Enphase Energy Inc

Enphase Energy posted a narrow but clean beat in Q1 2026, with adjusted diluted EPS of $0.47 topping the $0.45 consensus by 5.15% and revenue of $282.90 million edging past estimates of $282.59 million, even as the top line fell 20.6% year-over-year under the weight of weakening U.S. residential demand. The most consequential driver was the expiration of the federal Section 25D residential clean energy tax credit, which contributed to a 48% sequential drop in U.S. sell-through demand and pushed quarterly revenue well below year-ago levels; European revenue, rising roughly 36% from Q4, provided a meaningful but incomplete offset. A one-time $235.00 million sale of Advanced Manufacturing Production Tax Credits at a discount compressed GAAP margins, though non-GAAP gross margin held at 43.9% excluding that adjustment. Free cash flow came in at $82.97 million, more than doubling from $33.81 million a year ago. Looking ahead, Enphase guided Q2 revenue to a range of $280.00 million to $310.00 million, with approximately $85.00 million in safe harbor shipments and non-GAAP gross margin expected between 44.0% and 47.0%.