SolarEdge Announces First Quarter 2024 Financial Results

May 8, 2024

MILPITAS, Calif.--(BUSINESS WIRE)--May 8, 2024-- SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology,
today announced its financial results for the first quarter ended March 31, 2024.

First Quarter 2024 Highlights

Revenues of $204.4 million

Revenues from solar segment of $190.1 million
GAAP gross margin of negative 12.8%
Non-GAAP gross margin1 of negative 6.5%, including 4.5% of net IRA benefit
Gross margin from solar segment of negative 3.5%
GAAP operating loss of $173.7 million
Non-GAAP operating loss1 of $122.5 million
GAAP net loss of $157.3 million
Non-GAAP net loss1 of $108.6 million
GAAP net loss per share of $2.75
Non-GAAP net loss per share1 of $1.90
946 Megawatts (AC) of inverters shipped
128 MWh of batteries for PV applications shipped

“Our first quarter results were aligned with our expectations of inventory clearing and typical seasonality,” said Zvi Lando, Chief Executive Officer of
SolarEdge. “As we enter spring when installations historically tend to rise, we expect channel inventory to continue to decline and revenues to
improve. In parallel, we are focused on a suite of new products that we plan to release in the next several quarters to position ourselves for the next
growth cycle in our industry.”

First Quarter 2024 Summary

The Company reported revenues of $204.4 million, down 35% from $316.0 million in the prior quarter and down 78% from $943.9 million in the same
quarter last year.

Revenues from the solar segment were $190.1 million, down 33% from $282.4 million in the prior quarter and down 79% from $908.5 million in the
same quarter last year.

GAAP gross margin was negative 12.8%, compared to negative 17.9% in the prior quarter and compared to 31.8% in the same quarter last year.

Non-GAAP gross margin1 was negative 6.5%, compared to non-GAAP gross margin of 3.3% in the prior quarter and compared to 32.6% in the same
quarter last year.

Gross margin from the solar segment was negative 3.5%, compared to 4.0% in the prior quarter and compared to 35.0% in the same quarter last year.

GAAP operating expenses were $147.5 million, down 19% from $181.2 million in the prior quarter and down 5% from $156.0 million in the same
quarter last year.

Non-GAAP operating expenses1 were $109.2 million, down 8% from $118.3 million in the prior quarter and down 12% from $123.6 million in the same
quarter last year.

GAAP operating loss was $173.7 million, compared to a GAAP operating loss of $237.6 million in the prior quarter and compared to GAAP operating
income of $144.2 million in the same quarter last year.

Non-GAAP operating loss1 was $122.5 million, compared to Non-GAAP operating loss of $107.8 million in the prior quarter and compared to
Non-GAAP operating income $183.8 million in the same quarter last year.

GAAP net loss was $157.3 million, compared to a GAAP net loss of $162.4 million in the prior quarter and compared to a GAAP net income of $138.4
million in the same quarter last year.

Non-GAAP net loss1 was $108.6 million, compared to a Non-GAAP net loss of $52.5 million in the prior quarter and compared to a Non-GAAP net
income of $174.5 million in the same quarter last year.

GAAP net loss per share was $2.75, compared to a GAAP net loss per share of $2.85 in the prior quarter and compared to a GAAP net diluted
earnings per share (“EPS”) of $2.35 in the same quarter last year.

Non-GAAP net loss per share1 was $1.90, compared to a Non-GAAP net loss per share of $0.92 in the prior quarter and compared to a Non-GAAP
net diluted EPS of $2.90 in the same quarter last year.

Cash used in operating activities was $217.0 million, compared with $139.9 million used in operating activities in the prior quarter and $7.9 million
generated from operating activities in the same quarter last year.

As of March 31, 2024, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $316.3 million, net of debt,
compared to $634.7 million as of December 31, 2023.

In the first quarter of 2024, the company repurchased 506,000 shares of our common stock under our previously announced share repurchase
program approved by the Board of Directors at an average price of $65.67 per share, for a total consideration of approximately $33 million.

______________________________________________________________________
1 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.

Outlook for the Second Quarter 2024

The Company also provides guidance for the second quarter ending June 30, 2024 as follows:

Revenues to be within the range of $250 million to $280 million

Non-GAAP gross margin* expected to be within the range of negative 4% to 0%, including approximately 350 basis points
of net IRA manufacturing tax credit
Non-GAAP operating expenses* to be within the range of $116 million to $120 million
Revenues from the solar segment to be within the range of $225 million to $255 million
Gross margin from the solar segment expected to be within the range of negative 3% to positive 1% including
approximately 420 basis points of net IRA manufacturing tax credit

*Non-GAAP gross margin and Non-GAAP operating expenses are non-GAAP financial measures, and these forward-looking measures 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 expenses 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 its results for the first quarter ended March 31, 2024 at 4:30 p.m. ET on Wednesday, May 8, 2024.
The call will be available, live, to interested parties by dialing 888-632-3384. For international callers, please dial +1 785-424-1794. 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, and grid services solutions. SolarEdge is online at www.solaredge.com.

Use of Non-GAAP Financial Measures

To provide investors and others with additional information regarding SolarEdge’s results, SolarEdge has disclosed in this earnings release the
following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating expenses, non-GAAP gross margin, non-GAAP net
income (loss), and non-GAAP net earnings (loss) per share. SolarEdge has provided a reconciliation of each non-GAAP financial measure used in this
earnings release to the most directly comparable GAAP financial measure below. These non-GAAP financial measures differ from GAAP in that they
exclude stock-based compensation, amortization and impairment of acquired intangible assets, restructuring and impairment charges, acquisition,
disposition and other items, certain litigation and other contingencies, amortization of debt issuance cost, non-cash interest expense and non-cash
revenue recognized from significant financing component, certain foreign currency exchange rates, gains and losses on investments, income and
losses from equity method investments and discrete items that impacted our GAAP tax rate. Our non-GAAP financial measures also reflect the
application of our non-GAAP tax rate.

SolarEdge’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for
internal budgeting and forecasting purposes, for short- and long-term operating plans, to calculate bonus payments and to evaluate SolarEdge’s
financial performance, the performance of its individual functional groups and the ability of operations to generate cash. Management believes these
non-GAAP financial measures reflect SolarEdge’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis
of trends in SolarEdge’s business, as they exclude charges and gains that are not reflective of ongoing operating results. Management also believes
that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating SolarEdge’s operating
results and future prospects from the same perspective as management and in comparing financial results across accounting periods.

The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense that affect SolarEdge’s
operations. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in
accordance with GAAP and should not be considered measures of SolarEdge’s liquidity. Further, these non-GAAP measures may differ from the
non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages
investors and others to review SolarEdge’s financial information in its entirety and not rely on a single financial measure.

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

Statements contained in this press release may contain forward-looking statements that are based on our management’s expectations, estimates,
projections, beliefs and assumptions in accordance with information currently available to our management. This press release contains certain
forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. 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, new products and services, financing and
investment plans, dividend policy, competitive position, industry and regulatory environment, general economic conditions, potential growth
opportunities, cancellations and pushouts of existing backlog, installation rates, and the effects of competition. Forward-looking statements include
statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,”
“may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negatives of those terms.

Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-
looking statements. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements
represent our management’s beliefs and assumptions only as of the date of this release. Important factors that could cause actual results to differ
materially from our expectations include, but are not limited to: future demand for renewable energy including solar energy solutions; our ability to
forecast demand for our products accurately and to match production to such demand as well as our customers’ ability to forecast demand based on
inventory levels; macroeconomic conditions in our domestic and international markets, as well as inflation concerns, rising interest rates, and
recessionary concerns; changes, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications;
changes in the U.S. trade environment; federal, state, and local regulations governing the electric utility industry with respect to solar energy; changes
in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act; the retail price of electricity derived from the
utility grid or alternative energy sources; interest rates and supply of capital in the global financial markets in general and in the solar market
specifically; competition, including introductions of power optimizer, inverter and solar photovoltaic system monitoring products by our competitors;
developments in alternative technologies or improvements in distributed solar energy generation; historic cyclicality of the solar industry and periodic
downturns; product quality or performance problems in our products; shortages, delays, price changes, or cessation of operations or production
affecting our suppliers of key components; our dependence upon a small number of outside contract manufacturers and limited or single source
suppliers; capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components;
delays, disruptions, and quality control problems in manufacturing; existing and future responses to and effects of pandemics, epidemics, or other
health crises; disruption in our global supply chain and rising prices of oil and raw materials as a result of the conflict between Russia and Ukraine; our
customers’ financial stability and our ability to retain customers; our ability to retain key personnel and attract additional qualified personnel;
performance of distributors and large installers in selling our products; consolidation in the solar industry among our customers and distributors; our
ability to manage effectively the growth of our organization and expansion into new markets and integration of acquired businesses; our ability to
recognize expected benefits from restructuring plans; any unauthorized access to, disclosure, or theft of personal information or unauthorized access
to our network or other similar cyber incidents; disruption to our business operations due to the evolving state of war in Israel and political conditions
related to the Israeli government's plans to significantly reduce the Israeli Supreme Court's judicial oversight; our dependence on ocean transportation
to timely deliver our products in a cost-effective manner; fluctuations in global currency exchange rates; the impact of evolving legal and regulatory
requirements, including emerging environmental, social and governance requirements; changes to net metering policies or the reduction, elimination
or expiration of government subsidies and economic incentives for on-grid solar energy applications; federal, state, and local regulations governing the
electric utility industry with respect to solar energy; changes in tax laws, tax treaties, and regulations or the interpretation of them, including the
Inflation Reduction Act; changes in the U.S. trade environment, including the imposition of import tariffs; business practices and regulatory compliance
of our raw material suppliers; our ability to maintain our brand and to protect and defend our intellectual property; volatility of our stock price; our
customers’ financial stability, creditworthiness, and debt leverage ratio; our ability to retain key personnel and attract additional qualified personnel; our
ability to effectively design, launch, market, and sell new generations of our products and services; our ability to retain, and events affecting, our major
customers; our ability to service our debt; and the other factors set forth under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year
ended December 31, 2023, filed on February 26, 2024, and in other documents we file from time to time with the SEC that disclose risks and
uncertainties that may affect our business. The preceding list is not intended to be an exhaustive list of all of our forward‐looking statements. You
should not rely upon forward‐looking statements as predictions of future events. Although we believe that the expectations reflected in the forward‐
looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in
the forward‐looking statements will be achieved or will occur. Statements in this press release speak only as of the date they were made. 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.

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except per share data)

Three Months Ended

March 31,
2024 2023
Unaudited
Revenues $ 204,399 $ 943,889
Cost of revenues 230,586 643,763

Gross profit (loss) (26,187) 300,126

Operating expenses:
Research and development 75,351 79,873
Sales and marketing 38,911 40,966
General and administrative 30,865 36,567
 Other operating expense (income), net 2,391 (1,434)

Total operating expenses 147,518 155,972

Operating income (loss) (173,705) 144,154
Financial income (expense), net (7,064) 23,674
Other loss, net — (125)
Income (loss) before income taxes (180,769) 167,703
Tax benefits (income taxes) 23,754 (29,325)
Net loss from equity method investments (296) —
Net income (loss) $ (157,311) $ 138,378

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)

March 31, December 31,

2024 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 214,229 $ 338,468
Marketable securities 466,407 521,570
Trade receivables, net of allowances of $19,110 and $16,400 respectively 404,390 622,425
Inventories, net 1,549,122 1,443,449
Prepaid expenses and other current assets 354,919 378,394

Total current assets 2,989,067 3,304,306

LONG-TERM ASSETS:
Marketable securities 268,203 407,825
Deferred tax assets, net 122,564 80,912
Property, plant and equipment, net 605,223 614,579
Operating lease right-of-use assets, net 59,474 64,167
Intangible assets, net 33,037 35,345
Goodwill 41,470 42,996
Other long-term assets 47,784 37,601

Total long-term assets 1,177,755 1,283,425

Total assets 4,166,822 4,587,731
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade payables, net 171,412 386,471
Employees and payroll accruals 73,666 76,966
Warranty obligations 181,333 183,047
Deferred revenues and customers advances 36,081 40,836
Accrued expenses and other current liabilities 196,398 205,911

Total current liabilities 658,890 893,231

LONG-TERM LIABILITIES:
Convertible senior notes, net 628,115 627,381
Warranty obligations 321,166 335,197
Deferred revenues 218,535 214,607
Finance lease liabilities 40,630 41,892
Operating lease liabilities 40,982 45,070
Other long-term liabilities 17,953 18,444

Total long-term liabilities 1,267,381 1,282,591

COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS’ EQUITY:
Common stock of $0.0001 par value - Authorized: 125,000,000 shares; issued: 57,298,691
shares at March 31, 2024 and 57,123,437 shares at December 31, 2023; outstanding:
56,792,795 shares at March 31, 2024 and 57,123,437 shares at December 31, 2023. 6 6
Additional paid-in capital 1,719,523 1,680,622
Treasury stock, at cost; 505,896 shares held (33,222) —
Accumulated other comprehensive loss (66,611) (46,885)
Retained earnings 620,855 778,166
Total stockholders’ equity 2,240,551 2,411,909
Total liabilities and stockholders’ equity $ 4,166,822 $ 4,587,731

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except per share data)

Three Months Ended

March 31,
2024 2023
Cash flows from operating activities:
Net income (loss) $ (157,311) $ 138,378
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 14,988 13,464
Loss (gain) from exchange rate fluctuations 7,799 (20,441)
Stock-based compensation expenses 37,606 39,235
Deferred income taxes, net (41,847) (3,930)
Other items 4,371 2,810
Changes in assets and liabilities:
Trade receivables, net 210,376 (55,002)
Inventories, net (105,810) (141,521)
Prepaid expenses and other assets 42,164 (20,591)
Right-of-use assets 5,255 3,918
Trade payables, net (210,449) (50,410)
Employees and payroll accruals (2,460) 10,227
Warranty obligations (15,582) 57,864
Deferred revenues and customers advances (523) 9,325
Operating lease liabilities (5,219) (3,958)
Accrued expenses and other liabilities, net (377) 28,555

Net cash provided by (used in) operating activities (217,019) 7,923

Cash flows from investing activities:
Investment in available-for-sale marketable securities (129,221) (38,979)
Proceeds from sales and maturities of available-for-sale marketable securities 319,605 11,597
Purchase of property, plant and equipment (26,347) (38,338)
Disbursements for loans receivables (7,500) —
Investment in privately-held companies (8,831) (5,500)
Proceeds from loan receivables 1,625 —
Other investing activities (323) 3,440

Net cash provided by (used in) investing activities 149,008 (67,780)

Cash flows from financing activities:
Repurchase of common stock (33,222) —
Payments on account of repurchase of common stock (16,778) —
Tax withholding in connection with stock-based awards, net (470) (4,541)
Other financing activities (517) (681)

Net cash used in financing activities (50,987) (5,222)

Effect of exchange rate differences on cash and cash equivalents (5,241) 9,816

Decrease in cash and cash equivalents (124,239) (55,263)

Cash and cash equivalents at the beginning of the period 338,468 783,112
Cash and cash equivalents at the end of the period $ 214,229 $ 727,849

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)

Three months ended Year ended

December September December December December
March 31, 31, 30, June 30, March 31, 31, 31, 31,
2024 2023 2023 2023 2023 2023 2022 2021
Gross profit (loss) (GAAP) $ (26,187) $ (56,425) $ 142,817 $ 317,305 $ 300,126 $ 703,823 $ 844,648 $ 629,318
Revenues from finance
component (234) (230) (215) (202) (187) (834) (614) (418)
Discontinued operation (434) 36,648 — — — 36,648 4,314 —
Stock-based compensation 5,968 5,468 5,882 5,923 5,927 23,200 21,818 18,743
Amortization of stock-based
compensation capitalized in
inventories 197 343 441 316 — 1,100 — —
Amortization and
depreciation of acquired
asset 1,551 1,555 2,096 872 1,515 6,038 7,429 9,326
Restructuring charges 5,822 23,154 — — — 23,154 — —
Gross profit (loss)
(Non-GAAP) $ (13,317) $ 10,513 $ 151,021 $ 324,214 $ 307,381 $ 793,129 $ 877,595 $ 656,969

Gross margin (loss)

(GAAP) (12.8)% (17.9)% 19.7% 32.0% 31.8% 23.6% 27.2% 32.0%
Revenues from finance
component (0.1) (0.1) 0.0 0.0 0.0 0.0 0.0 0.0
Discontinued operation (0.2) 11.6 — — — 1.2 0.1 —
Stock-based compensation 2.9 1.8 0.8 0.6 0.6 0.9 0.7 1.0
Amortization of stock-based
compensation capitalized in
inventories 0.1 0.1 0.0 0.0 — 0.0 — —
Amortization and
depreciation of acquired
asset 0.8 0.5 0.3 0.1 0.2 0.2 0.2 0.5
Restructuring charges 2.8 7.3 — — — 0.8 — —
Gross margin (loss)
(Non-GAAP) (6.5)% 3.3% 20.8% 32.7% 32.6% 26.7% 28.2% 33.5%

Operating expenses
(GAAP) $ 147,518 $ 181,156 $ 159,543 $ 166,947 $ 155,972 $ 663,618 $ 678,528 $ 422,179
Stock-based compensation -
R&D (17,139) (15,982) (16,481) (17,272) (17,209) (66,944) (63,211) (45,424)
Stock-based compensation -
S&M (7,911) (7,347) (7,739) (7,822) (8,079) (30,987) (31,017) (22,834)
Stock-based compensation -
G&A (6,588) (6,133) (6,713) (7,948) (8,020) (28,814) (29,493) (15,592)
Amortization and
depreciation of acquired
assets - R&D (270) (58) (329) (289) (313) (989) (1,206) (530)
Amortization and
depreciation of acquired
assets - S&M (124) (190) (321) (235) (181) (927) (822) (927)
Amortization and
depreciation of acquired
assets - G&A (2) (2) (4) 17 (26) (15) (21) (29)
Discontinued operation 47 (388) — — — (388) — —
Restructuring charges (3,943) — — — — — — —
Assets impairment (1,732) (30,790) — — — (30,790) (119,141) (2,209)
Gain (loss) from assets
sales and disposal (1,058) (172) — — 1,434 1,262 2,603 976
Certain litigation and other
contingencies 399 (1,786) — — — (1,786) — —
Acquisition costs (9) — — (135) — (135) (350) —
Operating expenses
(Non-GAAP) $ 109,188 $ 118,308 $ 127,956 $ 133,263 $ 123,578 $ 503,105 $ 435,870 $ 335,610

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)

Three months ended Year ended

 December September December December December
March 31, 31, 30, June 30, March 31, 31, 31, 31,
2024 2023 2023 2023 2023 2023 2022 2021
Operating income (loss)
(GAAP) $ (173,705) $ (237,581) $ (16,726) $ 150,358 $ 144,154 $ 40,205 $ 166,120 $ 207,139
Revenues from finance
component (234) (230) (215) (202) (187) (834) (614) (418)
Discontinued operation (481) 37,036 — — — 37,036 4,314 —
Stock-based compensation 37,606 34,930 36,815 38,965 39,235 149,945 145,539 102,593
Amortization of stock-based
compensation capitalized in
inventories 197 343 441 316 — 1,100 — —
Amortization and depreciation
of acquired assets 1,947 1,805 2,750 1,379 2,035 7,969 9,478 10,812
Restructuring charges 9,765 23,154 — — — 23,154 — —
Assets impairment 1,732 30,790 — — — 30,790 119,141 2,209
Loss (gain) from assets sales
and disposal 1,058 172 — — (1,434) (1,262) (2,603) (976)
Certain litigation and other
contingencies (399) 1,786 — — — 1,786 — —
Acquisition costs 9 — — 135 — 135 350 —
Operating income (loss)
(Non-GAAP) $ (122,505) $ (107,795) $ 23,065 $ 190,951 $ 183,803 $ 290,024 $ 441,725 $ 321,359

Financial income (expense),

net (GAAP) $ (7,064) $ 22,055 $ (7,901) $ 3,384 $ 23,674 $ 41,212 $ 3,750 $ (19,915)
Non cash interest expense 3,536 3,422 3,284 3,105 2,892 12,703 9,954 8,674
Unrealized losses (gains) — — — — — — 119 (541)
Currency fluctuation related to
lease standard (1,276) 4,359 (2,788) (2,107) (2,519) (3,055) (11,187) 2,007
Financial income (expense),
net (Non-GAAP) $ (4,804) $ 29,836 $ (7,405) $ 4,382 $ 24,047 $ 50,860 $ 2,636 $ (9,775)

Other income (loss) (GAAP) $ — $ 291 $ (484) $ — $ (125) $ (318) $ 7,285 $ —

Loss (gain) from sale of
investments — (291) 484 — — 193 (8,008) —

Other loss (Non-GAAP) $ — $ — $ — $ — $ (125) $ (125) $ (723) $ —

Tax benefits (income taxes)

(GAAP) $ 23,754 $ 53,202 $ (36,065) $ (34,232) $ (29,325) $ (46,420) $ (83,376) $ (18,054)
Uncertain tax positions — — — — — — — (9,007)
Income tax adjustment (5,062) (27,699) (10,561) (3,735) (3,901) (45,896) (9,067) (11,639)
Tax benefits (income taxes)
(Non-GAAP) $ 18,692 $ 25,503 $ (46,626) $ (37,967) $ (33,226) $ (92,316) $ (92,443) $ (38,700)

Equity method investments

loss (GAAP) $ (296) $ (350) $ — $ — $ — $ (350) $ — $ —
Loss from equity method
investments 296 350 — — — 350 — —
Equity method investments
loss (Non-GAAP) $ — $ — $ — $ — $ — $ — $ — $ —

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)

Three months ended Year ended

December September December December December
March 31, 31, 30, June 30, March 31, 31, 31, 31,
2024 2023 2023 2023 2023 2023 2022 2021
Net income (loss) (GAAP) $ (157,311) $ (162,383) $ (61,176) $ 119,510 $ 138,378 $ 34,329 $ 93,779 $ 169,170
Revenues from finance
component (234) (230) (215) (202) (187) (834) (614) (418)
Discontinued operation (481) 37,036 — — — 37,036 4,314 —
Stock-based compensation 37,606 34,930 36,815 38,965 39,235 149,945 145,539 102,593
Amortization of stock-based
compensation capitalized in
inventories 197 343 441 316 — 1,100 — —
Amortization and depreciation
of acquired assets 1,947 1,805 2,750 1,379 2,035 7,969 9,478 10,812
Restructuring charges 9,765 23,154 — — — 23,154 — —
Assets impairment 1,732 30,790 — — — 30,790 119,141 2,209
Loss (gain) from assets sales
and disposal 1,058 172 — — (1,434) (1,262) (2,603) (976)
Certain litigation and other
contingencies (399) 1,786 — — — 1,786 — —
Acquisition costs 9 — — 135 — 135 350 —
Non cash interest expense 3,536 3,422 3,284 3,105 2,892 12,703 9,954 8,674
Unrealized losses (gains) — — — — — — 119 (541)
Currency fluctuation related to
lease standard (1,276) 4,359 (2,788) (2,107) (2,519) (3,055) (11,187) 2,007
Loss (gain) from sale of
investments — (291) 484 — — 193 (8,008) —
Uncertain tax positions — — — — — — — (9,007)
Income tax adjustment (5,062) (27,699) (10,561) (3,735) (3,901) (45,896) (9,067) (11,639)
Equity method adjustments 296 350 — — — 350 — —
Net income (loss)
(Non-GAAP) $ (108,617) $ (52,456) $ (30,966) $ 157,366 $ 174,499 $ 248,443 $ 351,195 $ 272,884

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)

Three months ended Year ended

December September December December December
March 31, 31, 30, June 30, March 31, 31, 31, 31,
2024 2023 2023 2023 2023 2023 2022 2021
Net basic earnings (loss) per
share (GAAP) $ (2.75) $ (2.85) $ (1.08) $ 2.12 $ 2.46 $ 0.61 $ 1.70 $ 3.24
Revenues from finance
component (0.01) (0.01) 0.00 (0.01) 0.00 (0.02) (0.01) (0.01)
Discontinued operation (0.01) 0.65 — — — 0.66 0.08 —
Stock-based compensation 0.66 0.62 0.65 0.70 0.70 2.65 2.64 1.97
Amortization of stock-based
compensation capitalized in
inventories 0.01 0.00 0.00 0.00 — 0.02 — —
Amortization and depreciation
of acquired assets 0.03 0.04 0.05 0.03 0.03 0.14 0.17 0.21
Restructuring charges 0.17 0.40 — — — 0.41 — —
Assets impairment 0.03 0.54 — — — 0.54 2.17 0.05
Loss (gain) from assets sales
and disposal 0.02 0.01 — — (0.02) (0.02) (0.02) (0.03)
Certain litigation and other
contingencies (0.01) 0.03 — — — 0.03 — —
Acquisition costs 0.00 — — 0.00 — 0.00 (0.02) —
Non cash interest expense 0.06 0.06 0.06 0.05 0.05 0.23 0.18 0.16
Unrealized losses (gains) — — — — — — (0.01) (0.01)
Currency fluctuation related to
lease standard (0.02) 0.07 (0.05) (0.03) (0.05) (0.06) (0.20) 0.04
Loss (gain) from sale of
investments — 0.00 0.01 — — 0.01 (0.14) —
Uncertain tax positions — — — — — — — (0.17)
Income tax adjustment (0.09) (0.49) (0.19) (0.07) (0.07) (0.81) (0.16) (0.22)
Equity method adjustments 0.01 0.01 — — — 0.00 — —
Net basic earnings (loss) per
share (Non-GAAP) $ (1.90) $ (0.92) $ (0.55) $ 2.79 $ 3.10 $ 4.39 $ 6.38 $ 5.23

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)
 Three months ended Year ended
December September December December December
March 31, 31, 30, June 30, March 31, 31, 31, 31,
2024 2023 2023 2023 2023 2023 2022 2021
Net diluted earnings
(loss) per share (GAAP) $ (2.75) $ (2.85) $ (1.08) $ 2.03 $ 2.35 $ 0.60 $ 1.65 $ 3.06
Revenues from finance
component (0.01) (0.01) 0.00 (0.01) (0.01) (0.01) (0.01) (0.01)
Discontinued operation (0.01) 0.65 — — — 0.64 0.08 —
Stock-based
compensation 0.66 0.62 0.65 0.62 0.62 2.57 2.43 1.77
Amortization of
stock-based compensation
capitalized in inventories 0.01 0.00 0.00 0.00 — 0.02 — —
Amortization and
depreciation of acquired
assets 0.03 0.04 0.05 0.03 0.03 0.14 0.16 0.19
Restructuring charges 0.17 0.40 — — — 0.40 — —
Assets impairment 0.03 0.54 — — — 0.53 2.02 0.04
Loss (gain) from assets
sales and disposal 0.02 0.01 — — (0.02) (0.02) (0.02) (0.02)
Certain litigation and other
contingencies (0.01) 0.03 — — — (0.16) — —
Acquisition costs 0.00 — — 0.00 — 0.01 (0.02) —
Non cash interest expense 0.06 0.06 0.06 0.04 0.04 0.21 0.13 0.12
Unrealized losses (gains) — — — — — — 0.00 (0.01)
Currency fluctuation
related to lease standard (0.02) 0.07 (0.05) (0.03) (0.04) (0.05) (0.19) 0.03
Loss (gain) from sale of
investments — 0.00 0.01 — — 0.00 (0.13) —
Uncertain tax positions — — — — — — — (0.16)
Income tax adjustment (0.09) (0.49) (0.19) (0.06) (0.07) (0.76) (0.15) (0.20)
Equity method adjustments 0.01 0.01 — — — 0.00 — —
Net diluted earnings
(loss) per share
(Non-GAAP) $ (1.90) $ (0.92) $ (0.55) $ 2.62 $ 2.90 $ 4.12 $ 5.95 $ 4.81

Number of shares used

in computing net diluted
earnings (loss) per share
(GAAP) 57,140,126 56,916,831 56,671,504 59,183,666 59,193,831 57,237,518 55,087,770 55,971,030
Stock-based
compensation — — — 986,527 939,571 725,859 963,373 773,636
Notes due 2025 — — — — — 2,276,818 — —
Number of shares used
in computing net diluted
earnings (loss) per share
(Non-GAAP) 57,140,126 56,916,831 56,671,504 60,170,193 60,133,402 60,240,195 56,051,143 56,744,666

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Investor Contacts
SolarEdge Technologies, Inc.
JB Lowe, Head of Investor Relations
[email protected]

Sapphire Investor Relations, LLC

Erica Mannion or Michael Funari
[email protected]

Source: SolarEdge Technologies, Inc.