Enphase Energy Reports Strong Q3: Revenue Hits Two-Year High – Q4 Outlook Disappoints Investors – Stock Slumps
Fremont (USA) – Enphase Energy, a global leader in microinverter-based solar and battery systems, has released its financial results for the third quarter of 2025.
The gross margin was 47.8% (GAAP) and 49.2% (non-GAAP), including a negative impact of 4.9 percentage points from tariffs. GAAP operating income came in at $66.2 million, while non-GAAP operating income totaled $123.4 million.
GAAP net income amounted to $66.6 million, with non-GAAP net income of $117.3 million. On a diluted basis, earnings per share were $0.50 (GAAP) and $0.90 (non-GAAP). According to financial research site Zacks, analysts had expected only $0.62 per share (non-GAAP). Free cash flow stood at $5.9 million.
During the quarter, Enphase shipped approximately 1.77 million microinverters, corresponding to 784.6 MW DC, and a record 195 MWh of IQ® Batteries. From its U.S. manufacturing facilities alone, the company shipped 1.53 million microinverters and 67.5 MWh of IQ Batteries.
Despite strong quarterly results, Enphase disappointed investors with its outlook for the next quarter. For Q4 2025, the company expects revenue between $310 million and $350 million, meaning the top end of the range is about $60 million below Q3 levels. The projected gross margin is also weaker at 40.0%–43.0% (GAAP) and 42.0%–45.0% (non-GAAP), including an approximately five-percentage-point headwind from tariffs.
Although Enphase exceeded expectations on both revenue and profit in the third quarter, the company’s stock fell sharply by 12.6% to €27.50 (closing price, October 29, 2025, Stuttgart Stock Exchange). The decline was driven by the disappointing Q4 outlook and ongoing tariff-related headwinds.
Source: IWR Online, 30 Oct 2025
