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Enphase Energy Q4 Earnings Beat Estimates, Revenues Decline Y/Y
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Key Takeaways
ENPH's Q4 revenues of $343.3M beat estimates but declined 10.3% year over year on softer demand.
Enphase Energy shipped 1.55M microinverters and 150.1 MWh of IQ Batteries during the quarter.
ENPH's adjusted gross margin fell 710 basis points year over year to 46.1% in Q4.
Enphase Energy, Inc. (ENPH - Free Report) reported fourth-quarter 2025 adjusted earnings of 71 cents per share, which decreased 24.5% from 94 cents reported in the prior-year quarter. However, the bottom line topped the Zacks Consensus Estimate of 54 cents by 31.5%.
Including one-time adjustments, the company posted GAAP earnings of 29 cents per share compared with the GAAP earnings of 45 cents in the year-ago quarter.
The year-over-year earnings decline can be attributed to lower revenues as well as lower income from operations from the year-ago quarter.
ENPH reported 2025 adjusted earnings of $2.96 per share, which were significantly higher than the year-ago figure of $2.37.
ENPH’s Revenues
Enphase Energy’s fourth-quarter revenues of $343.3 million beat the Zacks Consensus Estimate of $335 million by 2.6%. However, the top line decreased 10.3% from the prior-year quarter’s reported figure of $382.7 million.
The year-over-year plunge was mainly due to weaker sales in the United States and Europe, reflecting continued softness in European demand.
The company reported revenues of $1.47 billion in 2025, which were higher than $1.33 billion in 2024.
Enphase Energy, Inc. Price, Consensus and EPS Surprise
The company’s shipments amounted to approximately 1.55 million microinverters and 150.1 megawatt-hours (MWh) of Enphase IQ Batteries.
The company’s adjusted gross margin decreased 710 basis points year over year to 46.1%.
Adjusted operating expenses dropped 5.3% year over year to $78.8 million.
The adjusted operating income totaled $79.4 million, down 34.1% from the year-ago quarter.
Financial Details of ENPH
Enphase Energy had $474.3 million in cash and cash equivalents as of Dec. 31, 2025 compared with $369.1 million as of Dec. 31, 2024.
The net cash flow from operating activities amounted to $136.5 million in 2025 compared with $513.7 million at the end of 2024.
Q1 2026 Guidance by Enphase Energy
For the first quarter of 2026, ENPH expects revenues in the range of $270-$300 million. The Zacks Consensus Estimate for first-quarter revenues is pegged at $260 million, which is lower than the company’s guided range.
Enphase Energy expects to ship IQ batteries in the range of 100-120 MWh in the first quarter.
Adjusted operating expenses are expected between $77 million and $81 million. This excludes approximately $60 million estimated for stock-based compensation expenses, acquisition-related costs and amortization, as well as restructuring and asset impairment charges.
The adjusted gross margin is expected in the range of 42-45%, excluding stock-based compensation expenses and acquisition-related amortization.
SolarEdge Technologies (SEDG - Free Report) is slated to report fourth-quarter 2025 results on Feb. 18, before market open. The Zacks Consensus Estimate for SEDG’s earnings is pegged at a loss of 19 cents per share.
The consensus estimate for sales is pegged at $328.5 million, which indicates an improvement of 67.4%.
First Solar, Inc. (FSLR - Free Report) is scheduled to report fourth-quarter 2025 results on Feb. 24, after market close. The Zacks Consensus Estimate for FSLR’s earnings is pegged at $5.22 per share, which suggests a year-over-year rise of 43%.
The consensus estimate for sales stands at $1.57 billion, which indicates growth of 3.9%.
Sunrun Inc. (RUN - Free Report) is slated to report fourth-quarter 2025 results on Feb. 26, after market close. The Zacks Consensus Estimate for RUN’s earnings is pegged at a loss of 8 cents per share.
The consensus estimate for sales is pegged at $656.9 million, which calls for a jump of 26.7%.
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Enphase Energy Q4 Earnings Beat Estimates, Revenues Decline Y/Y
Key Takeaways
Enphase Energy, Inc. (ENPH - Free Report) reported fourth-quarter 2025 adjusted earnings of 71 cents per share, which decreased 24.5% from 94 cents reported in the prior-year quarter. However, the bottom line topped the Zacks Consensus Estimate of 54 cents by 31.5%.
Including one-time adjustments, the company posted GAAP earnings of 29 cents per share compared with the GAAP earnings of 45 cents in the year-ago quarter.
The year-over-year earnings decline can be attributed to lower revenues as well as lower income from operations from the year-ago quarter.
ENPH reported 2025 adjusted earnings of $2.96 per share, which were significantly higher than the year-ago figure of $2.37.
ENPH’s Revenues
Enphase Energy’s fourth-quarter revenues of $343.3 million beat the Zacks Consensus Estimate of $335 million by 2.6%. However, the top line decreased 10.3% from the prior-year quarter’s reported figure of $382.7 million.
The year-over-year plunge was mainly due to weaker sales in the United States and Europe, reflecting continued softness in European demand.
The company reported revenues of $1.47 billion in 2025, which were higher than $1.33 billion in 2024.
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 1.55 million microinverters and 150.1 megawatt-hours (MWh) of Enphase IQ Batteries.
The company’s adjusted gross margin decreased 710 basis points year over year to 46.1%.
Adjusted operating expenses dropped 5.3% year over year to $78.8 million.
The adjusted operating income totaled $79.4 million, down 34.1% from the year-ago quarter.
Financial Details of ENPH
Enphase Energy had $474.3 million in cash and cash equivalents as of Dec. 31, 2025 compared with $369.1 million as of Dec. 31, 2024.
The net cash flow from operating activities amounted to $136.5 million in 2025 compared with $513.7 million at the end of 2024.
Q1 2026 Guidance by Enphase Energy
For the first quarter of 2026, ENPH expects revenues in the range of $270-$300 million. The Zacks Consensus Estimate for first-quarter revenues is pegged at $260 million, which is lower than the company’s guided range.
Enphase Energy expects to ship IQ batteries in the range of 100-120 MWh in the first quarter.
Adjusted operating expenses are expected between $77 million and $81 million. This excludes approximately $60 million estimated for stock-based compensation expenses, acquisition-related costs and amortization, as well as restructuring and asset impairment charges.
The adjusted gross margin is expected in the range of 42-45%, 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
SolarEdge Technologies (SEDG - Free Report) is slated to report fourth-quarter 2025 results on Feb. 18, before market open. The Zacks Consensus Estimate for SEDG’s earnings is pegged at a loss of 19 cents per share.
The consensus estimate for sales is pegged at $328.5 million, which indicates an improvement of 67.4%.
First Solar, Inc. (FSLR - Free Report) is scheduled to report fourth-quarter 2025 results on Feb. 24, after market close. The Zacks Consensus Estimate for FSLR’s earnings is pegged at $5.22 per share, which suggests a year-over-year rise of 43%.
The consensus estimate for sales stands at $1.57 billion, which indicates growth of 3.9%.
Sunrun Inc. (RUN - Free Report) is slated to report fourth-quarter 2025 results on Feb. 26, after market close. The Zacks Consensus Estimate for RUN’s earnings is pegged at a loss of 8 cents per share.
The consensus estimate for sales is pegged at $656.9 million, which calls for a jump of 26.7%.