Q1 25 EPS
$0.68
MISS 5.96%
Est. $0.72
Q1 25 Revenue
$356.1M
MISS 1.26%
Est. $360.6M
vs S&P Since Q1 25
-38.9%
TRAILING MARKET
ENPH -1.9% vs S&P +37.0%
Market Reaction
Did ENPH Beat Earnings? Q1 2025 Results
Enphase Energy delivered a disappointing first quarter, missing on both the top and bottom lines as softening U.S. Demand and margin pressure weighed on results. The microinverter maker posted earnings of $0.68 per share, falling short of the $0.72 c… Read more Enphase Energy delivered a disappointing first quarter, missing on both the top and bottom lines as softening U.S. Demand and margin pressure weighed on results. The microinverter maker posted earnings of $0.68 per share, falling short of the $0.72 consensus estimate by 5.96%, while revenue of $356.08 million came in 1.26% below expectations, though the figure still represented a robust 35.2% increase from the year-ago quarter when the company was battling an industry-wide inventory correction. The primary culprit behind the earnings shortfall was a sharp compression in non-GAAP gross margin to 48.9% from 53.2% in Q4, driven by lower Section 45X production tax credit bookings and unfavorable product mix. Shares fell sharply in after-hours trading following the report, with analysts subsequently trimming price targets. Looking ahead, Enphase guided Q2 revenue to a $340.00 million to $380.00 million range, flagging approximately two percentage points of new tariff headwinds on gross margins, signaling that a meaningful demand rebound remains elusive in the near term.
Key Takeaways
- • U.S. revenue decline of ~13% QoQ driven by seasonality and softening demand, partially offset by $54.3 million in safe harbor revenue
- • European revenue increased ~7% QoQ from higher battery sales driven by IQ Battery 5P with FlexPhase ramp
- • Non-GAAP gross margin decline to 48.9% from 53.2% due to lower 45X production tax credit bookings and product mix
- • Non-GAAP operating expenses decreased to $79.4 million from $83.3 million due to restructuring actions
- • Shipped approximately 1.21 million U.S.-manufactured microinverters qualifying for 45X production tax credits
- • Battery shipments increased to 170.1 MWh from 152.4 MWh in Q4 2024
ENPH YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
“We reported quarterly revenue of $356.1 million in the first quarter of 2025, along with 48.9% for non-GAAP gross margin. We shipped approximately 1.53 million microinverters, or 688.5 megawatts DC, and 170.1 megawatt hours (MWh) of IQ Batteries.”
— Badri Kothandaraman, Q1 2025 Earnings Press Release
ENPH Earnings Trends
ENPH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ENPH EPS Trend
Earnings per share: estimate vs actual
ENPH Revenue Trend
Quarterly revenue: estimate vs actual
ENPH Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | — | — | — | — |
| Q4 25 BEAT FY | $0.58 | $0.71 | +21.43% | $343.3M | +0.94% |
| FY Full Year | $2.77 | $2.96 | +6.92% | $1.47B | +0.36% |
| Q3 25 BEAT | $0.66 | $0.90 | +37.22% | $410.4M | +11.05% |
| Q2 25 BEAT | $0.63 | $0.69 | +9.00% | $363.2M | +1.11% |
| Q1 25 MISS | $0.72 | $0.68 | -5.96% | $356.1M | -1.26% |