Enphase Energy Inc

Enphase Energy closed out fiscal 2025 with a stronger-than-expected fourth quarter, posting adjusted earnings of $0.71 per share against a consensus estimate of $0.58, a 22.63% beat, while revenue of $343.32 million edged past the $338.06 million estimate by 1.56%, even as the top line fell 10.3% year over year. The headline outperformance came despite real headwinds, most notably a sharp sequential drop in safe harbor revenue to $20.30 million from $70.90 million in Q3, which weighed on both U.S. and European results; the company partially offset that softness through a 21% sequential surge in U.S. sell-through demand, its strongest in over two years, as installers accelerated activity ahead of the Section 25D tax credit expiration. Non-GAAP gross margins compressed to 46.1% from 49.2%, with reciprocal tariffs accounting for roughly 5.1 percentage points of that pressure, a drag management expects to persist into Q1 2026, when guidance calls for revenue of $270.00 million to $300.00 million and non-GAAP margins in the 42.0% to 45.0% range.