Quarterly Results: Enphase Energy Increases Revenue by 35 Percent in Q1 2025 – Outlook Disappoints – Stock Drops

Fremont, USA – U.S. technology company Enphase Energy has released its financial results for the first quarter of 2025 (Q1 25). Compared to the same quarter of the previous year (Q1 24), Enphase significantly increased its revenue, and net income turned positive after posting a loss in the prior-year quarter. However, the stock reacted negatively to the news and saw a sharp decline in value.

Overall, the RENIXX-listed company, which is one of the world’s leading providers of solar and battery systems based on microinverters, reported quarterly revenue of $356.08 million in Q1 2025. This marks a substantial increase of 35 percent compared to the same quarter last year (Q1 24: $263.34 million), but it narrowly missed analysts’ expectations of $360.9 million.

While revenue in the United States declined by around 13 percent compared to Q1 2024, revenue in Europe rose by about 7 percent year-over-year. Enphase attributed the U.S. revenue decline to weakened demand and seasonal effects, while the increase in Europe was mainly driven by higher battery sales, according to the company.

On balance, Enphase posted a GAAP net income of $29.73 million in the first quarter of 2025. In Q1 2024, the company had reported a GAAP net loss of $16.10 million. This corresponds to a diluted earnings per share of $0.22 in Q1 25, compared to a loss of $0.12 per share in Q1 24.

For the second quarter of 2025, Enphase expects revenue to range between $340 million and $380 million. The lower end of this forecast is below analyst expectations, while the upper end is slightly above. Analysts' average estimate is $376 million.

The muted outlook for the second quarter especially disappointed investors. The stock dropped significantly and was trading at €42.225, down 9.1 percent on the day, making it the weakest performer in the RENIXX index.

Source: IWR Online, 23 Apr 2025