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Enphase Energy Q3 Earnings Beat Estimates, Revenues Rise Y/Y

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Key Takeaways

  • Enphase Energy's Q3 adjusted EPS rose 38.4% year over year to 90 cents, beating estimates.
  • Q3 revenues climbed 7.8% to $410.4 million, driven by 1.77 million microinverters.
  • For Q4, Enphase Energy projects revenues of $310-$350 million and gross margin between 42% and 45%.

Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2025 adjusted earnings of 90 cents per share, which increased 38.5% from the prior-year quarter’s level. The bottom line also surpassed the Zacks Consensus Estimate of 62 cents by 45.2%.

Including one-time adjustments, the company reported GAAP earnings of 50 cents per share, up from the year-ago quarter’s reported level of 33 cents.

The year-over-year earnings improvement can be attributed to higher revenues and income from operations, as well as lower interest and other, net expenses from the year-ago quarter’s level.

ENPH’s Q3 Revenues

Revenues of $410.4 million surpassed the Zacks Consensus Estimate of $362 million by 13.4%. The top line also increased 7.8% from the prior-year quarter’s reported figure of $380.8 million.

 

Enphase Energy, Inc. Price, Consensus and EPS Surprise

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 1.77 million microinverters and a record 195.0 megawatt hours (MWh) of IQ Batteries.

The adjusted gross margin increased to 49.2%, marking an improvement of 110 basis points from the prior-year level.

Adjusted operating expenses dropped 3.8% year over year to $78.5 million. 

The adjusted operating income totaled $123.4 million, up 21.7% from the year-ago quarter’s figure.

Enphase Energy had $401.9 million in cash and cash equivalents as of Sept. 30, 2025, compared with $369.1 million as of Dec. 31, 2024.

Cash flow from operating activities amounted to $13.9million as of Sept. 30, 2025, compared with $170.1 million a year ago.

Q4 Guidance of Enphase Energy

For the fourth quarter of 2025, ENPH expects revenues to be in the range of $310-$350 million. The Zacks Consensus Estimate for revenues is pegged at $368.5 million, which lies above the company’s guided range.

Enphase Energy expects to ship IQ batteries to be in the range of 140-1600 MWh.

Adjusted operating expenses are expected to be between $77 million and $81 million. This excludes approximately $53 million estimated for stock-based compensation expenses and acquisition-related costs, and amortisation, as well as restructuring and asset impairment charges.

The adjusted gross margin is expected to be in the range of 42-45%, excluding stock-based compensation expenses and acquisition-related amortisation.

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.

A Recent Solar Release

Nextracker Inc. (NXT - Free Report) reported second-quarter fiscal 2026 results on Oct. 23, 2025. Its quarterly earnings of $1.19 per share beat the Zacks Consensus Estimate by 20.2% and came in higher than the year-ago quarter’s earnings of 97 cents. 

Its revenues worth $905 million also surpassed the consensus estimate by 9.4% and improved 42.3% from the prior-year quarter’s reported revenues.

Upcoming Solar Releases

First Solar, Inc. (FSLR - Free Report) is scheduled to report third-quarter 2025 results on Oct. 30, 2025, after market close. The Zacks Consensus Estimate for FSLR’s third-quarter earnings is pegged at $4.31 per share, implying an improvement of 48.1% from the year-ago quarter’s reported earnings.

The Zacks Consensus Estimate for FSLR’s third-quarter sales is pegged at $1.60 billion, suggesting year-over-year growth of 80.1%. 

SolarEdge Technologies (SEDG - Free Report) is slated to report third-quarter 2025 results on Nov. 5, before market open. The Zacks Consensus Estimate for SEDG’s third-quarter earnings is pegged at a loss of 38 cents per share, which implies a significant improvement from the year-ago quarter’s reported loss of $15.33.

The Zacks Consensus Estimate for SEDG’s third-quarter sales is pegged at $333.5 million, implying a year-over-year improvement of 27.8%. 

 

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