Enphase Energy Reports Financial Results for the Third Quarter of 2026
Fourth-quarter guidance points to lower revenue and battery shipments, while investment impairments reduced third-quarter earnings.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Enphase Energy (NASDAQ: ENPH) reported third-quarter 2026 revenue of $293.3 million, slightly above the prior quarter but below a year earlier. GAAP net income was $23.4 million, or $0.17 per diluted share, versus $36.1 million and $0.27 in the second quarter. GAAP gross margin fell to 43.3% from 60.0%.
Global sell-through rose approximately 1% sequentially against expected growth of 10%. Battery shipments increased to 129.9 MWh from 113.8 MWh. Cash, cash equivalents and marketable securities totaled $931.8 million; operating cash flow was approximately $0.1 million.
Enphase expects fourth-quarter revenue of $225.0 million to $255.0 million, with sell-through down 10% sequentially and GAAP gross margin of 38.0% to 41.0%. Its IQ solid-state transformer development pipeline more than doubled to over 50 customers and partners during the quarter.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointBattery shipments increased to 129.9 MWh in Q3 2026 from 113.8 MWh in Q2.
- Moderate pointU.S. revenue increased approximately 3% sequentially, although Enphase described growth as smaller than anticipated.
- Minor pointGAAP operating expenses fell to $120.652 million from $123.495 million sequentially and $130.080 million a year earlier.
- Minor pointCapital expenditures decreased to $11.5 million from $14.4 million in the second quarter.
- Minor pointIQ SST development completed a demonstration converting 13.8 kV alternating current to 800 V direct current.
5 minor points
- Minor pointIQ SST customer and partner pipeline more than doubled to over 50 during Q3 2026.
- Minor pointIQ SST development engagements include a hyperscaler and a global AI computing leader.
- Minor point. Forward-looking: it has not happened yet and may not happen.IQ SST plans target 34.5 kV validation and a megawatt-scale demonstration by year-end 2026.
- Minor point. Forward-looking: it has not happened yet and may not happen.IQ SST rollout remains on track for 2027 customer pilots; Enphase expects commercial shipments in 2028.
- Minor pointIQ Meter Collar received behind-the-meter installation approval from 80 utilities across the United States and Canada.
Negative
- Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 revenue guidance of $225.0 million to $255.0 million is below Q3 revenue of $293.3 million.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 battery shipment outlook of 100 to 120 MWh is below Q3 shipments of 129.9 MWh.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 sell-through assumption is a 10% decline versus Q3 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 GAAP gross margin guidance is 38.0% to 41.0%, including approximately 2.0 percentage points of reciprocal tariff impact.
- Moderate pointRevenue of $293.329 million edged above Q2's $291.854 million but fell from $410.427 million a year earlier.
- Moderate pointGAAP net income fell to $23.387 million from $36.079 million sequentially and $66.638 million a year earlier.
- Moderate pointGAAP operating income fell to $6.466 million from $51.519 million sequentially and $66.159 million a year earlier.
- Moderate pointGAAP gross margin fell to 43.3% from 60.0% sequentially and 47.8% a year earlier.
- Moderate pointGlobal sell-through increased approximately 1% sequentially, below Enphase's expectation of 10% growth.
6 minor points
- Minor pointGAAP diluted EPS fell to $0.17 from $0.27 sequentially and $0.50 a year earlier.
- Minor pointNon-GAAP gross margin fell to 45.0% from 46.8% sequentially, driven by product mix.
- Minor pointInvestment impairments reduced Q3 GAAP diluted EPS by $0.15 and non-GAAP diluted EPS by $0.14.
- Minor pointU.S. sell-through rose 5% sequentially but declined 35% year-over-year.
- Minor pointEuropean revenue decreased approximately 11% sequentially amid seasonality and continued weakness in certain solar markets.
- Minor pointEuropean sell-through declined 12% sequentially, reflecting seasonality and softer demand, particularly in France.
Details
Market Reaction – ENPH
On Oct 27, the day this news came out, the latest delayed price for ENPH is 14.18% below the previous close. Argus tracked a peak move of +4.2% during the session. Our momentum scanner has recorded 118 alerts for this stock so far that day. The latest delayed price is $25.54. Relative volume is very high at 3.3x the average.
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Key Figures
- Revenue
- $293.3 million
- Q3 2026
- Non-GAAP gross margin
- 45.0%
- Q3 2026; compared with 46.8% in Q2 2026
- Non-GAAP diluted EPS
- $0.41
- Q3 2026; compared with $0.46 in Q2 2026
- Cash, cash equivalents and marketable securities
- $931.8 million
- At the end of Q3 2026
- Cash flow from operations
- $0.1 million
- Q3 2026
- Global sell-through
- 1% sequential increase, versus 10% expected growth
- Q3 2026
- Revenue outlook
- $225.0 million to $255.0 million
- Q4 2026 guidance
- Non-GAAP gross margin outlook
- 40.0% to 43.0%
- Q4 2026 guidance
Previous Earnings Reports
-
Reported Q2 results and issued Q3 revenue and margin guidance.
-
Reported a GAAP net loss alongside positive non-GAAP net income.
-
Reported Q4 revenue and earnings, with Q1 revenue and margin guidance.
-
Reported Q3 revenue, earnings and record battery shipments.
-
Reported Q2 revenue growth and provided Q3 revenue and margin outlook.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
non-gaap financial measures financial
stock-based compensation financial
convertible senior notes financial
gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FREMONT, Calif., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company, announced today financial results for the third quarter of 2026, which included the summary below from its President and CEO, Badri Kothandaraman.
We reported quarterly revenue of
Highlights for the third quarter of 2026 are listed below:
- Successfully demonstrated 13.8 kV AC to 800 VDC conversion using our IQ® SST technology
- Developing IQ SST solutions for the AI data center needs of two global technology leaders
- Revenue of
$293.3 million - GAAP gross margin of
43.3% ; non-GAAP gross margin of45.0% - GAAP operating income of
$6.5 million ; non-GAAP operating income of$53.6 million - GAAP net income of
$23.4 million ; non-GAAP net income of$54.0 million - GAAP diluted earnings per share (EPS) of
$0.17 ; non-GAAP diluted EPS of$0.41 - GAAP and non-GAAP diluted EPS reduced by
$0.15 and$0.14 , due to impairment in investments - Cash, cash equivalents and marketable securities of
$931.8 million
Our revenue and earnings for the third quarter of 2026 are provided below, compared with the prior quarter:
| (In thousands, except per share and percentage data) | |||||||||||||||||||||||
| GAAP | Non-GAAP | ||||||||||||||||||||||
| Q3 2026 | Q2 2026 | Q3 2025 | Q3 2026 | Q2 2026 | Q3 2025 | ||||||||||||||||||
| Revenue | $ | 293,329 | $ | 291,854 | $ | 410,427 | $ | 293,329 | $ | 291,854 | $ | 410,427 | |||||||||||
| Gross margin | 43.3 | % | 60.0 | % | 47.8 | % | 45.0 | % | 46.8 | % | 49.2 | % | |||||||||||
| Operating expenses | $ | 120,652 | $ | 123,495 | $ | 130,080 | $ | 78,437 | $ | 79,820 | $ | 78,538 | |||||||||||
| Operating income | $ | 6,466 | $ | 51,519 | $ | 66,159 | $ | 53,575 | $ | 56,697 | $ | 123,402 | |||||||||||
| Net income | $ | 23,387 | $ | 36,079 | $ | 66,638 | $ | 54,000 | $ | 61,515 | $ | 117,300 | |||||||||||
| Basic EPS | $ | 0.18 | $ | 0.27 | $ | 0.51 | $ | 0.41 | $ | 0.47 | $ | 0.90 | |||||||||||
| Diluted EPS | $ | 0.17 | $ | 0.27 | $ | 0.50 | $ | 0.41 | $ | 0.46 | $ | 0.90 | |||||||||||
Total revenue for the third quarter of 2026 was
Global sell-through increased approximately
Non-GAAP gross margin was
Non-GAAP operating expenses were
We exited the third quarter of 2026 with
We shipped 129.9 MWh of IQ Batteries in the third quarter, compared to 113.8 MWh in the second quarter. More than 26,000 installers worldwide are now certified to install IQ Batteries, up from more than 25,000 in the second quarter.
We announced a major milestone in the development of the IQ® Solid-State Transformer (IQ SST), successfully demonstrating 13.8 kV AC to 800 VDC conversion at our R&D lab in Austin, Texas. The demonstration brought together 132 power modules, with 44 connected in series on each of three phases, operating as a single integrated system. Importantly, IQ SST maintained a stable 800 VDC output during rapid load changes that simulate the dynamic power demands of AI compute racks.
By converting medium-voltage AC directly to 800 VDC, IQ SST is designed to eliminate multiple stages of conventional power conversion, reduce energy losses, and deliver more usable power to AI compute. Our next milestones are to validate operation at 34.5 kV and demonstrate a megawatt-scale system by the end of 2026.
During the third quarter of 2026, we more than doubled our IQ SST customer and partner pipeline to over 50. We are actively engaged with a leading hyperscaler and a global AI computing leader, whose technical requirements are helping shape our product architecture and roadmap. These engagements reinforce our confidence in the market opportunity. We remain on track for customer pilots in 2027, with commercial shipments expected to begin in 2028.
Our core U.S. residential solar market continues to face headwinds from higher interest rates and the expiration of the Section 25D federal tax credit. We are addressing these near-term challenges while positioning Enphase for a new phase of growth, driven by five key growth drivers heading into 2027: our fifth-generation IQ® Battery G5 for global residential storage markets; the Propel prepaid lease program to drive U.S. residential solar and battery adoption; commercial solar with our IQ9™ Commercial Microinverters and our upcoming IQ® Battery C80 in the United States; unidirectional and bidirectional EV chargers for global markets; and IQ SST for next-generation AI data centers. Together, we believe these opportunities expand our addressable market, leverage our power electronics expertise, and position Enphase for sustainable long-term growth.
BUSINESS HIGHLIGHTS
- On Oct. 27, 2026, Enphase Energy announced that it successfully demonstrated 13.8 kV AC to 800 VDC conversion with IQ SST at its Austin, Texas R&D lab.
- On Oct. 26, 2026, Enphase Energy announced with Infineon Technologies that Enphase will deploy the world’s first 900 V GaN monolithic bidirectional switch devices in its IQ SST power modules.
- On Oct. 21, 2026, Enphase Energy announced ISO 15118-20 support for its IQ® EV Charger 2 starting in 2027, in compliance with the EU's Alternative Fuels Infrastructure Regulation (AFIR).
- On Oct. 14, 2026, Enphase Energy highlighted commercial and industrial (C&I) repowering projects across the United States that use Enphase IQ9 Commercial Microinverters.
- On Oct. 8, 2026, Enphase Energy announced that it began production shipments of its new IQ® Gateway Fusion in India.
- On Sept. 21, 2026, Enphase Energy announced that the Enphase IQ® Meter Collar is now approved for behind-the-meter installation by 80 utilities across the United States and Canada.
- On Sept. 14, 2026, Enphase Energy announced its participation in AI Infra Summit 2026, showcasing its approach to next-generation AI data center power infrastructure, including IQ SST.
- On Sept. 8, 2026, Enphase Energy announced that power modules for its IQ SST are now being built in the United States to assemble and validate full-scale IQ SST racks.
- On Sept. 3, 2026, Enphase Energy announced expanded metering compatibility for the Enphase IQ® EV Charger 2 across several European markets.
- On Sept. 1, 2026, Enphase Energy announced that more than 7,500 homeowners across the United States have enrolled in Enphase® Care, the company’s premium support offering for Enphase solar and battery systems.
- On Aug. 25, 2026, Enphase Energy announced an expanded homeowner outreach effort in the Netherlands to help solar-only customers prepare for the end of net metering on Jan. 1, 2027.
- On Aug. 20, 2026, Enphase Energy announced the availability of the Enphase® AI Assistant in the Enphase® App for homeowners.
- On Aug. 18, 2026, Enphase Energy announced that it opened U.S. pre-orders for the IQ Battery C80, its first commercial battery storage system.
- On Aug. 13, 2026, Enphase Energy announced that Italian homeowners can now build a complete home energy system with Enphase, combining solar, storage, backup, and EV charging on a single platform.
- On Aug. 10, 2026, Enphase Energy announced expanded support in the United States and Canada that allows homeowners with existing non-Enphase solar systems to add the IQ® Battery 10C and whole-home backup.
FOURTH QUARTER 2026 FINANCIAL OUTLOOK
For the fourth quarter of 2026, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:
- Revenue to be within a range of
$225.0 million to$255.0 million , which includes shipments of 100 to 120 MWh of IQ Batteries. This outlook includes approximately$51.2 million of safe harbor revenue and assumes sell-through will be down10% , compared with the third quarter of 2026. - GAAP gross margin to be within a range of
38.0% to41.0% , including approximately 2.0 percentage points of reciprocal tariff impact. - Non-GAAP gross margin to be within a range of
40.0% to43.0% , including approximately 2.0 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
$119.0 million to$123.0 million . - Non-GAAP operating expenses to be within a range of
$76.0 million to$80.0 million , excluding$43.0 million estimated for stock-based compensation expense and acquisition related amortization.
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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. Enphase Energy received refunds and associated interest of approximately
AMPTC adjustment. In the first quarter of 2026, Enphase Energy decided to sell its Advanced Manufacturing Production Tax Credit (AMPTC) generated in 2025 and going forward in the tax credit transfer market. Enphase Energy 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. Enphase Energy excludes restructuring and asset impairment 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’s 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 third quarter 2026 results and fourth 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 5536681, 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 fourth quarter of 2026 financial performance and outlook, including revenue, shipments of IQ Batteries by MWh, gross margin, operating expenses, safe harbor revenue, reciprocal tariff impacts, and anticipated sell-through; anticipated demand for Enphase Energy’s microinverter, battery, energy management, and commercial products; the timing and availability of shipments of the IQ Battery C80; the capabilities, benefits, features, and performance of Enphase Energy’s technology and products, including the IQ Battery C80, IQ SST, and 900 V GaN monolithic BDS devices; the integration and production qualification of 900 V GaN monolithic BDS devices; Enphase Energy’s expectations regarding the development of its IQ SST, including the timing of future demonstrations, development milestones, customer pilot programs, and commercial shipments; Enphase Energy’s customer and partner engagements related to IQ SST and the potential market opportunity for IQ SST; and the expected benefits, market opportunities, and growth associated with Enphase Energy’s IQ Battery G5, Propel prepaid lease program, commercial solar and storage products, EV chargers, and IQ SST. 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; product performance and reliability; technological development, testing, validation, and qualification risks; the ability to convert customer and partner engagements into commercial opportunities; the ability to successfully expand into data center, 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 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 is a global energy technology company advancing intelligent power systems for homes, businesses, and next-generation AI data centers. The company designs semiconductor-based energy technologies spanning solar, batteries, EV charging, energy management, and virtual power plants, and is developing solid-state transformer technology to address the rapidly growing power demands of AI data centers. Based in Fremont, California, Enphase is the world’s leading supplier of microinverter-based solar and battery systems. The company revolutionized the solar industry with its microinverter technology and has shipped approximately 90.8 million microinverters, with over 5.3 million Enphase-based systems deployed in more than 165 countries. Enphase products enable people to harness the sun to make, use, save, and sell their own power, all controlled through the Enphase App. 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 | Nine Months Ended | ||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||
| Net revenues | $ | 293,329 | $ | 291,854 | $ | 410,427 | $ | 868,083 | $ | 1,129,664 | |||||||||
| Cost of revenues | 166,211 | 116,840 | 214,188 | 465,558 | 594,691 | ||||||||||||||
| Gross profit | 127,118 | 175,014 | 196,239 | 402,525 | 534,973 | ||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Research and development | 45,199 | 45,658 | 47,266 | 135,724 | 142,861 | ||||||||||||||
| Sales and marketing | 45,110 | 45,545 | 48,429 | 138,742 | 148,085 | ||||||||||||||
| General and administrative | 30,395 | 31,334 | 33,098 | 94,984 | 101,168 | ||||||||||||||
| Restructuring and asset impairment | (52 | ) | 958 | 1,287 | 4,733 | 7,771 | |||||||||||||
| Total operating expenses | 120,652 | 123,495 | 130,080 | 374,183 | 399,885 | ||||||||||||||
| Income from operations | 6,466 | 51,519 | 66,159 | 28,342 | 135,088 | ||||||||||||||
| Other income, net | |||||||||||||||||||
| Interest income | 16,912 | 12,154 | 15,429 | 41,691 | 47,372 | ||||||||||||||
| Interest expense | (327 | ) | (327 | ) | (830 | ) | (1,287 | ) | (3,692 | ) | |||||||||
| Other expense, net | (26,622 | ) | (1,447 | ) | (3,739 | ) | (24,278 | ) | (12,651 | ) | |||||||||
| Total other income (expense), net | (10,037 | ) | 10,380 | 10,860 | 16,126 | 31,029 | |||||||||||||
| Income (loss) before income taxes | (3,571 | ) | 61,899 | 77,019 | 44,468 | 166,117 | |||||||||||||
| Income tax benefit (provision) | 26,958 | (25,820 | ) | (10,381 | ) | 7,592 | (32,697 | ) | |||||||||||
| Net income | $ | 23,387 | $ | 36,079 | $ | 66,638 | $ | 52,060 | $ | 133,420 | |||||||||
| Net income per share: | |||||||||||||||||||
| Basic | $ | 0.18 | $ | 0.27 | $ | 0.51 | $ | 0.39 | $ | 1.02 | |||||||||
| Diluted | $ | 0.17 | $ | 0.27 | $ | 0.50 | $ | 0.39 | $ | 1.01 | |||||||||
| Shares used in per share calculation: | |||||||||||||||||||
| Basic | 132,222 | 131,963 | 130,797 | 131,844 | 131,228 | ||||||||||||||
| Diluted | 135,198 | 135,122 | 132,995 | 135,001 | 133,439 | ||||||||||||||
| ENPHASE ENERGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||||
| September 30, 2026 | December 31, 2025 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 380,398 | $ | 474,318 | |
| Marketable securities | 551,448 | 1,038,536 | |||
| Accounts receivable, net | 249,939 | 229,881 | |||
| Inventory | 243,707 | 288,047 | |||
| Prepaid expenses and other current assets | 457,335 | 576,078 | |||
| Total current assets | 1,882,827 | 2,606,860 | |||
| Property and equipment, net | 133,717 | 136,804 | |||
| Intangible assets, net | 8,603 | 22,288 | |||
| Goodwill | 213,087 | 214,760 | |||
| Other assets | 317,185 | 222,677 | |||
| Deferred tax assets, net | 321,619 | 306,403 | |||
| Total assets | $ | 2,877,038 | $ | 3,509,792 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 100,613 | $ | 203,039 | |
| Accrued liabilities | 161,931 | 217,366 | |||
| Deferred revenues, current | 170,565 | 180,524 | |||
| Warranty obligations, current | 26,990 | 29,038 | |||
| Debt, current | — | 632,183 | |||
| Total current liabilities | 460,099 | 1,262,150 | |||
| Long-term liabilities: | |||||
| Deferred revenues, non-current | 355,141 | 337,923 | |||
| Warranty obligations, non-current | 177,021 | 185,005 | |||
| Other liabilities | 69,578 | 65,497 | |||
| Debt, non-current | 573,163 | 572,194 | |||
| Total liabilities | 1,635,002 | 2,422,769 | |||
| Total stockholders’ equity | 1,242,036 | 1,087,023 | |||
| Total liabilities and stockholders’ equity | $ | 2,877,038 | $ | 3,509,792 | |
| ENPHASE ENERGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||
| Net income | $ | 23,387 | $ | 36,079 | $ | 66,638 | $ | 52,060 | $ | 133,420 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
| Depreciation and amortization | 20,105 | 20,196 | 20,218 | 61,116 | 60,218 | ||||||||||||||
| Discount from sale of AMPTC generated | — | — | — | 16,450 | — | ||||||||||||||
| Amortization (accretion) of investments purchased at a premium (discount) | (268 | ) | 184 | (765 | ) | 5,024 | 1,513 | ||||||||||||
| Provision for credit losses | 577 | 90 | (30 | ) | 718 | 162 | |||||||||||||
| Asset impairment | 43 | — | — | 122 | 1,565 | ||||||||||||||
| Non-cash interest expense | 327 | 327 | 829 | 1,287 | 3,336 | ||||||||||||||
| Decrease in fair value of debt securities and tax equity fund | 27,217 | 2,494 | 3,174 | 29,793 | 12,315 | ||||||||||||||
| Stock-based compensation | 43,043 | 43,554 | 51,469 | 135,588 | 160,998 | ||||||||||||||
| Deferred income taxes | (28,555 | ) | 21,203 | (1,826 | ) | (10,479 | ) | 7,137 | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||
| Accounts receivable | 21,839 | (77,229 | ) | (57,980 | ) | (13,835 | ) | (47,539 | ) | ||||||||||
| Inventory | 41,315 | 5,679 | (15,636 | ) | 44,340 | (23,648 | ) | ||||||||||||
| Prepaid expenses and other assets | (44,828 | ) | (125,984 | ) | (78,330 | ) | (15,472 | ) | (218,144 | ) | |||||||||
| Accounts payable, accrued and other liabilities | (48,811 | ) | 2,477 | 25,494 | (164,460 | ) | 116,938 | ||||||||||||
| Warranty obligations | 805 | (1,001 | ) | 4,055 | (10,032 | ) | 17,252 | ||||||||||||
| Deferred revenues | (56,106 | ) | 112,254 | (3,392 | ) | 11,064 | (136,562 | ) | |||||||||||
| Net cash provided by operating activities | 90 | 40,323 | 13,918 | 143,284 | 88,961 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||
| Purchases of property and equipment | (11,460 | ) | (14,394 | ) | (8,032 | ) | (45,752 | ) | (30,899 | ) | |||||||||
| Issuance of secured revolving credit facility | (30,000 | ) | (29,000 | ) | — | (59,000 | ) | — | |||||||||||
| Receipts of secured revolving credit facility | 34,604 | — | — | 34,604 | — | ||||||||||||||
| Issuance of loan receivable | — | — | (48,500 | ) | (1,000 | ) | (48,500 | ) | |||||||||||
| Investment in debt securities | — | — | (6,300 | ) | — | (6,300 | ) | ||||||||||||
| Investment in tax equity fund | — | — | (1,408 | ) | — | (9,752 | ) | ||||||||||||
| Receipts of loan receivables | 7,500 | 10,085 | — | 17,585 | — | ||||||||||||||
| Purchases of marketable securities | (306,192 | ) | (29,006 | ) | (116,236 | ) | (335,198 | ) | (601,368 | ) | |||||||||
| Maturities and sales of marketable securities | 160,919 | 52,779 | 201,881 | 810,979 | 780,099 | ||||||||||||||
| Net cash provided by (used in) investing activities | (144,629 | ) | (9,536 | ) | 21,405 | 422,218 | 83,280 | ||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||
| Settlement of Notes due 2026 | — | — | — | (632,500 | ) | — | |||||||||||||
| Settlement of Notes due 2025 | — | — | — | — | (102,168 | ) | |||||||||||||
| Repurchases of common stock | — | — | — | — | (129,957 | ) | |||||||||||||
| Proceeds from issuances of common stock under employee equity plans | — | 4,171 | — | 4,171 | 5,369 | ||||||||||||||
| Payments of withholding taxes related to net share settlement of equity awards | (2,711 | ) | (2,540 | ) | (1,679 | ) | (23,937 | ) | (16,653 | ) | |||||||||
| Net cash provided by (used in) financing activities | (2,711 | ) | 1,631 | (1,679 | ) | (652,266 | ) | (243,409 | ) | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,696 | ) | (620 | ) | (2,300 | ) | (7,156 | ) | 8,932 | ||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (148,946 | ) | 31,798 | 31,344 | (93,920 | ) | (62,236 | ) | |||||||||||
| Cash, cash equivalents and restricted cash — Beginning of period | 529,344 | 497,546 | 370,536 | 474,318 | 464,116 | ||||||||||||||
| Cash and cash equivalents — End of period | $ | 380,398 | $ | 529,344 | $ | 401,880 | $ | 380,398 | $ | 401,880 | |||||||||
| ENPHASE ENERGY, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In thousands, except per share data and percentages) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||
| Gross profit (GAAP) | $ | 127,118 | $ | 175,014 | $ | 196,239 | $ | 402,525 | $ | 534,973 | |||||||||
| Tariff refunds | 120 | (43,411 | ) | — | (43,291 | ) | — | ||||||||||||
| AMPTC adjustment | — | — | — | 18,905 | — | ||||||||||||||
| Stock-based compensation | 3,646 | 3,666 | 4,105 | 10,897 | 12,655 | ||||||||||||||
| Acquisition related amortization | 1,128 | 1,248 | 1,596 | 3,718 | 4,766 | ||||||||||||||
| Gross profit (Non-GAAP) | $ | 132,012 | $ | 136,517 | $ | 201,940 | $ | 392,754 | $ | 552,394 | |||||||||
| Gross margin (GAAP) | 43.3 | % | 60.0 | % | 47.8 | % | 46.4 | % | 47.4 | % | |||||||||
| Tariff refunds | — | (14.9 | ) | — | (5.0 | ) | — | ||||||||||||
| AMPTC adjustment | — | — | — | 2.2 | — | ||||||||||||||
| Stock-based compensation | 1.2 | 1.3 | 1.0 | 1.2 | 1.1 | ||||||||||||||
| Acquisition related amortization | 0.5 | 0.4 | 0.4 | 0.4 | 0.4 | ||||||||||||||
| Gross margin (Non-GAAP) | 45.0 | % | 46.8 | % | 49.2 | % | 45.2 | % | 48.9 | % | |||||||||
| Operating expenses (GAAP) | $ | 120,652 | $ | 123,495 | $ | 130,080 | $ | 374,183 | $ | 399,885 | |||||||||
| Stock-based compensation(1) | (39,397 | ) | (39,714 | ) | (47,364 | ) | (124,539 | ) | (147,755 | ) | |||||||||
| Acquisition related expenses and amortization | (2,870 | ) | (3,003 | ) | (2,891 | ) | (9,699 | ) | (8,617 | ) | |||||||||
| Restructuring and asset impairment(1) | 52 | (958 | ) | (1,287 | ) | (4,733 | ) | (7,771 | ) | ||||||||||
| Operating expenses (Non-GAAP) | $ | 78,437 | $ | 79,820 | $ | 78,538 | $ | 235,212 | $ | 235,742 | |||||||||
| (1)Includes stock-based compensation as follows: | |||||||||||||||||||
| Research and development | $ | 17,125 | $ | 17,569 | $ | 20,488 | $ | 53,528 | $ | 62,616 | |||||||||
| Sales and marketing | 12,865 | 12,363 | 14,493 | 39,945 | 47,546 | ||||||||||||||
| General and administrative | 9,407 | 9,782 | 12,383 | 31,067 | 37,593 | ||||||||||||||
| Restructuring and asset impairment | — | 174 | — | 152 | 588 | ||||||||||||||
| Total | $ | 39,397 | $ | 39,888 | $ | 47,364 | $ | 124,692 | $ | 148,343 | |||||||||
| Income from operations (GAAP) | $ | 6,466 | $ | 51,519 | $ | 66,159 | $ | 28,342 | $ | 135,088 | |||||||||
| Tariff refunds | 120 | (43,411 | ) | — | (43,291 | ) | — | ||||||||||||
| AMPTC adjustment | — | — | — | 18,905 | — | ||||||||||||||
| Stock-based compensation | 43,043 | 43,380 | 51,469 | 135,436 | 160,410 | ||||||||||||||
| Acquisition related expenses and amortization | 3,998 | 4,251 | 4,487 | 13,417 | 13,383 | ||||||||||||||
| Restructuring and asset impairment | (52 | ) | 958 | 1,287 | 4,733 | 7,771 | |||||||||||||
| Income from operations (Non-GAAP) | $ | 53,575 | $ | 56,697 | $ | 123,402 | $ | 157,542 | $ | 316,652 | |||||||||
| Net income (GAAP) | $ | 23,387 | $ | 36,079 | $ | 66,638 | $ | 52,060 | $ | 133,420 | |||||||||
| Tariff refunds | 43 | (45,029 | ) | — | (44,986 | ) | — | ||||||||||||
| AMPTC adjustment | — | — | — | 18,905 | — | ||||||||||||||
| Stock-based compensation | 43,043 | 43,380 | 51,469 | 135,436 | 160,410 | ||||||||||||||
| Acquisition related expenses and amortization | 3,998 | 4,251 | 4,487 | 13,417 | 13,383 | ||||||||||||||
| Restructuring and asset impairment | (52 | ) | 958 | 1,287 | 4,733 | 7,771 | |||||||||||||
| Non-cash interest expense | 327 | 327 | 829 | 1,286 | 3,336 | ||||||||||||||
| Non-GAAP income tax adjustment | (16,746 | ) | 21,549 | (7,410 | ) | (3,079 | ) | (21,908 | ) | ||||||||||
| Net income (Non-GAAP) | $ | 54,000 | $ | 61,515 | $ | 117,300 | $ | 177,772 | $ | 296,412 | |||||||||
| Net income per share, basic (GAAP) | $ | 0.18 | $ | 0.27 | $ | 0.51 | $ | 0.39 | $ | 1.02 | |||||||||
| Tariff refunds | — | (0.34 | ) | — | (0.34 | ) | — | ||||||||||||
| AMPTC adjustment | — | — | — | 0.14 | — | ||||||||||||||
| Stock-based compensation | 0.33 | 0.33 | 0.39 | 1.03 | 1.20 | ||||||||||||||
| Acquisition related expenses and amortization | 0.03 | 0.03 | 0.03 | 0.10 | 0.10 | ||||||||||||||
| Restructuring and asset impairment | — | 0.01 | 0.01 | 0.04 | 0.06 | ||||||||||||||
| Non-cash interest expense | — | — | 0.01 | 0.01 | 0.03 | ||||||||||||||
| Non-GAAP income tax adjustment | (0.13 | ) | 0.17 | (0.05 | ) | (0.02 | ) | (0.15 | ) | ||||||||||
| Net income per share, basic (Non-GAAP) | $ | 0.41 | $ | 0.47 | $ | 0.90 | $ | 1.35 | $ | 2.26 | |||||||||
| Shares used in basic per share calculation GAAP and Non-GAAP | 132,222 | 131,963 | 130,797 | 131,844 | 131,228 | ||||||||||||||
| Net income per share, diluted (GAAP) | $ | 0.17 | $ | 0.27 | $ | 0.50 | $ | 0.39 | $ | 1.01 | |||||||||
| Tariff refunds | — | (0.34 | ) | — | (0.34 | ) | — | ||||||||||||
| AMPTC adjustment | — | — | — | 0.14 | — | ||||||||||||||
| Stock-based compensation | 0.32 | 0.33 | 0.39 | 1.02 | 1.22 | ||||||||||||||
| Acquisition related expenses and amortization | 0.04 | 0.03 | 0.04 | 0.10 | 0.10 | ||||||||||||||
| Restructuring and asset impairment | — | 0.01 | 0.01 | 0.04 | 0.06 | ||||||||||||||
| Non-cash interest expense | — | — | 0.01 | 0.01 | 0.03 | ||||||||||||||
| Non-GAAP income tax adjustment | (0.12 | ) | 0.16 | (0.05 | ) | (0.02 | ) | (0.16 | ) | ||||||||||
| Net income per share, diluted (Non-GAAP) | $ | 0.41 | $ | 0.46 | $ | 0.90 | $ | 1.34 | $ | 2.26 | |||||||||
| Shares used in diluted per share calculation GAAP | 135,198 | 135,122 | 132,995 | 135,001 | 133,439 | ||||||||||||||
| Shares used in diluted per share calculation Non-GAAP | 133,180 | 133,104 | 130,977 | 132,983 | 131,421 | ||||||||||||||
| Net cash provided by operating activities (GAAP) | $ | 90 | $ | 40,323 | $ | 13,918 | $ | 143,284 | $ | 88,961 | |||||||||
| Purchases of property and equipment | (11,460 | ) | (14,394 | ) | (8,032 | ) | (45,752 | ) | (30,899 | ) | |||||||||
| Free cash flow (Non-GAAP) | $ | (11,370 | ) | $ | 25,929 | $ | 5,886 | $ | 97,532 | $ | 58,062 | ||||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Enphase Energy's third-quarter 2026 revenue and earnings?
Enphase reported $293.3 million in revenue and GAAP net income of $23.4 million, or $0.17 per diluted share. Non-GAAP net income was $54.0 million, or $0.41 per diluted share. Investment impairments reduced GAAP and non-GAAP diluted EPS by $0.15 and $0.14, respectively.
What is Enphase Energy's fourth-quarter 2026 outlook?
Enphase expects revenue of $225.0 million to $255.0 million, including approximately $51.2 million of safe harbor revenue and shipments of 100 to 120 MWh of IQ Batteries. The outlook assumes sell-through falls 10% versus Q3. GAAP gross margin guidance is 38.0% to 41.0%, and GAAP operating expense guidance is $119.0 million to $123.0 million.
When does Enphase expect IQ SST customer pilots and commercial shipments?
Enphase remains on track for IQ SST customer pilots in 2027, with commercial shipments expected to begin in 2028. Its next development milestones are validating operation at 34.5 kV and demonstrating a megawatt-scale system by the end of 2026.