Enphase Energy Reports Financial Results for the Second Quarter of 2026
Rhea-AI Summary
Enphase Energy (NASDAQ: ENPH) reported Q2 2026 revenue of $291.9 million, up from $282.9 million in Q1 2026 and including $84.3 million of safe harbor revenue. GAAP gross margin was 60.0% and non-GAAP gross margin 46.8%, with GAAP net income of $36.1 million and non-GAAP net income of $61.5 million.
The company shipped approximately 1.59 million IQ Microinverters (725.2 MW DC) and 113.8 MWh of IQ Batteries. Enphase ended the quarter with $937.7 million in cash, generated $40.3 million in operating cash flow and $25.9 million of free cash flow, and received $52.0 million in U.S. tariff refunds that boosted GAAP gross profit.
Year-to-date, Enphase executed agreements with third-party owners totaling about $1.08 billion of safe harbor structures and advanced development of its IQ Solid-State Transformer for AI data centers. For Q3 2026, it guides revenue to $290–$320 million, with non-GAAP gross margin of 44–47% and non-GAAP opex of $76–$80 million.
Positive
- Revenue $291.9m, up from $282.9m in Q1 2026
- Non-GAAP gross margin 46.8%, up from 43.9% in Q1
- Non-GAAP operating income $56.7m, versus $47.3m in Q1
- Cash, cash equivalents and securities $937.7m at quarter end
- $52.0m in tariff refunds favorably impacted Q2 GAAP results
- $1.08bn of year-to-date safe harbor-related agreements executed
Negative
- Q2 2026 revenue $291.9m versus $363.2m in Q2 2025
- U.S. revenue decreased approximately 3% quarter over quarter
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 28 | Q1 earnings report | Negative | -9.1% | Quarterly loss and guidance accompanied the first-quarter results announcement. |
| Feb 03 | Q4 earnings report | Positive | +38.6% | Revenue, profitability, shipments, and cash position strengthened in fourth-quarter results. |
| Oct 28 | Q3 earnings report | Positive | -15.2% | Record battery shipments and strong margins accompanied the third-quarter results. |
| Jul 22 | Q2 earnings report | Positive | -14.2% | Higher revenue and margins accompanied second-quarter results and forward guidance. |
| Apr 22 | Q1 earnings report | Negative | -15.7% | Revenue declined amid softening demand despite margin and battery-sales commentary. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings reactions were negative on average, with three of five tag-matched events showing downside-aligned price responses.
Key Terms
gaap financial
non-gaap financial measures financial
free cash flow financial
reciprocal tariffs regulatory
droop control technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
FREMONT, Calif., July 28, 2026 (GLOBE NEWSWIRE) -- Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company, announced today financial results for the second quarter of 2026, which included the summary below from its President and CEO, Badri Kothandaraman.
We reported quarterly revenue of
Highlights for the second quarter of 2026 are listed below:
- Strong progress on development of IQ® SST; achieved key technical milestones and deepened customer engagement with potential multi-gigawatt opportunities
- Revenue of
$291.9 million - GAAP gross margin of
60.0% ; non-GAAP gross margin of46.8% - GAAP operating income of
$51.5 million ; non-GAAP operating income of$56.7 million - GAAP net income of
$36.1 million ; non-GAAP net income of$61.5 million - GAAP diluted earnings per share of
$0.27 ; non-GAAP diluted earnings per share of$0.46 - Free cash flow of
$25.9 million ; ending cash, cash equivalents and marketable securities of$937.7 million - Shipped 1.58 million microinverters and battery inverters from Texas and South Carolina facilities
- Executed agreements year-to-date with third-party owners totaling approximately
$1.08 billion :$202.4 million under the5% ITC Safe Harbor and$878.6 million under the Physical Work Test
Our revenue and earnings for the second quarter of 2026 are provided below, compared with the prior quarter:
(In thousands, except per share and percentage data)
| GAAP | Non-GAAP | ||||||||||||||||||||||
| Q2 2026 | Q1 2026 | Q2 2025 | Q2 2026 | Q1 2026 | Q2 2025 | ||||||||||||||||||
| Revenue | $ | 291,854 | $ | 282,900 | $ | 363,153 | $ | 291,854 | $ | 282,900 | $ | 363,153 | |||||||||||
| Gross margin | 60.0 | % | 35.5 | % | 46.9 | % | 46.8 | % | 43.9 | % | 48.6 | % | |||||||||||
| Operating expenses | $ | 123,495 | $ | 130,036 | $ | 133,486 | $ | 79,820 | $ | 76,954 | $ | 77,781 | |||||||||||
| Operating income (loss) | $ | 51,519 | $ | (29,643 | ) | $ | 37,007 | $ | 56,697 | $ | 47,270 | $ | 98,613 | ||||||||||
| Net income (loss) | $ | 36,079 | $ | (7,406 | ) | $ | 37,052 | $ | 61,515 | $ | 62,256 | $ | 89,869 | ||||||||||
| Basic EPS | $ | 0.27 | $ | (0.06 | ) | $ | 0.28 | $ | 0.47 | $ | 0.47 | $ | 0.69 | ||||||||||
| Diluted EPS | $ | 0.27 | $ | (0.06 | ) | $ | 0.28 | $ | 0.46 | $ | 0.47 | $ | 0.69 | ||||||||||
Total revenue for the second quarter of 2026 was
Non-GAAP gross margin was
Non-GAAP operating expenses were
We exited the second quarter of 2026 with
During the second quarter, we received approximately
We shipped 113.8 MWh of IQ Batteries in the second quarter, compared to 103.1 MWh in the first quarter. More than 25,000 installers worldwide are now certified to install IQ Batteries, up from more than 24,000 in the first quarter.
During the second quarter, we accelerated development of the IQ® Solid-State Transformer (IQ SST) for next-generation AI data centers. We are actively engaged with customers and ecosystem partners, with a few opportunities advancing to the RFI and RFP stages and representing a potential multi-gigawatt pipeline. We achieved important milestones across the IQ SST power module, medium-voltage transformer, and system-control architecture, including a 15-module series stack operating at 4.16 kV AC with droop control, and remain on track for a full-system demonstration later this year.
We expanded our commercial portfolio during the second quarter. In the United States, we began shipping our IQ9S-3P™ Commercial Microinverter, a GaN-based 548 W microinverter designed for 480 V three-phase systems. Together with the IQ9N-3P™ Commercial Microinverter, the IQ9S-3P broadens our offering for the U.S. commercial solar market.
We also launched our IQ9N™ Residential Microinverter in the United States and key European markets in June 2026, followed by Australia and New Zealand in July. Built with advanced GaN technology, the IQ9N is designed to pair with today’s high-power residential solar modules and help maximize energy harvest and system performance.
At Intersolar Europe in June 2026, we showcased our upcoming IQ® Battery G5. This AC-coupled battery is designed to provide higher energy density and flexible capacity through stackable 5 kWh modules that can scale up to 30 kWh. It uses 100 Ah prismatic cells and is expected to deliver approximately
We also showcased our IQ® Bidirectional EV Charger at Intersolar Europe. Built on our GaN power platform and designed to support modern 800 V DC electric vehicle architectures, the charger is engineered to move power efficiently and bidirectionally between the grid-facing AC system and the vehicle. We are collaborating with several leading global automotive manufacturers to support the adoption of this product.
BUSINESS HIGHLIGHTS
- On July 27, 2026, Enphase Energy announced the publication of a new technical white paper titled "The Enphase Kestrel ASIC: A Purpose-Built Platform for Intelligent Power Conversion."
- On July 21, 2026, Enphase Energy announced that homeowners across Europe with existing second-generation Enphase IQ Batteries can now enjoy home backup when they add an IQ® System Controller and expand their energy storage while keeping the batteries they already own.
- On July 16, 2026, Enphase Energy highlighted the safety and reliability of its IQ® EV Charger 2 across Europe’s diverse climates.
- On July 13, June 23, and June 11, 2026, Enphase Energy announced the launch of the new IQ9N Microinverter for residential solar systems in Australia and New Zealand, the United States, and key European markets, respectively.
- On July 9, 2026, Enphase Energy announced that it opened pre-orders for the 20th anniversary limited edition IQ® PowerPack 1500, a smart, portable power station designed to provide reliable power at home, at work, and outdoors.
- On July 8, 2026, Enphase Energy announced it opened pre-orders for a smart thermostat with live solar, battery, and home power display.
- On June 30, 2026, Enphase Energy announced that it has joined the Open Compute Project Foundation as a Platinum member to help advance open standards for next-generation AI data center power infrastructure.
- On June 18, 2026, Enphase Energy announced that it began production shipments of its IQ9S-3P Commercial Microinverter, the company's most powerful microinverter currently available across the United States.
- On June 17, 2026, Enphase Energy announced plans to showcase the IQ Battery G5, IQ9N Microinverter, IQ Bidirectional EV Charger, and IQ® Energy Management platform at Intersolar Europe in Munich, Germany.
- On May 21, 2026, Enphase Energy announced it published a technical white paper on its adoption of gallium nitride (GaN) bi-directional switch technology for next-generation distributed power electronics for AI data centers.
- On May 18, 2026, Enphase Energy announced the launch of its PowerMatch™ battery software technology across North America and selected countries in Central America and the Caribbean.
- On May 7, 2026, Enphase Energy announced a new safe harbor agreement with a U.S. solar and battery financing company offering leases and PPAs to homeowners and businesses.
- On May 4, 2026, Enphase Energy announced it published a technical white paper titled “IQ Solid-State Transformer: Intelligent Power for AI.”
THIRD QUARTER 2026 FINANCIAL OUTLOOK
For the third quarter of 2026, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:
- Revenue to be within a range of
$290.0 million to$320.0 million , which includes shipments of 130 to 150 MWh of IQ Batteries. This outlook includes approximately$75.0 million of safe harbor shipments. - GAAP gross margin to be within a range of
42.0% to45.0% , including approximately 2 percentage points of reciprocal tariff impact. - Non-GAAP gross margin to be within a range of
44.0% to47.0% , including approximately 2 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
$120.0 million to$124.0 million . - Non-GAAP operating expenses to be within a range of
$76.0 million to$80.0 million , excluding$44.0 million estimated for stock-based compensation expense, acquisition related amortization, and restructuring and asset impairment charges.
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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:
Tariff refunds. This item represents refunds received for tariffs previously imposed under the International Emergency Economic Powers Act, which were invalidated following the United States Supreme Court ruling in Learning Resources, Inc. v. Trump. The Company received refunds and associated interest of approximately
AMPTC adjustment. In the first quarter of 2026, the Company decided to sell its Advanced Manufacturing Production Tax Credit (AMPTC) generated in 2025 and going forward in the tax credit transfer market. The Company sold
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 expenses and amortization. This item represents costs incurred in connection with acquisition-related activities, which are not indicative of normal, recurring operating expenses, and amortization of acquired intangible assets, which is a non-cash expense. Acquisition related expenses and 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 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 second quarter 2026 results and third 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 8131398, 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 third quarter of 2026 financial performance and outlook, including revenue, shipments of IQ Batteries by MWh, gross margin, and operating expenses; anticipated demand for Enphase Energy’s microinverter, battery, energy management, and commercial products; expectations regarding the commercial microinverter market opportunity in the United States, including the IQ9S-3P Commercial Microinverter; the expected availability of the IQ Battery G5 and IQ Bidirectional EV Charger in Europe; expectations regarding the expansion of the IQ Energy Management platform to additional markets; expectations regarding the expected impact of tax credit expirations, tariff structures, and incentive programs; expectations regarding safe harbor agreements and the timing and variability of related revenue recognition; the capabilities, advantages, features, and performance of Enphase Energy’s technology and products, including GaN-based microinverters and PowerMatch battery software; and Enphase Energy’s expectations regarding the timing and development of its IQ SST product for data centers. These forward-looking statements are based on Enphase Energy’s current expectations and assumptions and inherently involve significant risks and uncertainties. Actual results may differ materially from those expressed or implied by these forward‑looking statements. Such risks include, but are not limited to, fluctuations in market demand; changes in installer and customer purchasing behavior; changes in tax credits, tariffs, incentive programs, and regulatory policies, including the expiration of existing tariffs and potential imposition of replacement tariffs; energy pricing volatility; supply chain and manufacturing constraints; safe harbor agreement execution and the timing of related revenue recognition and cash flows; product performance and reliability; successful expansion into commercial solar and international markets; and other factors discussed in Enphase Energy’s filings with the Securities and Exchange Commission, including those risks described in more detail in Enphase Energy’s most recently filed Annual Report on Form 10‑K, 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, EV chargers, home energy management systems, and virtual power plant (VPP) solutions. Enphase products enable people to harness the sun to make, use, save, and sell their own power, all controlled through the Enphase App. The company revolutionized the solar industry with its microinverter-based technology and has shipped approximately 89.4 million microinverters, with approximately 5.3 million Enphase-based systems deployed in over 165 countries. For more information, visit https://enphase.com/.
© 2026 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, 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. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||
| Net revenues | $ | 291,854 | $ | 282,900 | $ | 363,153 | $ | 574,754 | $ | 719,237 | |||||||||
| Cost of revenues | 116,840 | 182,507 | 192,660 | 299,347 | 380,503 | ||||||||||||||
| Gross profit | 175,014 | 100,393 | 170,493 | 275,407 | 338,734 | ||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Research and development | 45,658 | 44,867 | 45,421 | 90,525 | 95,595 | ||||||||||||||
| Sales and marketing | 45,545 | 48,087 | 50,708 | 93,632 | 99,656 | ||||||||||||||
| General and administrative | 31,334 | 33,255 | 34,035 | 64,589 | 68,070 | ||||||||||||||
| Restructuring and asset impairment charges | 958 | 3,827 | 3,322 | 4,785 | 6,484 | ||||||||||||||
| Total operating expenses | 123,495 | 130,036 | 133,486 | 253,531 | 269,805 | ||||||||||||||
| Income (loss) from operations | 51,519 | (29,643 | ) | 37,007 | 21,876 | 68,929 | |||||||||||||
| Other income, net | |||||||||||||||||||
| Interest income | 12,154 | 12,625 | 14,911 | 24,779 | 31,943 | ||||||||||||||
| Interest expense | (327 | ) | (633 | ) | (815 | ) | (960 | ) | (2,862 | ) | |||||||||
| Other income (expense), net | (1,447 | ) | 3,791 | (8,898 | ) | 2,344 | (8,912 | ) | |||||||||||
| Total other income, net | 10,380 | 15,783 | 5,198 | 26,163 | 20,169 | ||||||||||||||
| Income (loss) before income taxes | 61,899 | (13,860 | ) | 42,205 | 48,039 | 89,098 | |||||||||||||
| Income tax benefit (provision) | (25,820 | ) | 6,454 | (5,153 | ) | (19,366 | ) | (22,316 | ) | ||||||||||
| Net income (loss) | $ | 36,079 | $ | (7,406 | ) | $ | 37,052 | $ | 28,673 | $ | 66,782 | ||||||||
| Net income (loss) per share: | |||||||||||||||||||
| Basic | $ | 0.27 | $ | (0.06 | ) | $ | 0.28 | $ | 0.22 | $ | 0.51 | ||||||||
| Diluted | $ | 0.27 | $ | (0.06 | ) | $ | 0.28 | $ | 0.22 | $ | 0.50 | ||||||||
| Shares used in per share calculation: | |||||||||||||||||||
| Basic | 131,963 | 131,337 | 131,031 | 131,652 | 131,447 | ||||||||||||||
| Diluted | 135,122 | 131,337 | 135,219 | 132,788 | 135,719 | ||||||||||||||
| ENPHASE ENERGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||||
| June 30, 2026 | December 31, 2025 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 529,344 | $ | 474,318 | |
| Marketable securities | 408,364 | 1,038,536 | |||
| Accounts receivable, net | 273,607 | 229,881 | |||
| Inventory | 285,022 | 288,047 | |||
| Prepaid expenses and other current assets | 454,200 | 576,078 | |||
| Total current assets | 1,950,537 | 2,606,860 | |||
| Property and equipment, net | 136,449 | 136,804 | |||
| Intangible assets, net | 13,081 | 22,288 | |||
| Goodwill | 213,231 | 214,760 | |||
| Other assets | 316,290 | 222,677 | |||
| Deferred tax assets, net | 289,671 | 306,403 | |||
| Total assets | $ | 2,919,259 | $ | 3,509,792 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 124,591 | $ | 203,039 | |
| Accrued liabilities | 188,516 | 217,366 | |||
| Deferred revenues, current | 224,272 | 180,524 | |||
| Warranty obligations, current | 27,784 | 29,038 | |||
| Debt, current | — | 632,183 | |||
| Total current liabilities | 565,163 | 1,262,150 | |||
| Long-term liabilities: | |||||
| Deferred revenues, non-current | 358,233 | 337,923 | |||
| Warranty obligations, non-current | 175,422 | 185,005 | |||
| Other liabilities | 65,769 | 65,497 | |||
| Debt, non-current | 572,836 | 572,194 | |||
| Total liabilities | 1,737,423 | 2,422,769 | |||
| Total stockholders’ equity | 1,181,836 | 1,087,023 | |||
| Total liabilities and stockholders’ equity | $ | 2,919,259 | $ | 3,509,792 | |
| ENPHASE ENERGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||
| Net income (loss) | $ | 36,079 | $ | (7,406 | ) | $ | 37,052 | $ | 28,673 | $ | 66,782 | ||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||
| Depreciation and amortization | 20,196 | 20,815 | 20,085 | 41,011 | 40,000 | ||||||||||||||
| Discount from sale of AMPTC generated | — | 16,450 | — | 16,450 | — | ||||||||||||||
| Amortization (accretion) of investments purchased at a premium (discount) | 184 | 5,108 | (1,234 | ) | 5,292 | 2,278 | |||||||||||||
| Provision for credit losses | 90 | 51 | 130 | 141 | 192 | ||||||||||||||
| Asset impairment | — | 79 | 1,538 | 79 | 1,565 | ||||||||||||||
| Non-cash interest expense | 327 | 633 | 828 | 960 | 2,507 | ||||||||||||||
| Change in fair value of debt securities and tax equity fund | 2,494 | 82 | 9,464 | 2,576 | 9,141 | ||||||||||||||
| Stock-based compensation | 43,554 | 48,991 | 53,896 | 92,545 | 109,529 | ||||||||||||||
| Deferred income taxes | 21,203 | (3,127 | ) | 403 | 18,076 | 8,963 | |||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||
| Accounts receivable | (77,229 | ) | 41,555 | 8,681 | (35,674 | ) | 10,441 | ||||||||||||
| Inventory | 5,679 | (2,654 | ) | (28,991 | ) | 3,025 | (8,012 | ) | |||||||||||
| Prepaid expenses and other assets | (125,984 | ) | 155,340 | (64,261 | ) | 29,356 | (139,814 | ) | |||||||||||
| Accounts payable, accrued and other liabilities | 2,477 | (118,126 | ) | 37,212 | (115,649 | ) | 91,444 | ||||||||||||
| Warranty obligations | (1,001 | ) | (9,836 | ) | 2,639 | (10,837 | ) | 13,197 | |||||||||||
| Deferred revenues | 112,254 | (45,084 | ) | (50,813 | ) | 67,170 | (133,170 | ) | |||||||||||
| Net cash provided by operating activities | 40,323 | 102,871 | 26,629 | 143,194 | 75,043 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||
| Purchases of property and equipment | (14,394 | ) | (19,898 | ) | (8,259 | ) | (34,292 | ) | (22,867 | ) | |||||||||
| Issuance of secured revolving credit facility | (29,000 | ) | — | — | (29,000 | ) | — | ||||||||||||
| Issuance of loan receivable | — | (1,000 | ) | — | (1,000 | ) | — | ||||||||||||
| Investment in tax equity fund | — | — | (1,440 | ) | — | (8,344 | ) | ||||||||||||
| Receipts of loan receivables | 10,085 | — | — | 10,085 | — | ||||||||||||||
| Purchases of marketable securities | (29,006 | ) | — | (284,306 | ) | (29,006 | ) | (485,132 | ) | ||||||||||
| Maturities and sales of marketable securities | 52,779 | 597,281 | 242,820 | 650,060 | 578,218 | ||||||||||||||
| Net cash provided by (used in) investing activities | (9,536 | ) | 576,383 | (51,185 | ) | 566,847 | 61,875 | ||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||
| Settlement of Notes due 2026 | — | (632,500 | ) | — | (632,500 | ) | — | ||||||||||||
| Settlement of Notes due 2025 | — | — | — | — | (102,168 | ) | |||||||||||||
| Repurchases of common stock | — | — | (29,993 | ) | — | (129,957 | ) | ||||||||||||
| Proceeds from issuances of common stock under employee equity plans | 4,171 | — | 5,302 | 4,171 | 5,369 | ||||||||||||||
| Payments of withholding taxes related to net share settlement of equity awards | (2,540 | ) | (18,686 | ) | (2,864 | ) | (21,226 | ) | (14,974 | ) | |||||||||
| Net cash provided by (used in) financing activities | 1,631 | (651,186 | ) | (27,555 | ) | (649,555 | ) | (241,730 | ) | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (620 | ) | (4,840 | ) | 7,557 | (5,460 | ) | 11,232 | |||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 31,798 | 23,228 | (44,554 | ) | 55,026 | (93,580 | ) | ||||||||||||
| Cash, cash equivalents and restricted cash — Beginning of period | 497,546 | 474,318 | 415,090 | 474,318 | 464,116 | ||||||||||||||
| Cash, cash equivalents and restricted cash — End of period | $ | 529,344 | $ | 497,546 | $ | 370,536 | $ | 529,344 | $ | 370,536 | |||||||||
| ENPHASE ENERGY, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In thousands, except per share data and percentages) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||
| Gross profit (GAAP) | $ | 175,014 | $ | 100,393 | $ | 170,493 | $ | 275,407 | $ | 338,734 | |||||||||
| Tariff refunds | (43,411 | ) | — | — | (43,411 | ) | — | ||||||||||||
| AMPTC adjustment | — | 18,905 | — | 18,905 | — | ||||||||||||||
| Stock-based compensation | 3,666 | 3,584 | 4,311 | 7,250 | 8,550 | ||||||||||||||
| Acquisition related amortization | 1,248 | 1,342 | 1,590 | 2,590 | 3,170 | ||||||||||||||
| Gross profit (Non-GAAP) | $ | 136,517 | $ | 124,224 | $ | 176,394 | $ | 260,741 | $ | 350,454 | |||||||||
| Gross margin (GAAP) | 60.0 | % | 35.5 | % | 46.9 | % | 47.9 | % | 47.1 | % | |||||||||
| Tariff refunds | (14.9 | ) | — | — | (7.6 | ) | — | ||||||||||||
| AMPTC adjustment | — | 6.7 | — | 3.3 | — | ||||||||||||||
| Stock-based compensation | 1.3 | 1.3 | 1.3 | 1.3 | 1.2 | ||||||||||||||
| Acquisition related amortization | 0.4 | 0.4 | 0.4 | 0.5 | 0.4 | ||||||||||||||
| Gross margin (Non-GAAP) | 46.8 | % | 43.9 | % | 48.6 | % | 45.4 | % | 48.7 | % | |||||||||
| Operating expenses (GAAP) | $ | 123,495 | $ | 130,036 | $ | 133,486 | $ | 253,531 | $ | 269,805 | |||||||||
| Stock-based compensation(1) | (39,714 | ) | (45,429 | ) | (49,506 | ) | (85,143 | ) | (100,391 | ) | |||||||||
| Acquisition related expenses and amortization | (3,003 | ) | (3,826 | ) | (2,877 | ) | (6,829 | ) | (5,726 | ) | |||||||||
| Restructuring and asset impairment charges(1) | (958 | ) | (3,827 | ) | (3,322 | ) | (4,785 | ) | (6,484 | ) | |||||||||
| Operating expenses (Non-GAAP) | $ | 79,820 | $ | 76,954 | $ | 77,781 | $ | 156,774 | $ | 157,204 | |||||||||
| (1)Includes stock-based compensation as follows: | |||||||||||||||||||
| Research and development | $ | 17,569 | $ | 18,834 | $ | 20,481 | $ | 36,403 | $ | 42,128 | |||||||||
| Sales and marketing | 12,363 | 14,717 | 16,657 | 27,080 | 33,053 | ||||||||||||||
| General and administrative | 9,782 | 11,878 | 12,368 | 21,660 | 25,210 | ||||||||||||||
| Restructuring and asset impairment charges | 174 | (22 | ) | 79 | 152 | 588 | |||||||||||||
| Total | $ | 39,888 | $ | 45,407 | $ | 49,585 | $ | 85,295 | $ | 100,979 | |||||||||
| Income (loss) from operations (GAAP) | $ | 51,519 | $ | (29,643 | ) | $ | 37,007 | $ | 21,876 | $ | 68,929 | ||||||||
| Tariff refunds | (43,411 | ) | — | — | (43,411 | ) | — | ||||||||||||
| AMPTC adjustment | — | 18,905 | — | 18,905 | — | ||||||||||||||
| Stock-based compensation | 43,380 | 49,013 | 53,817 | 92,393 | 108,941 | ||||||||||||||
| Acquisition related expenses and amortization | 4,251 | 5,168 | 4,467 | 9,419 | 8,896 | ||||||||||||||
| Restructuring and asset impairment charges | 958 | 3,827 | 3,322 | 4,785 | 6,484 | ||||||||||||||
| Income from operations (Non-GAAP) | $ | 56,697 | $ | 47,270 | $ | 98,613 | $ | 103,967 | $ | 193,250 | |||||||||
| Net income (loss) (GAAP) | $ | 36,079 | $ | (7,406 | ) | $ | 37,052 | $ | 28,673 | $ | 66,782 | ||||||||
| Tariff refunds | (45,029 | ) | — | — | (45,029 | ) | — | ||||||||||||
| AMPTC adjustment | — | 18,905 | — | 18,905 | — | ||||||||||||||
| Stock-based compensation | 43,380 | 49,013 | 53,817 | 92,393 | 108,941 | ||||||||||||||
| Acquisition related expenses and amortization | 4,251 | 5,168 | 4,467 | 9,419 | 8,896 | ||||||||||||||
| Restructuring and asset impairment charges | 958 | 3,827 | 3,322 | 4,785 | 6,484 | ||||||||||||||
| Non-cash interest expense | 327 | 633 | 829 | 960 | 2,507 | ||||||||||||||
| Non-GAAP income tax adjustment | 21,549 | (7,884 | ) | (9,618 | ) | 13,665 | (14,498 | ) | |||||||||||
| Net income (Non-GAAP) | $ | 61,515 | $ | 62,256 | $ | 89,869 | $ | 123,771 | $ | 179,112 | |||||||||
| Net income (loss) per share, basic (GAAP) | $ | 0.27 | $ | (0.06 | ) | $ | 0.28 | $ | 0.22 | $ | 0.51 | ||||||||
| Tariff refunds | (0.34 | ) | — | — | (0.34 | ) | — | ||||||||||||
| AMPTC adjustment | — | 0.14 | — | 0.14 | — | ||||||||||||||
| Stock-based compensation | 0.33 | 0.37 | 0.41 | 0.70 | 0.80 | ||||||||||||||
| Acquisition related expenses and amortization | 0.03 | 0.04 | 0.03 | 0.07 | 0.08 | ||||||||||||||
| Restructuring and asset impairment charges | 0.01 | 0.03 | 0.03 | 0.04 | 0.06 | ||||||||||||||
| Non-cash interest expense | — | — | 0.01 | 0.01 | 0.02 | ||||||||||||||
| Non-GAAP income tax adjustment | 0.17 | (0.05 | ) | (0.07 | ) | 0.10 | (0.11 | ) | |||||||||||
| Net income per share, basic (Non-GAAP) | $ | 0.47 | $ | 0.47 | $ | 0.69 | $ | 0.94 | $ | 1.36 | |||||||||
| Shares used in basic per share calculation GAAP and Non-GAAP | 131,963 | 131,337 | 131,031 | 131,652 | 131,447 | ||||||||||||||
| Net income (loss) per share, diluted (GAAP) | $ | 0.27 | $ | (0.06 | ) | $ | 0.28 | $ | 0.22 | $ | 0.50 | ||||||||
| Tariff refunds | (0.34 | ) | — | — | (0.34 | ) | — | ||||||||||||
| AMPTC adjustment | — | 0.14 | — | 0.14 | — | ||||||||||||||
| Stock-based compensation | 0.33 | 0.37 | 0.41 | 0.70 | 0.83 | ||||||||||||||
| Acquisition related expenses and amortization | 0.03 | 0.04 | 0.03 | 0.07 | 0.07 | ||||||||||||||
| Restructuring and asset impairment charges | 0.01 | 0.03 | 0.03 | 0.04 | 0.05 | ||||||||||||||
| Non-cash interest expense | — | — | 0.01 | 0.01 | 0.02 | ||||||||||||||
| Non-GAAP income tax adjustment | 0.16 | (0.05 | ) | (0.07 | ) | 0.09 | (0.11 | ) | |||||||||||
| Net income per share, diluted (Non-GAAP) | $ | 0.46 | $ | 0.47 | $ | 0.69 | $ | 0.93 | $ | 1.36 | |||||||||
| Shares used in diluted per share calculation GAAP | 135,122 | 131,337 | 135,219 | 132,788 | 135,719 | ||||||||||||||
| Shares used in diluted per share calculation Non-GAAP | 133,104 | 132,373 | 131,144 | 132,788 | 131,644 | ||||||||||||||
| Net cash provided by operating activities (GAAP) | $ | 40,323 | $ | 102,871 | $ | 26,629 | $ | 143,194 | $ | 75,043 | |||||||||
| Purchases of property and equipment | (14,394 | ) | (19,898 | ) | (8,259 | ) | (34,292 | ) | (22,867 | ) | |||||||||
| Free cash flow (Non-GAAP) | $ | 25,929 | $ | 82,973 | $ | 18,370 | $ | 108,902 | $ | 52,176 | |||||||||
