What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-03-23 compared with 2021-02-19 · 1801 added, 22 removed, 11 unchanged (99% of the section changed)

2 unchanged sentences

Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firm

Consolidated Balance Sheets as of December 31, 2020 and 2019

Reports of Independent Registered Public Accounting Firm (PCAOB ID:

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, 2020, 2019 and 2018

Statements of Changes in Stockholders’

Equity for the year ended December 31, 2020, 2019 and 2018

Consolidated Statements of Cash Flows for the year ended December 31, 2020, 2019 and 2018

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

Unaudited Quarterly Results of Operations

The following table sets forth our unaudited quarterly consolidated statements of operations data for each of the fiscal years covered by the financial statements provided with this filing.

The data presented below has been prepared on the same basis as the audited consolidated financial statements included elsewhere in this Annual Report and, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of this data.

This information should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this Annual Report.

The results of historical periods are not necessarily indicative of the results of operations for a full year or any future period.

June 30, 2019

June 30, 2020

Report of Independent Registered Public Accounting Firm

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

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of SolarEdge Technologies Inc.

(the Company) as of December 31, 2025 and 2024, the related consolidated statements of income (loss), comprehensive income (loss), stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S.

generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 25, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management.

Our responsibility is to express an opinion on the Company’s financial statements based on our audits.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(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 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 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.

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 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, 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 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

A Member of EY Global

We have served as the Company's auditor since 2007.

Tel-Aviv, Israel

February 25, 2026

Report of Independent Registered Public Accounting Firm

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

Opinion on Internal Control Over Financial Reporting

We have audited SolarEdge Technologies Inc.'s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).

In our opinion, SolarEdge Technologies Inc.

(the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of income (loss), comprehensive income (loss), stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and our report dated February 25, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting.

Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Kost Forer Gabbay & Kasierer

A Member of EY Global

Tel-Aviv, Israel

February 25, 2026

SOLAREDGE TECHNOLOGIES INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

CURRENT ASSETS:

Cash and cash equivalents

Restricted cash

Marketable securities

Trade receivables, net of allowances of $ 17,224 and $ 43,038 , respectively

Inventories, net

Prepaid expenses and other current assets

Total current assets

LONG-TERM ASSETS:

Marketable securities

Property, plant and equipment, net

Operating lease right-of-use assets, net

Intangible assets, net

Loan receivables, net

Other long-term assets

Total long-term assets

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

SOLAREDGE TECHNOLOGIES INC.

CONSOLIDATED BALANCE SHEETS (Cont.)

(in thousands, except per share data)

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Trade payables

Employees and payroll accruals

Warranty obligations

Deferred revenues and customers advances

Accrued expenses and other current liabilities

Convertible senior notes, net

Total current liabilities

LONG-TERM LIABILITIES:

Convertible senior notes, net

Warranty obligations

Deferred revenues and customers advances

Finance lease liabilities

Operating lease liabilities

Other long-term liabilities

Total long-term liabilities

COMMITMENTS AND CONTINGENT LIABILITIES

STOCKHOLDERS’ EQUITY:

Common stock of $ 0.0001 par value - Authorized:

125,000,000 shares;

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;

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

Accumulated other comprehensive loss

Accumulated deficit

Total stockholders’ equity

Total liabilities and stockholders’ equity

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

SOLAREDGE TECHNOLOGIES INC.

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except per share data)

Year ended December 31,

Cost of revenues

Gross profit (loss)

Operating expenses:

Research and development, net

Research and development

Sales and marketing

General and administrative

Other operating expenses (income)

Other operating expenses, net

Total operating expenses

Operating income

Financial expenses (income)

Income before taxes on income

Taxes on income

Net income (loss) attributable to noncontrolling interests

Net income attributable to SolarEdge Technologies Inc.

Operating income (loss)

Financial income (expense), net

Other income (loss), net

Income (loss) before income taxes

Net loss from equity method investments

Net income (loss)

Net basic earnings (loss) per share of common stock

Net diluted earnings (loss) per share of common stock

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

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

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

SOLAREDGE TECHNOLOGIES INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share data)

Year ended December 31,

Net income (loss)

Other comprehensive income (loss), net of tax:

Available-for-sale marketable securities

Cash flow hedges

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

Foreign currency translation adjustments

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

Comprehensive income (loss)

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

SOLAREDGE TECHNOLOGIES INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands, except per share data)

SolarEdge Technologies, Inc.

Stockholders’ Equity

Additional paid in

Treasury stock

Accumulated other comprehensive

Retained earnings (Accumulated deficit)

Balance as of December 31, 2022

Issuance of common stock upon exercise of stock-based awards

Issuance of Common stock under employee stock purchase plan

Stock based compensation

Other comprehensive income adjustments, net

Balance as of December 31, 2023

Issuance of common stock upon exercise of stock-based awards

Issuance of Common stock under employee stock purchase plan

Stock based compensation

Repurchase of common stock

Capped call transactions related to the Notes 2029

Other comprehensive loss adjustments, net

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.

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

SOLAREDGE TECHNOLOGIES INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except per share data)

Year ended December 31,

Cash flows from operating activities:

Net income (loss)

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

Depreciation and amortization

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

Gain from repurchasing of convertible notes

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:

Trade receivables, net

Inventories, net

Prepaid expenses and other assets

Operating lease right-of-use assets, net

Trade payables

Warranty obligations

Deferred revenues and customers advances

Operating lease liabilities

Accrued expenses and other liabilities

Net cash provided by (used in) operating activities

Cash flows from investing activities:

Investment in available-for-sale marketable securities

Proceeds from maturities of available-for-sale marketable securities

Proceeds from sales of available-for-sale marketable securities

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

Disbursements for loans receivables

Investment in privately-held companies

Proceeds from loans receivables

Proceeds from governmental grant

Repayment related to governmental grant

Other investing activities

Net cash provided by (used in) investing activities

SOLAREDGE TECHNOLOGIES INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Cont.)

(in thousands, except per share data)

Year ended December 31,

Cash flows from financing activities:

Repurchase of common stock

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

Other 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, cash equivalents and restricted cash, beginning of period

Cash, cash equivalents and restricted cash, end of period

Supplemental disclosure of non-cash activities:

Purchase of intangible assets and business combinations

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, net

Cash paid for interest on convertible debt and bank loans

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

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

Year ended December 31,

Cash and cash equivalents

Restricted cash

Cash, cash equivalents and restricted cash, end of period

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data)

SolarEdge Technologies, Inc.

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

The consolidated financial statements are prepared according to United States generally accepted accounting principles (“U.S.

Principles of consolidation:

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.

Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses, government grants, income taxes and related disclosures in the accompanying notes.

Actual results could differ from those estimates.

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Financial statements in U.S.

A major part of the Company’s operations is carried out in the United States, Israel, and certain other countries.

The functional currency of these entities is the U.S.

Financing activities, including cash investments are primarily made in U.S.

Accordingly, monetary accounts maintained in currencies other than the U.S.

dollar are translated into U.S.

dollars in accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) No.

830 “Foreign Currency Matters”.

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.

dollar have been translated into U.S dollars.

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

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:

Cash equivalents are short-term, highly liquid investments that are readily convertible to cash, with original maturities of three months or less at the date acquired.

Restricted cash

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 $ 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:

Short-term restricted bank deposits possess an original maturity of more than three months and less than a year from the date of investment.

Long-term restricted bank deposits possess an original maturity of more than one year from the date of investment.

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:

Marketable securities consist of corporate and governmental bonds.

The Company determines the appropriate classification of marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date.

In accordance with FASB ASC No.

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 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.

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

Marketable securities with maturities of 12 months or less are classified as short-term and marketable securities with maturities greater than 12 months are classified as long-term.

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 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.

Investment in privately-held companies:

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

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

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

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

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

The Company periodically evaluates the carrying value of 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.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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.

Trade receivables:

Trade receivables are stated net of credit losses allowance.

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

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.

Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default.

Trade receivables are written off after all reasonable means to collect the full amount have been exhausted.

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:

As of December 31,

Balance, at the beginning of the period

Increase in provision for expected credit losses

Recoveries collected

Amounts written off charged against the allowance

Foreign currency translation

Balance, at the end of the period

Loan receivables:

Loan receivables are carried at the outstanding principal amount.

An allowance for credit loss on loan receivables is established when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement.

The Company determines this by considering several factors, including the credit risk and current financial condition of the borrower, the borrower’s ability to pay current obligations, historical trends, and economic and market conditions.

The Company performs a credit quality assessment on the loan receivable on a quarterly basis and reviews the need for an allowance in accordance with ASC 326.

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.

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, 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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

Cost includes depreciation, labor, material, shipment and overhead costs.

Inventory reserves are provided to cover risks arising from slow-moving, excess inventory items and technological obsolescence.

The Company periodically evaluates the quantities on hand relative to historical, current, and projected sales volume.

Based on this evaluation, an impairment charge is recorded when required to write-down inventory to its net realizable value.

Cost of finished goods and raw materials is determined using the moving average cost method (see Note 5).

Property, plant and equipment:

Property, plant, and equipment are stated at cost, net of accumulated depreciation and government grants.

Assets under construction represent the construction or development stage of property and equipment that have not yet been placed in service for the Company's intended use.

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

Buildings and plants

Computers and peripheral equipment

14.3 - 33 (mainly 14.3 )

Office furniture and equipment

7 - 20 (mainly 7 )

Machinery and equipment

10 - 20 (mainly 10 )

Laboratory and testing equipment

15 - 20 (mainly 15 )

Leasehold improvements

over the shorter of the lease term or useful economic life

Government assistance

Advanced manufacturing production tax credits

In August 2022, the U.S.

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.

since the fourth quarter of 2023.

In addition to using the tax credits to offset tax due to the U.S.

government, the IRA allows taxpayers to elect to have AMPTCs refunded in cash ("Direct Pay") or sell these credits to a third party.

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

production of eligible components.

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

This is because the taxpayer can realize the benefit regardless of whether they owe income tax or not in the relevant years.

Therefore, these amounts are not considered income taxes and fall outside the scope of Topic 740.

Instead, they are treated as government grants.

Government grants are recognized when there is reasonable assurance that:

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

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.

The AMPTCs are also reflected in the consolidated balance sheet, according to the way the Company expects to utilize them:

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.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Property, plant and equipment

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.

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

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

Contracts containing a lease are further evaluated for classification as an operating or finance lease.

In determining the leases classification the Company assesses among other criteria:

(i) The lease term is for a major part of the remaining economic life of the underlying asset (ii) The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already included in the lease payments equals or exceeds substantially all of the fair value of the underlying asset.

Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities and long-term operating lease liabilities in the Company’s consolidated balance sheets.

Finance leases are included in property, plant and equipment, net, other current liabilities, and long-term finance lease liabilities in the Company’s consolidated balance sheets.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

For leases with terms greater than 12 months, the Company records the ROU asset and liability at commencement date based on the present value of lease payments according to their term.

Certain lease agreements include rental payments that are adjusted periodically for the consumer price index ("CPI").

The ROU and lease liability were calculated using the CPI as of the adoption date and will not be subsequently adjusted, unless the liability is reassessed for other reasons.

The Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date.

The ROU asset also includes any lease payments made and net of lease incentives.

Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

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

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:

The Company allocates the fair value of the purchase price to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair value.

The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill.

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.

Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

During the measurement period, which does not exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill.

Upon the finalization of the measurement period, any subsequent adjustments are recorded to earnings.

Intangible 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.

The Company routinely reviews the remaining estimated useful lives of finite-lived intangible assets.

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).

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 )

20 - 50 (mainly 20 )

9.5 - 10 (mainly 9.5 )

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, 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).

If such evaluation indicates that the carrying amount of the asset (or asset group) is not recoverable, the assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds their fair value (see Note 9).

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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

(1) An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.

(2) If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative impairment test is performed.

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

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:

In 2021, due to the growing size and complexity of the Company, the Company decided to implement a new global enterprise resource planning ("ERP") system, which will replace the Company's existing operating and financial systems.

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

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.

Implementation costs associated with CCA are capitalized when incurred during the application development phase until the software is ready for its intended use.

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 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, 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:

The employees of the Company’s Israeli Subsidiary are included under Section 14 of the Severance Pay Law, 1963, under which these employees are entitled only to monthly deposits made in their name with insurance companies, at a rate of 8.33% of their monthly salary.

These payments cause the Company to be released from any future obligation under the Israeli Severance Pay Law to make severance payments in respect of those employees;

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.

For the years ended December 31, 2025, 2024 and 2023, the Company recorded $ 16,378 , $ 21,959 and $ 23,643 in severance expenses related to its employees, respectively.

Derivatives and Hedging:

The Company accounts for derivatives and hedging based on ASC 815 (“Derivatives and Hedging”).

ASC 815 requires the Company to recognize all derivatives on the balance sheet at fair value.

The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship.

To protect against the increase in value of forecasted foreign currency cash flows resulting from salary denominated in the Israeli currency, NIS, during the year ended December 31, 2025, the Company instituted a foreign currency cash flow hedging program whereby portions of the anticipated payroll denominated in NIS for a period of one to nine months with hedging contracts.

Accordingly, when the dollar strengthens against the NIS, the decline in present value of future foreign currency expenses is offset by losses in the fair value of the hedging contracts.

Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by gains in the fair value of the hedging contracts.

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

The Company also entered into derivative instrument arrangements to hedge the Company’s exposure to currencies other than the U.S.

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

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

Revenue recognition:

Revenues are recognized in accordance with ASC 606;

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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.

(1) Identify the contract with a customer

A contract is an agreement or purchase order between two or more parties that creates enforceable rights and obligations.

In evaluating the contract, the Company analyzes the customer’s intent and ability to pay the amount of promised consideration (credit risk) and considers the probability of collecting substantially all of the consideration.

The Company determines whether collectability is reasonably assured on a customer-by-customer basis pursuant to its credit review policy.

The Company typically sells to customers with whom it has a long-term business relationship and a history of successful collection.

For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position, the number of years the customer has been in business, the history of collection with the customer, and the customer’s ability to pay, and typically assigns a credit limit based on that review.

(2) Identify the performance obligations in the contract

At a contract’s inception, the Company assesses the goods or services promised in a contract with a customer and identifies the performance obligations.

The main performance obligations are the provisions of the following:

providing of the Company’s products;

cloud based monitoring services;

extended warranty services and communication services.

Depending on the shipping terms agreed with the customer, the Company may perform shipping and handling activities after the customer obtains control of the goods and revenue is recognized.

The Company has elected to account for shipping and handling costs as activities to fulfill the promise to transfer the goods.

As a result of this accounting policy election, the Company does not consider shipping and handling activities after the customer obtains control of the goods as promised services to its customers.

(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 (e.g., sales tax and other indirect taxes).

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.

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

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 trade receivables.

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

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.

As of December 31, 2025, the Company has not provided payment terms of more than a year.

The performance obligations that extend for a period greater than one year are those that include a financial component:

(i) warranty extension services, (ii) cloud-based monitoring, and (iii) communication services.

The Company recognizes financing component expenses in its consolidated statement of income (loss) in relation to advance payments for performance obligations that extend for a period greater than one year.

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

Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer.

Control either transfers over time or at a point in time, which affects when revenue is recorded.

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 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:

Cost of revenues includes the following:

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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 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.

The warranty liability is in the form of product replacement and associated costs.

Warranty reserves are based on the Company’s best estimate of such costs and are included in cost of revenues.

The reserve for the related warranty expenses is based on various factors including assumptions about the frequency of warranty claims on product failures, derived from results of accelerated lab testing, field monitoring, analysis of the history of product field failures, and the Company’s reliability estimates.

The Company has established a reliability measurement system based on the units’ estimated mean time between failure, or MTBF, a metric that equates to a steady-state failure rate per year for each product generation.

The MTBF predicts the expected failure rate of each product within the Company's products installed base during the expected product warranted lifetime.

The Company performs accelerated life cycle testing, which simulates the service life of the product in a short period of time.

The accelerated life cycle tests incorporate test methodologies derived from standard tests used by solar module vendors to evaluate the period over which solar modules wear out.

Corresponding replacement costs are updated periodically to reflect changes in the Company’s actual and estimated production costs for its products, rate of usage of refurbished units as a replacement of faulty units, and other costs related to logistic and subcontractors’ services associated with the replacement products.

In addition, through the collection of actual field failure statistics, the Company has identified several additional failure causes that are not included in the MTBF model.

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.

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

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Advertising costs

Advertising costs are expensed when incurred and are included in sales and marketing expenses in the consolidated statements of income (loss).

The Company incurred advertising expenses of $ 10,270 , $ 12,015 , and $ 13,476 for the years ended December 31, 2025, 2024, and 2023, respectively.

Research and development costs:

Research and development costs, are charged to the consolidated statement of income (loss) as incurred.

Concentrations of credit risks:

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, restricted bank deposits, marketable securities, trade receivables, loan receivables, derivative instruments and other accounts receivable.

Cash and cash equivalents, restricted cash and restricted bank deposits are mainly invested in major banks in the U.S., Israel, Germany, Italy and Korea.

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.) and governmental bonds.

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

The Company believes its debt marketable securities portfolio is a diverse portfolio of highly-rated securities and the Company's investment policy limits the amount the Company may invest in an issuer (see Note 2g).

The trade receivables of the Company derive from sales to customers located primarily in the United States and Europe.

The Company performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for credit losses (see Note 2i).

The Company generally does not require collaterals, however, in certain circumstances, the Company may require letters of credit, other collateral, or additional guarantees.

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, 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.

Concentrations of supply risks:

The Company depends on certain contract manufacturers and several limited or single source component suppliers.

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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, 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.

Fair value is an exit price, representing the amount that would be received for the sale of an asset or paid to transfer a liability in an orderly transaction between market participants.

As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

A three-tiered fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:

Level 1- Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2- Include other inputs that are directly or indirectly observable in the marketplace.

Level 3- Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Stock-based compensation:

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 attribution method.

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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.

In addition, the Company granted PSUs based on the 30-day successive average trading price of the Company’s common stock (the “30-Day Price”) over a three year performance period, which are expected to vest if certain 30-Day Price levels are met.

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 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”).

The option-pricing model requires a number of assumptions, of which the most significant are the fair market value of the underlying common stock, expected stock price volatility, and the expected option term.

Expected volatility for stock-option awards and ESPP was calculated based upon the Company’s stock prices.

The expected term of options granted is based upon historical experience and represents the period between the options’ grant date and the expected exercise or expiration date.

The risk-free interest rate is based on the yield from U.S.

treasury bonds with an equivalent term.

The Company does not use dividend yield rate since the Company has not declared or paid any dividends on its common stock and does not expect to pay any dividends in the foreseeable future.

A modification of the terms of a stock-based award is treated as an exchange of the original award for a new award with total compensation cost equal to the grant-date fair value of the original award plus the incremental value of the modification to the award.

The fair value for PSU and ESPP granted to employees is estimated at the date of grant using the following assumptions:

Year ended December 31,

Risk-free interest

3.74 % - 4.36 %

4.42 % - 5.42 %

5.38 % - 5.46 %

Dividend yields

111.24 % - 113.95 %

70.94 % - 104.93 %

56.44 % - 66.78 %

Expected term

Risk-free interest

3.9 % - 4.2 %

Dividend yields

65.18 % - 76.7 %

Expected term

Earnings (loss) per share

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 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 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.

Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered.

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

The Company considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies.

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

Tax has not been recorded for (a) taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them;

and (b) taxes that would apply on the distribution of unremitted earnings from foreign subsidiaries, as these are retained for reinvestment in the Group.

The Company accounts for uncertain tax positions in accordance with ASC 740-10 two-step approach to recognizing and measuring uncertain tax positions.

The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes.

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.

New accounting pronouncements not yet effective:

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

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

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

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

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

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

INVESTMENT IN PRIVATELY-HELD COMPANY

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

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

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.

The Company accounted for the Stardust investment as an equity investment, under ASC 321, Equity Securities, that does not have a readily determinable fair market value.

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

The Company accounted for its investment in Ampeers using the equity method of accounting in accordance with ASC 323, Investments — Equity Method and Joint Ventures.

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

MARKETABLE SECURITIES

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

Amortized cost

Gross unrealized gains

Matures within one year:

Corporate bonds

Government agency securities

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

Amortized cost

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

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

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

INVENTORIES, NET

As of December 31,

Raw materials

Work in process

Finished goods

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.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

As of December 31,

Vendor non-trade receivables 1

Government authorities

Assets held for sale

Total prepaid expenses and other current assets

1 Vendor non-trade receivables derived from the sale of components to manufacturing vendors who manufacture products, components and other testing equipment for the Company.

The Company purchases these components directly from other suppliers.

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

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

PROPERTY, PLANT AND EQUIPMENT, NET

As of December 31,

Buildings and plants

Computers and peripheral equipment

Office furniture and equipment

Laboratory and testing equipment

Machinery and equipment

Leasehold improvements

Assets under construction and payments on account

Gross property, plant and equipment

Less - accumulated depreciation

Total property, plant and equipment, net

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.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

The following table summarizes the Company’s lease-related assets and liabilities recorded in the consolidated balance sheets:

As of December 31,

Classification on the consolidated Balance Sheet

Operating lease assets, net of lease incentive obligation

Operating lease right-of use assets, net

Finance lease assets

Property, plant and equipment, net

Total lease assets

Operating leases short term

Accrued expenses and other current liabilities

Finance leases short term

Accrued expenses and other current liabilities

Operating leases long term

Operating lease liabilities

Finance leases long term

Finance lease liabilities

Total lease liabilities

The following table presents certain information related to the operating and finance leases:

Year ended December 31,

Finance leases:

Amortization of right-of-use-assets

Interest on lease liabilities

Weighted average remaining lease term in years

Weighted average annual discount rate

Operating leases:

Operating lease costs

Weighted average remaining lease term in years

Weighted average annual discount rate

The following table presents supplemental cash flows information related to the lease costs for operating and finance leases:

Year ended December 31,

Cash paid for amounts included in measurement of lease liabilities:

Operating cash flows for operating leases

Operating cash flows for finance leases

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

Less amount of lease payments representing interest

Present value of future lease payments

Less current lease liabilities

Long-term lease liabilities

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

INTANGIBLE ASSETS, NET

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

As of December 31, 2025

As of December 31, 2024

Gross carrying amount

Accumulated amortization

Net carrying amount

Gross carrying amount

Accumulated amortization

Net carrying amount

Current technology

Customer relationships

Assembled workforce

Amortization expenses for the years ended December 31, 2025, 2024 and 2023, were $ 2,861 , $ 7,899 and $ 7,652 , respectively.

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

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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

Goodwill at December 31, 2023

Changes during the year:

Impairment losses

Foreign currency adjustments

Goodwill at December 31, 2024

Changes during the year:

Foreign currency adjustments

Goodwill at December 31, 2025

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

OTHER LONG TERM ASSETS

As of December 31,

Payments made before lease commencement

Cloud computing arrangements

Investments in privately held companies

Severance pay fund

Prepaid expenses and other

Total other long term assets

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

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:

Balance sheet location

December 31, 2025

December 31, 2024

Derivative assets of options and forward contracts:

Designated cash flow hedges

Prepaid expenses and other current assets

Gains (losses) on derivative instruments are summarized below:

Year ended December 31,

Affected line item

Foreign exchange contracts

Non Designated Hedging Instruments

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

Designated Hedging Instruments

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.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

FAIR VALUE MEASUREMENTS

In accordance with ASC 820, the Company measures its cash equivalents and marketable securities, at fair value using the market approach valuation technique.

Cash and cash equivalents and restricted cash are classified within Level 1 because these assets are valued using quoted market prices.

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

Fair value measurements as of

Cash, cash equivalents and restricted cash:

Money market mutual funds

Restricted cash

Derivative instruments

Short-term marketable securities:

Corporate bonds

Treasury securities

Government agency securities

Long-term marketable securities:

Corporate bonds

Government agency 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.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

WARRANTY OBLIGATIONS

Changes in the Company’s product warranty obligations for the years ended December 31, 2025, 2024 and 2023 were as follows:

Year ended December 31,

Balance, at the beginning of the period

Accruals for warranty during the period

Changes in estimates

Balance, at end of the period

Less current portion

Long-term portion

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,

Balance, at the beginning of the period

Revenue recognized

Increase in deferred revenues and customer advances

Balance, at the end of the period

Less current portion

Long-term portion

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

Total deferred revenues

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

As of December 31,

Accrued expenses

Government authorities

Operating lease liabilities

Accrual for sales incentives

Provision for legal claims

Liabilities held for sale

Total accrued expenses and other current liabilities

CONVERTIBLE SENIOR NOTES

On September 25, 2020, the Company sold an aggregate principal amount of $ 632,500 of its 0.00 % convertible senior notes, due 2025 (the “Notes 2025”).

The Notes 2025 were sold pursuant to an indenture, dated September 25, 2020 (the “Indenture”), between the Company and U.S.

Bank National Association, as trustee.

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”).

The Notes 2029 were sold pursuant to an indenture, dated June 28, 2024 (the “Indenture 2029”), between the Company and U.S.

Bank National Association, as trustee.

The Notes 2029 will bear interest at a rate of 2.25% per year, payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2025.

The Notes 2029 mature on July 1, 2029 , unless repurchased, redeemed or converted in accordance with their terms prior to such date.

The Notes 2029 are general senior unsecured obligations of the Company.

Holders may convert their Notes 2029 at any time prior to the close of business on the business day immediately preceding April 1, 2029 in multiples of $ 1,000 principal amount, only under the following circumstances:

(1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2024 (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 2029 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 or if the Company provides a notice of redemption as described in the Indenture 2029.

In addition, holders may convert their Notes 2029, in multiples of $1,000 principal amount, at their option at any time beginning on or after April 1, 2029, and prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Notes 2029, without regard to the foregoing circumstances.

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

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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

In addition, upon the occurrence of a fundamental change (as defined in the Indenture 2029), holders of the Notes 2029 may require the Company to repurchase all or a portion of their Notes 2029, in multiples of $ 1,000 principal amounts, at a repurchase price of 100% of the principal amount of the Notes 2029, plus any accrued and unpaid interest, if any, up to, but not including, the repurchase date.

If certain fundamental changes referred to as make-whole fundamental changes occur, the conversion rate for the Notes 2029 may be increased.

The Notes 2029 are not redeemable prior to July 6, 2027.

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

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

Congruently, the Company has entered into capped call transactions (as detailed below).

The Company used approximately $ 25,230 of the net proceeds from this offering to pay the cost of the capped call transactions.

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

The carrying value of the liability is represented by the face amount of the Notes 2029, less debt issuance costs, adjusted for any amortization of issuance costs.

Issuance costs are being amortized as interest expense over the term of the Notes 2029, using the effective interest rate method.

The capped call transactions are expected generally to reduce the potential dilution to the common stock upon any conversion of the Notes 2029 and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Notes 2029, as the case may be, in the event that the market price per share of common stock, as measured under the terms of the capped call transactions, is greater than the strike price of the capped call transactions.

The strike price initially corresponds to the conversion price of the Notes and is subject to customary anti-dilution adjustments.

If, however, the market price per share of common stock exceeds $ 48.84 , the initial cap price of the capped call transactions, there would nevertheless be unmitigated dilution and/or no offset of any cash payments, in each case, attributable to the amount by which the market price of the common stock exceeds the cap price.

The cap price is subject to certain customary adjustments under the terms of the capped call transactions.

The capped call transactions are considered a freestanding instrument as they were entered into separately and apart from Notes 2029.

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

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.

On July 8, 2024 the Company sold to Goldman Sachs & Co.

LLC, as representative of the several initial purchasers (the “Initial Purchasers”), and the Initial Purchasers purchased from the Company, $ 37,000 aggregate principal amount of additional Notes 2029.

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.

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

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

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

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

As of December 31,

Unamortized issuance costs

Net carrying amount Notes 2025

Unamortized issuance costs

Net carrying amount Notes 2029

Total notes carrying amount

Costs related to the Notes 2025 and the Notes 2029 were as follows:

Year ended December 31,

Debt issuance cost

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

OTHER LONG TERM LIABILITIES

As of December 31,

Accrued severance pay

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

STOCK CAPITAL

Common stock rights:

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.

Equity Incentive Plans:

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.

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.

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 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 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:

Number of options

Weighted average exercise price

Weighted average remaining contractual term in years

Aggregate intrinsic Value

Outstanding as of December 31, 2022

Outstanding as of December 31, 2023

Vested and expected to vest as of December 31, 2023

Exercisable as of December 31, 2023

Outstanding as of December 31, 2023

Forfeited or expired

Outstanding as of December 31, 2024

Vested and expected to vest as of December 31, 2024

Exercisable as of December 31, 2024

Outstanding as of December 31, 2024

Forfeited or expired

Outstanding as of December 31, 2025

Vested and expected to vest as of December 31, 2025

Exercisable as of December 31, 2025

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

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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

Weighted average grant date fair value

Unvested as of January 1, 2023

Unvested as of December 31, 2023

Unvested as of December 31, 2024

Unvested as of December 31, 2025

Employee Stock Purchase Plan:

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

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

The ESPP is implemented through an offering every six months.

According to the ESPP, eligible employees may use up to 15 % of their salaries to purchase common stock up to an aggregate limit of $ 15 per participant for every six months plan.

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

As of December 31, 2025, 2,793,819 shares of common stock had been purchased under the ESPP.

As of December 31, 2025, 2,331,847 shares of common stock were available for future issuance under the ESPP.

In accordance with ASC No.

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

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Stock-based compensation expenses:

The Company recognized stock-based compensation expenses related to all stock-based awards in the consolidated statement of income (loss) for the years ended December 31, 2025, 2024 and 2023, as follows:

Year ended December 31,

Stock-based compensation expenses:

Cost of revenues

Research and development

Sales and marketing

General and administrative

Total stock-based compensation expenses

Stock-based compensation capitalized:

Other long-term assets

Total stock-based compensation capitalized

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, 2026 through December 31, 2029.

Repurchase of Common Stock:

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

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

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

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

COMMITMENTS AND CONTINGENT LIABILITIES

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:

The Company has contractual obligations to purchase goods and raw materials.

These contractual purchase obligations relate to inventories and other purchase orders, which cannot be canceled without penalty.

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

As of December 31, 2025, the Company had non-cancelable purchase obligations totaling approximately $ 513,202 , out of which the Company recorded a provision for loss in the amount of $ 24,324 .

As of December 31, 2025, the Company had contractual obligations for capital expenditures totaling approximately $ 23,451 .

These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing process.

Legal claims:

From time to time, the Company may be involved in various claims and legal proceedings.

The Company reviews the status of each matter and assesses its potential financial exposure.

If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss.

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.

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

The complaint seeks class certification, damages, interest, attorneys’ fees, and other relief.

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

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

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

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

The amended complaint made substantially similar allegations and claims.

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

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

The Court allowed 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.

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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 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 (the “Consolidated Derivative Action”).

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 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.

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

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

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

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

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

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

Unrealized gains (losses) on cash flow hedges

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

Unrealized gains (losses) on foreign currency translation

Beginning balance as of January 1, 2023

Tax on revaluation

Other comprehensive income (loss) before reclassifications

Reclassification

Tax on reclassification

Losses reclassified from accumulated other comprehensive income

Net current period other comprehensive (income) loss

Ending balance as of December 31, 2023

Tax on revaluation

Other comprehensive income (loss) before reclassifications

Reclassification

Tax on reclassification

Losses reclassified from accumulated other comprehensive income

Net current period other comprehensive (income) loss

Ending balance as of December 31, 2024

Tax on revaluation

Other comprehensive income (loss) before reclassifications

Reclassification

Tax on reclassification

Losses (gains) reclassified from accumulated other comprehensive income

Net current period other comprehensive income (loss)

Ending balance as of December 31, 2025

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2025, 2024 and 2023:

Details about Accumulated Other Comprehensive Income (Loss) Components

Amount Reclassified from Accumulated Other Comprehensive Income (Loss)

Affected Line Item in the Statement of Income (loss)

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

Financial income (expenses), net

Total, net of income taxes

Unrealized gains (losses) on cash flow hedges

Cost of revenues

Research and development

Sales and marketing

General and administrative

Total, before income taxes

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

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

EARNINGS (LOSS) PER SHARE

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

Year ended December 31,

Net income (loss)

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

Net income (loss) attributable to common stock, diluted

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

Effect of stock-based awards

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

Earnings (loss) per share:

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

Year ended December 31,

Stock-based awards

Total shares excluded

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

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

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

Accordingly, any potential impact resulting from capped call transaction is excluded from 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

Impairment and disposal by abandonment of property, plant and equipment

Total other operating expense, net

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

RESTRUCTURING AND OTHER EXIT ACTIVITIES

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.

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

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, 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

Contract termination and other

Cost of revenues

Sales and marketing

General and administrative

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

Contract termination and other

Balance as of January 1, 2025

Cash payments

Non-cash utilization and other

Balance as of December 31, 2025

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Tax rates in the U.S:

The Company is subject to U.S.

federal tax at the rate of 21 %.

On December 22, 2017, the Tax Cuts and Jobs Act (the "Tax Act") was signed into law making significant changes to U.S.

income tax law.

These changes include, but are not limited to, a corporate tax rate decrease from 35 % to 21 % effective for tax years 2018 onwards and created new taxes on certain foreign-sourced earnings and certain related-party payments - the Global Intangible Low Taxed Income (“GILTI”).

Furthermore, changes introduced by the Tax Act to Section 174 of the Internal Revenue Code, that came into effect on January 1, 2022, require taxpayers to amortize research and development expenditures over five years (if incurred in the U.S.) or fifteen years (if incurred outside the U.S.), thereby increasing taxable income and payable tax.

The Tax Act required the Company to pay U.S.

income taxes on accumulated foreign subsidiaries earnings not previously subject to U.S.

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 (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 25k.

Carryforward tax losses:

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:

Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Significant components of the Company’s deferred tax liabilities and assets are as follows:

Deferred tax assets, net:

Research and development carryforward expenses

Carryforward tax losses

Stock based compensation expenses

Deferred revenue

Lease liabilities

Inventory Impairment

Foreign currency translation

Property, plant and equipment

Allowance and other reserves

Total gross deferred tax assets

Less, valuation allowance

Total deferred tax assets, net

Deferred tax liabilities, net:

Intercompany transactions

Right-of-use assets

Acquired intangible assets

Property, plant and equipment

Total deferred tax liabilities

Deferred tax liabilities, net 1

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.

Such additional tax liability in respect of these subsidiaries has not been provided for in the Financial Statements as the Company’s management and the Board of Directors has determined that the Company intends to reinvest earnings of its subsidiaries indefinitely.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Uncertain tax positions are comprised as follows:

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

Decrease related to prior year tax positions

Balance, at end of the period

The total amount of gross unrecognized tax benefits above would affect the Company's effective tax rate, if recognized.

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

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

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

Year ended December 31,

Income (loss) before income taxes

Income taxes are comprised as follows:

Year ended December 31,

Current taxes:

Total current taxes

Deferred taxes:

Total deferred taxes

Income taxes, net

Reconciliation of theoretical tax expense to actual tax expense:

The differences between the statutory tax rate of the Company and the effective tax rate are result of a variety of factors, including different effective tax rates applicable to non-US subsidiaries that have tax rates different than the Company tax rate;

valuation allowance on deferred tax assets related to losses and other deferred tax assets, where the Company does not foresee the realization of the same;

and tax-exempt IRA credits.

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

Income tax at rate other than the U.S.

statutory tax rate

Losses and timing differences for which valuation allowance was provided

Prior year income taxes (benefit)

R&D Capitalization and other effects of TCJA

Non-deductible expenses

IRA tax benefits

Other individually immaterial income tax items, net

Effective tax rate

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 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.

federal and various state and foreign income tax returns.

The statute of limitations relating to the consolidated U.S.

federal income tax return is closed for all tax years up to and including 2020.

The statute of limitations related to tax returns of the Company’s Israeli Subsidiary for all tax years up to and including 2020 has lapsed.

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.

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

The Israeli Subsidiary elected tax year 2012 as a "Year of Election" for “Benefited Enterprise” status under the Investments Law.

According to the Investments Law, the Israeli Subsidiary elected to participate in the alternative benefits program which provides certain benefits, including tax exemptions and reduced tax rates (which depend on, inter alia, the geographic location in Israel).

Income not eligible for Benefited Enterprise benefits is taxed at a regular corporate tax rate.

Upon meeting the requirements under the Investments Law, undistributed income derived from Benefited Enterprise from productive activity will be exempt from tax for two years from the year in which the Israeli Subsidiary first has taxable income (“exempt period”), provided that 12 years have not passed from the beginning of the year of election.

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.

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.

If the Israeli Subsidiary’s retained tax-exempt income is distributed, the income would be taxed at the applicable corporate tax rate which depends on the foreign ownership in each tax year.

Pursuant to amendment 73 to the Investments Law (“2017 Amendment"), a preferred enterprise located in development area A will be subject to a tax rate of 7.5 % instead of 9 % effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16 %).

The 2017 Amendment also prescribes special tax tracks for preferred technological enterprises (“PTE”), which are subject to rules that were issued by the Ministry of Finance.

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

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(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.

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.

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

Tax Benefits for Research and Development:

Israeli tax law (section 20A to the Israeli Tax Ordinance (New Version), 1961) allows a tax deduction for research and development expenses, including capital expenses, in the year in which they are paid.

Such expenses must relate to scientific research in industry, agriculture, transportation or energy, and must be approved by the relevant Israeli government ministry, determined by the field of research.

Expenses incurred in scientific research that are not approved by the relevant government ministry are amortized over a three-year period starting from the tax year in which they are paid.

The Company’s Israeli Subsidiary submitted a formal request to the relevant government ministry in order to obtain such approval for tax years 2019-2021 and intends to submit a similar request with respect to tax year 2023.

Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969:

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(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

Year ended December 31,

Exchange rate (loss) gain, net

Interest income on marketable securities

Allowance for credit losses allocated to loan receivables

Convertible note

Financing component expenses related to ASC 606

Interest income

Interest expense

Total financial income (expenses), net

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

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

Inventory costs

Shipment and logistics

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

Revenues by geographic, based on customers’ location:

Year ended December 31,

United States

International markets

Total revenues

Revenues by type:

Year ended December 31,

Energy storage systems

e-Mobility components and telematics

Communication

Total revenues

Long-lived assets by geographic location:

As of December 31,

United States

Total long-lived assets (*)

(*) Long-lived assets are comprised of property and equipment, net and Operating lease right-of-use assets, net.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(in thousands, except per share data)

SUBSEQUENT EVENTS

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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

POWER OF ATTORNEY

Know all persons by these presents, that each person whose signature appears below constitutes and appoints Shuki Nir, Asaf Alperovitz, and Dalia Litay, or any of them, as such person’s true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for such person and in such person’s name, place, and stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as such person might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or any of them or their or such person’s substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated below.

Chief Executive Officer and Director ( Principal Executive Officer )

/s/Asaf Alperovitz

Chief Financial Officer ( Principal Financial and Accounting Officer )

/s/Avery More

Chairman of the Board

/s/Betsy Atkins

/s/ Dana Gross

/s/Yoram Tietz

/s/Gilad Almogy

POWER OF ATTORNEY

Chief Executive Officer and Director ( Principal Executive Officer )

/s/Asaf Alperovitz

Chief Financial Officer ( Principal Financial and Accounting Officer )

/s/Avery More

Chairman of the Board

/s/Betsy Atkins

/s/ Dana Gross

/s/Yoram Tietz

/s/Gilad Almogy

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/A

Item 8. Financial Statements and Supplementary Data