What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-25 compared with 2025-02-25 · 589 added, 476 removed, 1199 unchanged (47% of the section changed)

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Reports of Independent Registered Public Accounting Firm (PCAOB ID:

Consolidated Balance Sheets as of December 31, 2024 and 2023

Consolidated Balance Sheets as of December 31, 2025 and December 31, 2024

Consolidated Statements of Income for the year ended December 31, 2025, 2024 and 2023

Consolidated Statements of Comprehensive Income for the year ended December 31, 2024, 2023 and 2022

Consolidated Statements of Stockholders’ Equity for the year ended December 31, 2024, 2023 and 2022

Consolidated Statements of Cash Flows for the year ended December 31, 2024, 2023 and 2022

Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, 2024 and 2023

Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2025, 2024 and 2023

Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023

Notes to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of SolarEdge Technologies Inc.

To the Stockholders and the Board of Directors of SolarEdge Technologies Inc.

Opinion on the Financial Statements

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(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of the critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the account or disclosures to which they relate.

Warranty obligation

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Warranty obligations

Description of the Matter

As described in Notes 2x and 15 to the consolidated financial statements, as of December 31, 2024, the warranty obligation was $432,365 thousand.

Substantially all of the Company's warranty obligations are related to the solar business.

The Company's products include a warranty of up to 12 years for inverters, up to 25 years for its power optimizers and 10 years for batteries for PV applications.

As described in Notes 2x and 14 to the consolidated financial statements, as of December 31, 2025, warranty obligations were $357,889 thousand.

The Company provides warranty obligations for its products as follows:

a standard 10-year limited warranty for its batteries, a standard 12-year limited warranty for the majority of its inverters, and a 25-year limited warranty for power optimizers.

In order to predict the failure rate of each product, the Company established a reliability model based on the estimated mean time between failures ("MTBF") and an additional model to capture non-systematic failures.

Predicted failure rates are updated periodically based on new product versions and analysis of the root cause of actual failures, as are warranty related replacement costs.

Auditing the management’s warranty obligations valuation of the solar business was complex and subject to judgment due to the significant estimations required in evaluation its amount.

In particular, the warranty obligations are subject to significant assumptions such as product failure rates, the average cost of products replacements and other warranty related costs.

Predicted failure rates are updated periodically based on new product versions and analysis of the root cause of actual failures.

Auditing management's estimates for the valuation of warranty obligations required significant auditor judgment due to the subjectivity involved in management’s assumptions.

These assumptions included expected failure rates and the estimated average cost of product replacements, such as material costs, logistics costs and subcontractors’ services costs associated with the product replacements.

How We Addressed the Matter in Our Audit

We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls over the valuation of for the warranty obligations of the solar business, including controls over management's review of the significant assumptions and data underlying the warranty obligations valuation.

To test the management's warranty obligations valuation, our substantive audit procedures included, among others, look back analysis and testing the accuracy and completeness of the underlying data used in management's warranty obligations valuation assessment.

We assessed the accuracy of historical data used in estimating forecasted failure rates, repair replacement ratios and other warranty related costs and compared them to actual warranty claims.

In addition, we involved a specialist to assess the assumptions and the precision of the inputs underlying the MTBF model, including, evaluating the appropriateness of the MTBF model and its consistency with data obtained from external sources.

Valuation of Inventories - Provisions for slow moving, excess and obsolete inventory items

We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls over the valuation of warranty obligations, including controls over management's review of the significant assumptions and underlying data used in the valuation of the warranty obligations.

To test management’s valuation of warranty obligations, including significant assumptions related to expected failure rates and the estimated average cost of product replacements, our substantive audit procedures included, testing the accuracy and completeness of the underlying data used in management's warranty obligations valuation assessment.

We assessed the accuracy of historical data used in estimating expected failure rates and repair replacement ratios by comparing them to actual warranty claims.

In addition, we involved a specialist to assess the assumptions and the precision of the inputs underlying the MTBF model, including, evaluating the MTBF model and its consistency with data obtained from external sources.

Valuation of Inventories - Reserves for slow moving, excess and obsolete inventory items

Description of the Matter

As of December 31, 2024, the Company’s consolidated inventories balance was $645,897 thousand, and recorded inventory impairment charges of $738,757 thousand.

As described in Notes 2k, 6 to the consolidated financial statements, the Company values its inventories at the lower of cost or net realizable value.

Reserves for slow moving, excess and obsolete inventory items are recorded based on management's analysis of inventory levels, future sales forecasts, and market conditions.

Auditing the valuation of inventory reserves for the slow moving, excess and obsolete inventory items were complex and subject to judgment due to the significant estimates and assumptions required by management to estimate the reserves, especially, the future salability of the inventories.

These assumptions include the assessment by inventory category of future demand and market conditions for the Company's products.

As of December 31, 2025, the Company’s consolidated inventories balance was $552,632 thousand.

As described in Notes 2k and 5 to the consolidated financial statements, the Company values its inventories at the lower of cost or net realizable value.

In connection with this policy, the Company periodically evaluates quantities on hand and records reserves for slow-moving, excess and obsolete inventory items based on management's analysis of historical usage, expected demand, and market conditions.

Auditing management's valuation of inventory reserves for slow-moving, excess and obsolete inventory items required significant auditor judgment due to the subjectivity involved in management’s assumptions.

These assumptions included expected inventory usage and the assessment, by inventory category, of future demand for the Company's products, and market conditions.

How We Addressed the Matter in Our Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the Company's reserve for slow moving, excess and obsolete inventory items, process including management's assessment of the underlying assumptions and data.

To test the valuation of inventory reserve for the slow moving, excess and obsolete inventory items, our substantive audit procedures included, among others, evaluating the reasonableness of the significant assumptions used by management including those related to forecasted inventory usage, future demand, and market conditions.

We examined the completeness, accuracy, and relevance of the underlying data used in management's estimations.

We held discussions with appropriate non-financial personnel including sales, R&D and operating management, regarding strategic or operational changes in the business would impact expected demand or related carrying value of inventories, introduction of new products and other factors to corroborate management's assertions regarding the inventory reserves.

We performed procedures to compare recent sales transactions or market data to cost of inventories to assess that the carrying value of inventories was the lower of cost or net realizable value.

We performed an examination of the assumptions by comparing those assumptions to historical data as well as reviewing such assumptions for management bias.

We considered macroeconomic trends within the industry, including trends that could impact the movement of the products provided by the Company.

We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the Company's reserves for slow-moving, excess and obsolete inventory items, including controls over management's review of the significant assumptions and underlying data used in the inventory reserves valuation.

To test management’s valuation of the reserves for slow-moving, excess and obsolete inventory, our substantive audit procedures included evaluating the reasonableness of the significant assumptions used by management, including those related to expected inventory usage and demand, and market conditions.

We also examined the completeness and accuracy of the underlying data used in management's estimates.

In addition, we compared recent sales transactions to the cost of inventories to assess whether inventories were stated at the lower of cost or net realizable value.

/s/ Kost Forer Gabbay & Kasierer

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of SolarEdge Technologies Inc.

To the Stockholders and the Board of Directors of SolarEdge Technologies Inc.

Opinion on Internal Control Over Financial Reporting

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Marketable securities

Deferred tax assets, net

Property, plant and equipment, net

Operating lease right-of-use assets, net

Goodwill and intangible assets, net

Intangible assets, net

Loan receivables, net

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CURRENT LIABILITIES:

Trade payables, net

Trade payables

Employees and payroll accruals

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Warranty obligations

Deferred revenues

Deferred revenues and customers advances

Finance lease liabilities

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125,000,000 shares;

58,780,490 shares at December 31, 2024 and 57,123,437 shares at December 31, 2023;

58,027,126 shares at December 31, 2024 and 57,123,437 shares at December 31, 2023.

60,360,154 shares as of December 31, 2025 and 58,780,490 shares as of December 31, 2024;

60,360,154 shares as of December 31, 2025 and 58,027,126 shares as of December 31, 2024.

Additional paid-in capital

Treasury stock, at cost;

753,364 shares held

0 and 753,364 stocks held as of December 31, 2025 and December 31, 2024, respectively

Accumulated other comprehensive loss

Retained earnings (Accumulated deficit)

Accumulated deficit

Total stockholders’ equity

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Foreign currency translation adjustments

Total other comprehensive income (loss)

Total other comprehensive income (loss), net of tax:

Comprehensive income (loss)

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Accumulated other comprehensive

Income (loss)

Retained earnings

Balance as of December 31, 2021

Issuance of common stock in a secondary public offering, net of underwriters' discounts and commissions of $ 27,140 and $ 834 of offering costs

Issuance of common stock upon exercise of stock-based awards

Issuance of Common stock under employee stock purchase plan

Stock based compensation

Other comprehensive loss adjustments, net

Retained earnings (Accumulated deficit)

Balance as of December 31, 2022

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Balance as of December 31, 2024

Issuance of common stock upon exercise of stock-based awards

Issuance of Common stock under employee stock purchase plan ( 753,364 shares transferred from treasury stock)

Stock based compensation

Other comprehensive income adjustments, net

Balance as of December 31, 2025

* Represents an amount less than $1.

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Provision to write down inventories to net realizable value

Impairment of asset held-for-sale

Loss on impairment and disposal of property, plant and equipment

Stock-based compensation expenses

Loss from business disposition

Impairment of goodwill and intangible assets

Impairment of privately-held companies

Deferred income taxes, net

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Loss (gain) from exchange rate fluctuations

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

Cumulative translation adjustment, including intra-entity

transactions that are of a long-term investment reclassified

from other comprehensive income (loss)

Changes in assets and liabilities:

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Operating lease right-of-use assets, net

Trade payables, net

Trade payables

Warranty obligations

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Purchase of property, plant and equipment

Proceeds from sale of investment in privately-held company

Business dispositions, net of cash sold

Business combinations, net of cash acquired

Proceeds from sale of property, plant and equipment

Advance related to held-for-sale asset

Purchase of intangible assets

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Proceeds from governmental grant

Repayment related to governmental grant

Other investing activities

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Repurchase of common stock

Partial repurchase of Notes 2025

Repurchase of convertible debt

Proceeds from issuance of Notes 2029, net of issuance costs

Capped call transactions related to Notes 2029

Repayment of convertible notes at maturity

Tax withholding in connection with stock-based awards, net

Proceeds from secondary public offering, net of issuance costs

Other financing activities

Net cash provided by (used in) financing activities

Net cash used in financing activities

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

Increase (decrease) in cash, cash equivalents and restricted cash including cash classified within current held-for-sale assets

change in cash classified within current held-for-sale assets

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

Cash and cash equivalents at the beginning of the period

Cash, cash equivalents and restricted cash, beginning of period

Cash, cash equivalents and restricted cash, end of period

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Purchase of intangible assets and business combinations

Right-of-use asset recognized with corresponding lease liability

Issuance of Common stock under employee stock purchase plan

Right-of-use asset recognized with corresponding lease

liability including changes in lease liabilities from lease

modifications and terminations

Purchase of property, plant and equipment

Supplemental disclosure of cash flow information:

Cash paid for income taxes

Cash paid for income taxes, net

Cash paid for interest on convertible debt and bank loans

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

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SolarEdge Technologies, Inc.

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

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

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

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

The Company offers a variety of energy solutions, which include lithium-ion cells, batteries, a cloud-based monitoring platform, EV chargers, as well as cloud-based energy management solutions.

On April 6, 2023, the Company completed the acquisition of all outstanding shares of Hark Systems Ltd.

("Hark"), a UK-based energy IoT company for the C&I sector.

In October 2023, the Company decided to discontinue its light commercial vehicle e-Mobility ("LCV") activity (see Note 25).

On April 1, 2024, the Company completed the acquisition of all outstanding shares of Wevo, an Israel-based software startup, specializing in EV charging optimization and management (see Note 3)

In November 2024, the Company decided to discontinue its Energy Storage activity (see Note 25).

together with its subsidiaries (the “Company”) is a global smart energy technology company.

We develop, manufacture, and sell products that address a broad range of energy market segments through our diversified product offering, including residential, commercial and large scale photovoltaic or PV, energy storage and backup solutions, electric vehicle or EV charging capabilities, home energy management, grid services and virtual power plants.

By leveraging engineering capabilities and with a focus on innovation, safety and reliability, we create smart energy solutions that power our lives and drive future progress.

The Company and its subsidiaries sell products worldwide through large distributors, electrical equipment wholesalers, directly to large solar installers and EPC firms.

Our products are carried and actively sold by most of the top PV distributors as well as some of the largest electrical distribution companies.

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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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Principles of consolidation:

The consolidated financial statements include the accounts of the Company and its subsidiaries.

The consolidated financial statements include the accounts of the Company.

Intercompany transactions and balances including profit from intercompany sales not yet realized outside the Company have been eliminated upon consolidation.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Use of estimates:

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Actual results could differ from those estimates.

In preparing the Company’s consolidated financial statements, management also considered the economic implications of inflation on key accounting estimates.

In addition, the duration, scope and effects of the war in Israel and the conflict in Ukraine, government and other third-party responses to it, and the related macroeconomic effects, including to the Company’s business and the business of the Company’s suppliers and customers are uncertain, rapidly changing and difficult to predict.

As a result, the Company’s accounting estimates and assumptions may change over time in response to these evolving situations.

Such changes could result in future impairments of goodwill and long-lived assets, inventories write-offs, incremental credit losses on receivables and available-for-sale marketable debt securities and changes in warranty obligations as of the time of a relevant measurement event.

In preparing the Company’s consolidated financial statements, management considered the economic implications of inflation, geopolitical developments, including the conflict in Israel, currency fluctuation, and our ability to benefit from certain tax credits, in evaluating assumptions used in key accounting estimates.

These factors were considered in assessing assets recoverability, inventory valuation and warranty obligations.

Actual results could differ from those estimates.

SOLAREDGE TECHNOLOGIES INC.

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830 “Foreign Currency Matters”.

All transaction gains and losses of the re-measurement of monetary balance sheet items are reflected in the statements of income (loss) as financial income or expenses, as appropriate.

All transaction gains and losses of the re-measurement of monetary balance sheet items are reflected in the consolidated statements of income (loss) as financial income or expenses, as appropriate.

The financial statements of other Company’s subsidiaries whose functional currency is other than the U.S.

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Assets and liabilities have been translated using the exchange rates in effect as of the balance sheet date.

Statements of income (loss) amounts have been translated using the date of the transaction or at the average exchange rate for the relevant period.

The resulting translation adjustments are reported as a component of stockholders’ equity in accumulated other comprehensive income (loss).

Consolidated statements of income (loss) amounts have been translated using the date of the transaction or at the average exchange rate for the relevant period.

The resulting translation adjustments are reported as a component of stockholders’ equity in accumulated other comprehensive loss.

Gains and losses arising from intercompany foreign currency transactions that are of a long-term investment in nature are reported in the same manner as translation adjustments.

In the year ended December 31, 2025, upon the substantial completion of the liquidation of a foreign operation, the cumulative foreign currency translation adjustments related to that operation are reclassified from accumulated other comprehensive loss and recognized in finance income (expense), net in the consolidated statement of income (loss).

The reclassification resulted in a charge of $ 58,916 .

Cash and cash equivalents:

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Restricted cash

Restricted cash represents cash, held as certificates of deposit that are collateralized under a letter of credit, issued to customer and vendors.

Restricted cash represents cash, held as certificates of deposit that are collateralized under a letter of credit, issued to customers and vendors.

The letters of credit are required as a performance security, with a face amount equal to the aggregate purchase price of an executed sales agreement.

The letters of credit were issued per the terms of the executed sales and purchasing agreements and the Company has collateralized certificates of deposit under these letters of credit in an aggregated amount of $ 135,328 , which is reflected as restricted cash on the Company’s consolidated balance sheet as of December 31, 2024.

The letters of credit were issued per the terms of the executed sales and purchasing agreements and the Company has collateralized certificates of deposit under these letters of credit in an aggregated amount of $ 84,771 and $ 135,328 , which is reflected as restricted cash on the Company’s consolidated balance sheet as of December 31, 2025 and 2024, respectively.

Restricted bank deposits:

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Restricted bank deposits are primarily used as collateral for the Company's office leases and credit cards.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Marketable Securities:

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320 “Investments - Debt and Equity Securities”, the Company classifies marketable securities as available-for-sale.

Available-for-sale ("AFS") securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, net of taxes.

Available-for-sale ("AFS") securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive loss, a separate component of stockholders’ equity, net of taxes.

Realized gains and losses on sales of marketable securities, as determined on a specific identification basis, are included in other income (loss), net, on the consolidated statements of income (loss).

The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in financial income (expenses), net.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

The Company classifies its marketable securities as either short-term or long-term based on each instrument’s underlying contractual maturity date.

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On each reporting period, the Company evaluates whether declines in fair value below carrying value are due to expected credit losses, as well as the ability and intent to hold the investment until a forecasted recovery occurs, in accordance with ASC 326.

Allowance for credit losses on AFS debt securities are recognized as a charge in financial income (expenses), net, on the consolidated statements of income (loss), and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders' equity.

The Company has not recorded credit losses on AFS debt securities for the years ended December 31, 2025, 2024 and 2023.

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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 Company periodically evaluates the carrying value of its 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 (loss), net.

SOLAREDGE TECHNOLOGIES INC.

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(in thousands, except per share data)

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 (loss), net.

Trade receivables:

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The Company is exposed to credit losses primarily through sales of products.

The allowance against gross trade receivables reflects the current expected credit loss inherent in the receivables portfolio determined based on the Company’s methodology.

The allowance against trade receivables reflects the current expected credit loss inherent in the receivables portfolio determined based on the Company’s methodology.

The Company’s methodology is based on historical collection experience, customer creditworthiness, current and future economic condition and market condition.

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The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of trade receivables to present the net amount expected to be collected:

Balance as of January 1, 2024

As of December 31,

Balance, at the beginning of the period

Increase in provision for expected credit losses

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Foreign currency translation

Balance as of December 31, 2024

Balance, at the end of the period

Loan receivables:

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The Company evaluates the extent and impact of any credit deterioration that could affect the performance and the value of the secured property, as well as the financial and operating capability of the borrower.

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

Changes in provision for credit loss is recorded under financial income (expense), net.

The loan repayments are expected per the contractual terms of the loan agreement.

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

The loans bear interest that represents market interest rate.

As of December 31, 2024 and 2023, the Company's provision for credit loss was $ 17,672 and $ 144 , respectively, which was recorded under Financial income (expense), net.

As of December 31, 2024, the loans are presented under long-term assets on the consolidated balance sheets.

As of December 31, 2023, the loans were presented under prepaid expenses and other current assets and other long-term assets on the consolidated balance sheets.

The Company granted a loan to a single customer.

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

As of December 31, 2025 and December 31, 2024, the Company's provision for credit loss was $ 9,751 and $ 17,672 , respectively.

As of December 31, 2025, the loans were presented under prepaid expenses and other current assets on the consolidated balance sheets.

As of December 31, 2024, the loans were presented under other long-term assets on the consolidated balance sheets.

Interest income is recorded on an accrual basis at the stated interest rate and is recorded in financial income (expense), net, in the accompanying consolidated statements of income (loss).

SOLAREDGE TECHNOLOGIES INC.

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(in thousands, except per share data)

Interest income is recorded on an accrual basis at the stated interest rate and is recorded in financial income (expense), net, in the accompanying consolidated statements of income (loss).

The amortized cost of the loan receivable approximates its fair value as of December 31, 2024.

Inventories are stated at the lower of cost or net realizable value.

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Buildings and plants

3 - 5.7 (mainly 5.7 )

Computers and peripheral equipment

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In August 2022, the U.S.

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

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

government enacted the Inflation Reduction Act of 2022 (“IRA”), which includes several incentives intended to accelerate U.S.

manufacturing and adoption of clean energy, battery and energy storage, electrical vehicles, and other solar products, and therefore impacts our business and operations, along with the overall U.S.

solar market.

As part of such incentives, the IRA, among other things, extended the investment tax credits ITC through 2034 and was therefore expected to increase the demand for solar products.

The IRA further incentivizes residential and commercial solar customers and developers by providing significant tax credits for qualifying energy projects.

In July 2025, the U.S.

government enacted the H.R.1 that shortened the ITC credits.

The IRA further provides Advanced Manufacturing Production Tax Credits (“AMPTCs”) for U.S.

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

The duration of this credit was not impacted by H.R.1.

H.R.1 introduced new Foreign Entity of Concern (“FEOC”) requirements for Sections 45X, 45Y, and 48E of the Code.

These restrictions require threshold percentages of non FEOC components that increase over time, beginning January 1, 2026.

Currently, the Company manufactures components that help our customers meet their non-FEOC percentage requirements.

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

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The Direct Pay option is available as a one-time election, in any taxable year after December 31, 2022, for a facility in which eligible components are produced, and is applicable for five years.

In 2024 the Company sold a significant part of the AMPTCs it generated from the U.S.

In 2025 the Company sold to third parties a significant part of the AMPTCs it generated from the U.S.

production of eligible components.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Refundable and transferable tax credits are similar in essence to government grants.

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(1) the Company will comply with the relevant conditions and (2) the grant disbursement will be received.

The Company recognize's AMPTCs as a reduction in the cost of revenues in the statement of income (loss).

The Company recognizes AMPTCs as a reduction in the cost of revenues in the consolidated statement of income (loss).

The Company does this systematically over time as it recognizes the related expenses.

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as a reduction of income tax payable within accrued expenses and other liabilities, as a tax prepayment, or, if AMPTCs are to be sold, within prepayment and other assets.

As of December 31, 2024 and 2023, AMPTCs of $ 80,516 and $ 6,020 , were recorded as a tax prepayment within prepayment and other current assets, respectively.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Property, plant and equipment

In 2020, SolarEdge Korea (formerly Kokam), a wholly owned subsidiary of the Company, entered into an agreement with Chungcheongbuk-do province of South Korea to partially subsidize the construction of Sella 2, a factory for production of lithium-ion cells and batteries, in the amount of approximately $ 12,000 .

The assistance is in the form of a cash subsidy, which the government will pay as a grant upon the satisfaction of predetermined construction completion milestones.

When the defined milestones are reached and the right to receive a subsidy amount becomes virtually certain, the amount of the grant is recorded as a reduction of the related asset's value under “Property, plant and equipment, net”.

In November 2024, following the announced discontinuation of SolarEdge Korea, the Company is required to return approximately $ 10,000 in subsidies granted to date.

In November 2024, following the announced discontinuation of SolarEdge Korea, the Company was required to return approximately $ 10,000 in subsidies granted to date.

The Company recorded an accrual under accrued expenses and other current liabilities in the consolidated balance sheets.

The Company did not record reduction of property, plant and equipment related to grants for the years ended December 31, 2024 and 2023.

In 2025 the Company settled and repaid $ 6,643 .

The Company determines if an arrangement is a lease at inception.

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Lease expenses are recognized on a straight-line basis over the lease term or the useful life of the leased asset.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

In addition, the carrying amount of the ROU and lease liabilities are remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

Upon modification of a lease, the Company reassesses, as of the effective date of the modification, whether the lease is classified as a finance lease or an operating lease in accordance with ASC 842.

The Company also elected the practical expedient to not separate lease and non-lease components for all its leases.

Business Combination:

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Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired technology and discount rates.

3 unchanged sentences

Intangible Assets:

Acquired identifiable finite-lived intangible assets are amortized on a straight-line basis or accelerated method over the estimated useful lives of the assets.

Acquired identifiable finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets.

The basis of amortization approximates the pattern in which the assets are utilized, over their estimated useful lives.

1 unchanged sentence

In case the Company reduces the estimated useful life for any asset, the remaining unamortized balance is amortized over the revised estimated useful life (see Note 9).

Depreciation is calculated by the straight-line method over the estimated useful life of the assets, at the following rates:

Amortization is calculated by the straight-line method over the estimated useful life of the assets, at the following rates:

Current technology

14.3 - 20 (mainly 20 )

Customer relationships

20 - 50 (mainly 20 )

1 unchanged sentence

Impairment of long-lived assets:

The Company’s long-lived assets to be held and used, including property, plants and equipment, ROU assets and identifiable intangible assets that are subject to amortization, other than goodwill, are reviewed for impairment in accordance with ASC 360 “Property, Plants and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable.

The Company’s long-lived assets to be held and used, including property, plants and equipment, ROU assets and identifiable intangible assets, other than goodwill, are reviewed for impairment in accordance with ASC 360 “Property, Plants and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable.

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to the future undiscounted cash flows expected to be generated by the assets (or asset group).

1 unchanged sentence

For the years ended December 31, 2025, 2024 and 2023, the Company recorded impairment charges of long-lived assets in the amount of $ 5,998 , $ 249,588 and $ 30,790 , respectively, presented under Other operating expenses, net.

Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any non-controlling interest in the acquiree, over the assigned fair values of the identifiable net assets acquired.

Goodwill is not amortized, and is assigned to reporting units and tested for impairment at least on an annual basis, in the fourth quarter of the fiscal year.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

Goodwill is not amortized, and is assigned to reporting units and tested for impairment at least on an annual basis, in the fourth quarter of the fiscal year.

The goodwill impairment test is performed according to the following principles:

2 unchanged sentences

An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized (see Note 10).

For the year ended December 31, 2024, the Company recorded impairment charges of goodwill in the amount of $ 2,251 .

For the year ended December 31, 2023, the Company did not record any impairment charges.

Starting January 1, 2025, the Company operates as one reporting unit.

For the year ended December 31, 2025, the Company did not record any goodwill impairment charges.

For the year ended December 31, 2024, the Company recorded impairment charges of goodwill in the amount of $ 2,251 .

For the year ended December 31, 2023, the Company did not record any goodwill impairment charges.

Cloud computing arrangements:

1 unchanged sentence

During 2022, the Company began implementing a cloud-based ERP system.

The Company's implementation of this system is expected to be completed in 2025.

The Company has substantially completed the implementation of its new ERP system during the fiscal quarter ended June 30, 2025.

The Company is performing post-implementation activities.

The implementation is intended to enhance user access controls and automate certain accounting, back-office and reporting processes.

The Company expects the new system to reduce reliance on manual processes upon full deployment.

The Company incurs costs to implement cloud computing arrangements (“CCA”) that are hosted by third party vendors.

1 unchanged sentence

The costs are then amortized on a straight-line basis over the contractual term of the cloud computing arrangement and are recognized as an operating expense within the consolidated statements of income (loss).

Capitalized amounts related to such arrangements are recorded within other long-term assets in the consolidated balance sheets.

Capitalized amounts related to such arrangements are recorded within other long-term assets and prepaid expenses and other current assets in the consolidated balance sheets.

Cash payments for CCA implementation costs are classified as cash used in operating activities.

As of December 31, 2024, and 2023 the Company had capitalized implementation costs related to its upcoming ERP conversion in the amounts of $ 29,366 and $ 13,666 , respectively presented under other long-term assets in the consolidated balance sheet.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

As of December 31, 2025, and 2024 the gross capitalized implementation costs related to the Company's ERP conversion, amounts to $ 48,060 and $ 29,366 , respectively.

Amortization of the implementation costs began on July 1, 2025, the date the software was ready for its intended use.

For the year ended December 31, 2025, the Company commenced amortization of the CCA and recognized $ 3,363 in related amortization expense.

Severance pay:

2 unchanged sentences

therefore, related assets and liabilities are not presented in the consolidated balance sheets.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

If applicable, severance costs are recorded in each entity in accordance with local laws and regulations.

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revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that the Company expects in exchange for those goods or services.

The Company’s products and services consist mainly of (i) power optimizers, (ii) inverters, (iii) batteries, (iv) a related cloud-based monitoring platform, (v) communication services, and (vi) warranty extension services.

The Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration the Company expects to receive in revenue.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

The Company’s products and services consist mainly of (i) power optimizers, (ii) inverters, (iii) batteries for PV applications, (iv) a related cloud-based monitoring platform, (v) communication services, and (vi) warranty extension services.

In order to achieve that core principle, the Company applies the following five-step approach:

In order to achieve this core principle, the Company applies the following five-step approach:

(1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when the performance obligation is satisfied.

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(3) Determine the transaction price

The transaction price is the amount of consideration to which the Company is entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

Generally, the Company does not provide price protection, stock rotation, and/or right of return.

The Company determines the transaction price for all satisfied and unsatisfied performance obligations identified in the contract from contract inception to the beginning of the earliest period presented.

The Company has elected to apply the practical expedient to not evaluate payment terms of one year or less for the existence of a significant financing component.

Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities (e.g., sales tax and other indirect taxes).

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Rebates or discounts on goods or services are accounted for as variable consideration.

The rebate or discount program is applied retrospectively for future purchases.

Provisions for rebates, sales incentives and discounts to customers are accounted for as reductions in revenue in the same period the related sales are recorded.

Accrual for rebates for direct customers is presented net of receivables.

Accrual for rebates for direct customers is presented net of trade receivables.

Accrual for sale incentives related to non-direct customers is presented under accrued expenses and other current liabilities.

The Company accrued $ 53,026 and $ 74,096 for rebates and sales incentives as of December 31, 2024 and 2023, respectively.

The Company accrued $ 83,882 and $ 53,026 for rebates and sales incentives as of December 31, 2025 and December 31, 2024, respectively.

The Company has elected to apply the practical expedient to not evaluate payment terms of one year or less for the existence of a significant financing component.

When a contract provides a customer with payment terms of more than a year, the Company considers whether those terms create variability in the transaction price and whether a significant financing component exists.

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These financing component expenses are reflected in the Company’s deferred revenues balance.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

(4) Allocate the transaction price to the performance obligations in the contract

The Company performs an allocation of the transaction price to each separate performance obligation, in proportion to their relative standalone selling prices.

When a standalone selling price is not directly observable, the Company estimates it using the expected cost‑plus‑margin approach.

(5) Recognize revenue when a performance obligation is satisfied

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Revenues from sales of products are recognized based on the transfer of control, which includes but is not limited to, the agreed International Commercial terms, or “INCOTERMS”.

Revenues related to warranty extension services, cloud-based monitoring, communication services and other services are recognized over time on a straight-line basis since these services have a consistent continuous pattern of transfer to a customer during the contract period.

Billed accounts receivables include all outstanding invoices to customers, as well as amounts allowed to be billed according to contractual billing terms with customers.

Deferred revenues consist of deferred cloud-based monitoring services, communication services, warranty extension services, other services and advance payments received from customers for the Company’s products.

Deferred revenues are classified as short-term and long-term deferred revenues based on the period in which revenues are expected to be recognized (see Note 16).

Revenues related to cloud-based monitoring, extended warranty services, communication services and other services are recognized over time on a straight-line basis since these services have a consistent continuous pattern of transfer to a customer during the contract period.

Billed accounts receivable include all outstanding invoices to customers, as well as amounts allowed to be billed according to contractual billing terms with customers.

Deferred revenues and advances from customers consist of deferred cloud-based monitoring, extended warranty services, communication services, other services and advance payments received from customers for the Company’s products.

Deferred revenues and advances from customers are classified as short-term and long-term deferred revenues and advances from customers based on the period in which revenues are expected to be recognized (see Note 15).

Cost of revenues:

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product costs consisting of purchases from contract manufacturers and other suppliers, direct and indirect manufacturing costs, shipping and handling, support, warranty expenses, provision for losses related to slow moving and dead inventory, personnel and government grants related to the AMPTCs.

Shipping, handling and warehouse costs, which amounted to $ 63,385 , $ 79,534 and $ 214,349 , for the years ended December 31, 2025, 2024 and 2023, respectively, are included in the cost of revenues in the consolidated statements of income (loss).

Shipping, handling and warehouse costs include custom tariff charges and all other costs associated with the distribution of finished goods from the Company’s point of sale directly to its customers.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

Shipping, handling and warehouse costs, which amounted to $ 79,534 , $ 214,349 and $ 257,753 , for the years ended December 31, 2024, 2023 and 2022, respectively, are included in the cost of revenues in the consolidated statements of income.

In the years that ended December 31, 2024 and 2023, the Company recognized AMPTCs worth $ 88,655 and $ 6,020 , as a reduction in the cost of revenues for the inverters produced in the United States and sold to customers.

Shipping, handling and warehouse costs incurred prior to the point of sale that are directly attributable to bringing inventory to its present location and condition are capitalized as part of inventory.

These costs are subsequently recognized in cost of revenues upon sale of the related inventory.

Warranty obligations:

The Company provides a product warranty for its solar segment related products as follows:

a standard 10 -year limited warranty for its batteries for PV applications, a standard 12 -year limited warranty for the majority of its inverters, that is extendable up to 25 years for an additional cost and a 25 -year limited warranty for power optimizers.

The Company provides a product warranty for its products as follows:

a standard 10 -year limited warranty for its batteries, a standard 12 -year limited warranty for the majority of its inverters, that is extendable up to 25 years for an additional cost, and a 25 -year limited warranty for power optimizers.

The Company maintains reserves to cover the expected costs that could result from the standard warranty.

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Such causes, which mostly consist of design errors, workmanship errors caused during the manufacturing process and, to a lesser extent, replacement of non-faulty units by installers, result in generating additional replacement costs to the replacement costs projected under the MTBF model.

For other products, the Company accrues for warranty costs based on the Company’s best estimate of product and associated costs.

The Company’s other products are sold with a standard limited warranty that typically range in duration from one to ten years.

Warranty obligations are classified as short-term and long-term obligations based on the period in which the warranty is expected to be claimed.

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Management believes that the financial institutions that hold the Company’s investments are financially sound and, accordingly, minimal credit risk exists with respect to these investments.

The Company's debt marketable securities include investments in high-rated corporate debentures (located mainly in the U.S., Canada, France, UK, Australia, Cayman Islands and other countries) and governmental bonds.

The Company's debt marketable securities include investments in high-rated corporate debentures (located mainly in the U.S.) and governmental bonds.

The financial institutions that hold the Company's debt marketable securities are major financial institutions located in the United States.

4 unchanged sentences

From time to time, the Company may purchase trade credit insurance.

The Company had one major customer (customers with attributable revenues that represent more than 10% of the Company's total revenues) for the year ended December 31, 2024, two major customers for the year ended December 31, 2023, and one major customer for the year ended December 31, 2022 that accounted for approximately 12.9 %, 24.0 % and 18.5 % of the Company’s consolidated revenues, respectively.

All of the revenues from these customers were generated in the solar segment.

The Company had one major customer (customers with attributable revenues that represent more than 10% of the Company's total revenues) for the year ended December 31, 2025, one major customer for the year ended December 31, 2024, and two major customers for the year ended December 31, 2023 that accounted for approximately 18.6 %, 12.9 % and 24.0 % of the Company’s consolidated revenues, respectively.

For the years ended December 31, 2024 and December 31, 2023, revenues from these customers were generated in the solar segment.

The Company had three major customers (customer with a balance that represents more than 10% of total trade receivables, net) as of December 31, 2025 and as of December 31, 2024 that accounted in the aggregate for approximately 45.5 % and 43.4 %, of the Company’s consolidated trade receivables, net, respectively.

2 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 December 31, 2025 and 2024, two contract manufacturers accounted for 50.7 % and 43.4 % of the Company’s total trade payables, respectively.

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

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

As of December 31, 2024 one contract manufacturer accounted for 26.2 % of the Company’s total trade payables, net.

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

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

Fair value of financial instruments:

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

The carrying value of cash and cash equivalents, restricted cash, short-term bank deposits, restricted bank deposits, trade receivables, net, bank loans, prepaid expenses, loan receivables and other current assets, trade payables, net, employee and payroll accruals and accrued expenses and other current liabilities approximate their fair values due to the short-term maturities of such instruments.

Assets measured at fair value on a recurring basis as of December 31, 2024 and 2023 are comprised of money market funds, derivative instruments and marketable securities (see Note 14).

The carrying value of cash and cash equivalents, restricted cash, short-term bank deposits, restricted bank deposits, trade receivables, net, prepaid expenses and other current assets, loan receivables, trade payables, employee and payroll accruals and accrued expenses and other current liabilities approximate their fair values due to the short-term maturities of such instruments.

Assets measured at fair value on a recurring basis as of December 31, 2025 and December 31, 2024 are comprised of money market funds, derivative instruments and marketable securities (see Note 13).

The Company applies ASC 820 “Fair Value Measurements and Disclosures”, with respect to fair value measurements of all financial assets and liabilities.

8 unchanged sentences

The Company uses the closing trading price of its common stock on the day of the grant date as the fair value of awards of restricted stock units ("RSUs"), and performance stock units that are based on the Company's financial performance targets ("PSUs").

The compensation expense for RSUs is recognized using a straight-line attribution method over the requisite employee service period while compensation expense for PSUs is recognized using an accelerated amortization model.

The Company estimates the forfeitures at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The Company estimates the forfeitures at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Estimated forfeitures are based on actual historical pre-vesting forfeitures.

The Company granted and grants stock based compensation under its 2015 Plan, 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.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

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

The Company granted PSUs based on the Company’s total shareholder return ("TSR") compared to the TSR of companies listed in the S&P 500 index over a one to three year performance period.

1 unchanged sentence

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

The Company recognizes such compensation expenses on an accelerated vesting method.

The Company recognizes such compensation expenses on an accelerated attribution method.

The Company selected the Black-Scholes-Merton option-pricing model as the most appropriate fair value method for its stock-option awards and Employee Stock Purchase Plan (“ESPP”).

18 unchanged sentences

Risk-free interest

3.9 % - 4.2 %

Dividend yields

1 unchanged sentence

Expected term

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Earnings (loss) per share

Basic net EPS is computed by dividing the net earnings (losses) attributable to SolarEdge Technologies, Inc.

by the weighted-average number of shares of common stock outstanding during the period.

Diluted net EPS is computed by giving effect to all potential shares of common stock, to the extent dilutive, including stock options, RSUs, PSUs, shares to be purchased under the Company’s ESPP, the Notes 2025, and Notes 2029, all in accordance with ASC No.

Net basic Earnings Per Share ("EPS") is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period.

Net diluted EPS is computed by giving effect to all potential shares of common stock, to the extent dilutive, including stock options, RSUs, PSUs, shares to be purchased under the Company’s ESPP, the Notes 2025, and Notes 2029, all in accordance with ASC No.

260, "Earnings Per Share."

The Company’s convertible senior notes are included in the calculation of diluted Earnings Per Share (“EPS”) if the assumed conversion into common shares is dilutive, using the “if-converted” method.

The Company’s convertible senior notes are included in the calculation of diluted EPS if the assumed conversion into common shares is dilutive, using the “if-converted” method.

This involves adding back the periodic cash and non-cash interest expense net of tax associated with the Notes to the numerator and by adding the shares that would be issued in an assumed conversion (regardless of whether the conversion option is in or out of the money) to the denominator for the purposes of calculating diluted EPS, unless the Notes are antidilutive (see Note 22).

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Income taxes:

The Company and its subsidiaries account for income taxes in accordance with ASC 740, “Income Taxes”.

The Company account for income taxes in accordance with ASC 740, “Income Taxes”.

ASC 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse.

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The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative probability) likely to be realized upon ultimate settlement.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

New accounting pronouncements not yet effective:

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

Improvements to Income Tax Disclosures” (“ASU 2023-09”).

ASU 2023-09 requires additional categories of information about federal, state and foreign income taxes to be included in effective tax rate reconciliation disclosure.

Additionally, the newly added categories also apply to the income taxes paid disclosure.

Implementation of said additions are subject to quantitative thresholds.

ASU 2023-09 is effective for fiscal years beginning after December 15, 2024.

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

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

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The Company is currently evaluating the impact of adopting ASU 2024-03.

Recently issued and adopted pronouncements:

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280):

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

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

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

Effective December 31, 2024, the Company has adopted this standard retroactively.

The adoption of this ASU affects only disclosures, with no impacts to the Company's financial condition and results of operations (see Note 28).

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

BUSINESS COMBINATIONS

In January 2023, the Company completed an investment of $ 5,500 in the common stock of Wevo, an Israel-based software startup, specializing in EV charging optimization and management for sites with large quantities of EV chargers, which represented 34.8 % of Wevo's outstanding shares.

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

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

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

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

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

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

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

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

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

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

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

Weighted Average Useful Life (In years)

Net liabilities assumed

Identified intangible assets:

Customer relationships

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

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

All of the Goodwill was assigned to the Solar segment (see Note 28).

Goodwill is not deductible for tax purposes.

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

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

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

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

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets.

This amendment introduces a practical expedient for the application of the current expected credit loss (“CECL”) model to current accounts receivable and contract assets.

ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual reporting periods.

Early adoption is permitted.

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.

In November 2025, the FASB issued ASU 2025-09 to amend the guidance in Derivatives and Hedging (Topic 815).

The update provides targeted improvements intended to enhance the application of hedge accounting, including expanded eligibility of forecasted transactions, additional flexibility in measuring hedge effectiveness, and clarifications related to hedging non-financial items.

The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years.

The Company is currently evaluating the impact on its financial statement disclosures.

In December 2025, the FASB issued ASU 2025-10, “Accounting for Government Grants Received by Business Entities” (“ASU 2025-10”), which establishes the accounting and presentation for government grants received by a business entity.

ASU 2025-10 is effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods.

Early adoption is permitted.

ASU 2025-10 permits an entity to apply the new guidance using a modified prospective basis, a modified retrospective basis, or a full retrospective basis.

The Company is currently evaluating the impact from ASU 2025-10 on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements, which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting.

The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity.

ASU 2025-11 is effective for interim reporting periods beginning after December 15, 2027, with early adoption permitted.

The Company is currently evaluating the impact from ASU 2025-10 on its consolidated financial statements.

Recently issued and adopted pronouncements:

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

Improvements to Income Tax Disclosures” (“ASU 2023-09”).

ASU 2023-09 requires additional categories of information about federal, state and foreign income taxes to be included in effective tax rate reconciliation disclosure.

Additionally, the newly added categories also apply to the income taxes paid disclosure.

Effective December 31, 2025, the Company has adopted this standard prospectively.

The adoption of this ASU affects only disclosures, with no impact to the Company's financial condition and results of operations (see Note 25).

Certain prior period amounts have been reclassified to conform to the current period presentation.

SOLAREDGE TECHNOLOGIES INC.

4 unchanged sentences

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

As such, the Company’s non-marketable equity securities had a carrying value of $ 6,075 as of December 31, 2024.

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

3 unchanged sentences

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

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

As of December 31, 2024 and December 31, 2023 the carrying value of investments in privately-held companies was $ 9,185 and $ 9,241 , respectively.

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

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

As of December 31, 2025, the Company has fully impaired its investments in privately-held companies.

As of December 31, 2024, the carrying value of investments in privately-held companies was $ 20,976 .

For the years ended December 31, 2025, and 2024 the Company recorded impairment charges in the amount of $ 21,438 and $ 5,000 , respectively.

For the year ended December 31, 2025, the Company recorded a gain of $ 4,000 upon the sale of Stardust.

SOLAREDGE TECHNOLOGIES INC.

5 unchanged sentences

Gross unrealized gains

Gross unrealized losses

Matures within one year:

Corporate bonds

Treasury securities

Government agency securities

Matures after one year:

Corporate bonds

Government agency securities

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

6 unchanged sentences

Government agency securities

Government securities

Matures after one year:

Corporate bonds

Treasury securities

Government agency securities

Government securities

Proceeds from maturity of available-for-sale marketable securities during the years ended December 31, 2025, 2024 and 2023, were $ 713,413 , $ 719,454 and $ 277,382 , respectively.

Proceeds from sales of available-for-sale marketable securities during the year ended December 31, 2025 were $ 76,288 , which did not lead to realized gains or losses.

Proceeds from sales of available-for-sale marketable securities during the year ended December 31, 2024 were $ 114,564 , which led to realized gains of $ 2,966 .

Proceeds from sales of available-for-sale marketable securities during the year ended December 31, 2023 were $ 2,807 , which led to realized losses of $ 125

Proceeds from sales of available-for-sale marketable securities during the year ended December 31, 2022 were $ 29,236 , which led to realized losses of $ 434

SOLAREDGE TECHNOLOGIES INC.

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Finished goods

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

During the year ended December 31, 2024, the Company examined its current inventory balances, analyzed inventory in its channels, and evaluated future installation rates.

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

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

The Company recorded inventory write-downs of $ 17,827 , $ 738,757 and $ 46,369 for the years ended December 31, 2025, 2024 and 2023, respectively.

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Government authorities

Loan receivables, net

Assets held for sale

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Total property, plant and equipment, net

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

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

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

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

For the years ended December 31, 2024, 2023 and 2022, the Company recorded impairment and abandonment by disposal of property, plant, and equipment in the amount of $ 224,772 , $ 25,168 , and $ 649 , respectively, under Other operating expense (income), net in the consolidated statements of income (loss) section.

For the years ended December 31, 2025, 2024 and 2023, the Company recorded impairment and abandonment by disposal of property, plant, and equipment in the amount of $ 5,799 , $ 224,772 , and $ 25,168 , respectively, under Other operating expense (income), net in the consolidated statements of income (loss).

Depreciation expenses for the years ended December 31, 2025, 2024 and 2023, were $ 27,650 , $ 51,966 and $ 49,544 , respectively.

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Finance leases:

Finance lease cost

Amortization of right-of-use-assets

Interest on lease liabilities

Weighted average remaining lease term in years

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Operating leases:

Operating lease cost

Operating lease costs

Weighted average remaining lease term in years

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Financing cash flows for finance leases

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

The following table reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years of the operating and finance lease liabilities recorded in the consolidated balance sheets:

Operating Leases

Finance Leases

Total lease payments

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Long-term lease liabilities

As of December 31, 2024, the Company has a lease commitment for the initial term of the lease of approximately $ 255,500 for new offices in Israel, which has not yet commenced.

The lease commitment is expected to commence during 2026.

As of December 31, 2025, a lease previously classified as a finance lease was reclassified as an operating lease following an approximately 40 % reduction in the leased asset’s scope.

As of December 31, 2025, the Company has a non-cancelable lease commitment for the initial term of the lease of approximately $ 274,237 for new offices in Israel, which has not yet commenced.

The lease is expected to commence during the next twelve months.

The initial term of the lease agreement is 15 years commencing on the transfer of possession, and with an option to extend the lease for additional periods of up to 10 years , subject to the conditions of the lease agreement.

In November 2025, the Company amended its lease agreement with the developer of its new campus to reduce the leased area.

In connection with the amendment, the Company agreed to make a lease modification payment of $ 28,828 , recorded under other long-term assets, which is accounted for as prepaid lease consideration under ASC 842, of which $ 3,143 had been paid as of December 31, 2025.

SOLAREDGE TECHNOLOGIES INC.

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INTANGIBLE ASSETS, NET

During the year ended December 31, 2024, an impairment test for the Solar and Energy Storage asset group's long-lived assets was performed.

The Company's impaired and disposed intangible assets in the amount of $ 22,438 , which mainly relates to patents and licenses under the Solar asset group that are no longer relevant for the Company's continued and future operations, and technology related to the Energy Storage asset group.

Acquired intangible assets consisted of the following as of December 31, 2025, and 2024:

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Expected future amortization expenses of intangible assets as of December 31, 2025 are as follows:

2030 and thereafter

SOLAREDGE TECHNOLOGIES INC.

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(in thousands, except per share data)

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

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

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

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

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

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

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

As of December 31, 2024 the Company did not identify any additional indicators of impairment.

The Solar reporting unit was also examined.

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

The following summarizes the goodwill activity for the years ended December 31, 2025, and 2024:

Energy Storage

Goodwill at December 31, 2023

Changes during the year:

Impairment losses

Foreign currency adjustments

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Changes during the year:

Impairment losses

Foreign currency adjustments

Goodwill at December 31, 2025

As of December 31, 2024 and December 31, 2023 there were $ 92,355 and $ 90,104 accumulated goodwill impairment losses, respectively.

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

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

As of December 31, 2025 and December 31, 2024 there were $ 92,355 accumulated goodwill impairment losses.

SOLAREDGE TECHNOLOGIES INC.

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As of December 31,

Payments made before lease commencement

Cloud computing arrangements

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As of December 31, 2024, the Company entered into forward contracts and put and call options to sell USD both, in the amount of NIS 100 million.

As of December 31, 2025, the Company entered into put and call options to sell USD in the amount of NIS 99 million.

The fair values of outstanding derivative instruments were as follows:

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Prepaid expenses and other current assets

Non-designated hedges

Prepaid expenses and other current assets

Total derivative assets

Gains (losses) on derivative instruments are summarized below:

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Non Designated Hedging Instruments

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

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

Designated Hedging Instruments

Consolidated Statements of Comprehensive Income - Cash flow hedges

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

See Note 21 for information regarding gains (losses) from designated hedging instruments reclassified from accumulated other comprehensive loss.

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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 December 31, 2024 and 2023 by level within the fair value hierarchy:

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

Fair value measurements as of

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Government agency securities

Government securities

Long-term marketable securities:

Corporate bonds

Treasury securities

Government agency securities

Government securities

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

The implied fair values of the Solar and Energy Storage reporting units were estimated using the discounted cash flow approach (see Notes 10 and 11).

The inputs to these models are considered Level 3.

SOLAREDGE TECHNOLOGIES INC.

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Long-term portion

DEFERRED REVENUES

Deferred revenues consist of deferred cloud-based monitoring services, communication services, warranty extension services and advance payments received from customers for the Company’s products and other services.

Deferred revenues are classified as short-term and long-term deferred revenues based on the period in which revenues are expected to be recognized.

Significant changes in the balances of deferred revenues during the period are as follows:

DEFERRED REVENUES AND CUSTOMERS ADVANCES

Deferred revenues and customer advances consist of deferred cloud-based monitoring services, communication services, warranty extension services and advance payments received from customers for the Company’s products and other services.

Deferred revenues and customer advances are classified as short-term and long-term deferred revenues and customer advances based on the period in which revenues are expected to be recognized.

Significant changes in the balances of deferred revenue and customer advances during the period are as follows:

Year ended December 31,

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Accrual for sales incentives

Provision for legal claims

Liabilities held for sale

Total accrued expenses and other current liabilities

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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 December 31, 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”).

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

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

In June 2024, the Company recorded under other income (loss), net a gain of $ 15,456 from the repurchase of Notes 2025.

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

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In addition, the conversion or redemption of the Notes 2029 would not automatically result in the exercise of the capped call.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

As the capped call transactions are indexed to the Company's common stock, they were recorded as a reduction of additional paid-in capital in the consolidated balance sheets.

2 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.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(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.

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

The Convertible Senior Notes consisted of the following as of December 31, 2024 and 2023:

The Convertible Senior Notes consisted of the following as of December 31, 2025 and December 31, 2024:

As of December 31,

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Contractual interest expense

As of December 31, 2025, the unamortized issuance costs of the Notes 2029 will be amortized over the remaining term of approximately 3.5 years.

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

As of December 31, 2025, the estimated fair value of the Notes 2029, which the Company has classified as Level 2 financial instruments, is $ 401,084 .

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

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

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

As of December 31, 2024, the unamortized issuance costs of the Notes 2025 and Notes 2029 will be amortized over the remaining term of approximately 8 months and 4.5 years, respectively.

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

and 2.75 %, respectively.

As of December 31, 2024, the estimated fair value of Notes 2025 and Notes 2029, which the Company has classified as Level 2 financial instruments, is $ 324,913 and $ 241,363 , respectively.

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

As of December 31, 2024, the if-converted value of the Notes 2025 and Notes 2029 did not exceed the principal amount.

OTHER LONG TERM LIABILITIES

As of December 31,

Tax liabilities

Accrued severance pay

5 unchanged sentences

Common stock confers upon its holders the right to receive notice of, and to participate in, all general meetings of the Company, where each share of common stock shall have one vote for all purposes, to share equally, on a per share basis, in bonuses, profits, or distributions out of fund legally available therefor, and to participate in the distribution of the surplus assets of the Company in the event of liquidation of the Company.

Secondary public offering:

On March 17, 2022, the Company offered and sold 2,300,000 shares of the Company’s common stock, at a public offering price of $ 295.00 per share.

The shares of Common Stock were issued and sold in a registered offering pursuant to the underwriting agreement dated March 17, 2022, among the Company, Goldman Sachs & Co.

Morgan Securities LLC, and Morgan Stanley & Co.

LLC (the “Underwriting Agreement”).

All of the offered shares were issued at closing, including 300,000 shares of Common Stock that were issued and sold pursuant to the underwriters’ option to purchase additional shares under the Underwriting Agreement, which was exercised in full on March 18, 2022.

The net proceeds to the Company were $ 650,526 after deducting underwriters' discounts of $ 27,140 and commissions of $ 834 .

Equity Incentive Plans:

The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007.

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

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

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

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

The Company’s Amended and Restated 2015 Global Incentive Plan (the “2015 Plan”) became effective upon the consummation of the Company's IPO and expired on March 25, 2025.

The 2015 Plan provides for the grant of options, RSU, PSU, and other stock-based awards to directors, employees, officers, and non-employees of the Company and its subsidiaries.

As of December 31, 2025, a total of 26,648,950 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”), an aggregate of 12,097,577 shares are still available for future grants.

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

provided, however, that the Company’s board of directors may determine that there will not be a January 1 st increase in the Share Reserve in a given year or that the increase will be less than 5% of the shares of capital stock outstanding on the preceding December 31 st .

In 2021, the Company has also committed to issuing additional shares, which are subject to resale registration rights and which carry certain performance conditions (including business performance targets and a continued service relationship with the Company) and are treated as PSUs for accounting purposes.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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

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

The market condition for the PSUs is based on the Company’s TSR compared to the TSR of companies listed in the S&P 500 index over a one to three year performance period.

Additionally, the Company granted PSUs, based on the average trading price of the Company’s common stock based on the 30-Day Price, over a three year performance period, which are expected to vest if certain 30-Day Price levels are met.

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 December 31, 2024, an aggregate of 8,617,974 options are still available for future grants under the 2015 Plan.

As of March 25, 2025, the tenth anniversary of our 2015 Plan, we are no longer able to grant incentive stock options.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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

4 unchanged sentences

Outstanding as of December 31, 2022

Forfeited or expired

Outstanding as of December 31, 2023

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Outstanding as of December 31, 2023

Forfeited or expired

Outstanding as of December 31, 2024

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(in thousands, except per share data)

The total intrinsic value of options exercised during the years ended December 31, 2024, 2023 and 2022 was $ 750 , $ 3,572 , and $ 37,948 , respectively.

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

8 unchanged sentences

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

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

However, the Company’s board of directors may reduce the amount of the increase in any particular year at their discretion, including a reduction to zero.

The ESPP is implemented through an offering every six months.

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Total stock-based compensation capitalized

For the year ended December 31, 2024, no amounts were recorded in regard to tax benefits associated with share-based compensation.

The total tax benefits associated with share-based compensation for the years ended December 31, 2023 and 2022 were $ 27,551 and $ 7,747 , respectively.

The tax benefit realized from share-based compensation for the years ended December 31, 2023 and 2022 was $ 8,866 and $ 10,171 , respectively.

For the years ended December 31, 2025 and 2024, no amounts were recorded in regard to tax benefits associated with share-based compensation.

The total tax benefits associated with share-based compensation for the year ended December 31, 2023 was $ 27,551 .

The tax benefit realized from share-based compensation for the year ended December 31, 2023 was $ 8,866 .

As of December 31, 2025, there were total unrecognized compensation expenses in the amount of $ 130,614 related to non-vested equity-based compensation arrangements granted.

These expenses are expected to be recognized during the period from January 1, 2025 through February 28, 2029.

These expenses are expected to be recognized during the period from January 1, 2026 through December 31, 2029.

Repurchase of Common Stock:

2 unchanged sentences

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

The share repurchase program expired on December 31, 2024.

During year ended December 31, 2024, the Company repurchased 753,364 shares of common stock from the open market at an average cost of $ 66.63 per share for a total of $ 50,194

The share repurchase program expired on December 31, 2024 .

SOLAREDGE TECHNOLOGIES INC.

2 unchanged sentences

COMMITMENTS AND CONTINGENT LIABILITIES

As of December 31, 2024, contingent liabilities exist regarding guarantees in the amounts of $ 133,907 , $ 11,071 and $ 1,558 in respect of securing projects with customers, office rent lease agreements and other transactions, respectively.

As of December 31, 2025, contingent liabilities exist regarding guarantees in the amounts of $ 50,496 , $ 35,895 and $ 1,486 in respect of securing projects with customers and vendors, office rent lease agreements, and other transactions, respectively.

Contractual purchase obligations:

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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 December 31, 2025, the Company recorded an accrual of $ 13,199 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 District Court of the Southern District of New York against the Company, the Company’s CEO and the Company’s CFO.

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

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

On April 22, 2024, Plaintiffs filed an amended complaint adding two additional officers.

The amended complaint made substantially similar allegations and claims.

1 unchanged sentence

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

The Court allowed the Plaintiffs to again amend their complaint, and they filed a Second Amended Complaint on January 3, 2025.

The Court allowed Plaintiffs to again amend their complaint, and they filed a Second Amended Complaint on January 3, 2025.

On February 10, 2025, Defendants moved to dismiss the Second Amended Complaint insofar as it attempts to resurrect any of the allegations dismissed in the Court’s December 4, 2024 order.

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

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

Lead Plaintiffs filed a motion for class certification on October 17, 2025, and Defendants filed their opposition on January 16, 2026.

Plaintiffs’ reply is due on February 20, 2026.

Fact discovery is ongoing.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

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

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

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

On March 15, 2024, Abdul Hirani filed a purported derivative complaint in the U.S.

District Court for the Southern District of New York against certain current and former SolarEdge executive officers and board members, including Zvi Lando, Ronen Faier, Nadav Zafrir, Betsy Atkins, Marcel Gani, Dana Gross, Dirk Hoke, Avery More, and Tal Payne.

The Hirani complaint makes largely the same allegations as those in the Consolidated Securities Litigation.

The Hirani complaint brings claims for (i) breach of fiduciary duty, (ii) aiding and abetting breach of fiduciary duty, (iii) unjust enrichment, (iv) waste of corporate assets, and (v) securities fraud under Section 10(b) of the Exchange Act.

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

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

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

On June 10, 2024, Jonathan Blaufarb filed a second purported derivative 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.

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

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

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

September 9, 2024 the parties agreed to stay the Hirani and Blaurarb actions pending a decision on the motion to dismiss in the Consolidated Securities Litigation.

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

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

The Isaac complaint makes largely the same allegations as those in the Daphne Shen and Javier Cascallar cases.

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

On September 9, 2024 the parties agreed to stay the Hirani and Blaufarb actions pending a decision on the motion to dismiss in the Consolidated Securities Litigation.

Following the decision granting in part and denying in part the motion to dismiss the Second Amended Complaint in the Consolidated Securities Litigation, the parties entered into a new stipulation on June 20, 2025, staying this consolidated derivative action through the close of fact discovery in the Consolidated Securities Litigation.

On August 7, 2024, Edwin Isaac filed a purported derivative complaint in the U.S.

District Court for the District of Delaware against the same defendants as those named in the Consolidated Derivative Action.

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

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

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

The parties are conferring on service of process and a possible stay of proceedings pending resolution of the motion to dismiss in the consolidated securities litigation.

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

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

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

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

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

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

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

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

The parties filed a stipulation on June 30, 2025 agreeing to stay the Isaac matter through the close of fact discovery in the Consolidated Securities Litigation.

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

District Court for the Southern District of New York against the same defendants as those named in the earlier-filed derivative actions.

The Maddox complaint makes largely the same allegations as those in the Consolidated Securities Litigation and the other derivative actions.

It also pleads similar counts to those in the other derivative actions, including (i) breach of fiduciary duty, (ii) gross mismanagement, (iii) waste of corporate assets, (iv) unjust enrichment, and (v) violation of Section 14(a) of the Exchange Act.

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 September 9, 2025, Jerald Chauncey, Jr.

(“Chauncey”) filed a complaint in the Delaware Court of Chancery against the same defendants as those named in the other derivative actions.

The Chauncey complaint makes largely the same allegations as those in the Consolidated Securities Litigation and the other derivative actions.

It also pleads similar counts to those in the other derivative actions, including (i) breach of fiduciary duty, (ii) unjust enrichment, and (iii) waste of corporate assets.

The parties filed a stipulation on October 7, 2025 agreeing to stay the Chauncey matter through the close of fact discovery in the Consolidated Securities Litigation.

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

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

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

As of December 31, 2024, the Company recorded an accrual of $ 350 for legal claims which was recorded under accrued expenses and other current liabilities.

At a hearing on February 25, 2025 the parties discussed the case.

On May 8, 2025, the court denied Stellantis’ request for injunction and on July 2, 2025, Stellantis appealed, and the next hearing is scheduled for March 13, 2026.

The Company disputes the allegations of wrongdoing.

On February 11, 2026, the Company completed the sale of SolarEdge e-Mobility.

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 filed an answer on December 1, 2025, and the court has ordered a disclosure schedule to begin January 2026.

The case is scheduled for trial for November 1, 2027.

On January 5, 2026, the parties met for mediation, which has been inconclusive.

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

SOLAREDGE TECHNOLOGIES INC.

8 unchanged sentences

Tax on revaluation

Other comprehensive loss before reclassifications

Other comprehensive income (loss) before reclassifications

Reclassification

1 unchanged sentence

Losses reclassified from accumulated other comprehensive income

Net current period other comprehensive loss

Net current period other comprehensive (income) loss

Ending balance as of December 31, 2023

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Tax on reclassification

Losses reclassified from accumulated other comprehensive income

Losses (gains) reclassified from accumulated other comprehensive income

Net current period other comprehensive income (loss)

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Amount Reclassified from Accumulated Other Comprehensive Income (Loss)

Affected Line Item in the

Statement of Income (loss)

Affected Line Item in the Statement of Income (loss)

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

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Total, net of income taxes

Adjustment for substantial completion of liquidation of certain foreign subsidiaries

Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature

Financial income (expenses), net

Foreign currency translation adjustments, net

Financial income (expenses), net

Total reclassifications for the period

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

Net income (loss) attributable to common stock, basic

Notes due 2025

Net income (loss) attributable to common stock, diluted

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

Notes due 2025

Effect of stock-based awards

1 unchanged sentence

Earnings (loss) per share:

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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

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

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

OTHER OPERATING EXPENSES, NET

Year ended December 31,

Impairment of asset-held for sale

Loss from business disposition

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

Impairment of intangible assets and goodwill

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RESTRUCTURING AND OTHER EXIT ACTIVITIES

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

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

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

On January 21, 2024, the Company announced the adoption of a restructuring plan in response to challenging industry conditions.

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 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.

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

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

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

The Company 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 year ended December 31, 2024 by segments and type of cost were as follows:

Employee termination costs

Contract termination and other

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

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

In January 2025, the Company announced the adoption of a restructuring plan, in response to challenging industry conditions, which included an additional reduction in workforce.

In April 2025, we divested from our PV tracker business, as part of our effort to focus on our core activities.

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 year ended December 31, 2025 by type of cost were as follows:

Employee termination costs

Inventory write-down

Contract termination and other

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General and administrative

Other operating expenses

Restructuring and other exit charges for the year ended December 31, 2023 by segments and type of cost were as follows:

Other operating expenses, net

Restructuring and other exit charges for the year ended December 31, 2024 by type of cost were as follows:

Employee termination costs

Contract termination and other

Cost of revenues

Research and development

Sales and marketing

General and administrative

Other operating expenses, net

Restructuring and other exit charges for the year ended December 31, 2023 by type of cost were as follows:

Employee termination costs

Inventory write-down

Contract termination and other

2 unchanged sentences

General and administrative

For the year ended December 31, 2022, the Company recorded $ 4,314 of inventory write-downs in cost of revenues as a result of Critical Power's discontinuation.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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

Employee termination costs

Inventory write-down 1

Contract termination and other

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Balance as of December 31, 2025

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

The total amount expected to be incurred for restructuring and other exit charges, which primarily consists of contract and employee terminations related to the all other segment, is $ 6,765 .

SOLAREDGE TECHNOLOGIES INC.

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income tax at a rate of 15.5 % to the extent of foreign cash and certain other net current assets and 8 % on the remaining earnings.

The total tax liability was calculated to approximately $ 8,500 , which are paid over the eight-year period provided in the Tax Act (ending 2025).

The total tax liability was calculated to approximately $ 8,500 , which are paid over the eight-year period provided in the Tax Act (ended 2025).

Corporate tax in Israel:

The taxable income of Israeli companies is subject to corporate tax at the rate of 23 %.

The Israeli Subsidiary is also eligible for tax benefits as further described in note 26j.

The Israeli Subsidiary is also eligible for tax benefits as further described in note 25k.

Carryforward tax losses:

As of December 31, 2024, the foreign subsidiaries have carryforward tax losses of $ 1,292 which do not have an expiration date.

As of December 31, 2025, the Company has carryforward federal tax losses of $ 261,521 and carryforward state tax losses of $ 164,331 .

In addition, the foreign subsidiaries have carryforward tax losses of $ 2,056,156 (out of which an amount of $ 79,851 relates to carryforward capital losses of the Israeli Subsidiary).

All carryforward tax losses do not have an expiration date.

Deferred taxes:

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Allowance and other reserves

Total Gross deferred tax assets, net

Total gross deferred tax assets

Less, valuation allowance

3 unchanged sentences

Right-of-use assets

Purchase price allocation

Acquired intangible assets

Property, plant and equipment

Total deferred tax liabilities, net

Deferred tax assets, net

Total deferred tax liabilities

Deferred tax liabilities, net 1

Net deferred tax assets (liabilities)

(1) Related to deferred tax assets that would only be realizable upon the generation of net income in certain foreign jurisdictions.

The Company’s Israeli Subsidiary’s tax-exempt profit from Benefited Enterprises (as defined in note 26j) is permanently reinvested, Therefore, deferred taxes have not been provided for such tax-exempt income.

1 Presented under other long-term liabilities

The Company’s Israeli Subsidiary’s tax-exempt profit from Benefited Enterprises (as defined in note 25k) is permanently reinvested, Therefore, deferred taxes have not been provided for such tax-exempt income.

The Company may incur additional tax liability in the event of intercompany dividend distributions by some of its subsidiaries.

5 unchanged sentences

Balance, at the beginning of the period

Decrease related to tax settlements

Increases related to current year tax positions

Increase for tax positions related to prior years

Decreases related to prior year tax positions

Decrease related to prior year tax positions

Balance, at end of the period

2 unchanged sentences

As of December 31, 2025 and 2024, the Company accrued $ 1,415 and $ 9,165 , respectively.

The total amount of penalties and interest were not material as of December 31, 2022.

It is reasonably possible that the Company’s gross unrecognized tax benefits will decrease by an insignificant amount in the next 12 months, primarily due to the lapse of the statute of limitations.

Income (loss) before income taxes are comprised as follows:

1 unchanged sentence

Income (loss) before income taxes

Income taxes (tax benefit) are comprised as follows:

Income taxes are comprised as follows:

Year ended December 31,

4 unchanged sentences

Income taxes, net

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Reconciliation of theoretical tax expense to actual tax expense:

2 unchanged sentences

and tax-exempt IRA credits.

A reconciliation between the theoretical tax expense and the actual tax expense as reported in the consolidated statements of income (loss) is as follows:

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S.

federal income tax rate to income (loss) before income taxes after the adoption of ASU 2023‑09 is as follows:

Year Ended December 31, 2025

US Federal statutory tax rate

State and local income taxes, net of federal income tax effect:

State tax (1)

Foreign Tax Effects:

Statutory tax rate difference between Israel and United States

Changes in valuation allowances

Preferred enterprise

Non‑taxable income resulting from reversal of bad debt

Changes in valuation allowances

Non-taxable or Non-deductible items:

Non-taxable and other (mainly government grants)

Non-deductible capital loss

Changes in unrecognized tax benefits

(1) The state that contributes to the majority (greater than 50%) of the tax effect in this category is California.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S.

federal income tax rate to income (loss) before income taxes for years prior to the adoption of ASU 2023‑09 is as follows:

Year Ended December 31,

Statutory tax rate

8 unchanged sentences

Effective tax rate

The change in effective tax rate for the year ended December 31, 2024 compared to the year ended December 31, 2023, is mainly due to the Company transitioning to a significant loss position in 2024 and the valuation allowance recorded against the tax benefit of such loss, as well as the valuation allowance booked against deferred tax assets of the Company and its subsidiaries from previous years.

These, together with expenses that are not deductible for tax purposes, decreased the tax benefit of said loss, and were partially offset by the tax benefit of AMPTCs the Company generated during the year from its U.S manufacturing of eligible products and ITCs the Company purchased during 2024 from third parties.

Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 is as follows:

US State and local:

Total tax paid

Tax assessments:

The Israeli tax authorities issued tax orders for tax years 2016-2018 against the Company’s Israeli Subsidiary, challenging the subsidiary's positions on several issues.

The Israeli Subsidiary has protested the orders before the Central District Court in Israel.

The Company believes it has adequately provided for these items, however adverse results could have a material impact on the Company’s financial statements.

The Company's Israeli Subsidiary reached a settlement with the Israeli Tax Authority for tax years 2016-2018.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

As of December 31, 2025, the Company and certain of its subsidiaries filed U.S.

4 unchanged sentences

The statute of limitations related to tax returns of the Company’s other subsidiaries has lapsed for part of the tax years, which differs between the different subsidiaries.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Tax benefits for Israeli companies under the Law for the Encouragement of Capital Investments, 1959 (the “Investments Law”):

4 unchanged sentences

On October 24, 2018, the Company’s Israeli Subsidiary received an approval from the Israeli Tax Authorities confirming the applicability of the two-year tax exemption as provided in the Investments Law until December 31, 2018.

As of December 31, 2018, approximately $ 289,900 was derived from tax exempt profits earned by the Israeli Subsidiary “Benefited Enterprises” in the two tax years exempt period, tax years 2017 - 2018.

The Company has determined that such tax-exempt income will not be distributed as dividends and intends to reinvest the amount of its tax-exempt income earned by the Israeli Subsidiary.

The Company has determined that tax-exempt income earned by the Israeli Subsidiary “Benefited Enterprises” during the exemption period of 2017 - 2018 will not be distributed as dividends and intends to reinvest the amount of its tax-exempt income earned by the Israeli Subsidiary.

Accordingly, no provision for deferred income taxes has been provided on income attributable to the Israeli Subsidiary “Benefited Enterprises” as such income is essentially permanently reinvested.

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On June 14, 2017, the Encouragement of Capital Investments Regulations (Preferred Technological Income and Capital Gain for Technological Enterprise), 2017 (“Regulations”) were published.

The Regulations describe, inter alia, the mechanism used to determine the calculation of the benefits under the PTE regime.

According to these regulations, a company that complies with the terms under the PTE regime may be entitled to certain tax benefits with respect to income generated during the company’s regular course of business and derived from the preferred intangible asset, excluding income derived from intangible assets used for marketing and income attributed to production activity.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

The Regulations describe, inter alia, the mechanism used to determine the calculation of the benefits under the PTE regime.

A PTE, which is located in the center of Israel will be subject to tax at a rate of 12 % on profits deriving from intellectual property, or 6 % if its annual revenues exceed NIS 10 billion ("Threshold").

The Israeli Subsidiary notified the ITA of its election to implement the PTE with effect from January 1, 2019, and its PTE income was subject to a 12 % tax rate for the years 2019-2021, and in 2022-2023 to a 6 % tax rate as the group surpassed the Threshold.

In 2024, the Company incurred losses for tax purposes.

In 2025 and 2024, the Company incurred losses for tax purposes.

Tax Benefits for Research and Development:

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Some of the Company’s Israeli Subsidiaries claim tax benefits as ‘industrial companies’ under the Law for the Encouragement of Industry (Taxes), 1969, Such benefits consist mainly of accelerated depreciation and amortization of patents and certain other intangible property and the ability to file consolidated tax returns.

In July 2025, the OBBBA, or H.R.1 was enacted into law modifying clean energy tax credits contained in the 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.

In addition, the H.R.1 makes permanent key elements of the Tax Cuts and Jobs Act, including 100 percent bonus depreciation, domestic research cost expensing, increases the AMIC credit rate to 35 percent from 25 percent for qualifying assets and makes modifications to the international tax framework.

The H.R.1 includes multiple effective dates, with certain provisions effective in 2025 and others phased in through 2027.

Given the Company’s current loss position for income tax purposes, the provisions of H.R.1 did not have an impact on the current period.

The Company continues to evaluate the provisions of H.R.1 that become effective in future years.

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.

1 unchanged sentence

(in thousands, except per share data)

As members of the OECD (Organization for Economic Co-operation and Development) over 140 countries have agreed in principle to a global minimum tax of 15 % of reported profits (Pillar 2).

The OECD have published model rules on Pillar 2.

Many countries have now incorporated Pillar 2 model rule concepts into their domestic laws.

Although the model rules provide a framework for applying the minimum tax, countries may enact Pillar 2 slightly differently than the model rules and on different timelines and may adjust domestic tax incentives in response to Pillar 2.

In January 2025, the U.S.

issued an executive order announcing opposition to aspects of these rules.

In June 2025, the G7 countries agreed that U.S.

Multi-National Entities (MNEs) should be excluded from certain aspects of the Pillar 2 global minimum tax rules (the G7 Statement) in exchange for the U.S.

not imposing retaliatory taxes.

On January 5, 2026, the OECD/G20 announced the Side-by-Side (SbS) package, implemented as administrative guidance and modifying the operation of Pillar 2 rules.

The package introduces simplifications and new safe harbors for U.S.

and other multinational companies where domestic and international tax systems meet robust requirements to coexist with Pillar 2 which would fully exempt U.S.-parented groups from the application of two of the three Pillar 2 top up taxes.

The SbS package also extends the current Transitional Country-by-Country Reporting (CbCR) Safe Harbor by one year, through the end of fiscal year of 2027.

In Israel, a law was enacted in December 2025 to implement the Qualified Domestic Minimum Top-Up Tax (the Israeli QDMTT), aligning with the OECD's Pillar 2 framework for a global minimum tax.

This law ensures that profits of companies within multinational groups subject to these rules are taxed in Israel at a minimum Effective Tax Rate.

The Israeli QDMTT law will impose a local top-up tax as necessary, with the legislation taking effect on January 1, 2026, and applying to income generated from that date onward.

For companies benefiting from tax incentives under the Encouragement of Capital Investments Law, 5719-1959, the Israeli QDMTT framework may affect how these incentives are utilized and presented in financial statements.

According to the Group's Pillar 2 assessment, the Pillar 2 rules did not materially impact the Group’s consolidated financial statements for the year ended December 31, 2025.

We continue to refine the effective tax rate and cash tax impact for Pillar 2 in light of legislative changes in multiple countries.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

FINANCIAL INCOME (EXPENSE), NET

8 unchanged sentences

Total financial income (expenses), net

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION

Segment Information:

The Company identified one operating segments as reportable – the Solar segment.

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

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

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

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

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

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

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

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

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

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

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

December 31, 2024

Direct costs of goods

Inventory costs

Shipment and logistics

Other directly related overhead costs

Segments profit (loss)

December 31, 2023

Direct costs of goods

Inventory costs

Shipment and logistics

Other directly related overhead costs

Segments profit (loss)

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

December 31, 2022

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION

Segment Information:

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

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

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

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

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

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

Year ended December 31,

Direct costs of goods

1 unchanged sentence

Shipment and logistics

Other directly related overhead costs

Segments profit (loss)

1 Represents marketing, bad debt and other production related costs.

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

Year ended December 31,

Solar segment revenues

All other segment revenues

Revenues from financing component

Consolidated revenues

Depreciation and amortization

Directly related overhead costs

Financial (income) expense, net

Net loss from equity method investments

Net income (loss)

1 Including stock-based compensation expenses.

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

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

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

Year ended December 31,

Solar segment profit

All other segment loss

Segments operating profit

Amounts not allocated to segments:

Stock based compensation expenses

Amortization and depreciation of acquired assets

Impairment and disposal by abandonment of long-lived assets

Restructuring and other exit activities

Other unallocated income (expenses), net

Consolidated operating income (loss)

Financial income (expense), net

Other income (loss), net

Income (loss) before income taxes

Revenues by geographic, based on customers’ location:

1 unchanged sentence

United States

Rest of the world

International markets

Total revenues

(*) Except for Germany, Netherlands and Italy

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Revenues by type:

Year ended December 31,

Batteries for PV applications

Energy storage systems

11 unchanged sentences

SUBSEQUENT EVENTS

On January 6, 2025, the Company announced its adoption of additional measures in order to achieve the financial stability necessary to drive its turnaround, and executing organizational goals to support growth, which includes reducing its headcount by approximately 400 employees.

These decisions were made in order to better align the Company with current market conditions.

- - - - - - - - - - - - - - - - - - - - -

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Not applicable.

On February 11, 2026, as part of the decision to discontinue its LCV e-Mobility activity, the Company completed the sale of its remaining e-Mobility activity for an amount of $ 12,000 .

Directors, Executive Officers and Corporate Governance.

The information required by Item 10 will be included under the captions “Directors and Corporate Governance”, “Board Committees”, “Code of Conduct and Ethical Business Conduct”, “Compensation Committee Report”, and “Deliquent Section 16(a) Reports” in our definitive Proxy Statement for the 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days of the year ending December 31, 2025 (the "2026 Proxy Statement") and is incorporated herein by reference.

Executive Compensation

The information required by Item 11 will be included under the captions “Board Committees”, “Director Compensation”, “Executive Compensation”, and “Compensation Risk” in our 2026 Proxy Statement and is incorporated herein by reference.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by Item 12 will be included under the captions “Security Ownership of Certain Beneficial Owners and Management” in our 2026 Proxy Statement and is incorporated herein by reference.

Compensation Plan Information

The information required regarding securities authorized for issuance under our equity compensation plans is incorporated by reference from the information contained in the section entitled “Equity Compensation Plan Information” in our 2026 Proxy Statement.

Certain Relationships and Related Transactions, and Director Independence

The information required by Item 13 will be included under the captions “Transactions with Related Persons” and “Directors and Corporate Governance” in our 2026 Proxy Statement and is incorporated herein by reference.

Principal Accountant Fees and Services

The information required by Item 13 will be included under the captions “Proposal No.

2 Ratification of Appointment of Independent Registered Public Accounting Firm for 2026” in our 2025 Proxy Statement and is incorporated herein by reference.

Exhibits, Financial Statement Schedules

Our Consolidated Financial Statements and Notes thereto are included in Item 8 of this Annual Report on Form 10-K.

See Index to Item 8 for more detail.

All financial schedules have been omitted either because they are not applicable or because the required information is provided in our Consolidated Financial Statements and Notes thereto, included in Item 8 of this Annual Report on Form 10-K.

Index to Exhibits

Incorporation by Reference

Restated Certificate of Incorporation

Incorporated by reference to Exhibit 3.2 to Form 8-K filed with the SEC on June 2, 2023

Amended and Restated By-Laws

Incorporated by reference to Exhibit 3.1 to Form 8-K filed with the SEC on December 1, 2022

Description of Common Stock

Filed with this report

Specimen Common Stock Certificate of the Registrant

Incorporated by reference to Exhibit 4.1 of Amendment No.

1 to Form S-1 (Registration No.

333-202159) filed with the SEC on March 11, 2015

Indenture, dated September 25, 2020, between the Company and U.S.

Bank National Association, as trustee

Incorporated by reference to Exhibit 4.1 to Form 8-K filed with the SEC on September 25, 2020

Form of 0.000% Convertible Senior Note due 2025 (included in Exhibit 4.3)

Incorporated by reference to Exhibit 4.2 to Form 8-K filed with the SEC on September 25, 2020

Indenture, dated June 28, 2024, between the Company and U.S.

Bank Trust Company, National Association, as trustee

Incorporated by reference to Exhibit 4.1 to Form 8-K filed with the SEC on June 28, 2024

Form of 2.250% Convertible Senior Note due 2029 (included in Exhibit 4.1)

Incorporated by reference to Exhibit 4.2 to Form 8-K filed with the SEC on June 28, 2024

Form of Capped Call Confirmation

Incorporated by reference to Exhibit 10.1 to Form 8-K filed with the SEC on June 28, 2024

Employment Agreement, dated January 1, 2025 between SolarEdge Technologies, Ltd.

and Daniel Huber

Incorporated by reference to Exhibit 10.1 to Form 10-Q filed with the SEC on August 7, 2025

Amendment to Employment Agreement, dated January 1, 2025 between SolarEdge Technologies, Ltd.

and Daniel Huber

Filed with this report.

Employment Agreement, dated March 3, 2025 between SolarEdge Technologies, Ltd.

and Asaf Alperovitz

Incorporated by reference to Exhibit 10.1 to Form 10-Q filed with the SEC on May 8, 2025

Employment Agreement, dated August 20, 2019 between SolarEdge Technologies Ltd.

and Uri Bechor

Incorporated by reference to Exhibit 10.1 to Form 8-K filed with the SEC on August 21, 2019

Employment Agreement, dated June 13, 2024, between SolarEdge Technologies, Ltd.

and Ariel Porat

Incorporated by reference to Exhibit 10.4 to Form 10-K filed with the SEC on February 25, 2025

Employment Agreement, dated December 4, 2024, between SolarEdge Technologies, Ltd.

and Shuki Nir

Incorporated by reference to Exhibit 10.5 to Form 10-K filed with the SEC on February 25, 2025

SolarEdge Technologies, Inc.

2007 Global Incentive Plan.

Incorporated by reference to Exhibit 99.3 to Form S-8 (Registration No.

333-203193) filed with the SEC on April 2, 2015

SolarEdge Technologies, Inc.

Amended and Restated 2015 Global Incentive Plan

Incorporated by reference to Exhibit 10.1 to Form 10-Q filed with the SEC on May 10, 2017

SolarEdge Technologies, Inc.

2015 Employee Stock Purchase Plan

Incorporated by reference to Exhibit 99.2 to Form S-8 (Registration No.

333-203193) filed with the SEC on April 2, 2015

Form of Non-Employee Director RSU Award Agreement

Incorporated by reference to Exhibit 10.11 to Form 10-K filed with the SEC on August 20, 2015

Form of Non-Employee Director Stock Option Award Agreement

Incorporated by reference to Exhibit 10.12 to Form 10-K filed with the SEC on August 20, 2015

Form of Employee RSU Award Agreement

Incorporated by reference to Exhibit 10.13 to Form 10-K filed with the SEC on August 20, 2015

Form of Employee Stock Option Award Agreement

Incorporated by reference to Exhibit 10.14 to Form 10-K filed with the SEC on August 20, 2015

Form of Performance Award Agreement

Incorporated by reference to Exhibit 10.11 to Form 10-K filed with the SEC on February 22, 2023

Form of Performance Award Agreement [Stock Price] (Adopted January 2026)

Filed with this report.

Form of Performance Award Agreement [TSR] (Adopted January 2026)

Filed with this report.

Form of Employee RSU Award Agreement (Adopted January 2026)

Filed with this report.

Form of Indemnification Agreement for Directors and Officers

Incorporated by reference to Exhibit 10.1 to form 8-K filed with the SEC on July 7, 2023

SolarEdge Technologies, Inc.

Insider Trading Policy, adopted in March 2015 , and amended and restated on March 14, 2023 and February 17, 2026.

Filed with this report.

List of Subsidiaries of the Registrant

Filed with this report.

Consent of Kost Forer Gabbay & Kasierer, independent registered public accounting firm

Filed with this report.

Power of Attorney (included in signature page)

Filed with this report.

Certification of Chief Executive Officer Pursuant to Rules 13a-14(a) and15d-14(a) of the Securities Exchange Act of 1934, as amended

Filed with this report.

Certification of Chief Financial Officer Pursuant to Rules 13a-14(a) and15d-14(a) of the Securities Exchange Act of 1934, as amended

Filed with this report.

Certification of Chief Executive Officer, pursuant to 18 U.S.C.

Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Filed with this report.

Certification of Chief Financial Officer, pursuant to 18 U.S.C.

Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Filed with this report.

Rule 10D-1 - Clawback Policy

Filed with this report.

XBRL Instance Document - - embedded within the Inline XBRL document

Filed with this report.

XBRL Taxonomy Extension Schema Document

Filed with this report.

XBRL Taxonomy Extension Calculation Linkbase Document

Filed with this report.

XBRL Taxonomy Extension Definition Linkbase Document

Filed with this report.

XBRL Taxonomy Extension Label Linkbase Document

Filed with this report.

XBRL Taxonomy Extension Presentation Linkbase Document

Filed with this report.

Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

Filed with this report.

† Management contract or compensatory plan or arrangement.

Form 10–K Summary

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

/s/ Shuki Nir

Chief Executive Officer

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-K

Item 8. Financial Statements and Supplementary Data