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Mar 31
Enphase Q1 2025 Earnings Report
Enphase reported solid battery and microinverter shipments but saw a sequential revenue decline due to soft U.S. demand.
Key Takeaways
Enphase delivered $356.1M in revenue and $29.7M in net income for Q1 2025. While U.S. demand softened, the company saw gains in Europe and continued to ramp its IQ Battery 5P. Free cash flow remained positive and the company repurchased $100M in stock.
Shipped 1.53 million microinverters and 170.1 MWh of batteries.
U.S. revenue declined due to seasonality and soft demand, partially offset by $54.3M in safe harbor revenue.
European revenue rose 7% QoQ driven by increased battery sales.
Repurchased $100M in stock and ended with $1.53B in cash, equivalents, and marketable securities.
Enphase
Enphase
Forward Guidance
Enphase expects Q2 2025 revenue to range between $340M and $380M with continued IQ Battery shipments and a net IRA benefit impacting margins.
Positive Outlook
- Expected Q2 revenue between $340M and $380M.
- Shipment of 160–180 MWh of IQ Batteries forecasted.
- Approximately $40M in safe harbor revenue expected.
- Introduction of IQ Battery 10C and new products in the U.S.
- Launch of IQ Balcony Solar Kit in Germany and Belgium.
Challenges Ahead
- Gross margin pressured by new tariffs (~2% impact).
- Non-GAAP gross margin excluding IRA benefits expected at 35–38%.
- Declining safe harbor revenue impact compared to Q1.
- Operating income expected to decline due to restructuring.
- Lower expected microinverter shipments compared to Q1.