Solaredge Technologies (SEDG) risk factors, FY2025 10-K

Solaredge Technologies's FY2025 10-K, filed Feb 25, 2026, lists 53 risk factors in 4 groups. Against the prior year's 54: 6 new, 7 dropped, 26 substantially reworded.

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Risk factors listed
534 groups
New this year
6vs 54 last year
Dropped
7since the prior 10-K
Substantially reworded
26of those kept
Section length
20k wordsItem 1A

What the changes say

  • SolarEdge is restructuring operations, exiting unprofitable markets and battery manufacturing, and grappling with U.S. tax policy changes.

What changed since the prior 10-K

New

  • NewRisks related to Our Business and Our Industry

    National, state and local government bodies in many countries, including the United States, have provided incentives in the form of rebates, tax credits, feed-in tariffs and others to manufacturers, system owners, distributors and installers of PV systems and battery energy storage systems

    The enactment of H.R.1 on July 4, 2025, accelerates the phase-out of customer tax credits and adds eligibility hurdles under the IRA.

  • NewRisks related to Our Business and Our Industry

    Changes in our geographic footprint or product and service offerings may subject us to additional business, operational, financial, competitive, and compliance risks

    Strategic portfolio rationalization in 2025 led the company to focus on core markets, exiting unprofitable regions and discontinuing the LCV e-Mobility line.

  • NewRisks related to Our Business and Our Industry

    Changing political and geopolitical conditions could adversely impact our business, our financial results, and the global energy market

    Changing geopolitical conditions, elections, and trade restrictions create uncertainty regarding tariffs, sanctions, and import-export controls.

  • NewRisks related to Our Business and Our Industry

    Our ability to implement our new ERP system could adversely impact our business and operations

    The company completed its global ERP system implementation by June 30, 2025, and continues post-implementation internal control evaluations.

  • NewRisks related to Our Business and Our Industry

    Emerging issues related to the development and use of artificial intelligence could give rise to legal or regulatory action, damage our reputation, or otherwise materially harm of our business

    Early-stage development and use of artificial intelligence create risks of regulatory action, compliance costs, and reputational damage.

  • NewRisks Related to Legal, Compliance and Regulations

    We are subject to stringent and changing data privacy and security laws, rules, regulations and other obligations. These areas could damage our reputation, deter current and potential customers, affect our product design, or result in legal or regulatory proceedings and liability

    Processing sensitive data subjects the company to stringent data privacy and security laws across multiple jurisdictions.

Dropped

  • DroppedRisks related to Our Business and Our Industry

    A change in tax law, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act

  • DroppedRisks related to Our Business and Our Industry

    Disruption in our global supply chain and rising prices of oil and raw materials as a result of the conflict between Russia and Ukraine may adversely affect our businesses and results of operations

  • DroppedRisks related to Our Business and Our Industry

    Our expansion into new geographic markets or new product lines or services could subject us to additional business, financial, and competitive risks

    General tax law changes and IRA benefits.

  • DroppedRisks related to Our Business and Our Industry

    the emergence, continuance or success of, or increased government support for, other alternative energy generation and storage technologies and products

  • DroppedRisks related to Our Business and Our Industry

    Complications with the design or implementation of our new ERP system could adversely impact our business and operations

  • DroppedRisks Related to Legal, Compliance and Regulations

    In general, subsidies and incentives may expire on a particular date, end when the allocated funding is reduced or terminated due to, inter alia, legal challenges, adoption of new statutes or regulations or the passage of time, they often occur without warning

  • DroppedRisks Related to our Notes and the Ownership of Our Common Stock

    Our share repurchase program may be subject to certain risks

Reworded

  • 96% rewrittenRisks Related to Legal, Compliance and Regulations

    The reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar electricity applications could reduce demand for PV systems and harm our business

    Added specific mentions of non-U.S. government bodies, BESS systems, and general expiration terms for subsidies.

    Was: The reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar electricity applications could reduce demand for solar PV systems and harm our business

  • 81% rewrittenRisks related to Our Business and Our Industry

    Mergers in the solar industry among our current or potential customers may adversely affect our competitive position

    Updated customer consolidation examples with SunPower's 2025 acquisitions of Sunder Energy and Ambia Solar, plus Sunnova.

  • 78% rewrittenRisks related to Our Business and Our Industry

    Our entry into business engagements with South Korean military bodies as our customers in the lithium-ion battery and energy storage business embodies a risk for potentially large-scale and uncapped liability

    Removed extraneous language regarding general acquisition risks from the South Korean Kokam military customer liability disclosure.

  • 73% rewrittenRisks Related to Legal, Compliance and Regulations

    Changes to net metering policies may reduce demand for electricity from PV systems and harm our business

    Updated net metering description to reflect regulatory scrutiny in U.S. states.

    Was: Changes to net metering policies may reduce demand for electricity from solar PV systems and harm our business

  • 66% rewrittenRisks related to Our Business and Our Industry

    We have discontinued our e-Mobility business, energy storage business, and PV Tracker business, resulting in the write-off of tangible and intangible assets

    Added the November 2024 discontinuation and September 2025 sale of the Sella 2 South Korean energy storage business.

    Was: We have discontinued our e-Mobility business and energy storage business, resulting in the write-off of tangible and intangible assets

  • 64% rewrittenRisks related to Our Business and Our Industry

    The solar industry has historically been cyclical and experienced periodic downturns

    Extended the ongoing industry downturn timeline through the end of 2025.

  • 62% rewrittenRisks related to Our Business and Our Industry

    Any current or future hostilities involving Israel or the interruption or curtailment of trade between Israel and its present trading partners, or significant downturn in the economic or financial condition of Israel, could have a material adverse effect on our business, financial condition, and results of operations

    Added explicit language that despite the war with Hamas, manufacturing and delivery in Israel have not faced material disruptions.

  • 58% rewrittenRisks related to Our Business and Our Industry

    The market for our products is highly competitive and we expect to face increased competition as new and existing competitors introduce power optimizers, EV chargers, inverters, PV system monitoring, batteries and other smart energy products, which could negatively affect our results of operations and market share

    Expanded competitive threats to explicitly mention potential adverse effects on revenues, gross margins, and profitability from low-cost Asian manufacturers.

    Was: The market for our products is highly competitive and we expect to face increased competition as new and existing competitors introduce power optimizers, inverters, solar PV system monitoring, batteries and other smart energy products, which could negatively affect our results of operations and market share

  • 51% rewrittenRisks related to Our Business and Our Industry

    Our ability to be profitable in the future

  • 50% rewrittenRisks Related to our Notes and the Ownership of Our Common Stock

    We may not be able to raise additional capital to execute on our current or future business opportunities on favorable terms, if at all, or without dilution to our stockholders

  • 50% rewrittenRisks related to Our Business and Our Industry

    development of new energy generation technologies that provide less expensive energy

  • 39% rewrittenRisks related to Our Business and Our Industry

    The rapidly evolving and competitive nature of the solar industry makes it difficult to evaluate our current business and future prospects. In addition, we have limited insight into emerging trends that may adversely affect our business, financial condition, results of operations and prospects

  • 38% rewrittenRisks related to Our Business and Our Industry

    The loss of key executives, and our ability to retain key personnel and attract additional qualified personnel

  • 36% rewrittenRisks Related to our Notes and the Ownership of Our Common Stock

    We may not have the ability to raise the funds necessary to settle conversion of our Convertible Senior Notes or Notes 2029 in cash or to repurchase the Notes 2029 upon a fundamental change, and our future debt may contain limitations on our ability to pay cash upon conversion or to repurchase the Notes 2029

    Was: We may not have the ability to raise the funds necessary to settle conversion of our Convertible Senior Notes or Notes in cash or to repurchase the Notes upon a fundamental change, and our future debt may contain limitations on our ability to pay cash upon conversion of the Notes or to repurchase the Notes

  • 35% rewrittenRisks related to Our Business and Our Industry

    Disruption to our business operations as a result of the evolving conflict in Israel and other conditions in Israel that affect our operations may limit our ability to develop, produce and sell our products

    Was: Disruption to our business operations as a result of war and hostilities in Israel and other conditions in Israel that affect our operations may limit our ability to develop, produce and sell our products

  • 32% rewrittenRisks related to Our Business and Our Industry

    In addition, given our dependence on suppliers in China, changes in international trade policies, tariffs, or trade disputes could significantly and adversely affect our business, revenues, margins, results of operations, and cash flows

  • 31% rewrittenRisks related to Our Business and Our Industry

    Attempts by third parties, our employees, or our vendors might gain unauthorized access to our network or seek to compromise our products and services

  • 30% rewrittenRisks related to Our Business and Our Industry

    Any unauthorized access to, disclosure, or theft of confidential or personal information we gather, store, or use could harm our reputation and subject us to claims or litigation

    Was: Any unauthorized access to, disclosure, or theft of personal information we gather, store, or use could harm our reputation and subject us to claims or litigation

  • 29% rewrittenRisks related to Our Business and Our Industry

    Our ability to successfully operate our global operations with a reduced work force

  • 28% rewrittenRisks Related to Intellectual Property

    If our goodwill or other intangible assets become impaired, our financial condition and results of operations could be negatively affected

  • 28% rewrittenRisks related to Our Business and Our Industry

    Developments in alternative technologies or improvements in distributed solar energy generation may have a material adverse effect on demand for our offerings

  • 27% rewrittenRisks related to Our Business and Our Industry

    Fluctuations in currency exchange rates may negatively impact our financial condition and results of operations

  • 26% rewrittenRisks related to Our Business and Our Industry

    An increase in interest rates or tightening of the supply of capital in the global financial markets could make it difficult for end-users to finance the cost of a PV system and could reduce the demand for smart energy products and thus the demand for our products

    Was: An increase in interest rates or tightening of the supply of capital in the global financial markets could make it difficult for end-users to finance the cost of a solar PV system and could reduce the demand for smart energy products and thus the demand for our products

  • 25% rewrittenRisks related to Our Business and Our Industry

    We may not realize expected benefits from our cost reduction and restructuring efforts, and our profitability or our business otherwise might be adversely affected

  • 23% rewrittenRisks Related to our Notes and the Ownership of Our Common Stock

    Our stock price has been, and may continue to be, subject to significant volatility

  • 23% rewrittenRisks related to Our Business and Our Industry

    We rely on distributors and large installers to assist in selling our products, and the failure of these customers to perform as expected could reduce our future revenues

All 53 risk factors

Headings as the filing states them, in filing order.

Risks related to Our Business and Our Industry

  1. 01Our ability to be profitable in the future51% rewritten
  2. 02The rapidly evolving and competitive nature of the solar industry makes it difficult to evaluate our current business and future prospects. In addition, we have limited insight into emerging trends that may adversely affect our business, financial condition, results of operations and prospects39% rewritten
  3. 03National, state and local government bodies in many countries, including the United States, have provided incentives in the form of rebates, tax credits, feed-in tariffs and others to manufacturers, system owners, distributors and installers of PV systems and battery energy storage systemsNew
  4. 04Demand for solar energy solutions fluctuates, and if demand for solar energy solutions does not resume growth or grows at a slower rate than anticipated, or if we are unable to accurately forecast customer demand, our business and results of operations will suffer
  5. 05Macroeconomic conditions in our domestic and international markets, as well as inflation concerns, instability of financial institutions, rising interest rates, and recessionary concerns may adversely affect our industry, business and financial results
  6. 06increased overhead and production costs as a percentage of revenue
  7. 07A drop in the retail price of electricity derived from the utility grid or from alternative energy sources may harm our business, financial condition, results of operations, and prospects
  8. 08development of new energy generation technologies that provide less expensive energy50% rewritten
  9. 09An increase in interest rates or tightening of the supply of capital in the global financial markets could make it difficult for end-users to finance the cost of a PV system and could reduce the demand for smart energy products and thus the demand for our products26% rewritten
  10. 10The market for our products is highly competitive and we expect to face increased competition as new and existing competitors introduce power optimizers, EV chargers, inverters, PV system monitoring, batteries and other smart energy products, which could negatively affect our results of operations and market share58% rewritten
  11. 11Developments in alternative technologies or improvements in distributed solar energy generation may have a material adverse effect on demand for our offerings28% rewritten
  12. 12The solar industry has historically been cyclical and experienced periodic downturns64% rewritten
  13. 13Defects or performance problems in our products could result in loss of customers, reputational damage, and decreased revenue, and we may face warranty, indemnity, and product liability claims arising from defective products
  14. 14Changes in our geographic footprint or product and service offerings may subject us to additional business, operational, financial, competitive, and compliance risksNew
  15. 15We depend upon a small number of outside contract manufacturers. Our operations could be disrupted if we encounter problems with these contract manufacturers, including difficulties ramping production with new contract manufacturers
  16. 16The revenues that our contract manufacturers generate from our orders represent a relatively small percentage of their overall revenues. Therefore, fulfilling our orders may not be considered a priority in the event of constrained ability to fulfill all of their customer obligations in a timely manner
  17. 17We may experience delays, disruptions, or quality control problems in our manufacturing operations
  18. 18In addition, given our dependence on suppliers in China, changes in international trade policies, tariffs, or trade disputes could significantly and adversely affect our business, revenues, margins, results of operations, and cash flows32% rewritten
  19. 19Changing political and geopolitical conditions could adversely impact our business, our financial results, and the global energy marketNew
  20. 20We rely on distributors and large installers to assist in selling our products, and the failure of these customers to perform as expected could reduce our future revenues23% rewritten
  21. 21Mergers in the solar industry among our current or potential customers may adversely affect our competitive position81% rewritten
  22. 22Our ability to implement our new ERP system could adversely impact our business and operationsNew
  23. 23We have discontinued our e-Mobility business, energy storage business, and PV Tracker business, resulting in the write-off of tangible and intangible assets66% rewritten
  24. 24Our ability to successfully operate our global operations with a reduced work force29% rewritten
  25. 25We may not realize expected benefits from our cost reduction and restructuring efforts, and our profitability or our business otherwise might be adversely affected25% rewritten
  26. 26Any unauthorized access to, disclosure, or theft of confidential or personal information we gather, store, or use could harm our reputation and subject us to claims or litigation30% rewritten
  27. 27Attempts by third parties, our employees, or our vendors might gain unauthorized access to our network or seek to compromise our products and services31% rewritten
  28. 28Emerging issues related to the development and use of artificial intelligence could give rise to legal or regulatory action, damage our reputation, or otherwise materially harm of our businessNew
  29. 29The loss of key executives, and our ability to retain key personnel and attract additional qualified personnel38% rewritten
  30. 30Disruption to our business operations as a result of the evolving conflict in Israel and other conditions in Israel that affect our operations may limit our ability to develop, produce and sell our products35% rewritten
  31. 31Any current or future hostilities involving Israel or the interruption or curtailment of trade between Israel and its present trading partners, or significant downturn in the economic or financial condition of Israel, could have a material adverse effect on our business, financial condition, and results of operations62% rewritten
  32. 32The tax benefits that are available to us under Israeli law require us to meet various conditions and may be terminated or reduced in the future, which could increase our costs and taxes
  33. 33Our entry into business engagements with South Korean military bodies as our customers in the lithium-ion battery and energy storage business embodies a risk for potentially large-scale and uncapped liability78% rewritten
  34. 34Fluctuations in currency exchange rates may negatively impact our financial condition and results of operations27% rewritten
  35. 35Occasionally, we enter into derivative financial instruments to hedge the exchange rates impacts on our assets, liabilities and certain transactions denominated in Israeli Shekels, Euro, and other currencies
  36. 36We are subject to risks related to corporate social responsibility and sustainability, including the impact of evolving legal and regulatory requirements
  37. 37Natural disasters, public health events, significant disruptions of information technology systems, data security breaches, or other catastrophic events could adversely affect our operations

Risks Related to Legal, Compliance and Regulations

  1. 38The reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar electricity applications could reduce demand for PV systems and harm our business96% rewritten
  2. 39Changes to net metering policies may reduce demand for electricity from PV systems and harm our business73% rewritten
  3. 40We are subject to stringent and changing data privacy and security laws, rules, regulations and other obligations. These areas could damage our reputation, deter current and potential customers, affect our product design, or result in legal or regulatory proceedings and liabilityNew

Risks Related to Intellectual Property

  1. 41If we fail to protect, or incur significant costs in defending our intellectual property and other proprietary rights, our business and results of operations could be materially harmed
  2. 42Third parties may assert that we are infringing upon their intellectual property rights, which could divert management’s attention, cause us to incur significant costs, and prevent us from selling or using the technology to which such rights relate
  3. 43We may become subject to claims for remuneration or royalties for assigned service invention rights by our employees, which could result in litigation and adversely affect our business
  4. 44If our goodwill or other intangible assets become impaired, our financial condition and results of operations could be negatively affected28% rewritten

Risks Related to our Notes and the Ownership of Our Common Stock

  1. 45Our stock price has been, and may continue to be, subject to significant volatility23% rewritten
  2. 46changes in accounting principles
  3. 47Provisions in our certificate of incorporation and by-laws may have the effect of delaying or preventing a change of control or changes in our management
  4. 48providing that our board of directors is expressly authorized to amend, alter, rescind or repeal our by-laws
  5. 49Our certificate of incorporation includes a forum selection clause, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us
  6. 50We may not have the ability to raise the funds necessary to settle conversion of our Convertible Senior Notes or Notes 2029 in cash or to repurchase the Notes 2029 upon a fundamental change, and our future debt may contain limitations on our ability to pay cash upon conversion or to repurchase the Notes 202936% rewritten
  7. 51We may not be able to raise additional capital to execute on our current or future business opportunities on favorable terms, if at all, or without dilution to our stockholders50% rewritten
  8. 52otherwise pursue our strategic plans and respond to competitive pressures, including adjustments to our business to mitigate the effects of any tariffs that might apply to us or our industry
  9. 53We do not intend to pay any cash dividends on our common stock in the foreseeable future

Other Solaredge Technologies 10-Ks

  • FY2024 10-K risk factors
    54 risks

    SolarEdge faced a net loss of $1,806.4 million in 2024, prompting extensive restructuring and workforce reductions. Executive changes include Ronen Faier becoming interim CEO after Zvi Lando's resignation. Operations in Israel face severe disruptions and boycott pressures due to ongoing armed conflicts.

    Filed Feb 25, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.