Enphase Energy Q4 Earnings Beat Estimates, Revenues Decline Y/Y

Enphase Energy, Inc. ENPH reported fourth-quarter 2025 adjusted earnings of 71 cents per share, which decreased 24.5% from 94 cents reported in the prior-year quarter. However, the bottom line topped the Zacks Consensus Estimate of 54 cents by 31.5%.

Including one-time adjustments, the company posted GAAP earnings of 29 cents per share compared with the GAAP earnings of 45 cents in the year-ago quarter.

The year-over-year earnings decline can be attributed to lower revenues as well as lower income from operations from the year-ago quarter.

ENPH reported 2025 adjusted earnings of $2.96 per share, which were significantly higher than the year-ago figure of $2.37.

ENPH’s Revenues

Enphase Energy’s fourth-quarter revenues of $343.3 million beat the Zacks Consensus Estimate of $335 million by 2.6%. However, the top line decreased 10.3% from the prior-year quarter’s reported figure of $382.7 million.

The year-over-year plunge was mainly due to weaker sales in the United States and Europe, reflecting continued softness in European demand.

The company reported revenues of $1.47 billion in 2025, which were higher than $1.33 billion in 2024.

Enphase Energy’s Operational Update

The company’s shipments amounted to approximately 1.55 million microinverters and 150.1 megawatt-hours (MWh) of Enphase IQ Batteries.

The company’s adjusted gross margin decreased 710 basis points year over year to 46.1%.

Adjusted operating expenses dropped 5.3% year over year to $78.8 million. 

The adjusted operating income totaled $79.4 million, down 34.1% from the year-ago quarter.

Financial Details of ENPH

Enphase Energy had $474.3 million in cash and cash equivalents as of Dec. 31, 2025 compared with $369.1 million as of Dec. 31, 2024.

The net cash flow from operating activities amounted to $136.5 million in 2025 compared with $513.7 million at the end of 2024.

Q1 2026 Guidance by Enphase Energy

For the first quarter of 2026, ENPH expects revenues in the range of $270-$300 million. The Zacks Consensus Estimate for first-quarter revenues is pegged at $260 million, which is lower than the company’s guided range.

Enphase Energy expects to ship IQ batteries in the range of 100-120 MWh in the first quarter.

Adjusted operating expenses are expected between $77 million and $81 million. This excludes approximately $60 million estimated for stock-based compensation expenses, acquisition-related costs and amortization, as well as restructuring and asset impairment charges.

The adjusted gross margin is expected in the range of 42-45%, excluding stock-based compensation expenses and acquisition-related amortization.

ENPH’s Zacks Rank

Enphase Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Solar Releases

SolarEdge Technologies SEDG is slated to report fourth-quarter 2025 results on Feb. 18, before market open. The Zacks Consensus Estimate for SEDG’s earnings is pegged at a loss of 19 cents per share.

The consensus estimate for sales is pegged at $328.5 million, which indicates an improvement of 67.4%.

First Solar, Inc. FSLR is scheduled to report fourth-quarter 2025 results on Feb. 24, after market close. The Zacks Consensus Estimate for FSLR’s earnings is pegged at $5.22 per share, which suggests a year-over-year rise of 43%.

The consensus estimate for sales stands at $1.57 billion, which indicates growth of 3.9%.

Sunrun Inc. RUN is slated to report fourth-quarter 2025 results on Feb. 26, after market close. The Zacks Consensus Estimate for RUN’s earnings is pegged at a loss of 8 cents per share.

The consensus estimate for sales is pegged at $656.9 million, which calls for a jump of 26.7%.

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This article originally published on Zacks Investment Research (zacks.com).

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