It has been about a month since the last earnings report for Enphase Energy (ENPH Quick QuoteENPH - Free Report) . Shares have lost about 10.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Enphase Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

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

Enphase Energy, Inc. 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’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 amortization.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -34.43% due to these changes.

VGM Scores

Currently, Enphase Energy has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Enphase Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.