SolarEdge swings back to operating profit in Q2 as margins hit 27.5%

SolarEdge, the company behind much of the equipment that manages solar panels and batteries in home systems, reported a rebound in its latest quarter. Revenue came in at $346.2 million, up nearly 20% from a year earlier, helped by strong demand in Europe and growth in commercial solar installations in the U.S. That growth offset a continued slowdown in U.S. home solar demand. The company also returned to a profit on an adjusted basis for the first time in three years, a sign that the broader solar equipment market may be stabilizing after a rough stretch.

For homeowners, the more relevant news may be SolarEdge's plans for its home energy products. The company is rolling out a new home energy platform called Nexis, starting in Germany, with a goal of it making up most of its home solar sales by early 2027. That suggests homeowners considering solar or battery systems in the coming year or two may see this newer equipment offered by installers, particularly in European markets first, with wider availability expected to follow.

The company is also working with chipmaker Infineon on technology aimed at powering large AI data centers, a separate business line that has nothing to do with home systems but reflects where SolarEdge is investing beyond residential solar. For its next quarter, the company expects revenue between $310 million and $340 million, roughly in line with current levels.