Form 8-K - Current report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): August 1, 2023

SOLAREDGE TECHNOLOGIES, INC

(Exact name of registrant as specified in its charter)

Delaware		001-36894		20-5338862
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)


1 Hamada Street, Herziliya Pituach, Israel		4673335
(Address of Principal executive offices)		(Zip Code)

Registrant’s Telephone number, including area code: 972 (9) 957-6620

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.0001 per share	SEDG	NASDAQ (Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Item 2.02. Results of Operations and Financial Condition.

On August 1, 2023, SolarEdge Technologies, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, this information, including the exhibits hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall such information, including the exhibits hereto be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

Exhibit No.		Description
Exhibit 99.1		Press release August 1, 2023
Exhibit 104		Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SOLAREDGE TECHNOLOGIES, INC.

Date: August 1, 2023	By:	/s/ Ronen Faier
	Name:	Ronen Faier
	Title:	Chief Financial Officer

Exhibit 99.1

SolarEdge Announces Second Quarter 2023 Financial Results

MILPITAS, Calif. — August 1, 2023. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the second quarter ended June 30, 2023.

Second Quarter 2023 Highlights

•

Record revenues of $991.3 million

•

Record revenues from solar segment of $947.4 million

•

GAAP gross margin of 32.0%

•

Non-GAAP gross margin* of 32.7%

•

Gross margin from solar segment of 34.7%

•

Record GAAP operating income of $150.4 million

•

Record non-GAAP operating income* of $191.0 million

•

GAAP net income of $119.5 million

•

Non-GAAP net income* of $157.4 million

•

GAAP net diluted earnings per share (“EPS”) of $2.03

•

Non-GAAP net diluted EPS* of $2.62

•

Record 4.3 Gigawatts (AC) of inverters shipped

•

269 MWh of batteries shipped

“We are pleased with our results for the second quarter, in particular our strong performance in Europe in both the residential and commercial solar segments. While the U.S. residential solar market is currently seeing some headwinds primarily related to higher interest rates, we are navigating through this period by leveraging our geographic and multi-segment strengths in the solar markets and expect to benefit from the positive long-term outlook for this sector,” said Zvi Lando, Chief Executive Officer of SolarEdge.

Second Quarter 2023 Summary

The Company reported record revenues of $991.3 million, up 5% from $943.9 million in the prior quarter and up 36% from $727.8 million in the same quarter last year.

Revenues from the solar segment were a record $947.4 million, up 4% from $908.5 million in the prior quarter and up 38% from $687.6 million in the same quarter last year.

GAAP gross margin was 32.0%, up from 31.8% in the prior quarter and up from 25.1% in the same quarter last year.

Non-GAAP gross margin* was 32.7%, up slightly from 32.6% in the prior quarter and up from 26.7% in the same quarter last year.

Gross margin from the solar segment was 34.7%, down slightly from 35.0% in the prior quarter and up from 28.1% in the same quarter last year.

GAAP operating expenses were $166.9 million, up 7% from $156.0 million in the prior quarter and up 14% from $146.6 million in the same quarter last year.

Non-GAAP operating expenses* were $133.3 million, up 8% from $123.6 million in the prior quarter and up 22% from $109.6 million in the same quarter last year.

GAAP operating income was a record $150.4 million, up 4% from $144.2 million in the prior quarter and up 318% from $36.0 million in the same quarter last year.

Non-GAAP operating income* was a record $191.0 million, up 4% from $183.8 million in the prior quarter and up 126% from $84.7 million in the same quarter last year.

GAAP net income was $119.5 million, down 14% from $138.4 million in the prior quarter and up 692% from $15.1 million in the same quarter last year.

Non-GAAP net income* was $157.4 million, down 10% from $174.5 million in the prior quarter and up 177% from $56.7 million in the same quarter last year.

GAAP net diluted EPS was $2.03, down from $2.35 in the prior quarter and up from $0.26 in the same quarter last year.

Non-GAAP net diluted EPS* was $2.62, down from $2.90 in the prior quarter and up from $0.95 in the same quarter last year.

Cash used in operating activities was $88.7 million, compared with $7.9 million generated from operating activities in the prior quarter and $77.4 million generated from operating activities in the same quarter last year.

As of June 30, 2023, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $853.5 million, net of debt, compared to $1.01 billion on March 31, 2023.

Outlook for the Third Quarter 2023

The Company also provides guidance for the third quarter ending September 30, 2023 as follows:

•

Revenues to be within the range of $880 million to $920 million

•

Non-GAAP gross margin** expected to be within the range of 28% to 31%

•

Non-GAAP operating income** to be within the range of $115 million to $135 million

•

Revenues from the solar segment to be within the range of $850 million to $890 million

•

Gross margin from the solar segment expected to be within the range of 30% to 33%

______________________________________________________________________________

* Non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.

**Non-GAAP gross margin and Non-GAAP operating income are non-GAAP financial measures and have not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures. Forward-looking estimates of Non-GAAP gross margin and Non-GAAP operating income are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.

Conference Call

The Company will host a conference call to discuss these results at 4:30 p.m. ET on Tuesday, August 1, 2023. The call will be available, live, to interested parties by dialing 877-888-4294. For international callers, please dial +1 785-424-1881. The Conference ID is SEDG. To avoid a delay in connecting to the call, please dial in 10 minutes prior to the start time. A live webcast will also be available in the Investors Relations section of the Company’s website at: http://investors.solaredge.com

A replay of the webcast will be available in the Investor Relations section of the Company’s web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.

About SolarEdge

SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, electric vehicle powertrains, and grid services solutions. SolarEdge is online at www.solaredge.com

Use of Non-GAAP Financial Measures

The Company has presented certain non-GAAP financial measures in this release, such as non-GAAP net income, non-GAAP net diluted EPS, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and non-GAAP gross margin from sale of solar products. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States, or GAAP. Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this release. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

The Non-GAAP measures are presented in this press release because we believe that they provide investors with a means of evaluating and understanding how the Company’s management evaluates the Company’s operating performance. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release contains forward looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include information, among other things, concerning: our possible or assumed future results of operations; future demands for solar energy solutions; business strategies; technology developments; financing and investment plans; dividend policy; competitive position; industry and regulatory environment; general economic conditions; potential growth opportunities; and the effects of competition. These forward-looking statements are often characterized by the use of words such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negative or plural of those terms and other like terminology.

Forward-looking statements are only predictions based on our current expectations and our projections about future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Given these factors, you should not place undue reliance on these forward-looking statements. These factors include, but are not limited to, the matters discussed in the section entitled “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022, filed on February 22, 2023 and our quarterly reports filed on Form 10-Q, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of August 1, 2023. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or changes in its expectations or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

Investor Contacts

SolarEdge Technologies, Inc.

JB Lowe, Head of Investor Relations
investors@solaredge.com

Sapphire Investor Relations, LLC

Erica Mannion or Michael Funari

investors@solaredge.com

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

	Three Months Ended June 30,					Six Months Ended June 30,
	2023		2022			2023			2022
	Unaudited
Revenues	$	991,290	$	727,774		$	1,935,179		$	1,382,854
Cost of revenues		673,985		545,132			1,317,748			1,021,254
Gross profit		317,305		182,642			617,431			361,600
Operating expenses:
Research and development		86,526		74,847			166,399			141,196
Sales and marketing		44,222		38,975			85,188			74,291
General and administrative		36,199		28,121			72,766			54,550
Other operating expense (income), net		—		4,687			(1,434	)		4,687
Total operating expenses		166,947		146,630			322,919			274,724
Operating income		150,358		36,012			294,512			86,876
Financial income (expense), net		3,384		(14,311	)		27,058			(18,916	)
Other loss		—		—			(125	)		(844	)
Income before income taxes		153,742		21,701			321,445			67,116
Income taxes		34,232		6,617			63,557			18,909
Net income	$	119,510	$	15,084		$	257,888		$	48,207

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

	June 30, 2023			December 31, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	557,744		$	783,112
Marketable securities		493,176			241,117
Trade receivables, net of allowances of $6,890 and $3,202, respectively		1,149,820			905,146
Inventories, net		984,194			729,201
Prepaid expenses and other current assets		264,188			241,082
Total current assets		3,449,122			2,899,658
LONG-TERM ASSETS:
Marketable securities		435,800			645,491
Deferred tax assets, net		49,993			44,153
Property, plant and equipment, net		580,503			543,969
Operating lease right-of-use assets, net		66,387			62,754
Intangible assets, net		43,656			19,929
Goodwill		42,332			31,189
Other long-term assets		28,772			18,806
Total long-term assets		1,247,443			1,366,291
Total assets	$	4,696,565		$	4,265,949
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade payables, net		434,602			459,831
Employees and payroll accruals		74,709			85,158
Warranty obligations		146,150			103,975
Deferred revenues and customers advances		28,135			26,641
Accrued expenses and other current liabilities		214,133			214,112
Total current liabilities		897,729			889,717
LONG-TERM LIABILITIES:
Convertible senior notes, net		625,914			624,451
Warranty obligations		342,437			281,082
Deferred revenues		204,693			186,936
Finance lease liabilities		42,208			45,385
Operating lease liabilities		47,046			46,256
Other long-term liabilities		16,349			15,756
Total long-term liabilities		1,278,647			1,199,866
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS’ EQUITY:
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of June 30, 2023 and December 31, 2022; issued and outstanding: 56,556,340 and 56,133,404 shares as of June 30, 2023 and December 31, 2022, respectively		6			6
Additional paid-in capital		1,595,890			1,505,632
Accumulated other comprehensive loss		(77,432	)		(73,109	)
Retained earnings		1,001,725			743,837
Total stockholders’ equity		2,520,189			2,176,366
Total liabilities and stockholders’ equity	$	4,696,565		$	4,265,949

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except per share data)

	Six Months Ended June 30,
	2023			2022
Cash flows from operating activities:
Net income	$	257,888		$	48,207
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		26,725			24,138
Loss (gain) from exchange rate fluctuations		(23,214	)		20,398
Stock-based compensation expenses		78,200			71,181
Impairment of goodwill and intangible assets		—			4,008
Deferred income taxes, net		(7,636	)		(1,092	)
Other items		4,783			11,396
Changes in assets and liabilities:
Inventories, net		(246,193	)		(93,348	)
Prepaid expenses and other assets		(33,285	)		(79,215	)
Trade receivables, net		(235,086	)		(235,316	)
Trade payables, net		(22,304	)		(7,339	)
Employees and payroll accruals		8,283			5,202
Warranty obligations		103,524			59,588
Deferred revenues and customers advances		17,222			32,277
Accrued expenses and other liabilities, net		(9,695	)		54,341
Net cash used in operating activities		(80,788	)		(85,574	)
Cash flows from investing activities:
Investment in available-for-sale marketable securities		(124,138	)		(362,119	)
Proceed from sales and maturities of available-for-sale marketable securities		86,813			126,287
Purchase of property, plant and equipment		(84,075	)		(91,884	)
Business combinations, net of cash acquired		(16,653	)		—
Purchase of intangible assets		(10,000	)		—
Investment in privately-held companies		(6,750	)		—
Proceed from government grants in relation to capital expenditures		6,797			—
Other investing activities		3,552			1,783
Net cash used in investing activities		(144,454	)		(325,933	)
Cash flows from financing activities:
Tax withholding in connection with stock-based awards, net		(8,811	)		(2,318	)
Payment of finance lease liability		(1,428	)		(1,374	)
Proceeds from secondary public offering, net of issuance costs		—			650,526
Other financing activities		98			1,572
Net cash provided by (used in) financing activities		(10,141	)		648,406
Increase (decrease) in cash and cash equivalents		(235,383	)		236,899
Cash and cash equivalents at the beginning of the period		783,112			530,089
Effect of exchange rate differences on cash and cash equivalents		10,015			(21,454	)
Cash and cash equivalents at the end of the period		557,744			745,534

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

	Reconciliation of GAAP to Non-GAAP
		Q2-22			Q3-22			Q4-22			Q1-23			Q2-23
Gross profit (GAAP)	$	182,642		$	222,001		$	261,047		$	300,126		$	317,305
Revenues from finance component		(146	)		(159	)		(174	)		(187	)		(202	)
Stock-based compensation		5,286			4,661			6,810			5,927			5,923
Amortization of stock-based compensation capitalized in inventories		—			—			—			—			316
Disposal of assets related to Critical Power		4,314			—			—			—			—
Amortization and depreciation of acquired asset		2,184			2,064			961			1,515			872
Gross profit (Non-GAAP)	$	194,280		$	228,567		$	268,644		$	307,381		$	324,214

Gross margin (GAAP)		25.1	%		26.5	%		29.3	%		31.8	%		32.0	%
Revenues from finance component		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Stock-based compensation		0.7	%		0.6	%		0.8	%		0.6	%		0.6	%
Amortization of stock-based compensation capitalized in inventories		—	%		—	%		—	%		—	%		0.0	%
Disposal of assets related to Critical Power		0.6	%		—	%		—	%		—	%		—	%
Amortization and depreciation of acquired assets		0.3	%		0.2	%		0.1	%		0.2	%		0.1	%
Gross margin (Non-GAAP)		26.7	%		27.3	%		30.2	%		32.6	%		32.7	%

Operating expenses (GAAP)	$	146,630		$	137,594		$	266,210		$	155,972		$	166,947
Stock-based compensation - R&D		(16,819	)		(14,553	)		(16,854	)		(17,209	)		(17,272	)
Stock-based compensation - S&M		(7,047	)		(9,341	)		(7,928	)		(8,079	)		(7,822	)
Stock-based compensation - G&A		(7,922	)		(7,196	)		(7,015	)		(8,020	)		(7,948	)
Amortization and depreciation of acquired assets - R&D		(300	)		(302	)		(301	)		(313	)		(289	)
Amortization and depreciation of acquired assets - S&M		(226	)		(187	)		(173	)		(181	)		(235	)
Amortization and depreciation of acquired assets - G&A		(5	)		(6	)		(4	)		(26	)		17
Assets impairment		(4,696	)		19			(114,473	)		—			—
Gain (loss) from assets sales and disposal		—			2,303			(102	)		1,434			—
Acquisition costs		—			—			(350	)		—			(135	)
Operating expenses (Non-GAAP)	$	109,615		$	108,331		$	119,010		$	123,578		$	133,263

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

	Reconciliation of GAAP to Non-GAAP
		Q2-22			Q3-22			Q4-22			Q1-23			Q2-23
Operating income (loss) (GAAP)	$	36,012		$	84,407		$	(5,163	)	$	144,154		$	150,358
Revenues from finance component		(146	)		(159	)		(174	)		(187	)		(202	)
Disposal of assets related to Critical Power		4,314			—			—			—			—
Stock-based compensation		37,074			35,751			38,607			39,235			38,965
Amortization of stock-based compensation capitalized in inventories		—			—			—			—			316
Amortization and depreciation of acquired assets		2,715			2,559			1,439			2,035			1,379
Assets impairment		4,696			(19	)		114,473			—			—
Loss (gain) from assets sales and disposal		—			(2,303	)		102			(1,434	)		—
Acquisition costs		—			—			350			—			135
Operating income (Non-GAAP)	$	84,665		$	120,236		$	149,634		$	183,803		$	190,951

Financial income (expense), net (GAAP)	$	(14,311	)	$	(33,025	)	$	56,101		$	23,674		$	3,384
Non cash interest expense		2,427			2,505			2,685			2,892			3,105
Unrealized losses (gains)		—			—			(170	)		—			—
Currency fluctuation related to lease standard		(9,028	)		(1,116	)		749			(2,519	)		(2,107	)
Financial income (expense), net (Non-GAAP)	$	(20,912	)	$	(31,636	)	$	59,365		$	24,047		$	4,382

Other income (loss) (GAAP)	$	—		$	7,533		$	186		$	(125	)	$	—
Gain from sale of investment in privately-held company		—			(7,533	)		(186	)		—			—
Other income (loss) (Non-GAAP)	$	—		$	—		$	—		$	(125	)	$	—

Income tax benefit (expense) (GAAP)	$	(6,617	)	$	(34,172	)	$	(30,295	)	$	(29,325	)	$	(34,232	)
Income tax adjustment		(389	)		(291	)		(7,186	)		(3,901	)		(3,735	)
Income tax benefit (expense) (Non-GAAP)	$	(7,006	)	$	(34,463	)	$	(37,481	)	$	(33,226	)	$	(37,967	)

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

	Reconciliation of GAAP to Non-GAAP
		Q2-22			Q3-22			Q4-22			Q1-23			Q2-23
Net income (GAAP)	$	15,084		$	24,743		$	20,829		$	138,378		$	119,510
Revenues from finance component		(146	)		(159	)		(174	)		(187	)		(202	)
Disposal of assets related to Critical Power		4,314			—			—			—			—
Stock-based compensation		37,074			35,751			38,607			39,235			38,965
Amortization of stock-based compensation capitalized in inventories		—			—			—			—			316
Amortization and depreciation of acquired assets		2,715			2,559			1,439			2,035			1,379
Assets impairment		4,696			(19	)		114,473			—			—
Loss (gain) from assets sales and disposal		—			(2,303	)		102			(1,434	)		—
Acquisition costs		—			—			350			—			135
Non cash interest expense		2,427			2,505			2,685			2,892			3,105
Unrealized losses (gains)		—			—			(170	)		—			—
Currency fluctuation related to lease standard		(9,028	)		(1,116	)		749			(2,519	)		(2,107	)
Gain from sale of investment in privately-held company		—			(7,533	)		(186	)		—			—
Income tax adjustment		(389	)		(291	)		(7,186	)		(3,901	)		(3,735	)
Net income (Non-GAAP)	$	56,747		$	54,137		$	171,518		$	174,499		$	157,366

Net basic earnings per share (GAAP)	$	0.27		$	0.44		$	0.37		$	2.46		$	2.12
Revenues from finance component		0.00			0.00			0.00			0.00			(0.01	)
Disposal of assets related to Critical Power		0.08			—			—			—			—
Stock-based compensation		0.67			0.64			0.69			0.70			0.70
Amortization of stock-based compensation capitalized in inventories		—			—			—			—			0.00
Amortization and depreciation of acquired assets		0.04			0.05			0.02			0.03			0.03
Assets impairment		0.09			0.00			2.05			—			—
Loss (gain) from assets sales and disposal		—			(0.04	)		0.00			(0.02	)		—
Acquisition costs		—			—			0.01			—			0.00
Non cash interest expense		0.04			0.04			0.05			0.05			0.05
Unrealized losses (gains)		—			—			(0.01	)		—			—
Currency fluctuation related to lease standard		(0.16	)		(0.02	)		0.02			(0.05	)		(0.03	)
Gain from sale of investment in privately-held company		—			(0.13	)		(0.01	)		—			—
Income tax adjustment		(0.01	)		(0.01	)		(0.13	)		(0.07	)		(0.07	)
Net basic earnings per share (Non-GAAP)	$	1.02		$	0.97		$	3.06		$	3.10		$	2.79

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

	Reconciliation of GAAP to Non-GAAP
		Q2-22			Q3-22			Q4-22			Q1-23			Q2-23
Net diluted earnings per share (GAAP)	$	0.26		$	0.43		$	0.36		$	2.35		$	2.03
Revenues from finance component		0.00			0.00			0.00			(0.01	)		(0.01	)
Disposal of assets related to Critical Power		0.08			—			—			—			—
Stock-based compensation		0.62			0.59			0.64			0.62			0.62
Amortization of stock-based compensation capitalized in inventories		—			—			—			—			0.00
Amortization and depreciation of acquired assets		0.04			0.05			0.02			0.03			0.03
Assets impairment		0.08			0.00			1.91			—			—
Loss (gain) from assets sales and disposal		—			(0.04	)		0.00			(0.02	)		—
Acquisition costs		—			—			0.01			—			0.00
Non cash interest expense		0.03			0.03			0.03			0.04			0.04
Unrealized losses (gains)		—			—			0.00			—			—
Currency fluctuation related to lease standard		(0.15	)		(0.02	)		0.01			(0.04	)		(0.03	)
Gain from sale of investment in privately-held company		—			(0.13	)		0.00			—			—
Income tax adjustment		(0.01	)		0.00			(0.12	)		(0.07	)		(0.06	)
Net diluted earnings per share (Non-GAAP)	$	0.95		$	0.91		$	2.86		$	2.90		$	2.62

Number of shares used in computing net diluted earnings per share (GAAP)		58,564,734			58,747,538			58,734,719			59,193,831			59,183,666
Stock-based compensation		904,781			784,228			1,237,266			939,571			986,527
Number of shares used in computing net diluted earnings per share (Non-GAAP)		59,469,515			59,531,766			59,971,985			60,133,402			60,170,193

Document and Entity Information	Aug. 01, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 01, 2023
Entity Registrant Name	SOLAREDGE TECHNOLOGIES, INC
Entity Incorporation, State or Country Code	DE
Entity File Number	001-36894
Entity Tax Identification Number	20-5338862
Entity Address, Address Line One	1 Hamada Street
Entity Address, City or Town	Herziliya Pituach
Entity Address, Country	IL
Entity Address, Postal Zip Code	4673335
City Area Code	9
Local Phone Number	957-6620
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001419612
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	SEDG
Security Exchange Name	NASDAQ