Strong Revenue and Strategic ...

Revenue: $363.2 million for Q2 2025.

Gross Margin: 49% on a non-GAAP basis; 46.9% on a GAAP basis for Q2 2025.

Operating Expenses: $77.8 million non-GAAP; $133.5 million GAAP for Q2 2025.

Net Income: $89.9 million non-GAAP; $37.1 million GAAP for Q2 2025.

Earnings Per Share (EPS): $0.69 non-GAAP diluted; $0.28 GAAP diluted for Q2 2025.

Free Cash Flow: $18.4 million for Q2 2025.

Microinverters Shipped: 1.53 million units in Q2 2025.

Battery Shipments: 190.9 megawatt hours in Q2 2025.

Cash and Marketable Securities: $1.53 billion at the end of Q2 2025.

Share Repurchase: 702,948 shares repurchased at an average price of $42.67 per share, totaling approximately $30 million in Q2 2025.

Q3 2025 Revenue Guidance: $330 million to $370 million.

Q3 2025 Gross Margin Guidance: 41% to 44% GAAP; 43% to 46% non-GAAP with net IRA benefit.

Release Date: July 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Enphase Energy Inc (NASDAQ:ENPH) reported a strong quarterly revenue of $363.2 million, with significant shipments of 1.53 million microinverters and 190.9 megawatt hours of battery.

The company achieved a high gross margin of 49% and an operating income of 27% as a percentage of revenue on a non-GAAP basis.

Enphase Energy Inc (NASDAQ:ENPH) is expanding its product offerings, including the launch of the IQ9 Microinverters and fourth-generation battery systems, which are expected to enhance performance and reduce costs.

The company is actively diversifying its supply chain to mitigate tariff risks and is well-positioned to benefit from domestic content ITC bonuses.

Enphase Energy Inc (NASDAQ:ENPH) is focusing on strategic partnerships and innovative financing structures to expand lease financing availability and drive residential solar adoption.

The company faces a potential 20% reduction in total addressable market (TAM) in 2026 due to the expiration of the 25D homeowner tax credit.

Enphase Energy Inc (NASDAQ:ENPH) is experiencing slightly elevated microinverter channel inventory levels, which may require strategic management to avoid oversupply.

Tariffs continue to impact gross margins, with an estimated 3% to 5% margin headwind expected in Q3 due to new tariff increases on several non-China countries.

The European market remains challenging, with subdued demand in key regions like France and the Netherlands, impacting overall growth.

The company anticipates seasonal softness in Europe for Q3, which could affect revenue performance in the short term.

Story Continues

Q: Can you elaborate on the creative financing structures you plan to introduce with TPO providers to maximize tax credit capture? Also, what is your current market share with TPO providers, and how do you expect it to evolve in 2026? A: Our overall market share in the US is healthy for both cash, loan customers, and TPO customers. We are in discussions with TPOs to bring lease financing access to long-tail installers to prevent market erosion. We aim to share more details soon, possibly in the next earnings call. We expect a 20% drop in TAM in 2026 due to the 25D expiration, and we are focusing on lease financing, driving down installation costs, and reducing lead generation costs to mitigate this.

Q: How do you intend to manage field inventories with distributors for the rest of the year, given the expected demand decline in 2026? A: We expect the 25D demand increase to help normalize channel inventory levels by the end of the year. We anticipate that the demand will come from the channel, which will help maintain reasonable inventory levels.

Q: Can you provide insights into the Q3 guidance regarding Safe Harbor revenue and the elevated channel levels? A: The Q3 revenue guidance does not include any Safe Harbor. We are ready to service TPO partners once they finalize their plans. We expect to see 25D demand possibly in early Q4. Our channel management is in good shape, with inventory levels slightly above the 8% to 10% range.

Q: How quickly can you implement strategies to work with the long tail on TPO and financing, and what are the potential costs? Also, would pricing actions be part of the strategy to mitigate TAM loss? A: We don’t anticipate major changes in operating expenses as facilitating demand will be lucrative for TPOs. Innovation is key to altering cost structures, allowing us to adjust pricing appropriately. We are innovating on batteries and microinverters to improve margins and offer competitive pricing.

Q: Can you discuss the dynamics of 4Q Safe Harboring and the potential impact of loan originations? A: TPO partners have until June 30 to finalize their Safe Harbor inventory and strategy. For 25B, the consumer must pay and the system must be installed by year-end. We expect installers to manage the demand rush effectively, and we anticipate installations will happen as planned.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

Strong Revenue and Strategic …

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