SolarEdge Technologies, Inc. Investor Day 2026

Hey, good morning, everyone, and thank you for joining us today in person and online. Well, very excited to have you here for our Investor Day in which we are going to share with you the next chapter in SolarEdge's journey. We will start by talking about what brought us here, but then we will spend most of the time talking about the huge opportunities we see ahead of us and why we believe SolarEdge is well positioned to benefit from them. Let's start with where we are today. At the beginning of 2025, I shared with you the four initiatives, the four pillars that are required in order to turn the business around, to turn our business around. Ensuring financial stability, gaining market share, driving innovation, and ramping up our U.S. manufacturing. Through 2025 and into 2026, we made very good progress in each and every one of them.

We reduced our expenses. We moved into positive free cash flow in 2025 and 2026. We went out of non-core activities. We did gain share in some of the segments we operate in. We introduced products that our customers really need, like commercial storage, Nexis and others. We ramped up our U.S. manufacturing to the point that the vast majority of our inverters and optimizers are made domestically. What you are seeing here is the financial result of that progress. Six consecutive quarters of year-over-year revenue growth. Six consecutive quarters starting from $212 million of revenue, going all the way up to $345 million in the second quarter. Six consecutive quarters of margin expansion. Throughout this time, we continued to reduce the EBITDA loss until the last quarter, in which we moved to a positive EBITDA. Let's be precise about what we are seeing here.

This is not a celebration of a milestone. This is not one successful quarter. This is a trend line going up and to the right, and this trend line is what we are going to build on as we go and talk to you about the future. Now, a word about the second half of 2026 before we talk about the future. All right. As you know, our revenue guidance for the third quarter is $310 million to $340 million. Today, we are reiterating this guidance. We do not guide beyond the current quarter. However, we assume that Q4 is going to be slightly below Q3 due to seasonality. For convenience in today's presentation, you will hear us referring to estimated revenue in 2026 as $1.29 billion. Again, this is not a guidance. We didn't invite you here to talk about 2026.

We've invited you to talk about the next chapter in SolarEdge's story. We've invited you to talk about how we are going to turn strong foundations into sustainable profitable growth. Now, for the last two decades, SolarEdge has built something that is really hard to build. Deep expertise in DC power conversion and power electronics, where the ability actually to take that technology, make the products at scale, at gigawatt scale, and deploy them in millions of homes and businesses. This is the foundation. More than 600 patents, more than 65 gigawatts installed, more than 4.6 million sites monitored through our secured cloud. This is the foundation upon which we are going to build everything that we are going to talk to you about. The growth opportunities are very exciting. We plan on accelerating our growth in the core markets.

The core markets are changing in a direction that is good for us, and today we will share with you more details about SolarEdge Nexis. We will dive into our strategy in the evolving residential market, and we will share with you why we believe that we will continue winning in C&I. Then we will talk about how we plan on unlocking a multi-billion dollars opportunity in the AI factories. The market is evolving quickly. We will talk to you, we will share with you our estimate, our perspective about where the market is heading, how it is growing, and why we believe most of it is going to be 800 volt DC native. We will share with you the details of the technology behind our solution and why we believe, and players in the ecosystem tell us, that we are very well positioned to benefit from that opportunity.

Before we start going into each one of them, let's talk about the underlying capability underneath all three of them. Power has never been in higher demand, and everything SolarEdge does comes back into one single value added. Our customers are getting more usable energy from every watt that is going through our system. They get more usable energy that goes through our system from every watt that goes through our system. It may sound simple, but it is not. It is a result of 20 years of DC expertise, deep understanding in the technology, safety, efficiency. This is a result, it results in residential, a 10.5% more energy harvested from every home. This is 10.5% more energy harvested compared to string technology. It was validated by VDE Renewables, a third-party research firm. This is 10.5% more energy every day, every year through the lifetime of the system.

This is the reason why more than 60% of the Fortune 100 companies chose SolarEdge. 60%. More than 60% of the largest companies in the country have SolarEdge system installed on their rooftop. That is the reason why in AI factories, we are the only one, the only company that is about to introduce an SST, a solid-state transformer, with efficiency above 99%. Three different markets, three different types of customers, one underlying capability underneath them all. Everything that you will hear today is going to tie to one of these three, and I would like to start by talking about our core markets. Our core markets are going through a real shift. It has started to happen already, the move from PV only to PV plus storage.

Until recently, a solar system, the value of a solar system was the value of the electricity it produced and exported. That is now changing. Grids are more congested, tariffs are changing by the day, and export compensation is going down, and in some countries, it is actually eliminated altogether. Customers are no longer interested in production only. They are interested in control. They want to control what happens with their energy. They want to make sure that they maximize the ROI, the return on investment from this system. So backup, time shifting, grid flexibility events are the new normal. That shift in these markets is actually creating an opportunity where the addressable market is going to grow in dollars by 2%-3% every year in the next three to four years. More importantly, storage is going to be the bigger piece of the pie.

That opportunity and that change, these dynamics, have created two opportunities in the residential market for SolarEdge. The first one with new customers. When a battery is attached in a new installation, the revenue for SolarEdge more than doubles. So instead of selling only the inverter and the optimizers, we are selling the inverter, the optimizers, and the battery. Think about it. As attach rates continue to grow globally, the average revenue for SolarEdge per installation is growing. The second opportunity is the existing install base that we already have. Globally, we have more than 4 million residential sites. Think about it is a lot. 90% of them do not have a battery today. It does not mean that each and every one of them will have a battery later, but this represents tens of gigawatt hours kind of opportunity for us.

In the second quarter, and we shared it with you, in the second quarter, we generated $20 million from upsell activities in Netherlands and Germany alone. Germany and Netherlands. In Netherlands and Germany, we have more than 1 million sites. In the second quarter, we generated $20 million, and this is just the beginning. So these two exciting opportunities required us to bring a platform that was designed from the ground up to address these opportunities. Earlier this year, we launched what we refer to as the most important launch in the last decade for this company. We actually brought one here, SolarEdge Nexis. Liron will take you through the details later on. But suffice to say that this product, since its introduction, has actually received many, many different accolades. Forbes recognized it as changing the future of home energy. Right? It was named Green Builder Sustainable Product of the Year for 2026.

But the number I would like to draw your attention to is this number here, the $7,000. These are $7,000 of additional return to the system owner. These are $7,000 through the life of the system that an owner of a SolarEdge system is going to get versus an owner of a competing system. So these $7,000 are not just a line in a spec sheet. This is the incremental profit for the homeowner and those who actually appreciate it even more for the TPOs. That is another reason why installers are going to choose Nexis. So that is about residential. Let us switch to the second segment of our core markets. In C&I, we are winning. Less than two years ago, in the fourth quarter of 2024, SolarEdge accounted for 29% of the installation in rooftops in C&I.

Fast-forward to Q2 2026, we account for 57%, moving from about a quarter to more than half. This growing market share is actually growing our installed base in C&I, which when attach rates for storage are going to grow, we are going to see the same opportunity that we talked about in residential, storage attach to the install base. This growth in market share is not a single quarter phenomenon. It is a result of a structural shift. The structural shift has two drivers behind it. The first one is technology, and the second one is regulation. So let us start with technology. SolarEdge systems harvest more energy, and for an enterprise customer, for a large C&I customer, that means that more dollars are flowing through their bottom line, and they like it. More importantly, because think about it, they install the system on the rooftop of their businesses.

Safety is their number one concern. For the last two decades, SolarEdge has been known for the safety of its systems, and enterprise customers recognize that. The second thing is around the regulation. Non-FEOC, FCC-authorized, domestic content, made in the U.S., none of the major C&I competitors can claim all four. We can. The large C&I customers, the enterprise customers, they appreciate that because it delivers a ton of value to them. That's the reason why leading enterprise and C&I customers are choosing SolarEdge. I do not know which one you drive, Mercedes or Toyota, whether you like DHL, you like Shell. These are only a few names. More than 60% of the Fortune 100 companies. Today, we are honored to host an executive from one of our strategic enterprise customers, Prologis.

Alta Yen is the Senior Vice President, Head of the Energy U.S. at Prologis, and she will share with you and with us their perspective on the market, where it is heading, and why they chose to partner with SolarEdge globally. In both residential and C&I, we see tremendous growth opportunities ahead of us. But the reason that we are more confident in our ability to gain share in these markets is related to safe harbor transactions. Let's talk about this number, the $3.3 billion that you see here. For the last several quarters, our teams have had multiple conversations with the largest TPOs, financing companies, enterprise companies, large C&I companies. In these conversations, we try to understand what type of safe harbor transactions they prefer. As you may imagine, the vast majority of them, they prefer the physical work test one.