What changed in this filing

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Item 1. Financial Statements

2026-05-07 compared with 2025-11-06 · 937 added, 755 removed, 191 unchanged (90% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

September 30,

CURRENT ASSETS:

2 unchanged sentences

Marketable securities

Trade receivables, net of allowances of $ 20,840 and $ 43,038 , respectively

Trade receivables, net of allowances of $ 30,478

and $ 17,224 ,

Inventories, net

Prepaid expenses and other current assets

Total current assets

current assets

LONG-TERM ASSETS:

Marketable securities

Property, plant and equipment, net

1 unchanged sentence

Intangible assets, net

Loan receivables, net

Other long-term assets

Total long-term assets

Total long-term

SOLAREDGE TECHNOLOGIES INC.

| 2026 Form 10-Q | F - 1

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Cont.)

(in thousands, except per share data)

September 30,

TECHNOLOGIES, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited) (Cont.)

(in thousands,

except per share data)

LIABILITIES AND STOCKHOLDERS’ EQUITY

5 unchanged sentences

Accrued expenses and other current liabilities

Convertible senior notes, net

Total current liabilities

current liabilities

LONG-TERM LIABILITIES:

1 unchanged sentence

Warranty obligations

Deferred revenues

Deferred revenues and customers advances

Finance lease liabilities

1 unchanged sentence

Other long-term liabilities

Total long-term liabilities

long-term liabilities

COMMITMENTS AND CONTINGENT LIABILITIES

STOCKHOLDERS’ EQUITY:

Common stock of $ 0.0001 par value - Authorized:

125,000,000 shares;

59,800,052 shares as

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

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

Common stock of $ 0.0001

par value - Authorized:

125,000,000 ;

Issued and outstanding:

and 60,360,154

shares as of March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital

Treasury stock, at cost;

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

Accumulated other comprehensive loss

Accumulated other comprehensive income (loss)

Accumulated deficit

Total stockholders’ equity

Total liabilities and stockholders’ equity

stockholders’ equity

liabilities and stockholders’ equity

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

1 unchanged sentence

| 2026 Form 10-Q | F - 2

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Unaudited)

(in thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF LOSS (Unaudited)

thousands, except per share data)

Cost of revenues

Gross profit (loss)

Operating expenses:

Research and development

Sales and marketing

General and administrative

Other operating expense (income), net

Total operating expenses

and development, net

and marketing

and administrative

operating expense (income), net

operating expenses

Operating loss

Financial income (expense), net

Other income (expense), net

Financial income (expense),

Other income, net

Loss before income taxes

Net loss from equity method investments

Net basic and diluted loss per share of common stock

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

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

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 3

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)

(in thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

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 loss

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

SOLAREDGE TECHNOLOGIES INC.

Net loss from equity

method investments

Net basic and diluted

loss per share of common stock

Weighted average number

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

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

TECHNOLOGIES INC.

| 2026 Form 10-Q | F - 3

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

(in thousands, except per share data)

Additional paid in

Treasury stock

TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)

thousands, except per share data)

Other comprehensive

Accumulated deficit

Balance as of January 1, 2025

Issuance of common stock upon exercise of stock-based awards

Stock based compensation

Other comprehensive gain adjustments

Balance as of March 31, 2025

Issuance of common stock upon exercise of stock-based awards

Issuance of common stock under employee stock purchase plan ( 512,858 shares transferred from treasury stock)

Stock based compensation

Other comprehensive gain adjustments

Balance as of June 30, 2025

Issuance of common stock upon exercise of stock-based awards

Stock based compensation

Other comprehensive loss adjustments

Balance as of September 30, 2025

SOLAREDGE TECHNOLOGIES INC.

income (loss), net of tax:

Available-for-sale

marketable securities

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

currency translation adjustments

comprehensive income, net of tax

Comprehensive

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

TECHNOLOGIES INC.

| 2026 Form 10-Q | F - 4

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

(in thousands, except per share data)

Additional paid in

Treasury stock

other comprehensive

Retained earnings (Accumulated deficit)

TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

thousands, except per share data)

comprehensive

Balance as of January

Issuance of common stock upon exercise of stock-based awards

Issuance of common stock

upon exercise of stock-based awards

Stock-based compensation

Repurchase of common stock

Other comprehensive loss adjustments

Other comprehensive income,

Balance as of March 31,

Issuance of common stock upon exercise of stock-based awards

Issuance of common stock under employee stock purchase plan

Stock based compensation

Repurchase of common stock

Capped call transactions related to Notes 2029

Other comprehensive loss adjustments

Balance as of June 30, 2024

Issuance of common stock upon exercise of stock-based awards

Stock based compensation

Capped call transactions related to Notes 2029

Other comprehensive gain adjustments

Balance as of September 30, 2024

comprehensive

of January 1, 2025

of common stock upon exercise of stock-based awards

Other comprehensive

of March 31, 2025

Represents an amount less than $1.

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

SOLAREDGE TECHNOLOGIES INC.

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

TECHNOLOGIES INC.

| 2026 Form 10-Q | F - 5

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands, except per share data)

Nine Months Ended

September 30,

Cash flows from operating activities:

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

Depreciation and amortization

Loss on impairment and disposal of property, plant and equipment

Provision to write down inventories to net realizable value

Impairment of asset held-for-sale

Impairment of goodwill and intangible assets

Impairment of privately-held companies

Stock-based compensation expenses

Loss from business disposition

Deferred income taxes, net

Gain from repurchasing of convertible notes

Loss from exchange rate fluctuations

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

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

Business combinations, net of cash acquired

Proceeds from sale of investment in privately-held company

Business dispositions, net of cash sold

Proceeds from sale of property, plant and equipment

Repayment related to governmental grant

Purchase of intangible assets

Disbursements for loans receivables

Investment in privately-held companies

Proceeds from loan receivables

Other investing activities

Net cash provided by investing activities

SOLAREDGE TECHNOLOGIES INC.

TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

thousands, except per share data)

flows from operating activities:

to reconcile net loss to net cash provided by operating activities:

and amortization

compensation expenses

from business disposition

(gain) from exchange rate fluctuations

in assets and liabilities:

receivables, net

expenses and other assets

lease right-of-use assets, net

and payroll accruals

revenues and customers advances

lease liabilities

expenses and other liabilities

cash provided by operating activities

flows from investing activities:

in available-for-sale marketable securities

from maturities of available-for-sale marketable securities

of property, plant and equipment

dispositions, net of cash sold

related to governmental grant

from restricted bank deposits

made before lease commencement

from loan receivables

investing activities

cash provided by (used in) investing activities

TECHNOLOGIES INC.

| 2026 Form 10-Q | F - 6

SOLAREDGE TECHNOLOGIES INC.

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

(in thousands, except per share data)

Nine Months Ended

September 30,

Cash flows from financing activities:

Repurchase of common stock

Proceeds from issuance of Notes 2029, net of issuance costs

Capped call transactions related to Notes 2029

Payment for settlement of convertible notes

Repurchase of convertible debt

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

Cash, cash equivalents and restricted cash, beginning of period

Cash, cash equivalents and restricted cash, end of period

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

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

Nine Months Ended

September 30,

TECHNOLOGIES, INC.

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

thousands, except per share data)

flows from financing activities:

of convertible debt

of common stock upon exercise of stock-based awards

withholding in connection with stock-based awards, net

financing activities

Net cash provided by

(used in) financing activities

Effect of exchange rate

changes on cash, cash equivalents and restricted cash

Increase 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 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

disclosure of non-cash activities:

Right-of-use asset recognized

with a corresponding lease liability

Purchase of property,

plant and equipment

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

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

Cash and cash equivalents

Restricted cash

Cash, cash equivalents and restricted cash, end of period

SOLAREDGE TECHNOLOGIES INC.

Cash, cash equivalents

and restricted cash, end of period

TECHNOLOGIES INC.

| 2026 Form 10-Q | F - 7

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

SolarEdge Technologies, Inc.

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

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

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

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

TECHNOLOGIES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

thousands, except per share data )

Technologies, Inc.

(together with its subsidiaries, the “Company” or “SolarEdge”) is a global smart energy technology

The Company develops, manufactures, and sells products that address a broad range of energy market segments through its diversified

product offering, including residential, commercial and large scale photovoltaic “PV”, energy storage and backup solutions,

electric vehicle “EV” charging capabilities, home energy management, grid services and virtual power plants.

By leveraging

engineering capabilities and focusing on innovation, safety and reliability, SolarEdge creates smart energy solutions that power our lives

and drive future progress.

Company sells products worldwide through large distributors and electrical equipment wholesalers directly to large solar installers and

engineering, procurement, and construction firms.

The Company's 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.

Basis of Presentation:

The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with U.S.

generally accepted accounting principles (“U.S.

In management’s opinion, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented.

The Company’s interim period results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year.

The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2024 , contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2025, have been applied consistently in these unaudited interim condensed consolidated financial statements.

Certain prior year amounts have been reclassified to conform to current year presentation.

unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with U.S.

generally accepted

accounting principles (“U.S.

In management’s opinion, the unaudited condensed consolidated financial statements

reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods

The Company’s interim period results do not necessarily indicate the results that may be expected for any other interim

period or for the full fiscal year.

significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2025, contained

in the Company’s Annual Report on Form 10-K/A filed with the Securities and Exchange Commission (the “SEC”) on March

23, 2026 have been applied consistently in these unaudited condensed consolidated financial statements.

Certain prior year amounts have

been reclassified to conform to current year presentation.

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 gross 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:

Balance as of January 1, 2025

Increase in provision for expected credit losses

Recoveries collected

Amounts written off charged against the allowance

Foreign currency translation

Balance as of September 30, 2025

receivables are stated net of credit losses allowance.

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

The allowance against gross trade receivables reflects the current expected credit loss inherent in the receivables portfolio determined

based on the Company’s methodology.

The Company’s methodology is based on historical collection experience, customer creditworthiness

and current economic 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.

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:

at the beginning of the period

to allowance for credit losses not previously recorded

currency translation

at the end of the period

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

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

preparation of financial statements, in conformity with U.S.

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.

preparing the Company’s condensed consolidated financial statements, management considered the economic implications of inflation,

geopolitical developments, including the conflict in Israel, currency fluctuation, and the Company's 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.

Concentrations of supply risks:

The Company depends on two 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 September 30, 2025 two contract manufacturers jointly accounted for 48.1 % of the Company’s total trade payables.

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

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

Investment in privately-held companies:

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

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

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

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

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

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

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

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

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

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

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

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.

of March 31, 2026 one contract manufacturer accounted for 50.8 %

of the Company’s total trade payables.

of December 31, 2025, two contract manufacturers jointly accounted for 50.7 %

of the Company’s total trade payables.

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

March 31, 2026, the Israeli Knesset enacted Chapter J, the Law for the Encouragement and Incentivization of Research and Development (the

The R&D Law introduces a refundable tax credit regime for qualifying research and development (“R&D”)

expenditures incurred in Israel, which applies to qualifying R&D expenditures incurred beginning the tax year starting January 1,

2026 and allows eligible companies, subject to certain conditions, to (i) offset Israeli income taxes or Israeli qualified domestic minimum

top‑up taxes (“QDMTT”), or (ii) receive a government grant if the credit is not utilized.

For the three months ended

March 31, 2026, the Company recognized an asset of $ 912

under other long-term assets, in respect of the future government grant, with a corresponding reduction in R&D expenses.

New accounting standards updates:

issued and adopted pronouncements

In July 2025, the Financial

Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, “Financial

Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets” (“ASU

This amendment introduces a practical expedient for the application of the current expected credit loss (“CECL”)

model to current accounts receivable and contract assets.

The practical expedient allows entities to assume that conditions as of the

balance sheet date remain unchanged over the remaining life of these assets, thereby eliminating the need to incorporate macroeconomic

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

The Company adopted this ASU as of January 1, 2026.

The adoption of this new ASU did not have a material impact on the Company's condensed

consolidated financial statements.

In September 2025, the

FASB issued ASU 2025-07, “Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606):

Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract” (“ASU

2025-07”), which (i) expands the scope exception of Topic 815 to exclude certain contracts with a variable that is based on operations

or activities specific to one of the parties to the contract and (ii) clarifies the scope of share-based payments from a customer in a

revenue contract.

ASU 2025-07 is effective for annual reporting periods beginning after December 15, 2026 and interim

periods within that year.

Early adoption is permitted and must be applied as of the beginning of the fiscal year that includes the interim

The Company adopted this ASU as of January 1 , 2026.

The adoption of this new ASU did not have a material impact on the Company’s

condensed consolidated financial statements.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

New accounting standards updates:

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

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

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

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

Implementation of said additions are subject to quantitative thresholds.

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

The Company is currently evaluating the impact from ASU 2023-09 on its consolidated financial statements disclosures.

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

accounting pronouncements not yet effective

November 2024, the FASB issued ASU 2024-03, “Income Statement — Reporting Comprehensive Income — Expense Disaggregation

Disclosures (Subtopic 220-40):

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

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

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

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

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.

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

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

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.

is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting

Early adoption is permitted.

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

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

Revision to previously issued financial statements :

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

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

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

Three Months Ended September 30, 2024

Nine Months Ended September 30, 2024

Operating loss

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

Nine Months Ended September 30, 2024

Cash flows provided by operating activities:

Net cash used in operating activities

Net cash provided by investing activities

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

As of September 30, 2024

Accumulated deficit

Total stockholders’ equity

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 of adopting ASU 2025-06 on its consolidated financial statements.

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 of adopting ASU 2025-09 on its financial statement disclosures.

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 of adopting ASU 2025-10 on its consolidated financial statements.

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

Narrow-Scope Improvements” (“ASU 2025-11”),

which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting.

ASU 2025-11 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 of adopting ASU 2025-11 on its

consolidated financial statements.

SOLAREDGE TECHNOLOGIES INC.

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SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

MARKETABLE SECURITIES

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

Amortized cost

Gross unrealized gains

Gross unrealized losses

Matures within one year:

Corporate bonds

Treasury securities

Government agency securities

The following is a summary of available-for-sale marketable securities as of 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

following is a summary of available-for-sale marketable securities as of March 31, 2026:

within one year:

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

within one year:

Government agency securities

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

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

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

Company did not sell any available-for-sale marketable securities during the three months ended March 31, 2026 and 2025.

of March 31, 2026 and December 31, 2025, the Company did not record an allowance for credit losses for its available-for-sale

marketable securities.

SOLAREDGE TECHNOLOGIES INC.

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SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

INVENTORIES, NET

September 30,

Raw materials

Work in process

Finished goods

Total inventories, net

Total inventories,

PREPAID EXPENSES AND OTHER CURRENT ASSETS

September 30,

Vendor non-trade receivables 1

Government authorities 2

Asset 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.

non-trade receivables 1

recovery receivables

held for sale

Total prepaid expenses

and other current assets

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.

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

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

The Company does not reflect

the sale of these components to the contract manufacturers in its revenues.

SOLAREDGE TECHNOLOGIES INC.

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SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

OTHER LONG-TERM ASSETS

September 30,

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

Prepaid expenses and

other long-term assets

SOLAREDGE TECHNOLOGIES INC.

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SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

During the nine months ended September 30, 2025 , the Company instituted a foreign currency cash flow hedging program to reduce the risk of a forecasted increase in the value of foreign currency cash flows, resulting from payment of salaries in Israeli currency, the New Israeli Shekels (“NIS”).

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

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

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

dollars (“USD”) in the amounts of NIS 24 million and NIS 138 million, respectively.

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

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

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

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

The fair values of outstanding derivative instruments were as follows:

Balance sheet location

September 30,

Derivative assets of options and forward contracts:

Designated cash flow hedges

Prepaid expenses and other current assets

Non-designated hedges

Prepaid expenses and other current assets

Company maintains a foreign currency cash flow hedging policy designed to mitigate exposure to fluctuations in exchange rates.

policy, the Company hedges portions of its anticipated payroll expenses denominated in New Israeli Shekels (“NIS”) for periods

of one to nine months.

These hedging contracts are designated as cash flow hedges in accordance with Accounting Standards Codification

(“ASC”) 815, “Derivatives and Hedging” and are considered effective.

of March 31, 2026, the Company entered into forward contracts as well as put and call options to sell U.S.

dollars (“USD”)

in the amounts of NIS 255

million and NIS 108

million, respectively.

addition to the above-mentioned cash flow hedge transactions, the Company occasionally enters into derivative instrument arrangements

to hedge the Company’s exposure to currencies other than USD.

These derivative instruments are not designated as cash flow hedges,

as defined by ASC 815, and therefore all gains and losses resulting from fair value remeasurement were recorded immediately in the condensed

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

of March 31, 2026, the Company entered into forward contracts to sell Euro (“EUR”) in the amounts of USD 43

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

fair values of outstanding derivative instruments were as follows:

sheet location

Derivative assets of

options and forward contracts:

cash flow hedges

Prepaid expenses and

other current assets

Non-designated

Prepaid expenses and

other current assets

Total derivative assets

Derivative liabilities of options and forward contracts:

Non-designated hedges

Accrued expenses and other current liabilities

Gains (losses) on derivative instruments are summarized below:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Affected line item

Derivative liabilities

of options and forward contracts:

cash flow hedges

Accrued expenses and

other current liabilities

Gains (losses) on derivative

instruments are summarized below:

Foreign exchange contracts

Non Designated Hedging Instruments

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

Designated Hedging Instruments

Condensed Consolidated Statements of Comprehensive Loss - Cash flow hedges

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

Non-designated

hedging instruments

Condensed consolidated

statements of loss - Financial income (expense), net

hedging instruments

Condensed consolidated

statements of comprehensive loss - Cash flow hedges

Note 15, Accumulated Other Comprehensive Income (Loss), for information regarding gains (losses) from designated hedging instruments reclassified

from accumulated other comprehensive income (loss).

SOLAREDGE TECHNOLOGIES INC.

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SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

FAIR VALUE MEASUREMENTS

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

Cash and cash equivalents 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 September 30, 2025, and December 31, 2024, by level within the fair value hierarchy:

Fair value measurements as of

September 30,

accordance with ASC 820, “Fair Value Measurement”, the Company measures its cash equivalents and marketable securities, at

fair value using the market approach valuation technique.

Cash and cash equivalents 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.

following table sets forth the Company’s assets that were measured at fair value as of March 31, 2026, and December 31, 2025 by

level within the fair value hierarchy:

value measurements as of

Value Hierarchy

Cash and cash equivalents:

Money market mutual funds

market mutual funds

Restricted cash

Derivative instruments

Short-term marketable securities:

Corporate bonds

Treasury securities

Government agency securities

Long-term marketable securities:

Corporate bonds

Short-term marketable

Government agency securities

3 unchanged sentences

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

WARRANTY OBLIGATIONS

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

Balance, at the beginning of the period

Accruals for warranty during the period

in the Company’s product warranty obligations for the three months ended March 31, 2026 and 2025, were as follows:

Months Ended March 31,

Balance, at the beginning

of the period

Accruals for warranty

during the period

Changes in estimates

Balance, at end of the period

Balance, at end of the

Less current portion

3 unchanged sentences

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

DEFERRED REVENUES AND CUSTOMERS ADVANCES

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

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

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

Balance, at the beginning of the period

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

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

Months Ended March 31,

Balance, at the beginning

of the period

Revenue recognized

Increase in deferred revenues and customer advances

Balance, at the end of the period

Increase in deferred

revenues and customer advances

Balance, at the end of

Less current portion

Long-term portion

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

following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied

(or partially unsatisfied) as of March 31, 2026:

Total deferred revenues

and customer advances

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

September 30,

Accrued expenses

3 unchanged sentences

Provision for legal claims

Total accrued expenses and other current liabilities

Liabilities held for

accrued expenses and other current liabilities

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

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.

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 did not bear regular

interest and matured on September

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

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

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

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

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

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

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

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

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

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.

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 repaid all of the remaining Notes 2025 on their scheduled maturity of September

At maturity, the Company paid $ 342,250

in cash towards the 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.

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.

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 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;

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.

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.

conversion of the Notes 2029, 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.

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.

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.

SOLAREDGE TECHNOLOGIES INC.

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SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

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 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 condensed 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 described in the Company's Form 8-K filed on June 28, 2024.

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

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 , net

a gain of $ 15,456

from the repurchase of Notes 2025.

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.

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

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.

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

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

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 condensed consolidated balance sheets.

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 described in the Company's Form 8-K filed on June 28, 2024.

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.

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.

Notes 2029 consisted of the following as of March 31, 2026 and December 31, 2025:

issuance costs

Net carrying amount

SOLAREDGE TECHNOLOGIES INC.

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SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

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

September 30, 2025

December 31, 2024

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 for the three and nine months ended September 30, 2025 and September 30, 2024 were as follows:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Debt issuance cost

Contractual interest expense

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

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

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

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

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

related to the Notes 2025 and the Notes 2029 for the three months ended March 31, 2026 and March 31, 2025 were as follows:

issuance cost

interest expense

of March 31, 2026, the unamortized issuance costs of the Notes 2029 will be amortized over the remaining term of approximately 3.3

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

of March 31, 2026, the estimated fair value of the Notes 2029, which the Company has classified as Level 2 financial instruments,

is $ 586,852 .

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

day of the reporting period.

of March 31, 2026, the if-converted value of the Notes 2029 exceeded the principal amount by $ 164,278 .

OTHER LONG-TERM LIABILITIES

September 30,

Tax liabilities

Accrued severance pay

Long term accrued expenses

Accrued severance

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

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

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

As of September 30, 2025, a total of 26,648,950 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”), an aggregate of 12,318,881 shares are still available for future grants.

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

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

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

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

exercise price

term in years

stock rights:

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.

Incentive Plans:

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

the Company's initial public offering (the “IPO”).

The 2015 Plan provided for the grant of options, restricted stock units

(“RSU”), performance stock units (“PSU”), and other stock-based awards to directors, employees, officers, and

non-employees of the Company.

As of March 31, 2026, 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 11,248,478

shares are still available for future grants.

its 2015 Plan, the Company granted PSU awards to certain employees and officers which vest upon the achievement of certain market conditions

subject to their continued employment with the Company.

market condition for the PSUs is based on either (a) the Company’s share price targets during a 30-day successive average trading

price of the Company’s common stock over a three year performance period and subject to a minimum of a two year employment period

following the grant date, or (b) the Company’s share price targets during a 20-day successive average trading price of the Company’s

common stock over a four year performance period and subject to a minimum of a two year employment period following the grant date, or

500 index, and (ii) for grants granted in 2026, companies listed in the Solar Index, in each case, over a two to three year performance

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.

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

average remaining contractual term in years

intrinsic Value

Outstanding as of December 31, 2024

Forfeited or expired

Outstanding as of September 30, 2025

Vested and expected to vest as of September 30, 2025

Exercisable as of September 30, 2025

The intrinsic value is the amount by which the closing price of the Company’s common stock on September 30, 2025 , or the price on the day of exercise exceeds the exercise price of the stock options, multiplied by the number of in-the-money options.

as of December 31, 2025

as of March 31, 2026

expected to vest as of March 31, 2026

as of March 31, 2026

intrinsic value is the amount by which the closing price of the Company’s common stock on March 31, 2026, 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.

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SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

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

Weighted average grant date fair value

Unvested as of December 31, 2024

Unvested as of September 30, 2025

Employee Stock Purchase Plan (“ESPP”):

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

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

The ESPP is implemented through an offering every six months.

According to the ESPP, eligible employees may use the lesser of either up to 15 % of their salaries or $ 15,000 per participant, to purchase common stock for every six month 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 September 30, 2025, 2,311,170 shares of common stock have been purchased under the ESPP.

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

In accordance with ASC No.

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

Stock-based compensation expenses:

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

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

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

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

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

average grant date fair value

as of December 31, 2025

as of March 31, 2026

Stock Purchase Plan (“ESPP”):

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

As of March 31, 2026, a total of 5,125,666

shares were reserved for issuance under this plan.

ESPP is implemented through an offering every six months.

According to the ESPP, eligible employees may use the lesser of either up to

of their salaries or $ 15,000

per participant, to purchase common stock for every six month plan.

The price of an ordinary share purchased under the ESPP is equal to

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.

of March 31, 2026, 2,793,819

shares of common stock have been purchased under the ESPP.

of March 31, 2026, 2,331,847

shares of common stock were available for future issuance under the ESPP.

accordance with ASC 718, “Compensation – Stock Compensation,” the ESPP is compensatory and, as such, results in recognition

of compensation cost.

compensation expenses:

Company recognized stock-based compensation expenses related to all stock-based awards in the condensed consolidated statement of loss

for the three months ended March 31, 2026 and 2025, as follows:

compensation expenses:

and development, net

and marketing

and administrative

Total stock-based

compensation expenses

compensation capitalized:

long-term assets

Total stock-based

compensation capitalized

the three months ended March 31, 2026 and 2025, no

amounts were recorded in regard to tax benefits associated with share-based compensation.

of March 31, 2026, there were total unrecognized compensation expenses in the amount of $ 139,951

related to non-vested equity-based compensation arrangements granted.

These expenses are expected to be recognized during the period from

April 1, 2026 through February 28, 2030.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

COMMITMENTS AND CONTINGENT LIABILITIES

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

Contractual purchase obligations:

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

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

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

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

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

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

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

of March 31, 2026, contingent liabilities exist regarding guarantees in the amounts of $ 29,883 ,

for each of securing projects with customers and vendors, office rent lease agreements, and other transactions, respectively.

purchase obligations:

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.

of March 31, 2026, the Company had non-cancellable purchase obligations totaling approximately $ 297,161 ,

out of which the Company recorded a provision for loss in the amount of $ 24,324 .

of March 31, 2026, the Company had contractual obligations for capital expenditures totaling approximately $ 17,455 .

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

process and are primarily for its new manufacturing sites in the U.S.

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.

of March 31, 2026, the Company recorded an accrual of $ 68,199

for legal claims which was recorded under accrued expenses and other current liabilities and recognized a related insurance receivable

of $ 55,000 .

November 3, 2023, Daphne Shen, a purported stockholder of the Company, filed a proposed class action complaint for violation of federal

securities laws, individually and putatively on behalf of all others similarly situated, in the U.S.

District Court of the Southern District

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

The complaint alleges violations of

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

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, the co-lead Plaintiffs filed an amended complaint adding two additional officers.

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.

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

plaintiffs (the “Plaintiffs”) and lead counsel.

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

The amended complaint made substantially similar allegations and claims.

Defendants moved to dismiss the amended complaint on July 15, 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.

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

On February 10, 2025, Defendants moved to dismiss the Second Amended Complaint.

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

Discovery is ongoing.

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

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

Defendants moved to dismiss the amended complaint on

July 15, 2024 (the "Motion"), and the motion was fully briefed as of September 17, 2024.

On December 4, 2024, the Court issued an order

granting in part the Motion, dismissing all allegations except those relating to two purported misstatements, characterizing inventory

levels as low.

The Court allowed the Plaintiffs to again amend their complaint, and they filed a second amended complaint (the “Second

Amended Complaint”) on January 3, 2025.

On February 10, 2025, Defendants moved to dismiss the Second Amended Complaint insofar as

it attempts to resurrect any of the allegations dismissed in the Court’s December 4, 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 was due on February 20, 2026.

The parties held a mediation on February 5,

2026 but no resolution was reached at that time.

On March 20, 2026, the mediator made a double-blind settlement recommendation of $ 55,000 ,

which was accepted by both parties on March 26, 2026.

On April 21, 2026, Lead Plaintiffs’ counsel submitted a motion for preliminary

approval of the settlement.

On May 1, 2026, the Court preliminarily approved the settlement and scheduled a settlement hearing for August

Subject to final court approval, SolarEdge expects that its insurance carriers will pay the $ 55,000

settlement amount (see Note 20).

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

On March 15, 2024, Abdul Hirani filed a purported derivative complaint (the “Hirani 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, namely, that the Company failed to disclose information about SolarEdge’s inventory in Europe and cancellation rates from European distributors, which allegedly resulted in material misstatements about the Company’s business and prospects in its quarterly filings.

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

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

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

District Court for the Southern District of New York against the same defendants as those named in the Hirani Complaint as well as Lior Danziger and J.B.

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

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

The Hirani and Blaufarb actions, with the Hirani matter designated as the lead case (together, the “Consolidated Derivative Actions”).

On June 20, 2025, the parties agreed that the Consolidated Derivative Actions are stayed through the close of fact discovery in the Consolidated Securities Litigation.

On August 7, 2024, Edwin Isaac filed a purported derivative complaint (the “Isaac Complaint”) in the U.S.

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

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

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

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

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

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

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

district Court for the Southern District of New York against the same Defendants as those named in the Consolidated Derivative Actions and in the Isaac matter.

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

It also pleads similar counts to those in the Consolidated Derivative Actions and the Isaac matter, 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 agreed to stay the Maddox matter through the close of fact discovery in the Consolidated Securities Litigation.

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

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

On September 3, 2025, Jerald F.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

March 15, 2024, Abdul Hirani filed a purported derivative complaint (the “Hirani 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

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

Court for the Southern District of New York against the same defendants as those named in the Hirani Complaint as well as Lior Danziger

The Blaufarb Complaint makes largely the same allegations as those in the complaint in the Consolidated Securities Litigation

and seeks declaratory relief, corporate governance reforms, damages, restitution, attorneys’ fees, and other relief.

It also pleads

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

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 (together, the “Consolidated Derivative Actions”).

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

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.

August 7, 2024, Edwin Isaac filed a purported derivative complaint (the “Isaac Complaint”) in the U.S.

District Court for

the District of Delaware against the same defendants as those named in the Consolidated Derivative Actions.

The Isaac Complaint makes

largely the same allegations as those in the Consolidated Securities Litigation.

It also pleads the similar counts to those in the Consolidated

Securities Litigation, including (i) breach of fiduciary duty, (ii) contribution, (iii) violation of Section 14(a) of the Exchange Act

and SEC Rule 14a-9, (iv) unjust enrichment, (v) waste of corporate assets, and (vi) aiding and abetting breach of fiduciary duty.

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

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.

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

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

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

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 Complaint through the close of fact discovery in the Consolidated Securities Litigation.

SOLAREDGE TECHNOLOGIES INC.

| 2026 Form 10-Q | F - 24

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

September 9, 2025, Jerald F.

Chauncey, Jr.

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

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

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

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

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

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

(“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 May 23, 2025 Stellantis appealed.

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

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

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

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

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

filed a complaint (the “Chauncey 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 other derivative actions.

It also pleads similar counts to those in 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

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:

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

On May 8, 2025, the court denied Stellantis’ request for injunction and on July 2, 2025 Stellantis appealed.

hearing on the appeal was held on March 13, 2026, and the Company is currently awaiting the court’s decision on the appeal.

Company disputes the allegations of wrongdoing.

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

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 in 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.

Fact discovery commenced during the first quarter of 2026.

The Company disputes the allegations and intends to

vigorously defend against them.

contingencies:

February 20, 2026, the Supreme Court of the United States (the “U.S.

Supreme Court”) issued a decision invalidating certain

tariffs imposed under the International Emergency Economic Powers Act ("IEEPA").

Following this ruling, the U.S.

Court of International

Trade issued an order directing U.S.

Customs and Border Protection (“CBP”) to establish a process for the submission and review

of refund claims related to affected IEEPA tariffs.

On April 20, 2026, CBP launched the Consolidated Administration and Processing of

Entries (“CAPE”), an online portal through which companies may submit IEEPA refund requests.

In addition, following the U.S.

Supreme Court’s decision, the current U.S.

Presidential Administration announced the imposition of new global tariffs of up to 15%

under Section 122 of the Trade Act of 1974.

Company may be eligible to submit and receive tariff refund requests.

As the CBP's approval, timing and value of such refunds remain contingent

and uncertain, the Company has not recorded any adjustments in its condensed consolidated financial statements for the three months ended

March 31, 2026 and will not recognize such amounts until they are realized or realizable.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

ACCUMULATED OTHER COMPREHENSIVE LOSS

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

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

Beginning balance

Tax on revaluation

Other comprehensive income before reclassifications

Reclassification

Tax on reclassification

Gains reclassified from accumulated other comprehensive income (loss)

Net current period other comprehensive income

Ending balance

Unrealized gains (losses) on cash flow hedges

gains (losses) on cash flow hedges

Beginning balance

Tax on revaluation

Other comprehensive losses (gains) before reclassifications

on revaluation

Other comprehensive income

(loss) before reclassifications

Reclassification

Tax on reclassification

Gains reclassified from accumulated other comprehensive income (loss)

Net current period other comprehensive income (loss)

on reclassification

Gains reclassified from

accumulated other comprehensive income (loss)

Net current period other

comprehensive loss

Ending balance

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

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

Beginning balance

Reclassification

Net current period other

comprehensive income (loss)

Ending balance

Unrealized gains (losses) on foreign currency translation

gains (losses) on foreign currency translation

Beginning balance

Reclassification

Net current period other

comprehensive income

Ending balance

2 unchanged sentences

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

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

Details about Accumulated Other

Comprehensive Loss Components

Three Months Ended

September 30,

Nine Months Ended

September 30,

Affected Line Item in the

Statement of Loss

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

Financial income (expense), net

Total, net of income taxes

Unrealized gains (losses) on cash flow hedges, net

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

following table summarizes the reclassifications from “Accumulated other comprehensive income (loss)” into the statement of

about Accumulated Other

Comprehensive

Income (Loss)

Line Item in the

Cash flow hedges

Cost of revenues

2 unchanged sentences

General and administrative

Total, before income taxes

Total, net of income taxes

Total reclassifications for the period

Total, before income

Total, net of income

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),

Foreign currency translation

adjustments, net

Financial income (expenses),

Total reclassifications

for the period

OTHER OPERATING EXPENSE (INCOME), NET

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

Impairment of asset-held for sale

following table presents the expenses (income) recorded in the three months ended March 31, 2026, and 2025:

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 (income), net

SOLAREDGE TECHNOLOGIES INC.

| 2025 Form 10-Q | F - 27

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

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 (together with the 2024 workforce reductions, the “Restructuring Plans”).

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

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

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

Three Months Ended September 30, 2025

Three Months Ended September 30, 2024

Employee termination costs

Contract termination and other

Employee termination costs

Contract termination and other

Cost of revenues

Research and development

Sales and marketing

General and administrative

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

Nine Months Ended September 30, 2025

Nine Months Ended September 30, 2024

Employee termination costs

Contract termination and other

Employee termination costs

Contract termination and other

Cost of revenues

Research and development

Sales and marketing

General and administrative

Other operating expenses

Total other operating

expense (income), net

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

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

Employee termination costs

Contract termination and other

Balance as of December 31, 2024

Cash payments

Non-cash utilization and other

Balance as of September 30, 2025

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

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

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

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

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

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.

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

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

Should the Company's operating results improve and projections show continued utilization of the tax attributes, the Company would consider that as significant positive evidence and future reassessment may result in the determination that all or a portion of the valuation allowance is no longer required.

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

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

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

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

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

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

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

the three months ended March 31, 2026, the Company reported income taxes at an effective tax rate of negative 2.3 %,

including discrete items, compared to the three months ended March 31, 2025 where the Company reported income taxes at an effective

tax rate of negative 6.2 %.

negative effective tax rate in the three months ended March 31, 2026 resulted primarily from the valuation allowance on current losses

and capital losses, coupled with profits in certain jurisdictions.

The negative effective tax rate in the three months ended March 31,

2025 was mainly caused by the valuation allowance on current losses, coupled with withholding taxes incurred on certain intra-group interest

payments and additional tax payable as a result of the settlement with the Israeli Tax Authority for tax years 2016–2018.

tax assets are evaluated for future realization and reduced by a valuation allowance to the extent that the Company believes they will

not be realized.

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.

Based primarily on the negative evidence outweighing the positive evidence,

including the Company's three year cumulative, consolidated GAAP loss, historical tax losses and the difficulty in forecasting excess

tax benefits related to equity-based compensation, the Company believes there is uncertainty as to when it will be possible to utilize

certain net operating losses (each an “NOL”), credit carryforwards, capital losses and other deferred tax assets.

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

the Company's operating results improve and projections show continued utilization of the tax attributes, the Company would consider that

as significant positive evidence and future reassessment may result in the determination that all or a portion of the valuation allowance

is no longer required.

If this were to occur, any reversal of the valuation allowance would result in a corresponding non-cash income

tax benefit, thereby increasing total deferred tax assets.

July 2025, the One Big Beautiful Bill Act, or H.R.1 was enacted into law, making 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.

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.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

LOSS PER SHARE

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

Basic and diluted EPS:

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

LOSS PER SHARE

Basic and Diluted

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

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 an additional 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.

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

and diluted EPS:

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

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

shares excluded

In conjunction with the issuance of the Notes 2029, in June 2024, the Company used approximately $ 25,230

of its net proceeds from this offering to pay the cost of the capped call transactions.

In July 2024, following a subsequent issuance

of the Notes 2029, $ 3,111

of net proceeds were used to pay the cost of capped call transactions.

In accordance with ASC 260 "Earning Per Share", anti dilutive 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.

1 unchanged sentence

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

SEGMENT INFORMATION

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

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

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

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

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

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

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

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

Company operates as one

operating segment that constitutes consolidated results.

Company's Chief Executive Officer, who is the chief operating decision maker (the “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.

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

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.

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

Months Ended March 31,

costs of goods

and logistics

and amortization

related overhead costs

(income) expense, net

from equity method investments

Including stock-based compensation expenses.

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

The following table presents revenues disaggregated by geographical location:

Three Months Ended

September 30,

Nine Months Ended

September 30,

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

SOLAREDGE TECHNOLOGIES INC.

| 2026 Form 10-Q | F - 30

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

following table presents revenues disaggregated by geographical location:

Months Ended March 31,

United States

1 unchanged sentence

Total revenues

following table presents revenues disaggregated by type:

Months Ended March 31,

Power optimizers

Communication

Energy storage systems

Total revenues

SOLAREDGE TECHNOLOGIES INC.

| 2026 Form 10-Q | F - 31

SOLAREDGE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS (Unaudited)

thousands, except per share data )

SUBSEQUENT EVENTS

April 21, 2026, the Company reached a settlement in principle to resolve the Consolidated Securities Litigation.

On May 1, 2026, the Court

preliminarily approved the settlement and scheduled a settlement hearing for August 24, 2026.

Under the terms of the Consolidated Securities

Litigation Settlement, Company agreed to pay an aggregate amount of $ 55,000

to settle the claims, substantially all of which is expected to be funded by the Company’s insurance carriers, net of applicable

deductibles and retention amounts.

The Company expects that, as a result of available insurance coverage, the Consolidated Securities

Litigation Settlement will have little to no effect on the Company’s financial position.

The Company and the individual defendants

deny all allegations of wrongdoing, and the settlement does not constitute any admission of liability.

SOLAREDGE TECHNOLOGIES INC.

| 2026 Form 10-Q | F - 32

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

What changed 10-Q

Item 1. Financial Statements