Enphase Energy Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.75%.
Did ENPH Beat Earnings? Q2 2025 Results
Enphase Energy posted a solid second quarter, beating Wall Street on both the top and bottom lines even as its stock lingered near a 52-week low, with revenue climbing 19.7% year over year to $363.15 million against a consensus estimate of $359.15 million, and non-GAAP diluted EPS of $0.69 clearing the $0.63 estimate by 9.00%. The standout operational driver was record IQ Battery shipments of 190.9 MWh, up from 170.1 MWh in Q1, paired with approximately 1.53 million microinverters shipped globally as European demand recovered sequentially. A $41.51 million net IRA benefit helped cushion non-GAAP gross margin to 48.6%, partially offsetting roughly two percentage points of headwind from reciprocal tariffs. Looking ahead, the company guided Q3 revenue to $330.00 million to $370.00 million, a range that fell slightly short of prior Street expectations, with tariffs expected to weigh three to five percentage points on margins; IRA benefits tied to roughly 1.2 million U.S.-manufactured microinverters are expected to provide meaningful relief there as well.
- Seasonality driving U.S. revenue growth of approximately 3% sequentially
- European revenue growth of approximately 11% sequentially from higher microinverter and battery sales
- Record IQ Battery shipments of 190.9 MWh, up from 170.1 MWh in Q1
- Net IRA benefit of $41.5 million from U.S. manufacturing tax credits
- Approximately 1.41 million microinverters shipped from U.S. manufacturing facilities
“We reported quarterly revenue of $363.2 million in the second quarter of 2025, along with 48.6% for non-GAAP gross margin. We shipped approximately 1.53 million microinverters, or 675.4 megawatts DC, and 190.9 megawatt hours (MWh) of IQ Batteries.”
Enphase Energy CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, Enphase expects revenue of $330.0 million to $370.0 million, including shipments of 190 to 210 MWh of IQ Batteries. GAAP gross margin is expected at 41.0% to 44.0% with net IRA benefit, including approximately 3 to 5 percentage points of new tariff impact. Non-GAAP gross margin is expected at 43.0% to 46.0% with net IRA benefit and 33.0% to 36.0% excluding net IRA benefit, also including 3 to 5 percentage points of tariff impact. Net IRA benefit is expected at $34.0 million to $38.0 million based on estimated shipments of 1,200,000 units of U.S. manufactured microinverters. GAAP operating expenses are expected at $130.0 million to $134.0 million, and non-GAAP operating expenses at $78.0 million to $82.0 million. For full year 2025, Enphase expects a GAAP tax rate of 19-21% and a non-GAAP tax rate of 15-17%, including IRA benefits.
ENPH YoY Financials
Figures from SEC filings and company reports. Not investment advice.