It has been about a month since the last earnings report for Enphase Energy (ENPH). Shares have lost about 2.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Enphase Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Enphase Energy Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Enphase Energy, Inc. reported second-quarter 2025 adjusted earnings of 69 cents per share, which increased 60.5% from 43 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 62 cents by 11.3%.
Including one-time adjustments, the company posted GAAP earnings of 28 cents per share compared with the GAAP earnings of 8 cents in the year-ago quarter.
The year-over-year earnings improvement can be attributed to higher revenues and income from operations from the year-ago quarter.
ENPH’s Q2 Revenues
Enphase Energy’s second-quarter revenues of $363.2 million surpassed the Zacks Consensus Estimate of $357 million by 1.9%. The top line also increased 19.7% from the prior-year quarter’s reported figure of $303.5 million.
The year-over-year jump was driven by higher sales in the United States and Europe. While seasonality drove U.S. sales, higher microinverter and battery shipments boosted sales in Europe.
Enphase Energy’s Operational Update
The company’s shipments amounted to approximately 1.53 million microinverters and 190.9 megawatt-hours (MWh) of Enphase IQ Batteries.
The company’s adjusted gross margin increased 150 basis points year over year to 48.6%.
Adjusted operating expenses dropped 4.8% year over year to $77.8 million.
The adjusted operating income totaled $98.6 million, up 61.4% from the year-ago quarter.
Financial Details of ENPH
Enphase Energy had $370.5 million in cash and cash equivalents as of June 30, 2025 compared with $369.1 million as of Dec. 31, 2024.
Cash flow from operating activities amounted to $75 million as of June 30, 2025 compared with $176.3 million a year ago.
Q3 Guidance of Enphase Energy
For the third quarter of 2025, ENPH expects revenues in the range of $330-$370 million. The Zacks Consensus Estimate for third-quarter revenues is pegged at $366.2 million, which lies near the high-end of the company’s guided range.
Enphase Energy expects to ship IQ batteries in the range of 190-210 MWh in the third quarter.
Adjusted operating expenses are expected between $78 million and $82 million. This excludes approximately $52 million estimated for stock-based compensation expenses and acquisition-related costs and amortization, as well as restructuring and asset impairment charges.
The adjusted gross margin is expected in the range of 43-46%, excluding stock-based compensation expenses and acquisition-related amortization.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Enphase Energy has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Enphase Energy has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Enphase Energy, Inc. (ENPH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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