Solaredge Technologies, Inc. (NASDAQ: SEDG)

Solaredge Technologies, Inc. is a global smart energy technology company that designs and sells solutions for photovoltaic systems and related energy management. The company was founded in 2006 and is headquartered in Herzliya Pituach, Israel. Its core offering is a direct current optimized inverter system that combines power optimizers with inverters to increase power harvest and system safety. Solaredge also provides battery storage, electric vehicle chargers, smart energy management software and grid services that enable customers to produce, store and use clean energy efficiently. The firm serves residential, commercial and small scale utility solar markets worldwide. As of December 31 2025 the company employed 3,576 people worldwide with research and development accounting for 887 employees.

Solaredge generates revenue primarily from the sale of hardware products and associated software and services. Hardware revenue comes from power optimizers, inverters, battery storage units and electric vehicle chargers. In the fiscal year ended December 31 2025 power optimizers accounted for 41.4 percent of total revenue while inverters contributed 28.2 percent. Battery storage and EV charger sales together with software licensing and monitoring platform fees made up the remaining share. The company also earns revenue from grid services that allow participation in virtual power plants and from professional software tools such as the SolarEdge ONE energy optimization platform and the SolarEdge Designer tool. Sales are made indirectly through large distributors and electrical equipment wholesalers and directly to major solar installers and engineering procurement and construction firms. Solaredge relies on contract manufacturers such as Jabil Inc and Flex Ltd for most production while maintaining its own facility called Sella 1 in the North of Israel and has expanded manufacturing in Texas Florida and Utah.

The company operates through the following segments.

• Reportable Segment: includes power optimizers, inverters, battery storage solutions, EV chargers, smart energy management software and grid services.

Solaredge holds a strong position in the global solar equipment industry as a leading provider of module level power point tracking technology. Its direct current optimized inverter system competes with traditional string inverter suppliers such as Sungrow Power Supply Co Ltd Huawei Technologies Co Ltd Sigenergy Technology Co Ltd and SMA Solar Technology AG as well as with microinverter makers like Tesla Inc and Enphase Energy Inc. Competitive advantages include the ability to harvest more energy from each photovoltaic module through individual maximum power point tracking, enhanced safety features that reduce direct current voltage to a safe level when the inverter is off, greater design flexibility that allows uneven string lengths and multiple roof facets, lower balance of system costs due to longer string lengths and reduced cabling, and a comprehensive monitoring platform that delivers module level data for fault detection and performance optimization. The company’s focus on innovation is reflected in a steady stream of new product generations such as the H Series power optimizers the Nexis inverter line and the SolarEdge ONE energy management suite. The firm invests heavily in research and development with a team of 887 engineers focused on power electronics semiconductors power line communications and battery technology.

Solaredge serves a broad customer base that consists of thousands of solar installers who purchase products through large distributors and electrical equipment wholesalers. The company also works directly with major solar installers and engineering procurement and construction firms that handle large commercial and utility scale projects. In 2025 one specific customer Consolidated Electrical Distributors Inc represented 18.6 percent of total revenue. No other single customer accounted for more than ten percent of sales in that year. The firm supports its installers with training programs certification courses and technical assistance through a global network of service centers and online portals. During 2025 the training portal Edge Academy hosted over 161,000 learners and more than 12,000 installers completed certification programs.