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Enphase Energy Q2 Earnings Beat Estimates, Revenues Rise Y/Y
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Key Takeaways
ENPH posted Q2 adjusted EPS of $0.69, beating estimates and up 60.5% year over year.
Q2 revenues rose 19.7% to $363.2M, driven by higher sales in Europe and the United States.
The adjusted gross margin improved 150 bps to 48.6%, while operating income jumped 61.4% to $98.6M.
Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2025 adjusted earnings of 69 cents per share, which increased 60.5% from 43 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 62 cents by 11.3%.
Including one-time adjustments, the company posted GAAP earnings of 28 cents per share compared with the GAAP earnings of 8 cents in the year-ago quarter.
The year-over-year earnings improvement can be attributed to higher revenues and income from operations from the year-ago quarter.
ENPH’s Q2 Revenues
Enphase Energy’s second-quarter revenues of $363.2 million surpassed the Zacks Consensus Estimate of $357 million by 1.9%. The top line also increased 19.7% from the prior-year quarter’s reported figure of $303.5 million.
The year-over-year jump was driven by higher sales in the United States and Europe. While seasonality drove U.S. sales, higher microinverter and battery shipments boosted sales in Europe.
Enphase Energy, Inc. Price, Consensus and EPS Surprise
The company’s shipments amounted to approximately 1.53 million microinverters and 190.9 megawatt-hours (MWh) of Enphase IQ Batteries.
The company’s adjusted gross margin increased 150 basis points year over year to 48.6%.
Adjusted operating expenses dropped 4.8% year over year to $77.8 million.
The adjusted operating income totaled $98.6 million, up 61.4% from the year-ago quarter.
Financial Details of ENPH
Enphase Energy had $370.5 million in cash and cash equivalents as of June 30, 2025 compared with $369.1 million as of Dec. 31, 2024.
Cash flow from operating activities amounted to $75 million as of June 30, 2025 compared with $176.3 million a year ago.
Q3 Guidance of Enphase Energy
For the third quarter of 2025, ENPH expects revenues in the range of $330-$370 million. The Zacks Consensus Estimate for third-quarter revenues is pegged at $366.2 million, which lies near the high-end of the company’s guided range.
Enphase Energy expects to ship IQ batteries in the range of 190-210 MWh in the third quarter.
Adjusted operating expenses are expected between $78 million and $82 million. This excludes approximately $52 million estimated for stock-based compensation expenses and acquisition-related costs and amortization, as well as restructuring and asset impairment charges.
The adjusted gross margin is expected in the range of 43-46%, excluding stock-based compensation expenses and acquisition-related amortization.
Nextracker Inc. (NXT - Free Report) is slated to report first-quarter fiscal 2025 results on July 29, after market close. The Zacks Consensus Estimate for NXT’s first-quarter earnings is pegged at $1.04 per share, which implies a year-over-year improvement of 11.8%.
The Zacks Consensus Estimate for NXT’s first-quarter sales is pegged at $853.4 million, which implies a rise of 18.5% from the prior-year quarter’s figure.
First Solar, Inc. (FSLR - Free Report) is scheduled to report second-quarter 2025 results on July 31, after market close. The Zacks Consensus Estimate for FSLR’s second-quarter earnings is pegged at $2.68 per share, which suggests a year-over-year decline of 17.5%.
The Zacks Consensus Estimate for FSLR’s second-quarter sales is pegged at $1.02 billion, which implies an improvement of 1.1% from the prior-year quarter’s figure.
SolarEdge Technologies (SEDG - Free Report) is slated to report second-quarter 2025 results on Aug. 7, before market open. The Zacks Consensus Estimate for SEDG’s second-quarter earnings is pegged at a loss of 82 cents per share, calling for an improvement from the prior-year quarter’s reported loss of $1.79.
The Zacks Consensus Estimate for SEDG’s second-quarter sales is pegged at $273.7 million, which indicates an improvement of 3.1% from the prior-year quarter’s figure.
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Enphase Energy Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2025 adjusted earnings of 69 cents per share, which increased 60.5% from 43 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 62 cents by 11.3%.
Including one-time adjustments, the company posted GAAP earnings of 28 cents per share compared with the GAAP earnings of 8 cents in the year-ago quarter.
The year-over-year earnings improvement can be attributed to higher revenues and income from operations from the year-ago quarter.
ENPH’s Q2 Revenues
Enphase Energy’s second-quarter revenues of $363.2 million surpassed the Zacks Consensus Estimate of $357 million by 1.9%. The top line also increased 19.7% from the prior-year quarter’s reported figure of $303.5 million.
The year-over-year jump was driven by higher sales in the United States and Europe. While seasonality drove U.S. sales, higher microinverter and battery shipments boosted sales in Europe.
Enphase Energy, Inc. Price, Consensus and EPS Surprise
Enphase Energy, Inc. price-consensus-eps-surprise-chart | Enphase Energy, Inc. Quote
Enphase Energy’s Operational Update
The company’s shipments amounted to approximately 1.53 million microinverters and 190.9 megawatt-hours (MWh) of Enphase IQ Batteries.
The company’s adjusted gross margin increased 150 basis points year over year to 48.6%.
Adjusted operating expenses dropped 4.8% year over year to $77.8 million.
The adjusted operating income totaled $98.6 million, up 61.4% from the year-ago quarter.
Financial Details of ENPH
Enphase Energy had $370.5 million in cash and cash equivalents as of June 30, 2025 compared with $369.1 million as of Dec. 31, 2024.
Cash flow from operating activities amounted to $75 million as of June 30, 2025 compared with $176.3 million a year ago.
Q3 Guidance of Enphase Energy
For the third quarter of 2025, ENPH expects revenues in the range of $330-$370 million. The Zacks Consensus Estimate for third-quarter revenues is pegged at $366.2 million, which lies near the high-end of the company’s guided range.
Enphase Energy expects to ship IQ batteries in the range of 190-210 MWh in the third quarter.
Adjusted operating expenses are expected between $78 million and $82 million. This excludes approximately $52 million estimated for stock-based compensation expenses and acquisition-related costs and amortization, as well as restructuring and asset impairment charges.
The adjusted gross margin is expected in the range of 43-46%, excluding stock-based compensation expenses and acquisition-related amortization.
ENPH’s Zacks Rank
Enphase Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Solar Releases
Nextracker Inc. (NXT - Free Report) is slated to report first-quarter fiscal 2025 results on July 29, after market close. The Zacks Consensus Estimate for NXT’s first-quarter earnings is pegged at $1.04 per share, which implies a year-over-year improvement of 11.8%.
The Zacks Consensus Estimate for NXT’s first-quarter sales is pegged at $853.4 million, which implies a rise of 18.5% from the prior-year quarter’s figure.
First Solar, Inc. (FSLR - Free Report) is scheduled to report second-quarter 2025 results on July 31, after market close. The Zacks Consensus Estimate for FSLR’s second-quarter earnings is pegged at $2.68 per share, which suggests a year-over-year decline of 17.5%.
The Zacks Consensus Estimate for FSLR’s second-quarter sales is pegged at $1.02 billion, which implies an improvement of 1.1% from the prior-year quarter’s figure.
SolarEdge Technologies (SEDG - Free Report) is slated to report second-quarter 2025 results on Aug. 7, before market open. The Zacks Consensus Estimate for SEDG’s second-quarter earnings is pegged at a loss of 82 cents per share, calling for an improvement from the prior-year quarter’s reported loss of $1.79.
The Zacks Consensus Estimate for SEDG’s second-quarter sales is pegged at $273.7 million, which indicates an improvement of 3.1% from the prior-year quarter’s figure.