Enphase Energy Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did ENPH Beat Earnings? Q3 2025 Results
Enphase Energy delivered a decisive earnings beat in Q3 2025, reporting revenue of $410.43 million, up 7.8% year over year, against a consensus estimate of $369.60 million, a gap of 11.05%. Non-GAAP diluted EPS of $0.90 cleared the $0.66 consensus by 37.22%, driven in large part by a surge in U.S. demand and $70.90 million in safe harbor shipments that won't repeat in Q4. The geographic story was sharply divided, with domestic revenue climbing roughly 29% sequentially while European revenue fell approximately 38% on continued demand softness. Record IQ Battery shipments of 195.0 MWh and a more than 66% jump in the global installer base to over 19,500 underscored broadening adoption, even as tariffs shaved 4.9 percentage points from non-GAAP gross margin. The forward outlook is notably more cautious; Q4 revenue guidance of $310.00 million to $350.00 million excludes safe harbor shipments entirely, and <a href="https://247wallst.com/investing/2025/10/28/enphase-energy-down-8-after-earnings/">shares fell sharply</a> on concerns about channel inventory and the looming expiration of residential solar tax credits in early 2026.
- Higher U.S. demand and safe harbor revenue of $70.9 million drove 29% sequential U.S. revenue increase
- Record IQ Battery shipments of 195.0 MWh
- Highest revenue level in two years at $410.4 million
- IRA advanced manufacturing production tax credit (AMPTC) net benefit of $42.5 million
- Approximately 1.53 million microinverters shipped from U.S. manufacturing facilities
“We reported quarterly revenue of $410.4 million in the third quarter of 2025, along with 49.2% for non-GAAP gross margin. We shipped approximately 1.77 million microinverters, or 784.6 megawatts DC, and a record 195.0 megawatt hours (MWh) of IQ Batteries.”
Enphase Energy CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Enphase expects revenue of $310.0 million to $350.0 million, including shipments of 140 to 160 MWh of IQ Batteries, with no safe harbor shipments included. GAAP gross margin is expected at 40.0% to 43.0% and non-GAAP gross margin at 42.0% to 45.0%, both including approximately five percentage points of reciprocal tariff impact. GAAP operating expenses are expected at $130.0 million to $134.0 million and non-GAAP operating expenses at $77.0 million to $81.0 million. For full year 2025, Enphase expects a GAAP tax rate of 18-20% and a non-GAAP tax rate of 14-16%. The company expects to begin U.S. shipments of its new IQ9N-3P Commercial Microinverter and IQ EV Charger 2 during Q4 2025.
ENPH YoY Financials
Figures from SEC filings and company reports. Not investment advice.