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Jun 30, 2025
Enphase Q2 2025 Earnings Report
Enphase Energy reported its financial results for the second quarter of 2025, showing an increase in revenue and strong non-GAAP profitability, driven by growth in both U.S. and European markets.
Key Takeaways
Enphase Energy delivered a solid performance in Q2 2025, with revenue reaching $363.2 million, a slight increase from the previous quarter. The company achieved strong non-GAAP gross margins and operating income, alongside healthy free cash flow. Growth was observed in both the United States and Europe, supported by increased microinverter and battery shipments, including new product introductions.
Total revenue for Q2 2025 was $363.2 million, an increase from the prior quarter.
Non-GAAP diluted EPS was $0.69, demonstrating strong profitability.
The company shipped 1.53 million microinverters and a record 190.9 MWh of IQ Batteries.
Enphase ended the quarter with $1.53 billion in cash, cash equivalents, and marketable securities, and generated $18.4 million in free cash flow.
Forward Guidance
For the third quarter of 2025, Enphase Energy anticipates revenue between $330.0 million and $370.0 million, with IQ Battery shipments ranging from 190 to 210 MWh. Gross margins are expected to be strong, with continued benefits from the IRA, despite new tariff impacts.
Positive Outlook
- Expected revenue range of $330.0 million to $370.0 million for Q3 2025.
- Anticipated IQ Battery shipments of 190 to 210 MWh in Q3 2025.
- Non-GAAP gross margin expected to be between 43.0% and 46.0% with net IRA benefit.
- Net IRA benefit projected between $34.0 million and $38.0 million based on U.S. manufactured microinverters.
- Non-GAAP operating expenses are expected to remain controlled, between $78.0 million and $82.0 million.
Challenges Ahead
- GAAP gross margin expected to be lower, between 41.0% to 44.0%, including approximately three to five percentage points of new tariff impact.
- Non-GAAP gross margin excluding net IRA benefit is expected to be lower, between 33.0% to 36.0%, also impacted by new tariffs.
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