financial impact is not included in the Company's operating results for the three and six months ended June 30, 2025.

The Company is currently assessing the impact the OBBB will have on its condensed consolidated financial statements.

In July 2025, the One Big Beautiful Bill Act, or H.R.1 was enacted into law modifying clean energy tax credits contained in the Inflation Reduction Act ("IRA") and imposing new eligibility criteria related thereto.

The Company does not expect the H.R.1 to have a material effect on its financial position or results of operations.

The Company will continue to monitor regulatory guidance and developments and will update its analysis as necessary.

On October 1, 2025, the Governor of California signed Senate Bill 302 (“SB 302”) into law.

SB 302 provides a gross income exclusion for taxpayers that either elect to receive direct payments from the Internal Revenue Service or receive payment from transfer of certain federal tax credits beginning tax years on or after January 1, 2026, and before January 1, 2031.

The Company is currently evaluating the impact of SB 302 will have on its results of operations in future years.

SOLAREDGE TECHNOLOGIES INC.

6 unchanged sentences

Three Months Ended

Six Months Ended

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

September 30,

Nine Months Ended

September 30,

Basic and diluted EPS:

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

Loss per share:

2 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Stock-based awards

17 unchanged sentences

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

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

Direct costs of goods

4 unchanged sentences

Financial (income) expense, net

Income taxes (tax benefit)

Net loss from equity method investments

2 unchanged sentences

The following table presents revenues disaggregated by geographical location:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

United States

3 unchanged sentences

| 2025 Form 10-Q | F - 31

M ANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Statements contained in this Form 10-Q or statements incorporated by reference from documents we have filed with the Securities and Exchange Commission 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.

Forward-looking statements should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included in Part 1, Item 1 of this report.

This discussion 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 concerning our possible or assumed future results of operations, business strategies, technology developments, new products and services, financing and investment plans, competitive position, backlog, industry and regulatory environment, effects of acquisitions, growth opportunities, potential future impairments, 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.

Forward-looking and other statements regarding our sustainability efforts and aspirations are not an indication that these statements are necessarily material to investors or requiring disclosure in our filing with the Securities and Exchange Commission (“SEC”).

In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve and assumptions that are subject to change in the future, including future rule-making.

Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this filing.

Important factors that could cause actual results to differ materially from our expectations include:

• future demand for renewable energy including solar energy solutions;

• 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 and the One Big Beautiful Bill Act;

• changes in the U.S.

and global trade environments, including the imposition and/or increase of import tariffs or other restrictive trade measures;

• ability to successfully operate our global operations with a reduced work force;

• macroeconomic conditions in our domestic and international markets, such as inflation concerns, 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 (“PV”) 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;

• loss of key executives, and our ability to retain key personnel and attract additional qualified personnel

• shortages, delays, price changes, or cessation of operations or production affecting our suppliers of key components;

• delays, disruptions, and quality control problems in manufacturing;

• 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;

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 3

• 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 Enterprise Resource Planning ("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 war and 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 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;

• natural disasters, public health events and other disruptions;

• impairment of our goodwill or other long-lived and intangible assets;

• our liquidity and ability to service our debt;

the other factors set forth below in Part II, Item 1.A under “Risk Factors and in Part I, Item 1A under Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 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.

Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 4

We develop, manufacture and sell products in a solar segment that addresses a broad range of energy market segments through our diversified product offering, including residential, commercial and large scale photovoltaic or PV, home energy management, grid services and virtual power plants.

In prior years, we also had product offerings for the e-mobility market, automation machines (“Automation Machines”) and energy storage.

In October 2023, we decided to discontinue our light commercial vehicle (“LCV”), e-Mobility activity.

In October 2024, the Company completed the sale of Automation Machines.

Additionally, in November 2024, the Company announced the closure of its Energy Storage Division, and in April 2025, we divested from our PV tracker business, as part of its effort to focus on its core activities.

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

In light of the Inflation Reduction Act (the “IRA”) legislation in the United States, which incentivizes the local manufacturing of renewable energy products by providing benefits to installers for the purchase and installation of product with domestic content, as well as by incentivizing local manufacturing of our products, we manufacture the vast majority of our products in the United States.

This includes residential inverters in Texas, optimizers and commercial inverters in Florida, and ramping up manufacturing of batteries in Utah.

As part of our effort to streamline and centralize, we have discontinued manufacturing in China, Mexico, and Hungary.

We continue to manufacture a minor portion of our products in Israel, at our Sella 1 facility.

We also continue to maintain manufacturing capabilities in Vietnam, with a third-party manufacturer.

As of June 30, 2025, we shipped approximately 137.0 million power optimizers, 6.0 million inverters and 380.2 thousand batteries for PV applications.

Over 4.4 million installations, many of which may include multiple inverters, are currently connected to, and monitored through, our cloud-based monitoring platform.

As of June 30, 2025, we shipped approximately 58.6 GW of our DC optimized inverter systems and approximately 2.7 GWh of our batteries for PV applications.

Our revenues for the three months ended June 30, 2025, and 2024 were $289.4 million and $265.4 million, respectively.

Gross profit as a percentage of revenue was 11.1% for the three months ended June 30, 2025, compared to our gross loss as a percentage of revenue of 4.1% for the three months ended June 30, 2024.

Net loss for the three months ended June 30, 2025, and 2024 was $124.7 million and $130.8 million, respectively.

Our revenues for the six months ended June 30, 2025, and 2024 were $508.9 million and $469.8 million, respectively.

Gross profit as a percentage of revenue was 9.8% for the six months ended June 30, 2025, compared to our gross loss as a percentage of revenue of 7.9% for the six months ended June 30, 2024.

Net loss for the six months ended June 30, 2025 and 2024 was $223.3 million and $288.1 million respectively.

Global Circumstances Influencing our Business and Operations

Demand for Products

We have seen a slowdown in demand for our products in the United States and, to a greater extent, in Europe since the second part of the third quarter of 2023, and throughout 2024, and continuing in Europe into the first half of 2025.

We attribute this slowdown to high inventory in the channels and slower than expected installation rates.

In the United States, we are seeing an increase in demand for our products, which has coincided largely with normalized inventory levels in that region, during the first half of 2025.

In Europe, inventory levels continued to be elevated in the first half of 2025 but a majority of our distribution partners have reached normalized inventory levels by the end of the second quarter 2025.

The prolonged softness in demand has continued to adversely impact our results of operations.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 5

I mpact of The One Big Beautiful Bill Act on U.S.

Tax Incentives

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBB”), was enacted into law introducing amendments to the clean energy tax credits contained in the IRA.

The IRA provides energy tax credits that are significant to SolarEdge and its U.S.

based customers, and material changes thereto could adversely affect our revenue, our eligibility for certain tax credits, tax credits available to our customers, competitiveness and demand for our products and our financial condition.

The OBBB accelerates the phase-out timeline for certain credits and imposes new eligibility criteria.

Section 45X of the Internal Revenue Code (the “Code”) as enacted by the IRA offers Advanced Manufacturing Production Tax Credits (“AMPTC”s) that incentivize the manufacturing of eligible components within the U.S.

The OBBB does not shorten the term of such Section 45X credits.

The Company established manufacturing capabilities in the U.S.

in 2023, and further expanded such capabilities in 2024 and 2025.

On October 24, 2024, regulations concerning the application of Section 45X were published by the U.S.

Treasury Department which contain detailed rules concerning eligibility, qualifying and accounting for AMPTCs.

Of particular relevance to the Company are the tax credits that we generate as a result of rules concerning the qualification and measurement of AMPTCs to Residential Inverters, Commercial Inverters and DC-Optimized Inverter Systems that we manufacture in the United States.

In 2024 and the first half of 2025, we sold a significant part of the AMPTCs that we generated from our U.S.

production of eligible components.

Among other changes, the OBBB shortens the term of the investment tax credit and production tax credit under Section 48E and 45Y of the Code, used by customers of SolarEdge who are engaged in third-party ownership (“TPO”) models, such as residential solar leases and power purchase agreements, and commercial solar customers and developers, shortening the end date from 2034 to 2027.

However, the OBBB also includes a 12-month window in which such customers can begin construction giving them four years to complete their projects.

Projects begun after twelve months from enactment of the OBBB must be placed in service by December 31, 2027, to receive the credit.

The OBBB eliminates the individual residential tax credit under Section 25D of the Code at the end of 2025.

These changes may negatively impact the eligibility of our customers and individuals to obtain tax credits, which may negatively affect the overall demand for our products.

The OBBB also amends the domestic content bonus credit rules for Section 48E projects.

Projects commencing construction after June 16, 2025 must meet a 45% domestic cost threshold, up from 40%, and the threshold thereafter increases on an annual basis until 2029.

If we are unable to meet the revised domestic content requirements, our customers’ eligibility to qualify for certain tax credits could be impaired, which may adversely affect our revenue, gross margins, business operations and competitive position.

In addition, the OBBB introduced new Foreign Entity of Concern (“FEOC”) requirements for Sections 45X, 45Y, and 48E of the Code.

These restrictions will require threshold percentages of non FEOC material that increase over time, beginning in 2026.

If we are unable to meet the revised FEOC requirements, our or our customers’ eligibility to qualify for certain tax credits could be impaired, which may adversely affect our revenue, gross margins, business operations and competitive position.

On July 7, 2025, the President issued an Executive Order titled “Ending Market Distorting Subsidies for Unreliable, Foreign Controlled Energy Sources.” This directive instructs the U.S.

Department of the Treasury to issue revised guidance within 45 days.

There are multiple areas of the OBBB that require the U.S.

Treasury Department to provide guidance and this guidance may impact beginning of construction requirements applicable to our customers or create challenges for SolarEdge to meet the FEOC requirements.

If we are unable to meet the requirements this may adversely affect our revenue, our or our customers eligibility to obtain certain tax credits, the overall demand for our products, our results of operations and cash flows.

Trade Tariff Uncertainties

The current trade situation is creating uncertainty about what impact new or existing tariffs, trade restrictions or retaliatory actions may have on us, the solar industry, our partners, and our customers.

We have relocated our contract manufacturing to the United States, where we manufacture the vast bulk of our products.

We continue to manufacture a minor portion of our products in Israel, at our Sella 1 facility.

Certain critical subcomponents for our products are still sourced from outside the United States.

If not resolved, the escalation in trade tensions or the implementation of broader tariffs, trade restrictions or other retaliatory measures on our products or components or subcomponents originating from countries outside of the United States, could adversely impact our ability to source necessary components or subcomponents, manufacture products at competitive cost, or sell our products at prices customers are willing to pay.

In addition, retaliatory measures from other countries on products originating from the United States for export could adversely impact our ability to sell our products at competitive prices in such countries.

Certain of the subcomponents used in our products are being imported to the United States from China, which may be subject to significantly increased tariffs.

In light of the aforementioned, we are exploring alternative suppliers outside of China, however, there is no assurance that we will be successful in identifying suitable alternatives, or that such alternatives, if identified, will not result in increased costs or reduced operational efficiency.

If the price of solar power systems increases, as well as the cost of manufacturing our products in the United States, the use of solar power systems could become less economically feasible and could further reduce our gross margins or reduce the demand of solar power systems manufactured and sold, which in turn may decrease demand for our products.

Additionally, existing or future tariffs may negatively affect key partners, suppliers and manufacturers.

Such outcomes could adversely affect the amount or timing of our revenue, results of operations or cash flows, and continuing uncertainty could cause sales volatility, price fluctuations or supply shortages or cause our customers to advance or delay their purchase of our products.

Any such developments could materially and adversely affect our business operations, results of operations and cash flows.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 6

Disruptions Due to the War in Israel

Due to the war that began on October 7, 2023, some of our employees in Israel were called to active reserve duty and additional employees may be called in the future, if needed.

In the three months ended June 30, 2025, approximately 10% of our employees in Israel were called to active reserve duty for varying periods.

In the second quarter of 2025, Israel and the Islamic Republic of Iran also engaged in a 12-day war, which has since stabilized due to a brokered ceasefire.

While our offices and facilities are open worldwide, including in Israel, and, to date, we have not had disruptions to our ability to manufacture and deliver products and services to customers.

An escalation of the current conflicts in Israel could materially adversely affect our business, financial condition, and results of operations.

Due to the ongoing and evolving nature of the conflict in Israel, and the extent of these events, the adverse effect on our business operations is still unknown.

The majority of our key employees and officers are residents of Israel.

If any of our facilities in Israel were to be damaged, destroyed or otherwise rendered unable to operate, whether due to war, acts of hostility, earthquakes, fire, floods, storms, other natural disasters, employee malfeasance, terrorist acts, power outages or otherwise, or if performance of our research and development is disrupted for any other reason, such an event could delay commercialization of our products, and if we choose to manufacture all or any part of them internally, jeopardize our ability to manufacture our products as promptly as our prospective customers will likely expect, or possibly at all.

If we experience delays in achieving our development objectives within a timeframe that meets our prospective customers’ expectations, our business, prospects, financial results and reputation could be harmed.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 7

Key Operating Metrics

In managing our business and assessing financial performance, we supplement the information provided in our financial statements with other operating metrics.

These operating metrics are utilized by our management to evaluate our business, measure our performance, identify trends affecting our business and formulate projections.

We use metrics relating to shipments of inverters, power optimizers and megawatts to evaluate our sales performance and to track market acceptance of our products.

We provide the “megawatts shipped” and “megawatt hours shipped” metrics, which are calculated based on inverter or battery nameplate capacity shipped, respectively, to show adoption of our system on a nameplate capacity basis.

Nameplate capacity shipped is the maximum rated power output capacity of an inverter or battery, and corresponds to our financial results in that higher total nameplate capacities shipped are generally associated with higher total revenues.

However, revenues may increase in a non-correlated manner to the “megawatt shipped” metric since other products, such as power optimizers, are not accounted for in this metric.

Three Months Ended June 30,

Six Months Ended June 30,

Inverters shipped

Power optimizers shipped

Megawatts shipped 1

Megawatt hours shipped - batteries for PV applications

1 Excluding batteries for PV applications, based on the aggregate nameplate capacity of inverters shipped during the applicable period.

Nameplate capacity is the maximum rated power output capacity of an inverter, as specified by the manufacturer.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 8

Results of Operations

The results of operations presented below should be reviewed in conjunction with the condensed consolidated financial statements and related notes included elsewhere in this report.

The following table sets forth selected consolidated statements of loss data for each of the periods indicated.

Three Months Ended

Six Months Ended

(In thousands)

Cost of revenues

Gross profit (loss)

Operating expenses:

Research and development

Sales and marketing

General and administrative

Other operating expense, net

Total operating expenses

Operating loss

Financial income (expense), net

Loss before income taxes

Tax benefits (income taxes)

Net loss from equity method investments

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 9

Comparison of three and six months ended June 30, 2025, and the three and six months ended June 30, 2024

Three months ended June 30, 2025 to 2024

Six months ended June 30, 2025 to 2024

(In thousands)

Revenues increased by $24.0 million, or 9.1%, in the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to (i) an increase of $42.1 million related to an increase in the number of inverters and power optimizers sold;

and (ii) an increase of $20.4 million related to an increase in the number of batteries for PV applications sold;

these were partially offset by (i) a decrease of $19.9 million related to less ancillary solar products sold;

and (ii) a decrease of $13.3 million in revenues due to the discontinuation of our Energy Storage Business.

Revenues from outside of the U.S.

comprised 36.0% of our revenues in the three months ended June 30, 2025 compared to 63.4% in the three months ended June 30, 2024.

The number of power optimizers recognized as revenues increased by approximately 0.6 million units, or 31.9%, from approximately 2.0 million units, in the three months ended June 30, 2024, to approximately 2.6 million units in the three months ended June 30, 2025.

The number of inverters recognized as revenues increased by approximately 20.8 thousand units, or 31.9%, from approximately 65.4 thousand units in the three months ended June 30, 2024 to approximately 86.2 thousand units in the three months ended June 30, 2025.

The megawatt hours of batteries for PV applications recognized as revenues increased by approximately 99.4 megawatt hours, or 79.2% from approximately 125.4 in the three months ended June 30, 2024 to approximately 225.0 megawatt hours in the three months ended June 30, 2025.

Our blended Average Selling Price (“ASP”) per watt for solar products excluding batteries for PV applications is calculated by dividing the sales of solar products, excluding the sales of batteries for PV applications, by the name plate capacity of inverters shipped.

Our blended ASP per watt for solar products shipped excluding batteries for PV applications decreased by $0.030, or 13.9%, in the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

This decrease in blended ASP per watt is primarily attributed to price reductions, mainly in Europe.

This decrease in blended ASP per watt was partially offset by a higher number of power optimizers shipped, compared to the number of inverters shipped;

as well as higher ASP due to increase in U.S.

sales compared to sales in Europe, which have a higher ASP per watt out of our total solar product mix.

Our blended ASP per watt/hour for batteries for PV applications is calculated by dividing batteries for PV applications sales, by the nameplate capacity of batteries for PV applications shipped.

Our blended ASP per watt/hour for batteries for PV applications decreased by $0.071, or 19.2%, in the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

The decrease in blended ASP per watt/hour is mainly attributed to a price reduction of our batteries for PV applications as well as an increase in the sale of our three-phase battery that is sold at a lower ASP per watt/hour.

Revenues increased by $39.1 million, or 8.3%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to (i) an increase of $74.7 million related to an increase in the number of inverters and power optimizers sold;

(ii) an increase of $24.2 million related to the higher number of batteries for PV applications sold;

these were partially offset by (i) a decrease of $34.0 million related to less ancillary solar products sold;

and (ii) a decrease of $16.8 million in revenues due to the discontinuation of our Energy Storage Business.

Revenues from outside of the U.S.

comprised 37.7% of our revenues in the six months ended June 30, 2025 compared to 65.4% in the six months ended June 30, 2024.

The number of power optimizers recognized as revenues increased by approximately 1.7 million units, or 54.9%, from approximately 3.1 million units, in the six months ended June 30, 2024, to approximately 4.8 million units in the six months ended June 30, 2025.

The number of inverters recognized as revenues increased by approximately 30.5 thousand units, or 23.9%, from approximately 127.7 thousand units in the six months ended June 30, 2024 to approximately 158.1 thousand units in the six months ended June 30, 2025.

The megawatt hours of batteries for PV applications recognized as revenues increased by approximately 172.0 megawatt hours, or 80.4% from approximately 214.3 megawatt hours in the six months ended June 30, 2024 to approximately 386.0 megawatt hours in the six months ended June 30, 2025.

Our blended ASP per watt for solar products shipped excluding batteries for PV applications decreased by $0.014, or 7.1%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

This decrease in blended ASP per watt is primarily attributed to price reductions, mainly in Europe.

This decrease in blended ASP per watt was partially offset by a higher number of power optimizers shipped, compared to the number of inverters shipped;

as well as higher ASP due to increase in U.S.

sales compared to sales in Europe, which is characterized by a higher demand for residential products, which have a higher ASP per watt out of our total solar product mix.

Our blended ASP per watt/hour for batteries for PV applications decreased by $0.089, or 23.7%, in the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

The decrease in blended ASP per watt/hour is mainly attributed to price reduction of our batteries for PV applications as well as an increase in the sale of our three-phase battery that is sold at a lower ASP per watt/hour.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 10

Cost of Revenues and Gross Profit (loss)

Three months ended June 30, 2025 to 2024

Six months ended June 30, 2025 to 2024

(In thousands)

Cost of revenues

Gross profit (loss)

Cost of revenues decreased by $19.1 million, or 6.9%, in the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to:

• a decrease in warranty expenses and warranty accruals of $14.7 million associated primarily with a lower cost of materials;

• a decrease in indirect cost of revenues of $3.5 million;

• a decrease in personnel-related costs of $3.5 million, resulting from our Restructuring Plans designed to reduce operating expenses and align our cost structure to current market dynamics.

These were partially offset by an increase in direct cost of revenues sold of $5.1 million, associated primarily with the increase in revenues, which was partially offset by the AMPTC recognized.

Gross profit as a percentage of revenue was 11.1% in the three months ended June 30, 2025, compared to gross loss as a percentage of revenue of 4.1%, in the three months ended June 30, 2024, primarily due to:

• a decrease in warranty expenses and warranty accruals of approximately 6% associated primarily with a lower cost of materials;

• lower absolute fixed and other production related costs, which were divided this quarter by significantly higher revenue, resulting in lower gross margin of approximately 6%;

• an improvement in the direct cost of revenue of approximately 4% associated primarily with the increase of US made products and the AMPTC recognized, which was offset by an increase in costs due to the manufacturing in the U.S, price reductions and a higher portion batteries for PV applications out of our total product mix.

Cost of revenues decreased by $47.7 million, or 9.4%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to:

• a decrease in warranty expenses and warranty accruals of $31.9 million associated primarily with a lower cost of materials;

• a decrease in indirect cost of revenues, associated primarily with a decrease in inventory write-downs of $6.0 million;

• a decrease in personnel-related costs of $6.0 million resulting from our Restructuring Plans designed to reduce operating expenses and align our cost structure to current market dynamics.

Gross profit as a percentage of revenue was 9.8% in the six months ended June 30, 2025 compared to gross loss as a percentage of revenue of 7.9% in the six months ended June 30, 2024 primarily due to:

• a decrease in warranty expenses and warranty accruals of approximately 7% associated primarily with a lower cost of materials;

• lower absolute fixed and other production related costs, which were divided this quarter by significantly higher revenue, resulting in lower gross margin of approximately 6%;

• an improvement in the direct cost of revenue of approximately 5% associated primarily with the increase of US made products and the AMPTC recognized, offset by an increase in costs due to the manufacturing in the U.S., price reductions and a higher portion batteries for PV applications out of our total product mix.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 11

Operating Expenses:

Research and Development

Three months ended June 30, 2025 to 2024

Six months ended June 30, 2025 to 2024

(In thousands)

Research and development

Research and development costs decreased by $15.9 million or 22.9%, in the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to:

• a decrease in personnel-related costs of $12.5 million resulting from our Restructuring Plans designed to reduce operating expenses and align our cost structure to current market dynamics;

• a decrease in expenses related to consulting and sub-contracting of $1.2 million;

• a decrease in material consumption in an amount of $1.1 million.

Research and development costs decreased by $29.2 million or 20.2%, in the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to:

• a decrease in personnel-related costs of $19.7 million resulting from our Restructuring Plans designed to reduce operating expenses and align our cost structure to current market dynamics;

• a decrease in material consumption in an amount of $3.3 million;

• a decrease in depreciation and amortization of $2.5 million;

• a decrease in expenses related to consulting and sub-contracting of $1.6 million.

Sales and Marketing

Three months ended June 30, 2025 to 2024

Six months ended June 30, 2025 to 2024

(In thousands)

Sales and marketing

Sales and marketing expenses decreased by $11.3 million, or 28.1%, in the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to:

• a decrease in personnel-related costs of $8.6 million resulting from our Restructuring Plans designed to reduce operating expenses and align our cost structure to current market dynamics;

• a decrease of $1.2 million in marketing expenses.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 12

Sales and marketing expenses decreased by $18.5 million, or 23.5%, in the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to:

• a decrease in personnel-related costs of $14.9 million resulting from our Restructuring Plans designed to reduce operating expenses and align our cost structure to current market dynamics;

• a decrease of $1.1 million in marketing expenses.

General and Administrative

Three months ended June 30, 2025 to 2024

Six months ended June 30, 2025 to 2024

(In thousands)

General and administrative

General and administrative expenses decreased by $19.2 million, or 49.3%, in the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to:

• a net reversal of doubtful debt in the amount of $10.0 million in the three months ended June 30, 2025, compared to an expense of $8.7 million, in the three months ended June 30, 2024, mainly related to collection of doubtful debt;

• a decrease in personnel-related costs of $7.5 million resulting from our Restructuring Plans designed to reduce operating expenses and align our cost structure to current market dynamics.

These were partially offset by an increase of $8.6 million related to potential legal claims.

General and administrative expenses decreased by $19.9 million, or 28.5%, in the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to:

• a net reversal of doubtful debt in the amount of $18.1 million in the six months ended June 30, 2025, as compared to an expense of $11.7 million, in the six months ended June 30, 2024, mainly related to collection of doubtful debt;

• a decrease in personnel-related costs of $5.6 million resulting from our Restructuring Plans designed to reduce operating expenses and align our cost structure to current market dynamics;

These were partially offset by:

• an increase of $8.5 million related to potential legal claims;

• an increase of $8.1 million primarily due to a penalty for postponing the commencement of our campus lease agreement.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 13

Other operating expense, net

Three months ended June 30, 2025 to 2024

Six months ended June 30, 2025 to 2024

(In thousands)

Other operating expense, net

Other operating expenses, net, increased by $44.8 million in the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to:

• an increase of $36.7 million related to impairment of held for sale asset;

• an increase of $18.0 million related to the sale of the PV tracker business line.

These were partially offset by a gain in the three months ended June 30, 2025 of $10.0 million from sale of property, plant, and equipment compared to a loss of $1.4 million in the three months ended June 30, 2024.

Other operating expenses, net, increased by $38.8 million, in the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to:

• an increase of $36.7 million related to impairment of held for sale asset;

• an increase of $18.0 million related to the sale of the PV tracker business.

These were partially offset by:

• an increase of $3.1 million in income related to lower than expected discontinuation charges;

• a gain in the six months ended June 30, 2025 of $9.8 million from sale of property, plant, and equipment compared to a loss of $2.5 million in the six months ended June 30, 2024.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 14

Financial income (expense), net

Three months ended June 30, 2025 to 2024

Six months ended June 30, 2025 to 2024

(In thousands)

Financial income (expense), net

Financial expense, net increased by $6.5 million in the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to:

• $4.3 million expenses in the six months ended June 30, 2025 compared to income of $4.5 million as a result of fluctuations in foreign exchange rates, primarily between the Euro and the NIS against the U.S.

• a decrease of $3.1 million in interest income related to our marketable securities investments;

• an increase of $1.9 million in interest expenses related to our Notes 2029.

These were partially offset by a decrease of $9.2 million due to credit loss related to loans receivable.

Financial income, net was $2.7 million in the six months ended June 30, 2025, compared to financial expenses, net in the amount of $7.9 million in the six months ended June 30, 2024, primarily due to:

• $4.4 million income in the six months ended June 30, 2025 compared to expenses of $4.3 million in the six months ended June 30, 2024, as a result of fluctuations in foreign exchange rates, primarily between the Euro and the NIS against the U.S.

• a decrease of $12.6 million in credit loss expenses related to loans receivable,

These were partially offset by:

• a decrease of $6.4 million in interest income related to our marketable securities investments;

• an increase of $3.9 million in interest expenses primarily related to our Notes 2029.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 15

Three months ended June 30, 2025 to 2024

Six months ended June 30, 2025 to 2024

(In thousands)

Other income decreased by $14.5 million in the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to:

• a decrease of $15.5 million in gain from the repurchase of the 2025 Notes recognized in prior year;

• a decrease of $2.0 million in realized gain from marketable securities;

These were partially offset by $4.0 million income from sale of investment in a privately held company.

Other income decreased by $14.4 million in the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to:

• a decrease of $15.5 million in gain from the repurchase of the 2025 Notes recognized in prior year;

• an increase of $2.0 million in realized gain from marketable securities;

These were partially offset by $4.0 million income from sale of investment in privately held company.

Tax benefits (income taxes)

Three months ended June 30, 2025 to 2024

Six months ended June 30, 2025 to 2024

(In thousands)

Tax benefits (income taxes)

Income taxes were $5.7 million in the three months ended June 30, 2025, compared to tax benefits in the amount of $12.2 million in the three months ended June 30, 2024, primarily due to an increase in our provision for uncertain tax positions and a valuation allowance of the deferred tax assets on our current losses and capital losses, which we do not expect to be able to benefit from it in the foreseeable future.

Income taxes were $11.4 million in the six months ended June 30, 2025, compared to tax benefits in the amount of $36.0 million in the six months ended June 30, 2024, primarily due to an increase in our provision for uncertain tax positions, a valuation allowance of the deferred tax assets on our current losses and capital losses, which we do not expect to be able to benefit from in the foreseeable future, withholding taxes paid on certain intra-group interest payments and additional tax payable as a result of a settlement with the Israeli Tax Authority for tax years 2016-2018.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 16

Net loss from equity method investments

Three months ended June 30, 2025 to 2024

Six months ended June 30, 2025 to 2024

(In thousands)

Net loss from equity method investments

Net loss from equity method investments decreased by $0.3 million, or 49.2% in the three months ended June 30, 2025, as compared to the three months ended June 30, 2024.

Net loss from equity method investments decreased by $0.3 million, or 33.4% in the six months ended June 30, 2025, as compared to the six months ended June 30, 2024.

Three months ended June 30, 2025 to 2024

Six months ended June 30, 2025 to 2024

(In thousands)

As a result of the factors discussed above, net loss in the three months ended June 30, 2025 and June 30, 2024 was $124.7 million and $130.8 million, respectively.

As a result of the factors discussed above, net loss in the six months ended June 30, 2025 and June 30, 2024 was $223.3 million and $288.1 million respectively.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 17

Liquidity and Capital Resources

The following table shows our cash flows from operating activities, investing activities, and financing activities for the stated periods:

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands)

Net cash provided by (used in) operating activities

Net cash provided by investing activities

Net cash provided by (used in) financing activities

Increase (decrease) in cash and cash equivalents

As of June 30, 2025, our cash and cash equivalents were $545.2 million.

This amount does not include $235.9 million invested in available-for-sale marketable securities, $27.3 million in restricted cash, and $3.5 million invested in deposits and restricted deposits.

Our principal uses of cash are for funding our operations, capital expenditures, other working capital requirements, other investments, and the repayment of our Notes 2025.

As of June 30, 2025, we have open commitments for capital expenditures in an amount of approximately $18.5 million.

These commitments mainly reflect purchases of automated assembly lines and other machinery related to our manufacturing and operations.

We also have purchase obligations in the amount of $349.1 million, related to raw materials and commitments for the future manufacturing of our products.

Beginning in the fourth quarter of 2024, we started to sell AMPTCs.

We plan to pursue additional tax credit sales in the future.

We believe our cash and cash equivalents, and available-for-sale marketable securities will be sufficient to meet our anticipated cash needs for at least the next 12 months as well as in the longer term, including the self-funding of our capital expenditure, operational commitments and the redemption of our debt.

Operating Activities

Operating cash flows consist primarily of net loss, adjusted for certain non-cash items and changes in assets and liabilities.

Cash provided by operating activities was $26.0 million in the six months ended June 30, 2025 compared to cash used in operating activities of $261.8 million in the six months ended June 30, 2024, attributed to a decrease in net loss adjusted for certain non-cash items generated in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, as well as lower operating working capital requirements.

Investing Activities

Investing cash flows consist primarily of capital expenditures, investment in, sales and maturities of available for sale marketable securities, investment and withdrawal of bank deposits and restricted bank deposits, cash used for acquisitions, and disbursements and receipts from collections of loans made by the Company.

Cash provided by investing activities decreased by $107.0 million in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily driven by a decrease of $240.0 million in proceeds provided by sales and maturities of available-for-sale marketable securities, and an increase of $17.4 million in purchases of available-for-sale debt investments;

these were partially offset by a decrease of $37.5 million in disbursements of loans made by the Company, a decrease of $37.2 million in purchase of property plant and equipment, an increase of $25.9 million in proceeds from loans receivables, a decrease of $25.5 million in the purchase of privately-held companies, a decrease of $10.4 million in cash used for a business combination, a decrease of $10.0 million in purchase of intangible assets, and an increase of $9.3 million in sale of property plant and equipment.

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 18

Financing Activities

Financing cash flows consisted primarily of repurchases of our common stock under the share repurchase program, which expired on December 31, 2024, the issuance and partial repurchase of convertible senior notes, and our employee equity incentive plans.

Cash used in financing activities in the six months ended June 30, 2025 decreased by $44.1 million compared to the six months ended June 30, 2024, primarily due to a decrease of $262.8 million in cash used for the repurchase of our Notes 2025, a decrease of $50.0 million in cash used in share repurchases, and a decrease of $25.2 million in cash used to purchase the capped call transactions, these were partially offset by a decrease of $293.6 million in cash provided by the issuance of the Notes 2029.

Share Repurchases

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

Under the share repurchase program, repurchases could be made using a variety of methods, which may have included 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 were determined by the Company in its discretion and depended on a variety of factors, including legal requirements, price and economic and market conditions.

The program did not obligate the Company to acquire any amount of common stock, it could have been suspended, extended, modified, discontinued or terminated at any time at the Company’s discretion without prior notice, and expired on December 31, 2024.

The Company repurchased 753,364 shares under the program.

During the six months ended June 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 $50.3 million.

Convertible Senior Notes

On June 28, 2024, we sold an aggregate principal amount of $300 million of 2.25% convertible senior notes due in 2029 in a transaction exempt from registration pursuant to Rule 144A and Regulation S under the Securities Act.

The net proceeds from the offering of the Notes 2029 were approximately $293.2 million, after deducting fees and estimated expenses.

Separately, we have entered into capped call transactions.

We used approximately $25.2 million of the net proceeds from this offering to pay the cost of the capped call transactions and approximately $267.9 million of the net proceeds from this offering to repurchase $285.0 million principal amount of its outstanding 0.000% convertible notes due 2025.

As a result of the repurchase of Notes 2025, we recognized a gain of $15.5 million which was recorded under other income.

We intend to use the remainder of the net proceeds from the offering for general corporate purposes.

On July 8, 2024, we sold an aggregate principal amount of $37 million of the Notes 2029.

The 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, as described above in Note 11, “Convertible Senior Notes.”

In March 2025 the Company repurchased $5.2 million principal amount of its Notes 2025.

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

After such repurchases, an aggregate of $342.2 million principal amount of the Notes 2025 remained outstanding.

The Notes 2025 mature on September 15, 2025, and we expect that the holders will not convert prior to maturity.

We intend to repay the principal amount of the Notes 2025 from cash on hand.

Critical Accounting Policies and Significant Management Estimates

Management believes that there have been no significant changes during the six months ended June 30, 2025 to the items that we disclosed as our critical accounting policies and estimates in MD&A in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, except as mentioned in Note 1, “General” (if any).

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | 19

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