Welcome to the SolarEdge conference call for the third quarter ended September 30th, 2025. This call is being webcast live on the company's website at www.solaredge.com in the Investors section on the Events Calendar page. This call is the sole property and copyright of SolarEdge with all rights reserved, and any recording, reproduction, or transmission of the call without the express written consent of SolarEdge is prohibited. You may listen to a webcast replay of this call by visiting the Events Calendar page of the SolarEdge investor website. I would now like to turn the call over to J.B. Lowe, Head of Investor Relations for SolarEdge. Please go ahead. Good morning and thank you for joining us to discuss SolarEdge's operating results for the third quarter ended September 30th, 2025, as well as the company's outlook for the fourth quarter of 2025. With me today are Shuki Nir, Chief Executive Officer, and Asaf Alperovich, Chief Financial Officer. Shuki will begin with a brief review of the results for the third quarter ended September 30th, 2025. Asaf will review the financial results for the third quarter followed by the company's outlook for the fourth quarter of 2025. We will then open the call for questions. Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statements contained in our earnings press release and our filings with the SEC for a more complete description of such risks and uncertainties. Please note, during this earnings call we may refer to certain non-GAAP measures which are not measures prepared in accordance with U.S. GAAP. The non-GAAP measures are being presented because we believe that they provide investors with a means of evaluating and understanding how the company's management evaluates the company's operating performance. Reconciliation of these measures can be found in our earnings press release and SEC filings. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP. Listeners who do not have a copy of the quarter ended September 30th, 2025 press release may obtain a copy by visiting the Investor Relations section of the company's website. With that, I will turn the call over to Shuki. Thank you. J.B. Good morning everyone and thank you for joining us. I'm pleased to report that we delivered a strong third quarter. We believe this is clear evidence that we are making solid progress on our turnaround and that the company is on the right trajectory. Our result and our Q4 outlook demonstrate that the momentum we have built throughout the year is continuing. We are executing on our plan and I'm very proud of the way the team has performed in recent quarters. As for our key priorities, first on financial strength in Q3 we delivered 44% year-over-year revenue growth and continued expanding our margins for the fourth straight quarter. The midpoint of our Q4 outlook follows the same trajectory of year-over-year improvement. I'd like to highlight that both our Q3 financial and our Q4 guidance do not include significant one-time or pull forward of revenue either from Safe Harbor or from the 25D rush towards the end of the year. We have also kicked off several operational excellence initiatives. For example, a major change that should have a long-term positive impact is the single SKU. We have implemented a software-defined platform that significantly reduces the complexity of our business for residential and commercial applications globally. It allows us to manufacture and ship one SKU of the inverter to the market. The installers can program it to the desired kilowatt rating in the field. This framework simplifies everything from forecasting and manufacturing to inventory management, logistics, service, and support, saving time and money for us, our distributors, and our installers. It also adds flexibility for home and business owners if they need a bigger system in the future. A simple over-the-air software update can boost the inverter rating. It is the true win-win-win solution and we are working on additional solutions as we continue to improve efficiencies across the business. At the same time, we've been hyper-focused on our cost discipline and reached the lowest non-GAAP OpEx to revenue ratio in the last two years. This helped us to generate positive free cash flow in Q3 and exit the quarter with a cash and investment portfolio of approximately $550 million. We also expect to generate positive free cash flow in Q4 and for the full year. Its performance and outlook gave us confidence to repay the 2025 converts from our balance sheet upon maturity in September. Our second priority is gaining market share starting with the progress in capturing market share in U.S. REIT. We are proud that Wood Mackenzie reported SolarEdge as regaining the number one residential inverter market share position in the second quarter. This is the first time we've had a leading market share position since the third quarter of 2021 and is a reflection of our improved quality and service and our team's performance. Looking into 2026, the RESI market is expected to undergo a structural change in favor of the TPO model. We believe this market shift plays directly into SolarEdge's unique strength. We have developed deep relationships and integrated infrastructure with TPOs for years. We have delivered high quality domestic content and non-FIAC products that the TPOs require and our technology platform is perfectly suited for the TPO model due to its superior energy production and native DC architecture. Safe harboring is an additional and crucial element that can secure future market share. Certain of our partners have safe harbored with us through the 5% method. Additionally, we designed and executed customized safe harbor strategies for our TPO partners through the physical work test. Such transactions have several benefits for our customers. It lets them qualify their projects over multiple years for a lower capital outlay for SolarEdge. These transactions provide better visibility into our business for future years. By helping our customers safe harbor through the physical work of significant nature methods, we are able to manufacture and deliver the full product closer to the time the customer needs it. Therefore, we can manage the manufacturing over time and there is no pull forward of revenues that is typically associated with a 5% safe harbor transaction. We believe that our strengths are even more pronounced in the C&I space in the U.S. Some of the largest enterprises in the U.S. have already safe harbored C&I products from us via the physical work method. In addition, we believe that we are the only scaled player capable of delivering a non-FIAC and domestic content compliant C&I solution. This combination positions us very well to gain additional market share in the years ahead. Turning to Europe, while the markets remain challenging, the majority of our distribution partners hold normalized levels of inventory. This resulted in EU revenues reaching EUR 100 million in the quarter, up 45% quarter-over-quarter and up 21% year-over-year. We believe our position in Europe will continue to improve as we ramp up sales of commercial storage, deliver products made in the U.S., and roll out the next generation Nexus platform in the coming quarters. This brings me to our third priority, accelerating innovation. The SolarEdge value proposition is simple. Whether you are an installer, a homeowner, or a business, our solutions save you money or save you time and in many cases save you both. The markets we serve are increasingly looking for integrated systems and over the last year we've expanded and improved our technology platform to deliver holistic end-to-end solutions that save our customers even more time and money. In Q3 we continued the development and field installation of our next generation Nexus platform, and in the last few weeks we have shipped initial volumes of the new three-phase inverter to customers. Even at this early stage, the feedback we are getting is that installations have been significantly simplified compared with our previous generation. Two weeks ago we rolled out our One for C&I Energy Management System across our entire C&I installed base. Now customers can control and optimize all types of behind the meter devices and loads, from solar to storage to EV charging to HVAC, all from a customized dashboard. We intend to add additional enhanced features in the quarters ahead that will generate recurring revenue stream. Our fourth priority is ramping up our U.S. manufacturing. In Q3 we reached an important milestone by exporting our first US manufactured residential products to Australia. We expect to begin shipping both residential and C&I products to additional markets in the coming weeks, which will allow us to be more competitive in markets outside of the U.S. To summarize, we believe our turnaround is delivering tangible results. We're improving our finances, we're driving efficiencies across the business, we are strategically positioned to capture market share in our main markets, and we are progressing with our next-gen platform. While we are encouraged by our progress, there is still plenty of work to be done. We remain relentlessly focused on building a healthier, more profitable, and more innovative business for the long term. There is one more thing. This morning we announced a collaboration with Infineon to advance our solid-state transformer platform for the data centers of the future. This has the potential to strategically expand our core technology into the data center market, positioning us to help build smarter, more efficient energy systems for the AI era. We are in the early stages here and we'll share more as we make progress. With that, I will turn it over to Asaf. Thank you Shuki and good morning everyone. Starting with the quarterly results, the non-GAAP revenues for the third quarter were $340 million, up 21% quarter-over-quarter. Revenues from the U.S. this quarter amounted to $203 million, up 10% quarter-over-quarter and representing 60% of our revenues. Revenues from Europe were $101 million, up 55% quarter-over-quarter and representing 30% of our revenues. International markets revenue were $36 million, down 8% quarter-over-quarter and representing 10% of our revenues. Non-GAAP gross margin this quarter was up to 18.8% compared to 13.1% in Q2, reaching the higher end of our guidance. The higher gross margin is largely due to higher revenue which drove increased utilization of our operational costs and higher sales of U.S.-made products. This was partly offset by incremental tariffs which impacted our gross margin by approximately 2% in line with our expectations. During the third quarter we continue to take action to streamline our operation and focus on core business. As such, we sold our Seller 2 manufacturing facility in the third quarter for total proceeds of $26.1 million. As part of this transaction we recorded a small capital gain. We also settled certain claims associated with the discontinued energy storage division that resulted in a one-time gain of approximately $15 million that was recorded as an offset to our GAAP cogs. Going forward, we continue to seek avenues to right size our business with an emphasis on cost reduction and a focus on our core activities. Non-GAAP operating expenses for the third quarter were $87.7 million at the midpoint of our guidance, despite headwinds from the continued strengthening of the New Israeli Shekel net of hedging. Last quarter we reported non-GAAP OpEx of $85.2 million or $89 million when adjusted for one-time reversal of accrual for Bidet and other items. Non-GAAP operating loss for Q3 was $23.8 million compared to a non-GAAP operating loss of $48.3 million in Q2, cutting our operating loss by more than half. This is a promising result and speaks to the progress we have made in executing our turnaround plan and is another step on a journey back to profitable growth. Our non-GAAP net loss was $18.3 million in Q3 compared to a non-GAAP net loss of $47.7 million in Q2, a reduction of over 60%. Non-GAAP net loss per share was $0.31 in Q3 compared to $0.81 in Q2. The lower operating and net losses are largely due to a higher revenue and a higher gross margin. Turning now to our balance sheet, as of September 30, 2025, our cash and investment portfolio was approximately $547 million net of the repayment of $342 million of our 2025 convertible notes. In September, our cash and investment portfolio increased by approximately $77 million. This is the result of our positive free cash flow for the quarter of approximately $23 million, which was largely driven by working capital items and our continued CapEx discipline. It also includes the proceeds from the sale of our Seller 2 facility of $26.1 million and other items. For the first nine months of the year we generated approximately $34 million in free cash flow. We also expect to be free cash flow positive in the fourth quarter and therefore are on track to meet our expectation of generating positive free cash flow for the full year of 2025. This should allow us to head into 2026 with a healthy cash position to support our growth plans. Our inventory was flat at approximately $530 million despite our manufacturing ramp up to support anticipated growth. Our DIO declined from 217 to 177 as we continue to improve our inventory management processes. AR net increased this quarter to $286 million compared to $217 million last quarter mostly due to higher revenues. DSO increased from 57 to 68 days due to the timing of collections, while DPO increased from 59 to 77. In total, our cash conversion cycle days declined from 215 to 168 days as we are laser focused on improving our working capital management. Turning to an update on our disclosures, as Shuki mentioned, we are in the process of rolling out the single SKU framework across both residential and commercial applications globally. Under this framework, we will no longer know the kilowatt ratings of the inverter at the time of shipment, as the power rating will be set through a software update when installed in the field. As a result, we will be discontinuing the megawatt shipped metric starting in the fourth quarter. Instead, and as you can see in the earnings release this morning, we will be providing the number of inverters, optimizers, and megawatt hours of batteries that we recognize as revenues during the quarter. Additionally, starting in Q4, we intend to begin disclosing revenue derived from inverters, optimizers, and batteries on a quarterly basis within our Form 10-Q. We believe this additional disclosure will help analysts and investors more accurately analyze our operating and financial performance. This move is part of the evolution that we started talking about last quarter. The market is moving to more system-based solutions and is less focused on discrete products. Our technology platform, including the single SKU, the launch of our Nexus platform, and the introduction of additional elements like EV chargers, batteries, and energy management software, are helping to drive this evolution. Our solution delivers flexibility and scalability to meet the growing needs of our customers. Turning now to our guidance, for the fourth quarter of 2025, we are expecting revenues to be within the range of $310 million-$340 million, which reflect a better than normal seasonal trend f or the fourth quarter. We expect non GAAP gross margin to be within the range of 19%-23%, including approximately 2 percentage points of new tariff impact. We expect the non-GAAP operating expenses to be within the range of $85 million-$90 million. I will now turn the call over to the operator to open it up for any question. Operator. Thank you. At this time, if you'd like to ask a question, please press the star and one keys on your telephone keypad. Keep in mind you may remove yourself from the question queue at any time by pressing star and two. In the interest of time, we ask that you limit yourself to one question and one follow-up. We'll take our first question from Philip Shen with ROTH Capital Partners. Please go ahead. Your line is open. Hey guys, thanks for taking my questions. Congrats on hitting free cash flow positive and making progress there. Was wondering if you could talk through. I know you don't have guidance for 2026, but was wondering if you could help us understand what revenue growth you might be able to see for the year and maybe sequentially and then if you can commit to positive free cash flow for 26 as well. Thanks. Hi Philip, good morning and thank you for your question. As you know, we do not guide past the next quarter without providing guidance. What we can say is that typically Q1 is down around 10% versus Q4 due to the typical historical seasonality at this time. We do not have any reason why it would be much different in Q1 of 2026 in terms of relating to 2026 free cash flow. We do not guide for free cash flow or provide any target on that. As we noted for this year we are going to be free cash positive. Q1 to Q3 were $34 million free cash positive. We also noted with the fact that there would be free cash positive in Q4. More than that, I do not think we can elaborate. Okay, got it. Thanks. Regardless. And then shifting over to the Infineon announcement, was wondering if you could talk through what the timing of any commercialization might be. Do you have any bookings yet or do you think it's more likely for like the 2027, 2028 timeframe? Is it more of a medium term or longer term effort or do you think near term there's an opportunity to generate revenues or bookings? Thanks. Yes, thank you, Phil. I'd like to provide some more color before I get to your specific question. I think everybody is aware of the fact that the data center of the future is going to be based on DC architecture. There are white papers around it and everybody understands that DC architecture is better for these data centers. The goal is basically to maximize the utilization of the data center and to squeeze as many GPUs as possible. DC architecture is directly in our wheelhouse. We have 20 years of experience with this architecture. We have dozens of gigawatts installed in the field in conditions that are much harder than data centers. What we have from past developments and past experiences, we have all the building blocks for the solid-state transformer that we are aiming at that market. We have started discussions with different players in the ecosystem and the feedback has been very, very positive. Our potential solution is very relevant and competitive. We are talking about 99% efficiency rate and efficiency is very, very critical, as you know, because it increases the utilization of the GPUs as we push more energy through the system and it reduces the heat that is generated. You need less cooling in the data center. With all of that being said, what we announced today is the evolution of our long term partnership with Infineon. They are considered to be one of the leaders in the power electronics supply chain for data center and in general. We are very happy with the partnership with them. As I mentioned, we've engaged with other people and other companies in the ecosystem and we're trying to, if you will, skate towards where the puck is going to be. The 800 volt DC architecture is expected to really start in 2027. You said rightfully so this is something that we are looking into. 2027, 2028 timeframe. We'll take our next question from Christine Cho with Barclays. Please go ahead. Your line is open. Thank you for taking my question. Just as a follow-up to your last comment, you said that you expect to see the financial impact in 2027-2028. Are you going to sort of give any indications to the market about how the progress is going with respect to bookings and any contracts that you might sign before that? When we get to it, as we said, we will share more information as we make progress at this stage. I think that the most important thing is this new architecture is about to happen two years from now. We feel, and not just feel based on inputs that we are getting, that the solution that we have developed that is not final yet, obviously the building blocks that we have are definitely, they fit what the market is looking for. We will update you as we make progress. Okay, moving on to gross margins. Those continue to come in nicely. In prior calls you've mentioned that one of the biggest drivers is the fixed cost absorption with higher revenues. In Q4 your revenue is sequentially down, but gross margins continue to improve. Can you just give us an idea? Is this primarily due to 45x ramping or is there material impact from sell-in of your new products which are better margin? I'm assuming that the sequential top line decline in Q4 is mostly due to seasonality. If you could give us an idea of how much margin improvement there would have been had revenues been flattish. Lastly, for most of this year I think you had quite a bit of legacy European product and the inventory on your balance sheet that was probably lower margin. Has that largely washed out at this point? Thank you. Hi Christine, good morning. You asked a couple of questions there, so I hope I covered them all. If not, please remind me. You are right, we did indicate that the major driver of gross margin is the revenue where we have leverage as we utilize our fixed cost position. You are also right in terms of the Q4 that we do feel there is a seasonality impact in terms of the guidance we provided on revenue. Just to remind you in terms of some additional levers on gross margin, I think you have related to some of them, the ramping up of the U.S. production. As we said in the past, it is the most economically attractive location for us to manufacture. Of course, considering the IR credit. As you know, we started selling U.S.- made products globally. We had a PR on initial sales to Australia and we're going to sell more into the international market and customers in the coming months. Also in terms of the Nexus, the new product introduction I think we had started and we're going to gradually ramp up the introduction and these will have a positive contribution because they're coming up with a better margin profile and they also represent some new revenue streams and some new segments for us, such as the bigger roof in Germany with the 20 kW which we already had underpenetrated. I would say until today these new products again coming with structure, cost structure and higher margin. Of course, Shuki alluded to the fact in the script about the single SKU framework. We discussed that and we believe that this will significantly help us improve our margin. It simplifies and improves the efficiency of the entire supply chain, by the way, for both us and our customers. It starts from very efficient planning to component sourcing, logistic warehousing, manufacturing, of course, inventory management, all the way through service and support. Of course, whenever you think about margin profile, you need to consider that it also depends on the mix of product geographies and segments. In terms of Europe, you ask us to think about the utilization of existing inventories from our balance sheet towards sales. We said that at least until the end of the year we will do that. Throughout next year, I think we see lower, lower impact of that. Again, as we ramp up the shipments of the Nexus and sending U.S. produced products to export markets, we will enjoy the 45x impact to a further extent. Anything I missed in my response? No, that's it. Thank you. My pleasure. We'll take our next question from Mark Strauss with JP Morgan. Please go ahead. Your line is open. Sorry Shuki, can I go back to the Infineon Partnership once more? Can you just talk about the go-t o market there, the plan there? Would that continue to be through your normal distribution partners or is there any kind of incremental investment that would be needed to go to market, and then I've got a quick follow up. Thank you. Yeah, thank you, Mark. As you know, this market is basically the ecosystem is pretty tight. The number of potential customers and customers is not that large. We will actually, I believe we will be able to approach them directly or through some of the distribution partners, but we've not finalized our plans on that regard yet. We are looking at that piece as something that is not going to be a major investment from our side. I didn't mention earlier, but one of the things that is actually working in our favor is that in the p ast. We built the infrastructure to support similar systems here in our labs. There is a significant amount of CapEx that was going into that infrastructure and now we do not have to actually spend that money. Okay, thank you for that. You mentioned the market share within U.S. resi. Curious if you can give similar color on kind of how your market share is trending in Europe. You've lost share over the last several years. How much have you bounced back? How far off the bottom are you and how far away are you from getting back to where you were several years ago? Yes, absolutely. As we said last quarter, we felt that we turned the corner and we actually did so between Q2 to Q3. We do not have final numbers for Q3 yet, but the numbers we have are more or less the same as Q2. We definitely feel, based on information coming back from our partners as well as from the field, that we have turned the corner. There is still a lot of room to grow in terms of market share compared to where we were in the past and where we believe that we can be moving forward. The reason for our optimism about the positive momentum in Europe is a combination of several different things. One is the commercial storage that we have now. We sell now and we expect that to continue growing. The second one is, as we said, most of our distribution partners have normalized levels of inventory, so now they can use new products and bring them quickly to the market. The third one is the introduction of Nexus that Asaf covered earlier. It does open some new segments for us as well, as it has a better cost structure by itself and also due to the fact that it's going to be manufactured in the U.S. and exported to Europe. This will allow us to be more competitive in the marketplace while not sacrificing margin necessarily. All of these reasons are giving us optimism as to where we can grow and there is definitely room to grow. We'll take our next question from David Arcaro with Morgan Stanley. Please go ahead. Your line is open. Hi. Thank you. Good morning. I was wondering if you could maybe u pdate us on the trajectory that you're e xpecting in terms of the tariff impact. Are you still on track to offset t ariff impacts over the next couple of quarters as we look into 2026? Hi David. Good morning and thank you for your question. We reported the net impact from incremental tariff of 2% in Q3. We guided pretty much roughly to the same estimated tariff impact in Q4. I think, as we've said in the couple of recent quarters, we are extremely focused on diversifying and finding alternative sources and optimizing the supply chain to address this dynamic tariff involvement. Of course, at the same time, the quality and reliability of a product is very, very important for us. I don't think we'll disclose any m ore i nformation in terms of our sourcing. Overall, we expect in the coming few quarters to have pretty much the same impact. We also said the net impact also may be mitigated by some pricing actions that we may take. Okay, sure. Thanks. That makes sense. Then c ould you elaborate on what y ou're seeing in the U.S. in terms of demand? How healthy has the residential market been. Maybe if you could touch on C&I. And if you expect any pull forward to happen in Q4, I know you didn't bake it into the guidance, but c urious what you're seeing there. Yes, absolutely. Thank you, David. As mentioned, and as I believe most analysts and players in the market expect, the U.S. resi market next year to undergo a significant shift, that the 25D is going to end. Overall, the market is expected to go down by 20%-30%. The share that the TPOs are going to gain is going to come at the account of the cash and loan. As you know, we feel for a variety of reasons, as I mentioned in our prepared remarks, that our partnership with the TPOs is strong. We have built the infrastructure, the relationship, and the advantages of our products are such that they play to what the TPOs require as well as the different transactions that we've engaged with the TPOs. As we mentioned about the safe harboring. All of these things give us confidence about future market share and for pull forward. As we said earlier, we do not have any significant pull forward of revenue in Q3 or in our guidance for Q4 due to any safe harbor or the rush towards the end of the year of the 25D. We are looking at, as I said, no significant pull forward in this quarter. We'll take our next question from Dylan Nassano with Wolfe Research. Please go ahead. Your line is open. Yeah, hi, good morning. I just want to come at the s olid-state transformer partnership from a little bit of a different angle. Anything you can provide on just kind of how meaningful that opportunity could be? Whether that's like a TAM or maybe just how many dollars are spent on this kind of product per an average sized data center. Yes, thank you, Dylan. We can provide everybody. Most people are talking about 100 GW of data center that are going to come on board online in the next decade. All of them will need transformers. Now it's a matter of math of what percentage of these data centers are going to be with the new DC architecture and what kind of share we can get out of this, of this piece, but it's a very, based on every analysis that we've looked at and that we have seen, it's a very significant opportunity and we are very excited about it because it's not that we are seeing a large opportunity out there and we're trying to chase it. Actually the core competencies of this company and the components that we already have are all pointing us to that direction almost regardless of the size of the opportunity. We are very happy that the opportunity is very large, but we also feel that we are very well positioned to capture on this opportunity. Got it, thank you. For my follow up, just going back to Europe, it sounds like you're in a better spot now relative to the last couple quarters. Just any kind of outlook on just underlying demand going into 2026? Is there any reason to maybe expect the market to be a little bit stronger or weaker? You can hear opinions why the market can be stronger and why the market can be weaker. As you know, Europe is a collection of countries and not a single market. Some people are talking about the U.K. being stronger. The battery opportunity in the Netherlands and Germany for us is going to be a very, very large opportunity because of the Nexus opening a new segment for us. We have to recall, as I mentioned earlier in one of the earlier questions, the share gain opportunity for us is significant and whether the market goes up or down 10%, it does not really matter in terms of the size of the opportunity for us. I think that we are well positioned, as I mentioned earlier, we believe that we are well positioned to capture additional market share in Europe in 2026. Once we capture more market share, obviously it helps if the market is growing. Even if the market is stable or declining, it will still show positive momentum for us. We'll take our next question from Colin Rusch with Oppenheimer. Please go ahead. Your line is open. Thanks so much, guys. Can you talk a little bit about sell through on the stationary storage systems and commissioning versus systems that are not attached to solar or are retrofitted? I know you guys have some visibility into where those things are going, but just want to get a sense of that growth driver. Thank you. Are you referring to storage systems that are not attached to PV? Exactly. Or would be a retrofit into an existing PV system that had a storage system previously? Okay, for standalone storage, it's an insignificant amount that we are seeing. I'm talking about the SolarEdge installations, not about the market in general, we are not seeing anything significant there. As for the retrofit or the upgrade to the installed base, the opportunity for us is huge. Our installed base is very significant, as you know. In some countries, homeowners and business owners are going to be driven into adding storage to their existing system either by just buying storage or by upgrading the PV and adding storage to it. We have started experimenting in these areas. These are early days today. I think that as the market evolves and as we leverage more on this opportunity, we will provide you with more information. What some people tend to forget is also the same opportunity existing in the C&I market. Actually. For businesses, having the ability to use their PV during the day in order to charge batteries or to store excess PV production can actually be an even bigger opportunity than for residential. That's super helpful, thank you. I guess a follow-on question there just around some of the evolution in battery chemistries and different duty cycles that we're starting to see in some of these larger systems. Can you talk about it, maybe adjacent to some of the work you're doing with Infineon and this TC2DC architecture for larger scale systems, but also at the commercial systems where the solutions may be a bit more complex here and performance may be enabled by newer chemistries that you're seeing on the battery side? Is that an opportunity you guys are seeing real time, or is it a little ways out in terms of being able to mix and match some of the chemistries and optimize performance for different value capture on the storage systems, particularly for C&I? Yes, it's a great question and rest assured that our CTO and technical team is looking into all the different technologies that are out there from sodium to others at the moment. The solutions that we have are we have one solution that is based on NMC and the other ones are using LFP. These are the ones that are today in mass production. These are the ones when we report revenue. These are the solutions that we are selling. We're obviously looking into all directions and when other chemistry or other solutions are going to come online and are going to be available either from a cost perspective or from a functionality perspective, we are going to introduce them into our solutions. As it pertains to data centers, there are many different discussions about what storage can be doing there. Whether it's for backup only, or is it for spikes from the grid, or is it a potential replacement for UPS? These are early days before we can comment about our solution for storage for data center. We will take our next question from Brian Lee with Goldman Sachs. Please go ahead. Your line is open. Good morning. Thanks for taking the questions. I hopped on a little bit late, so apologies if some of this is redundant. Did you guys provide or could you guys provide a bit of an update on where your manufacturing footprint stands today in the U.S., you know, whether megawatt units or just kind of percentage of overall shipments, and then kind of what's the thought process around getting that up to, I guess, presumably 100% U.S. manufacturing. What's sort of the time frame and cadence to reach those targets into 2026 or beyond? Yeah, thank you Brian, and welcome to our call. What we've done, if you look at the last two years, we've ramped up the manufacturing in the U.S. in order to support mainly the U.S. demand. The levels that we were talking about in the past were along the lines of 70,000 inverters per quarter and the capacity to manufacture 2 million optimizers per quarter. What we have done in the last two quarters, I would say, or quarter and a half, is we've continued the ramp up in order to start supporting the exportation from outside of the U.S. into Europe and other international markets. As we announced a few weeks ago, we started by shipping some residential units, residential inverters to Australia. In the coming weeks we are expecting to continue shipping to Europe to some countries in Europe and some other countries in Asia. The goal, or the end goal, the end state, if you will, is to have most, if not all, I would say most of the manufacturing done in the U.S. There will always be pockets that will be made outside of the U.S. for a variety of reasons, whether it is a small volume or whether it is something that is needed in a specific non-U.S. market. The intention is to concentrate the manufacturing in the U.S. because it helps our scale up, it helps our operational efficiency, and it is closer to our largest market. Yep, makes sense. Just to add in terms of the units, because we started, I mentioned what we said before. What we are ramping up now is mainly around the commercial inverter, and we are reaching about 20,000 inverters in Q4. We expect to continue increasing this number in the following quarters as we are going after not only the U.S. market, but actually the European market and the Asian market. That makes a lot of sense. My follow up was on, I guess, the near term revenue cadence. I think you guys mentioned earlier in the call you're expecting Q1 to be down 10% or so, so kind of in line with normal seasonality. But you're not seeing much if any safe harboring or 25D pull forward at the moment. As you think about your Q1 view, that seems to be much better than some of your peers and kind of what we're hearing across the channel, at least in the U.S. and as you said, U.S. is still your biggest market. Are you anticipating 48E safe harboring and pull forward in your Q1 outlook or is that something that you're seeing visibility into 2Q of next year? Just kind of want to understand a little bit about how you're thinking about safe harboring it to 1Q and 2Q of next year. Thank you guys. Also thank you for highlighting the Q1 thing, Brian. As for safe harboring in Q1 2026, at this stage we don't anticipate any significant pull forward of revenue into Q1. The direction that Asaf provided is e xcluding something like that should it happen. What we described during the call is that we have worked with our TPO partners and also with the enterprises and the strategic C&I customers on what is referred to as the physical work test safe harboring. There are several advantages to that method. One of them is that it allows our customers not to outlay a lot of cash up front, but actually due to the continuous nature of the transaction, they consume the units as they need them and not just within the first 105 days. For us, what it does is it gives us better visibility into future manufacturing supply chain and revenue. It is not creating pull forward of revenue because the units are supposed to be consumed as they need them. For that reason, in this type of safe harboring, we don't see revenue when the transaction is signed. We don't expect any significant other type of safe harbor in Q1 when we talk about the numbers. We'll take our next question from Julien Dumoulin-Smith with Jefferies. P lease go ahead. Your line is open. Hey, good morning team. Thank you guys very much for the time. I appreciate it. Hey, just wanted to come back to the Infineon opportunity here and I want to ask you guys very specifically, how do you think about sort of the content per megawatt, sort of the split? If you think about the solid-state solution here, how much of that is coming from the Infineon side or how much per megawatt is coming from your side? As you think about this technology, I know you said it's still obviously in development as you ramp into that 2027 opportunity, but as it stands today, how would you frame that split, if you will? Infineon has been a very, very close and strategic partner for us for many, many years and their components have been instrumental to the success of our inverters in the past. At the end of the day, it is one of the components that is putting together the hardware of the solution. On top of that, we have different, obviously we put different components together as well as the software or the firmware that makes the entire thing tick. Here in data center, we believe that we will have to have another layer that will manage the redundancy and other things. All of these things SolarEdge is doing. I do not know whether it, I do not know how to split it to megawatts, but think about it as they are a very strategic vendor for us, but then we sell the solution eventually. Got it. It sounds like you all maintain the majority of that sale to the extent to which you deliver a product here versus Infineon. Yes, we deliver the product, you know, knock on wood. We will deliver product, right? No, no, no, of course. If I can ask a broader question here, obviously in some respects you're pivoting out of what was an inventory challenge situation. How do you think about providing longer term views? You guys had a 2022 analyst day. How do you think about providing a longer term multi year view of some sort in 2026, especially as the C&I opportunity and as the SST opportunity becomes a little clearer over a multi year view? What we said in our recent meeting is that sometime during the first half of next year we will provide a financial model. Financial algorithm will go through the main block that will represent our growth trajectory and opportunities both on revenue and margin. We'll share this model again sometime in the first half of next year, including the C&I opportunity and others, of course. We will take our next question from Jeff Osborne with TD Cowen. Please go ahead. Your line is open. Yeah, thank you. Just two quick ones. I was wondering on the fixed costs, I think you folks had talked about $90 million-$95 million. I didn't know if that's a good run rate to think about over the next couple quarters. That was question one. And then question two is just any thoughts on pricing as it relates to SolarEdge heading into year end and into 2026 for both yourselves and the industry would be helpful. In terms of the fixed cost, yeah, we mentioned that it's around $90 million. Of course, being fixed cost, we don't expect them to change dramatically. We are focusing on trying to reduce cost through further automation. I think, I believe the single SKU concept again will help us streamline the entire supply chain with simplicity and more efficiency. We also want to reduce the fixed cost. It may take a couple of quarters and again as revenue increases, we would have better utilization of such fixed costs. The second question was. I'll take that. Yeah, go ahead. For pricing, as you know, pricing is determined by the value we bring to the market as well as the competitive landscape. In a way you can look at the U.S. market and see that pricing over there I would say is more or less the same. We haven't seen any pressure, downward pressure in Europe and in other markets while in the past we did see price reductions. As we shared with all of you, earlier or not earlier, in November 24th we reduced our prices in Europe. Since then the feedback that we are getting is that our pricing is competitive compared to the premium and the additional value that we're bringing. We haven't seen any significant pressure in terms of pricing also in markets outside of the U.S. We will take our next question from Chris Dendrinos with RBC Capital Markets. Please go ahead. Your line is open. Yeah, thank you. I wanted to follow up on C&I demand here and I know you all kind of stopped reporting some of the metrics there, but maybe just kind of help frame up what that demand picture looks like right now. I think you mentioned you'll be the only ones that can offer a non-FIAC compliant product with U.S. manufacturing. Do you have the scale, I guess, to ramp manufacturing for that C&I product if demand really strengthens? Thanks. Yeah, thank you, Chris. We said that we believe that we are the only scaled manufacturer who is capable of providing non-FIAC and domestic content compliant products to the U.S. C&I. And we've actually, we've already started doing it. Obviously we've started with, we've executed some safe harbor transactions with C&I customers for future years as well. We are overall, we believe that we are well positioned to gain additional market share in this important segment in the U.S. Overall the way we look at it is that we are well positioned in that market and we believe that we have the solution that our customers need outside of the U.S. As we mentioned, we've continued seeing increased attach rate to storage in commercial. We are seeing growth on that piece of our business, the commercial storage. As we will start exporting from the U.S. The commercial units, we believe that we can be more competitive in markets in which we were more constrained, I would say until now. Great, thanks. That's it for me. Thank you. We'll take our next question from John Wyndham with UBS. Please go ahead. Your line is open. Perfect. Thanks for taking the questions. I want to pivot back to the manufacturing conversation you were on p reviously. Just to be clear that U.S. manufacturing for export, one, you're entitled to 45X for that, is that correct? Two, how do you think about expanding U.S. capacity in a flexible way given that the tax credits do expire? Thanks. Hi, good morning. Yeah, you are right. We are getting the 45X credits on manufacturing whether we sell in the U.S. or whether we export to non-U.S. market. We work with the world leading providers, Jabil and Flex mostly. As you may know, we have a very scalable operation with them within the existing premises. We will be able to support the anticipated growth trajectory we have with them and again continue to enjoy the leverage of higher volume of the operation. Appreciate it. Thanks. Sure. There are no further questions on the line at this time. We will turn the program back to our presenters for any additional or closing remarks. Thank you, everyone, for attending our call today. As we said, we're excited about the opportunities ahead of us. We've executed well so far and we're thankful to our team. There is lots of work to be done and we are all on it. Thank you. Talk to you next quarter. Thank you. This does conclude today's program. Thank you for your participation. You may now disconnect.