SolarEdge Technologies Inc. (SEDG) Beats Q3 Estimates but Guides Light for Q4

SolarEdge Technologies Inc. (NASDAQ:SEDG) is one of the best solar energy stocks to buy right now. On November 5, SolarEdge Technologies Inc. (NASDAQ:SEDG) posted its Q3 2025 results, reporting an adjusted loss of $0.31 per share, narrower than the anticipated $0.41 loss projected by analysts.

SolarEdge Technologies Inc. (SEDG) Beats Q3 Estimates but Guides Light for Q4

Revenue rose to $340.21 million, up 18% from the prior quarter and 44.5% year-over-year, surpassing the $330.29 million consensus. Gross margin improved to 21.2%, with non-GAAP gross margin at 18.8%, though tariffs trimmed about 2% from the margin.

Despite the stronger Q3, investor sentiment was dampened by a weaker Q4 outlook. The company guided revenue between $310 million and $340 million, falling short of the $343.3 million consensus. CEO Shuki Nir emphasized ongoing progress, noting three straight quarters of revenue growth and margin recovery, and reaffirmed SolarEdge’s long-term positioning in the smart energy space.

Operationally, the company posted $22.8 million in free cash flow, reversing a $9.1 million outflow in the prior quarter. Cash from operations improved to $25.6 million from a $7.8 million deficit. Product shipments included 92,700 inverters, 2.95 million optimizers, and 230 MWh of batteries, reflecting steady demand in PV applications.

SolarEdge Technologies Inc. (NASDAQ:SEDG) has built a strong reputation in the smart energy sector through its engineering expertise and focus on innovation. Its DC optimized inverter changed how solar power is collected and managed, helping improve output and reduce energy costs. Today, the company offers a wide range of solutions across solar, storage, EV charging, and grid services, supporting the shift toward more efficient and sustainable energy systems.

While we acknowledge the potential of SEDG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SEDG and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.