Enphase Energy Reports Financial Results for the Fourth Quarter of 2025
Rhea-AI Summary
Enphase Energy (NASDAQ: ENPH) reported Q4 2025 revenue of $343.3M and non-GAAP gross margin of 46.1%. GAAP net income was $38.7M (diluted EPS $0.29); non-GAAP net income was $93.4M (diluted EPS $0.71). Cash and marketable securities totaled $1.51B.
Q4 shipments included ~1.55 million microinverters and 150.1 MWh of IQ Batteries. Company provided Q1 2026 guidance: revenue $270M–$300M and non-GAAP gross margin 42%–45%.
Positive
- FY 2025 revenue +10.7% to $1.47B
- FY 2025 net income +67.6% to $172.1M
- Ending cash and marketable securities of $1.51B
- Shipped approximately 1.55 million microinverters in Q4 2025
Negative
- Q4 2025 revenue -16.3% QoQ to $343.3M
- Q4 2025 GAAP net income -41.9% QoQ to $38.7M
- Non-GAAP operating income fell ~35.7% QoQ to $79.4M
- Reciprocal tariffs reduced margins by ~5.1 percentage points
News Market Reaction
On the day this news was published, ENPH gained 2.22%, reflecting a moderate positive market reaction. Argus tracked a peak move of +42.8% during that session. Our momentum scanner triggered 75 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $150M to the company's valuation, bringing the market cap to $6.90B at that time. Trading volume was exceptionally heavy at 6.8x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ENPH is down about 1.4% while key solar peers show mixed moves (e.g., RUN -3.81%, SEDG -1.13%, JKS +1.36%), pointing to a stock-specific reaction rather than a unified sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 28 | Q3 2025 earnings | Positive | -0.3% | Reported $410.4M revenue, highest in two years, with strong margins and cash. |
| Jul 22 | Q2 2025 earnings | Positive | -14.2% | Q2 revenue grew to $363.2M with record 190.9 MWh battery shipments and $1.53B cash. |
| Apr 22 | Q1 2025 earnings | Negative | -15.7% | Revenue fell to $356.1M with U.S. demand softness despite strong margins and cash. |
| Feb 04 | Q4 2024 earnings | Positive | -1.5% | Q4 2024 revenue rose to $382.7M with 53.2% non-GAAP margin and strong FCF. |
| Oct 22 | Q3 2024 earnings | Positive | -14.9% | Revenue jumped to $380.9M with robust shipments and $1.77B cash reserves. |
Earnings releases often trigger sizeable moves for ENPH, with several fundamentally positive reports followed by negative price reactions, indicating a pattern of market skepticism around results and guidance.
Across the last five earnings releases from Oct 2024 through Oct 2025, Enphase reported revenues in the roughly mid-$300M to low-$400M range, generally highlighting strong non-GAAP gross margins and solid cash positions. Nevertheless, four of these events saw negative next-day price moves, sometimes in double digits, despite positive operational metrics such as record revenues or healthy U.S. manufacturing volumes. Today’s Q4/FY 2025 report, with revenue of $343.3M and detailed 2026 guidance, fits into this history of closely scrutinized earnings updates.
Historical Comparison
Over the past five earnings reports, ENPH’s average next-day move was about 9.3%. Today’s roughly -1.4% reaction to Q4/FY 2025 results is relatively muted versus that history.
From Q3 2024 through Q3 2025, Enphase maintained quarterly revenues mostly in the mid-$300M to low-$400M range while emphasizing high non-GAAP gross margins, expanding U.S. manufacturing, and strong cash balances. The current Q4/FY 2025 release extends that trajectory with detailed safe harbor contributions and 2026 margin guidance, showing continuity in financial discipline despite shifting regional demand.
Market Pulse Summary
This announcement delivers a detailed look at Q4 and full-year 2025 performance, with revenue of $343.3M, non-GAAP gross margin of 46.1%, and FY 2025 revenue of $1.47B. Management highlights strong cash of $1.51B, ongoing U.S. manufacturing, and guidance for Q1 2026 revenue of $270M–$300M and margins under continued tariff pressure. Investors may monitor regional demand trends, safe harbor contributions, and execution on new products like IQ9 commercial microinverters and PowerMatch software.
Key Terms
non-gaap financial
free cash flow financial
production tax credits regulatory
foreign entity of concern (feoc) regulatory
section 25d tax credit regulatory
power purchase agreements (ppas) financial
reciprocal tariffs regulatory
AI-generated analysis. Not financial advice.
FREMONT, Calif., Feb. 03, 2026 (GLOBE NEWSWIRE) -- Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company, announced today financial results for the fourth quarter of 2025, which included the summary below from its President and CEO, Badri Kothandaraman.
We reported quarterly revenue of
Highlights for the fourth quarter of 2025 are listed below:
- Revenue of
$343.3 million - GAAP gross margin of
44.3% and non-GAAP gross margin of46.1% , including5.1% of tariff impact - GAAP operating income of
$22.4 million ; non-GAAP operating income of$79.4 million - GAAP net income of
$38.7 million ; non-GAAP net income of$93.4 million - GAAP diluted earnings per share of
$0.29 ; non-GAAP diluted earnings per share of$0.71 - Free cash flow of
$37.8 million ; ending cash, cash equivalents and marketable securities of$1.51 billion - Shipped 1.31 million microinverters and 51.1 MWh of IQ Batteries from Texas and South Carolina facilities
- Shipped IQ9N-3P™ commercial microinverters built on Enphase’s GaN-based power conversion architecture
- IQ® Meter Collar approved by 52 U.S. utilities, serving approximately 30 million customer accounts
Our revenue and earnings for the fourth quarter of 2025 are provided below, compared with the prior quarter:
(In thousands, except per share and percentage data)
| GAAP | Non-GAAP | ||||||||||||||||||||||
| Q4 2025 | Q3 2025 | Q4 2024 | Q4 2025 | Q3 2025 | Q4 2024 | ||||||||||||||||||
| Revenue | $ | 343,321 | $ | 410,427 | $ | 382,713 | $ | 343,321 | $ | 410,427 | $ | 382,713 | |||||||||||
| Gross margin | 44.3 | % | 47.8 | % | 51.8 | % | 46.1 | % | 49.2 | % | 53.2 | % | |||||||||||
| Operating expenses | $ | 129,593 | $ | 130,080 | $ | 143,489 | $ | 78,776 | $ | 78,538 | $ | 83,322 | |||||||||||
| Operating income | $ | 22,438 | $ | 66,159 | $ | 54,804 | $ | 79,372 | $ | 123,402 | $ | 120,434 | |||||||||||
| Net income | $ | 38,713 | $ | 66,638 | $ | 62,160 | $ | 93,428 | $ | 117,300 | $ | 125,862 | |||||||||||
| Basic EPS | $ | 0.30 | $ | 0.51 | $ | 0.46 | $ | 0.71 | $ | 0.90 | $ | 0.94 | |||||||||||
| Diluted EPS | $ | 0.29 | $ | 0.50 | $ | 0.45 | $ | 0.71 | $ | 0.90 | $ | 0.94 | |||||||||||
Our revenue and earnings for the fiscal year 2025 are provided below, compared with the prior year:
(In thousands, except per share and percentage data)
| GAAP | Non-GAAP | ||||||||||||||
| FY 2025 | FY 2024 | FY 2025 | FY 2024 | ||||||||||||
| Revenue | $ | 1,472,985 | $ | 1,330,383 | $ | 1,472,985 | $ | 1,330,383 | |||||||
| Gross margin | 46.6 | % | 47.3 | % | 48.2 | % | 48.8 | % | |||||||
| Operating expenses | $ | 529,478 | $ | 551,846 | $ | 314,517 | $ | 329,227 | |||||||
| Operating income | $ | 157,526 | $ | 77,292 | $ | 396,024 | $ | 321,919 | |||||||
| Net income | $ | 172,133 | $ | 102,658 | $ | 389,840 | $ | 321,044 | |||||||
| Basic EPS | $ | 1.31 | $ | 0.76 | $ | 2.97 | $ | 2.37 | |||||||
| Diluted EPS | $ | 1.29 | $ | 0.75 | $ | 2.96 | $ | 2.37 | |||||||
Total revenue for the fourth quarter of 2025 was
The sell-through demand for our products in the United States increased
Our non-GAAP gross margin was
Our non-GAAP operating expenses were
We exited the fourth quarter of 2025 with
In the fourth quarter of 2025, as part of our anti-dilution plan, we spent approximately
During the fourth quarter of 2025, we shipped approximately 1.31 million microinverters from our U.S. manufacturing facilities that we booked for 45X production tax credits, along with 51.1 MWh of IQ Batteries, supporting domestic content requirements. We shipped a total of 150.1 MWh of IQ Batteries in the fourth quarter of 2025, compared to 195.0 MWh in the third quarter. More than 22,000 installers worldwide are certified to install our IQ Batteries, compared to more than 19,500 installers worldwide in the third quarter.
In December of 2025, we began shipping our U.S.-manufactured IQ9N-3P commercial microinverter and IQ® EV Charger 2 across the United States. The IQ9N-3P microinverter helps eligible commercial projects meet domestic content and Foreign Entity of Concern (FEOC) requirements and is our first GaN-based microinverter for three-phase 480Y/277 V (wye) grids. The IQ EV Charger 2, our most advanced residential charger, works with Enphase solar and battery systems or as a standalone charger and is also available in Europe, Australia, Canada, and New Zealand.
During the fourth quarter of 2025, we launched PowerMatch™, a software-enabled technology that dynamically matches the IQ® Battery output to real-time home demand, increasing usable energy, extending battery life, and improving performance by up to
BUSINESS HIGHLIGHTS
On Feb. 2, 2026, Enphase Energy shared an update on the global progress and broad compatibility of its IQ® Bidirectional EV Charger.
On Jan. 27, 2026, Enphase Energy shared feedback from firefighters who participated in Solar and Fire Education (SAFE) training programs focused on modern solar system design and emergency response considerations.
On Jan. 12, 2026, Enphase Energy announced that it started shipping its GaN-based IQ9N-3P Commercial Microinverter across the United States in late December 2025.
On Dec. 16, 2025, Enphase Energy announced a newly expanded safe harbor agreement, projected to generate approximately
On Dec. 3, 2025, Enphase Energy announced the first production shipments of its next-generation IQ EV Charger 2 to customers across the United States.
On Dec. 2, 2025, Enphase Energy announced the launch in Europe of PowerMatch technology, which intelligently adjusts IQ Battery output to match a home’s real-time power needs, delivering more usable energy, longer battery life, and greater long-term savings.
On Nov. 20, 2025, Enphase Energy announced a new safe harbor agreement, projected to generate nearly
On Nov. 17, 2025, Enphase Energy announced an expanded number of utilities have approved the Enphase IQ Meter Collar for behind-the-meter installation, including Pacific Gas and Electric Company (PG&E) and San Diego Gas & Electric.
On Nov. 12, 2025, Enphase Energy announced a new partnership with Green Mountain Power (GMP) in Vermont to launch innovations benefitting customers through technology and grid transformation.
On Nov. 6, 2025, Enphase Energy announced that its IQ8™ Microinverters have been selected for gas station solar projects around the world, helping businesses deploy clean, reliable energy in some of the most safety-critical commercial environments.
On Nov. 4, 2025, Enphase Energy announced that its IQ Battery systems are now eligible for San Diego Community Power’s (Community Power) Solar Battery Savings program.
FIRST QUARTER 2026 FINANCIAL OUTLOOK
For the first quarter of 2026, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:
- Revenue to be within a range of
$270.0 million to$300.0 million , which includes shipments of 100 to 120 MWh of IQ Batteries. This outlook includes approximately$35.0 million of safe harbor shipments. - GAAP gross margin to be within a range of
40.0% to43.0% , including approximately five percentage points of reciprocal tariff impact. - Non-GAAP gross margin to be within a range of
42.0% to45.0% , including approximately five percentage points of reciprocal tariff impact. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization. - GAAP operating expenses to be within a range of
$137.0 million to$141.0 million . - Non-GAAP operating expenses to be within a range of
$77.0 million to$81.0 million , excluding$60.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization, restructuring and asset impairment charges.
Follow Enphase Online
- Read the Enphase blog.
- Follow @Enphase on X.
- Visit us on Facebook and LinkedIn.
- Watch Enphase videos on YouTube.
Use of non-GAAP Financial Measures
Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), and free cash flow.
These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.
As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:
Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.
Acquisition related amortization. This item represents amortization of acquired intangible assets, which is a non-cash expense. Acquisition related amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.
Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs, accelerated stock-based compensation expense and asset write-downs of property and equipment and acquired intangible assets, and other contract termination costs resulting from restructuring initiatives.
Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.
Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.
Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock upon conversion of the Notes due 2025, Notes due 2026, and Notes due 2028, and includes the dilutive effect of employee’s stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful supplemental information to the ongoing financial performance.
Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.
Conference Call Information
Enphase Energy will host a conference call for analysts and investors to discuss its fourth quarter 2025 results and first quarter 2026 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at https://investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (855) 669-9658; replay access code 5131981, beginning approximately one hour after the call.
Forward-Looking Statements
This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its first quarter of 2026 financial outlook, including revenue, shipments of IQ Batteries by MWh, gross margin, and operating expenses; the ability of Enphase Energy’s IQ9N-3P Commercial Microinverter to meet domestic content and FEOC requirements; and the capabilities, advantages, features, and performance of Enphase Energy’s technology and products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents on file with the SEC from time to time and available on the SEC’s website at www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.
A copy of this press release can be found on the investor relations page of Enphase Energy’s website at https://investor.enphase.com.
About Enphase Energy, Inc.
Enphase Energy, a global energy technology company based in Fremont, CA, is the world's leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 86.4 million microinverters, and more than 5.1 million Enphase-based systems have been deployed in over 160 countries. For more information, visit https://enphase.com/.
© 2026 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.
Contact:
Zach Freedman
Enphase Energy, Inc.
Investor Relations
ir@enphaseenergy.com
| ENPHASE ENERGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||||
| Net revenues | $ | 343,321 | $ | 410,427 | $ | 382,713 | $ | 1,472,985 | $ | 1,330,383 | |||||||||
| Cost of revenues | 191,290 | 214,188 | 184,420 | 785,981 | 701,245 | ||||||||||||||
| Gross profit | 152,031 | 196,239 | 198,293 | 687,004 | 629,138 | ||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Research and development | 46,214 | 47,266 | 50,390 | 189,075 | 201,315 | ||||||||||||||
| Sales and marketing | 49,420 | 48,429 | 51,799 | 197,505 | 206,552 | ||||||||||||||
| General and administrative | 34,599 | 33,098 | 31,901 | 135,767 | 130,825 | ||||||||||||||
| Restructuring and asset impairment charges | (640 | ) | 1,287 | 9,399 | 7,131 | 13,154 | |||||||||||||
| Total operating expenses | 129,593 | 130,080 | 143,489 | 529,478 | 551,846 | ||||||||||||||
| Income from operations | 22,438 | 66,159 | 54,804 | 157,526 | 77,292 | ||||||||||||||
| Other income, net | |||||||||||||||||||
| Interest income | 15,350 | 15,429 | 18,417 | 62,722 | 77,306 | ||||||||||||||
| Interest expense | (829 | ) | (830 | ) | (2,252 | ) | (4,521 | ) | (8,905 | ) | |||||||||
| Other income (expense), net | 1,738 | (3,739 | ) | (1,270 | ) | (10,913 | ) | (25,534 | ) | ||||||||||
| Total other income, net | 16,259 | 10,860 | 14,895 | 47,288 | 42,867 | ||||||||||||||
| Income before income taxes | 38,697 | 77,019 | 69,699 | 204,814 | 120,159 | ||||||||||||||
| Income tax benefit (provision) | 16 | (10,381 | ) | (7,539 | ) | (32,681 | ) | (17,501 | ) | ||||||||||
| Net income | $ | 38,713 | $ | 66,638 | $ | 62,160 | $ | 172,133 | $ | 102,658 | |||||||||
| Net income per share: | |||||||||||||||||||
| Basic | $ | 0.30 | $ | 0.51 | $ | 0.46 | $ | 1.31 | $ | 0.76 | |||||||||
| Diluted | $ | 0.29 | $ | 0.50 | $ | 0.45 | $ | 1.29 | $ | 0.75 | |||||||||
| Shares used in per share calculation: | |||||||||||||||||||
| Basic | 130,967 | 130,797 | 133,815 | 131,162 | 135,167 | ||||||||||||||
| Diluted | 133,461 | 132,995 | 138,128 | 134,886 | 140,004 | ||||||||||||||
| ENPHASE ENERGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||||||
| December 31, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 474,318 | $ | 369,110 | |||
| Restricted cash | — | 95,006 | |||||
| Marketable securities | 1,038,536 | 1,253,480 | |||||
| Accounts receivable, net | 229,881 | 223,749 | |||||
| Inventory | 288,047 | 165,004 | |||||
| Prepaid expenses and other assets | 576,078 | 220,735 | |||||
| Total current assets | 2,606,860 | 2,327,084 | |||||
| Property and equipment, net | 136,804 | 147,514 | |||||
| Intangible assets, net | 22,288 | 42,398 | |||||
| Goodwill | 214,760 | 211,571 | |||||
| Other assets | 222,677 | 205,542 | |||||
| Deferred tax assets, net | 306,403 | 315,567 | |||||
| Total assets | $ | 3,509,792 | $ | 3,249,676 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 203,039 | $ | 90,032 | |||
| Accrued liabilities | 217,366 | 196,887 | |||||
| Deferred revenues, current | 180,524 | 237,225 | |||||
| Warranty obligations, current | 29,038 | 34,656 | |||||
| Debt, current | 632,183 | 101,291 | |||||
| Total current liabilities | 1,262,150 | 660,091 | |||||
| Long-term liabilities: | |||||||
| Deferred revenues, non-current | 337,923 | 341,982 | |||||
| Warranty obligations, non-current | 185,005 | 158,233 | |||||
| Other liabilities | 65,497 | 55,265 | |||||
| Debt, non-current | 572,194 | 1,201,089 | |||||
| Total liabilities | 2,422,769 | 2,416,660 | |||||
| Total stockholders’ equity | 1,087,023 | 833,016 | |||||
| Total liabilities and stockholders’ equity | $ | 3,509,792 | $ | 3,249,676 | |||
| ENPHASE ENERGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||
| Net income | $ | 38,713 | $ | 66,638 | $ | 62,160 | $ | 172,133 | $ | 102,658 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
| Depreciation and amortization | 20,427 | 20,218 | 20,665 | 80,645 | 81,389 | ||||||||||||||
| Amortization (accretion) of investments purchased at a premium (discount) | (466 | ) | (765 | ) | (7,490 | ) | 1,047 | (8,599 | ) | ||||||||||
| Provision for (recovery of) credit losses | (288 | ) | (30 | ) | 2,206 | (126 | ) | 6,677 | |||||||||||
| Asset impairment | 1,549 | — | 4,702 | 3,114 | 28,843 | ||||||||||||||
| Benefit from lease termination | (1,280 | ) | — | — | (1,280 | ) | — | ||||||||||||
| Non-cash interest expense | 828 | 829 | 2,188 | 4,164 | 8,650 | ||||||||||||||
| Change in fair value of debt securities | (2,752 | ) | 3,174 | (3,697 | ) | 9,563 | (1,967 | ) | |||||||||||
| Stock-based compensation | 53,092 | 51,469 | 51,830 | 214,090 | 211,360 | ||||||||||||||
| Deferred income taxes | (1,054 | ) | (1,826 | ) | (30,675 | ) | 6,083 | (58,319 | ) | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||
| Accounts receivable | 51,379 | (57,980 | ) | 2,684 | 3,840 | 211,640 | |||||||||||||
| Inventory | (99,395 | ) | (15,636 | ) | (6,167 | ) | (123,043 | ) | 48,591 | ||||||||||
| Prepaid expenses and other assets | (100,414 | ) | (78,330 | ) | (16,487 | ) | (318,558 | ) | (134,343 | ) | |||||||||
| Accounts payable, accrued and other liabilities | 22,205 | 25,494 | (27,396 | ) | 139,143 | (85,536 | ) | ||||||||||||
| Warranty obligations | 3,902 | 4,055 | 8,657 | 21,154 | 3,802 | ||||||||||||||
| Deferred revenues | 61,133 | (3,392 | ) | 104,112 | (75,429 | ) | 98,847 | ||||||||||||
| Net cash provided by operating activities | 47,579 | 13,918 | 167,292 | 136,540 | 513,693 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||
| Purchases of property and equipment | (9,740 | ) | (8,032 | ) | (8,064 | ) | (40,639 | ) | (33,604 | ) | |||||||||
| Investment in debt securities | — | (6,300 | ) | — | (6,300 | ) | — | ||||||||||||
| Investment in equity of private company | (5,000 | ) | — | — | (5,000 | ) | — | ||||||||||||
| Investment in tax equity fund | — | (1,408 | ) | — | (9,752 | ) | — | ||||||||||||
| Issuances of loan receivables | — | (48,500 | ) | — | (48,500 | ) | — | ||||||||||||
| Purchases of marketable securities | (143,405 | ) | (116,236 | ) | (93,138 | ) | (744,773 | ) | (1,184,649 | ) | |||||||||
| Maturities and sales of marketable securities | 181,657 | 201,881 | 351,843 | 961,756 | 1,346,520 | ||||||||||||||
| Net cash provided by investing activities | 23,512 | 21,405 | 250,641 | 106,792 | 128,267 | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||
| Settlement of Notes due 2025 | — | — | — | (102,168 | ) | (7 | ) | ||||||||||||
| Repurchases of common stock | — | — | (199,666 | ) | (129,957 | ) | (391,364 | ) | |||||||||||
| Payment of excise tax on net stock repurchases | — | — | (2,773 | ) | — | (2,773 | ) | ||||||||||||
| Proceeds from issuances of common stock under employee equity plans | 3,158 | — | 4,719 | 8,527 | 12,688 | ||||||||||||||
| Payments of withholding taxes related to net share settlement of equity awards | (1,373 | ) | (1,679 | ) | (5,012 | ) | (18,026 | ) | (78,813 | ) | |||||||||
| Net cash provided by (used in) financing activities | 1,785 | (1,679 | ) | (202,732 | ) | (241,624 | ) | (460,269 | ) | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (438 | ) | (2,300 | ) | (7,410 | ) | 8,494 | (6,323 | ) | ||||||||||
| Net increase in cash, cash equivalents and restricted cash | 72,438 | 31,344 | 207,791 | 10,202 | 175,368 | ||||||||||||||
| Cash, cash equivalents and restricted cash — Beginning of period | 401,880 | 370,536 | 256,325 | 464,116 | 288,748 | ||||||||||||||
| Cash, cash equivalents and restricted cash — End of period | $ | 474,318 | $ | 401,880 | $ | 464,116 | $ | 474,318 | $ | 464,116 | |||||||||
| ENPHASE ENERGY, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In thousands, except per share data and percentages) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||||
| Gross profit (GAAP) | $ | 152,031 | $ | 196,239 | $ | 198,293 | $ | 687,004 | $ | 629,138 | |||||||||
| Stock-based compensation | 4,523 | 4,105 | 3,678 | 17,178 | 14,538 | ||||||||||||||
| Acquisition related amortization | 1,593 | 1,596 | 1,784 | 6,359 | 7,469 | ||||||||||||||
| Gross profit (Non-GAAP) | $ | 158,147 | $ | 201,940 | $ | 203,755 | $ | 710,541 | $ | 651,145 | |||||||||
| Gross margin (GAAP) | 44.3 | % | 47.8 | % | 51.8 | % | 46.6 | % | 47.3 | % | |||||||||
| Stock-based compensation | 1.3 | 1.0 | 0.9 | 1.2 | 1.0 | ||||||||||||||
| Acquisition related amortization | 0.5 | 0.4 | 0.5 | 0.4 | 0.6 | ||||||||||||||
| Gross margin (Non-GAAP) | 46.1 | % | 49.2 | % | 53.2 | % | 48.2 | % | 48.8 | % | |||||||||
| Operating expenses (GAAP) | $ | 129,593 | $ | 130,080 | $ | 143,489 | $ | 529,478 | $ | 551,846 | |||||||||
| Stock-based compensation(1) | (48,568 | ) | (47,364 | ) | (47,884 | ) | (196,323 | ) | (196,554 | ) | |||||||||
| Acquisition related amortization | (2,889 | ) | (2,891 | ) | (2,884 | ) | (11,507 | ) | (12,911 | ) | |||||||||
| Restructuring and asset impairment charges(1) | 640 | (1,287 | ) | (9,399 | ) | (7,131 | ) | (13,154 | ) | ||||||||||
| Operating expenses (Non-GAAP) | $ | 78,776 | $ | 78,538 | $ | 83,322 | $ | 314,517 | $ | 329,227 | |||||||||
| (1)Includes stock-based compensation as follows: | |||||||||||||||||||
| Research and development | $ | 20,221 | $ | 20,488 | $ | 20,951 | $ | 82,837 | $ | 85,501 | |||||||||
| Sales and marketing | 15,690 | 14,493 | 15,893 | 63,236 | 65,092 | ||||||||||||||
| General and administrative | 12,658 | 12,383 | 11,041 | 50,251 | 45,962 | ||||||||||||||
| Restructuring and asset impairment charges | — | — | 267 | 588 | 267 | ||||||||||||||
| Total | $ | 48,569 | $ | 47,364 | $ | 48,152 | $ | 196,912 | $ | 196,822 | |||||||||
| Income from operations (GAAP) | $ | 22,438 | $ | 66,159 | $ | 54,804 | $ | 157,526 | $ | 77,292 | |||||||||
| Stock-based compensation | 53,092 | 51,469 | 51,563 | 213,502 | 211,093 | ||||||||||||||
| Acquisition related amortization | 4,482 | 4,487 | 4,668 | 17,866 | 20,380 | ||||||||||||||
| Restructuring and asset impairment charges | (640 | ) | 1,287 | 9,399 | 7,131 | 13,154 | |||||||||||||
| Income from operations (Non-GAAP) | $ | 79,372 | $ | 123,402 | $ | 120,434 | $ | 396,024 | $ | 321,919 | |||||||||
| Net income (GAAP) | $ | 38,713 | $ | 66,638 | $ | 62,160 | $ | 172,133 | $ | 102,658 | |||||||||
| Stock-based compensation | 53,092 | 51,469 | 51,563 | 213,502 | 211,093 | ||||||||||||||
| Acquisition related amortization | 4,482 | 4,487 | 4,668 | 17,866 | 20,380 | ||||||||||||||
| Restructuring and asset impairment charges | (640 | ) | 1,287 | 9,399 | 7,131 | 13,154 | |||||||||||||
| Non-cash interest expense | 828 | 829 | 2,188 | 4,164 | 8,650 | ||||||||||||||
| Non-GAAP income tax adjustment | (3,047 | ) | (7,410 | ) | (4,116 | ) | (24,955 | ) | (34,891 | ) | |||||||||
| Net income (Non-GAAP) | $ | 93,428 | $ | 117,300 | $ | 125,862 | $ | 389,840 | $ | 321,044 | |||||||||
| Net income per share, basic (GAAP) | $ | 0.30 | $ | 0.51 | $ | 0.46 | $ | 1.31 | $ | 0.76 | |||||||||
| Stock-based compensation | 0.41 | 0.39 | 0.39 | 1.63 | 1.56 | ||||||||||||||
| Acquisition related amortization | 0.02 | 0.03 | 0.03 | 0.14 | 0.15 | ||||||||||||||
| Restructuring and asset impairment charges | — | 0.01 | 0.07 | 0.05 | 0.10 | ||||||||||||||
| Non-cash interest expense | 0.01 | 0.01 | 0.02 | 0.03 | 0.06 | ||||||||||||||
| Non-GAAP income tax adjustment | (0.03 | ) | (0.05 | ) | (0.03 | ) | (0.19 | ) | (0.26 | ) | |||||||||
| Net income per share, basic (Non-GAAP) | $ | 0.71 | $ | 0.90 | $ | 0.94 | $ | 2.97 | $ | 2.37 | |||||||||
| Shares used in basic per share calculation GAAP and Non-GAAP | 130,967 | 130,797 | 133,815 | 131,162 | 135,167 | ||||||||||||||
| Net income per share, diluted (GAAP) | $ | 0.29 | $ | 0.50 | $ | 0.45 | $ | 1.29 | $ | 0.75 | |||||||||
| Stock-based compensation | 0.40 | 0.39 | 0.39 | 1.62 | 1.56 | ||||||||||||||
| Acquisition related amortization | 0.03 | 0.04 | 0.04 | 0.14 | 0.15 | ||||||||||||||
| Restructuring and asset impairment charges | — | 0.01 | 0.07 | 0.05 | 0.10 | ||||||||||||||
| Non-cash interest expense | 0.01 | 0.01 | 0.02 | 0.04 | 0.06 | ||||||||||||||
| Non-GAAP income tax adjustment | (0.02 | ) | (0.05 | ) | (0.03 | ) | (0.18 | ) | (0.26 | ) | |||||||||
| Net income per share, diluted (Non-GAAP) | $ | 0.71 | $ | 0.90 | $ | 0.94 | $ | 2.96 | $ | 2.37 | |||||||||
| Shares used in diluted per share calculation GAAP | 133,461 | 132,995 | 138,128 | 134,886 | 140,004 | ||||||||||||||
| Shares used in diluted per share calculation Non-GAAP | 131,443 | 130,977 | 134,053 | 131,515 | 135,641 | ||||||||||||||
| Net cash provided by operating activities (GAAP) | $ | 47,579 | $ | 13,918 | $ | 167,292 | $ | 136,540 | $ | 513,693 | |||||||||
| Purchases of property and equipment | (9,740 | ) | (8,032 | ) | (8,064 | ) | (40,639 | ) | (33,604 | ) | |||||||||
| Free cash flow (Non-GAAP) | $ | 37,839 | $ | 5,886 | $ | 159,228 | $ | 95,901 | $ | 480,089 | |||||||||
FAQ
What were Enphase (ENPH) Q4 2025 revenue and EPS results?
How did Enphase (ENPH) shipments perform in Q4 2025?
What drove Enphase (ENPH) margin changes in Q4 2025?
What is Enphase (ENPH) cash position and free cash flow in Q4 2025?
What guidance did Enphase (ENPH) provide for Q1 2026?
