SolarEdge Stock Surges 10% on 96.4% Q4 Revenue Growth
SolarEdge reported Q4 revenue of $335.36 million, up 96.4% year-over-year, turned full-year cash flow positive at $104.3 million and expanded non-GAAP gross margin to 23.3%, driving a 10% stock surge. A TD Cowen upgrade lifted price target to $43, while 10-year Treasury yields near 3.97% eased solar financing, rallying peers.
1. Q4 Financial Turnaround
SolarEdge delivered a striking Q4 performance with $335.36 million in revenue, representing 96.4% year-over-year growth. The company swung full-year operating cash flow from negative $313.3 million in fiscal 2024 to positive $104.3 million in 2025 and extended its non-GAAP gross margin to 23.3%, marking five consecutive quarters of margin expansion.
2. Analyst Upgrades and Targets
Investor confidence strengthened as TD Cowen moved to a Buy rating and raised its price target to $43, citing clear progress on margins and cash flow. Bank of America also upgraded to Neutral with a price target of $40, highlighting stable revenue trends and regained U.S. inverter market share.
3. Macro Financing Tailwind
Ten-year Treasury yields have dipped to near 3.97%, the lowest level in 12 months, reducing borrowing costs for solar installations. This improvement in financing economics has not only boosted SolarEdge shares but also sparked rallies in Enphase Energy and Sunrun stocks.