Enphase Energy Reports Financial Results for the First Quarter of 2025
Enphase Energy (NASDAQ: ENPH) reported Q1 2025 financial results with revenue of $356.1 million, down from $382.7 million in Q4 2024. The company achieved a non-GAAP gross margin of 48.9% and shipped approximately 1.53 million microinverters (688.5 megawatts DC) and 170.1 MWh of IQ Batteries.
U.S. revenue decreased 13% quarter-over-quarter due to seasonality and softening demand, partially offset by $54.3 million in safe harbor revenue. European revenue increased 7%, driven by higher battery sales. The company maintained strong U.S. manufacturing, producing 1.21 million microinverters.
For Q2 2025, Enphase forecasts revenue between $340.0-$380.0 million, including 160-180 MWh of IQ Battery shipments and approximately $40.0 million in safe harbor revenue. The company ended Q1 with $1.53 billion in cash and equivalents, generating $48.4 million in operating cash flow.
Enphase Energy (NASDAQ: ENPH) ha riportato i risultati finanziari del primo trimestre 2025 con ricavi di 356,1 milioni di dollari, in calo rispetto ai 382,7 milioni di dollari del quarto trimestre 2024. L'azienda ha raggiunto un margine lordo non-GAAP del 48,9% e ha spedito circa 1,53 milioni di microinverter (688,5 megawatt in corrente continua) e 170,1 MWh di batterie IQ.
I ricavi negli Stati Uniti sono diminuiti del 13% trimestre su trimestre a causa della stagionalità e di una domanda più debole, parzialmente compensati da 54,3 milioni di dollari di ricavi da safe harbor. I ricavi in Europa sono aumentati del 7%, trainati da maggiori vendite di batterie. L'azienda ha mantenuto una forte produzione negli Stati Uniti, realizzando 1,21 milioni di microinverter.
Per il secondo trimestre 2025, Enphase prevede ricavi tra 340,0 e 380,0 milioni di dollari, inclusi 160-180 MWh di spedizioni di batterie IQ e circa 40,0 milioni di dollari di ricavi da safe harbor. L'azienda ha chiuso il primo trimestre con 1,53 miliardi di dollari in liquidità e equivalenti, generando 48,4 milioni di dollari di flusso di cassa operativo.
Enphase Energy (NASDAQ: ENPH) reportó los resultados financieros del primer trimestre de 2025 con ingresos de 356,1 millones de dólares, una disminución respecto a los 382,7 millones de dólares del cuarto trimestre de 2024. La compañía logró un margen bruto no-GAAP del 48,9% y envió aproximadamente 1,53 millones de microinversores (688,5 megavatios de corriente continua) y 170,1 MWh de baterías IQ.
Los ingresos en EE.UU. bajaron un 13% trimestre a trimestre debido a la estacionalidad y una demanda más débil, parcialmente compensados por 54,3 millones de dólares en ingresos de safe harbor. Los ingresos en Europa aumentaron un 7%, impulsados por mayores ventas de baterías. La empresa mantuvo una fuerte producción en EE.UU., fabricando 1,21 millones de microinversores.
Para el segundo trimestre de 2025, Enphase pronostica ingresos entre 340,0 y 380,0 millones de dólares, incluyendo envíos de baterías IQ de 160-180 MWh y aproximadamente 40,0 millones de dólares en ingresos de safe harbor. La compañía terminó el primer trimestre con 1,53 mil millones de dólares en efectivo y equivalentes, generando 48,4 millones de dólares en flujo de caja operativo.
Enphase Energy (NASDAQ: ENPH)는 2025년 1분기 재무 실적을 발표했으며, 매출은 3억 5,610만 달러로 2024년 4분기 3억 8,270만 달러에서 감소했습니다. 회사는 비-GAAP 기준 총이익률 48.9%를 기록했고, 약 153만 개의 마이크로인버터(688.5 메가와트 DC)와 170.1 MWh의 IQ 배터리를 출하했습니다.
미국 매출은 계절적 요인과 수요 약화로 전분기 대비 13% 감소했으나, 5,430만 달러의 세이프 하버(safe harbor) 수익으로 일부 상쇄되었습니다. 유럽 매출은 배터리 판매 증가에 힘입어 7% 증가했습니다. 회사는 미국 내 생산을 견고히 유지하며 121만 개의 마이크로인버터를 생산했습니다.
2025년 2분기에는 매출을 3억 4,000만~3억 8,000만 달러로 예상하며, IQ 배터리 출하량은 160~180 MWh, 세이프 하버 수익은 약 4,000만 달러로 전망합니다. 1분기 말 현금 및 현금성 자산은 15억 3,000만 달러였으며, 영업 현금 흐름은 4,840만 달러를 창출했습니다.
Enphase Energy (NASDAQ : ENPH) a annoncé ses résultats financiers du premier trimestre 2025 avec un chiffre d'affaires de 356,1 millions de dollars, en baisse par rapport à 382,7 millions de dollars au quatrième trimestre 2024. La société a réalisé une marge brute non-GAAP de 48,9 % et a expédié environ 1,53 million de micro-onduleurs (688,5 mégawatts en courant continu) ainsi que 170,1 MWh de batteries IQ.
Le chiffre d'affaires aux États-Unis a diminué de 13 % d'un trimestre à l'autre en raison de la saisonnalité et d'une demande plus faible, partiellement compensé par 54,3 millions de dollars de revenus safe harbor. Le chiffre d'affaires en Europe a augmenté de 7 %, porté par une hausse des ventes de batteries. L'entreprise a maintenu une forte production aux États-Unis, fabriquant 1,21 million de micro-onduleurs.
Pour le deuxième trimestre 2025, Enphase prévoit un chiffre d'affaires compris entre 340,0 et 380,0 millions de dollars, incluant 160-180 MWh de livraisons de batteries IQ et environ 40,0 millions de dollars de revenus safe harbor. La société a terminé le premier trimestre avec 1,53 milliard de dollars en liquidités et équivalents, générant un flux de trésorerie opérationnel de 48,4 millions de dollars.
Enphase Energy (NASDAQ: ENPH) meldete die Finanzergebnisse für das erste Quartal 2025 mit einem Umsatz von 356,1 Millionen US-Dollar, was einem Rückgang gegenüber 382,7 Millionen US-Dollar im vierten Quartal 2024 entspricht. Das Unternehmen erzielte eine Non-GAAP-Bruttomarge von 48,9 % und lieferte etwa 1,53 Millionen Mikro-Wechselrichter (688,5 Megawatt Gleichstrom) sowie 170,1 MWh IQ-Batterien aus.
Die Umsätze in den USA sanken aufgrund von Saisonalität und nachlassender Nachfrage im Quartalsvergleich um 13 %, teilweise ausgeglichen durch 54,3 Millionen US-Dollar an Safe-Harbor-Umsätzen. Die Umsätze in Europa stiegen um 7 %, angetrieben durch höhere Batterie-Verkäufe. Das Unternehmen hielt eine starke Produktion in den USA aufrecht und fertigte 1,21 Millionen Mikro-Wechselrichter.
Für das zweite Quartal 2025 prognostiziert Enphase einen Umsatz zwischen 340,0 und 380,0 Millionen US-Dollar, einschließlich 160-180 MWh IQ-Batterielieferungen und rund 40,0 Millionen US-Dollar Safe-Harbor-Umsätzen. Das Unternehmen schloss das erste Quartal mit 1,53 Milliarden US-Dollar an liquiden Mitteln und Äquivalenten ab und erzielte einen operativen Cashflow von 48,4 Millionen US-Dollar.
- Strong U.S. manufacturing with 1.21 million microinverters produced
- European revenue increased 7% quarter-over-quarter
- Battery shipments grew to 170.1 MWh from 152.4 MWh in previous quarter
- Generated $48.4 million in operating cash flow
- Maintained healthy non-GAAP gross margin of 48.9% with IRA benefits
- U.S. revenue declined 13% quarter-over-quarter
- Total revenue decreased to $356.1M from $382.7M in previous quarter
- Non-GAAP gross margin declined to 48.9% from 53.2% in Q4 2024
- Operating income decreased to $94.6M from $120.4M in previous quarter
Insights
Enphase's Q1 results reveal sequential declines in revenue and margins amid U.S. market softness, despite strong year-over-year improvements.
Enphase Energy's Q1 2025 performance presents a mixed financial picture with concerning sequential trends. Revenue of
Profitability metrics show sequential pressure with non-GAAP gross margin falling to
The balance sheet remains robust with
Looking ahead, Q2 guidance of
While year-over-year comparisons remain favorable (revenue up
Enphase's growth in battery shipments and European expansion partially offsets U.S. slowdown; product diversification strategy shows promise.
Enphase's Q1 results highlight the company's strategic product diversification amid challenging market conditions. Battery deployment reached 170.1 MWh, a
Microinverter shipments totaled 1.53 million units (688.5 MW DC), with approximately 1.21 million manufactured in the U.S. to capture IRA tax credits. This domestic manufacturing strategy provided a substantial
European operations showed resilience with
The EV charging segment is gaining momentum with the IQ EV Charger 2 now shipping to 14 European markets, supporting up to 22kW of three-phase charging. This integration with Enphase's solar and battery ecosystem positions the company in the growing electrification market.
Looking forward, Enphase's product roadmap includes the fourth-generation IQ Battery 10C, IQ Meter Collar, and IQ Combiner 6C for the U.S. market, plus the IQ Balcony Solar Kit for European apartment dwellers. These innovations aim to simplify installations and reduce costs, addressing key adoption barriers. However, the U.S. market softness remains a significant challenge that these product innovations will need to overcome.
FREMONT, Calif., April 22, 2025 (GLOBE NEWSWIRE) -- Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today financial results for the first quarter of 2025, which included the summary below from its President and CEO, Badri Kothandaraman.
We reported quarterly revenue of
Highlights for the first quarter of 2025 are listed below:
- Completed IQ® Meter Collar testing with PG&E and four other U.S. utilities
- Strong U.S. manufacturing: shipped approximately 1.21 million microinverters and 44.1 MWh of IQ Batteries
- Revenue of
$356.1 million - GAAP gross margin of
47.2% ; non-GAAP gross margin of48.9% with net IRA benefit - Non-GAAP gross margin of
38.3% , excluding net IRA benefit of10.6% - GAAP operating income of
$31.9 million ; non-GAAP operating income of$94.6 million - GAAP net income of
$29.7 million ; non-GAAP net income of$89.2 million - GAAP diluted earnings per share of
$0.22 ; non-GAAP diluted earnings per share of$0.68 - Free cash flow of
$33.8 million ; ending cash, cash equivalents, restricted cash and marketable securities of$1.53 billion
Our revenue and earnings for the first quarter of 2025 are provided below, compared with the prior quarter:
(In thousands, except per share and percentage data)
| GAAP | Non-GAAP | ||||||||||||||||||||||
| Q1 2025 | Q4 2024 | Q1 2024 | Q1 2025 | Q4 2024 | Q1 2024 | ||||||||||||||||||
| Revenue | $ | 356,084 | $ | 382,713 | $ | 263,339 | $ | 356,084 | $ | 382,713 | $ | 263,339 | |||||||||||
| Gross margin | 47.2 | % | 51.8 | % | 43.9 | % | 48.9 | % | 53.2 | % | 46.2 | % | |||||||||||
| Operating expenses | $ | 136,319 | $ | 143,489 | $ | 144,607 | $ | 79,423 | $ | 83,322 | $ | 82,587 | |||||||||||
| Operating income (loss) | $ | 31,922 | $ | 54,804 | $ | (29,099 | ) | $ | 94,637 | $ | 120,434 | $ | 38,994 | ||||||||||
| Net income (loss) | $ | 29,730 | $ | 62,160 | $ | (16,097 | ) | $ | 89,243 | $ | 125,862 | $ | 47,956 | ||||||||||
| Basic EPS | $ | 0.23 | $ | 0.46 | $ | (0.12 | ) | $ | 0.68 | $ | 0.94 | $ | 0.35 | ||||||||||
| Diluted EPS | $ | 0.22 | $ | 0.45 | $ | (0.12 | ) | $ | 0.68 | $ | 0.94 | $ | 0.35 | ||||||||||
Total revenue for the first quarter of 2025 was
Our non-GAAP gross margin was
Our non-GAAP operating expenses were
We exited the first quarter of 2025 with
In the first quarter of 2025, we repurchased 1,594,105 shares of our common stock at an average price of
We shipped 170.1 MWh of IQ Batteries in the first quarter of 2025, compared to 152.4 MWh in the fourth quarter. More than 10,900 installers worldwide are certified to install our IQ Batteries, compared to more than 10,300 installers worldwide in the fourth quarter of 2024.
During the first quarter of 2025, we shipped approximately 1.21 million microinverters from our contract manufacturers in the United States that we booked for 45X production tax credits. We continued to ship our IQ8HC™ Microinverters, IQ8P-3P™ Commercial Microinverters, and IQ® Battery 5Ps from our contract manufacturers in the United States. When paired with other U.S.-made solar components, our products enable lease and power purchase agreement (PPA) providers to qualify for the domestic content bonus tax credit under the IRA.
We continued to make progress with recent product introductions. We are now shipping our IQ Battery 5P with FlexPhase into Germany, Austria, Switzerland, Luxembourg, and Poland. Customers appreciate the reliable backup power the product delivers for both single-and three-phase installations. Our IQ® EV Charger 2, currently shipping to 14 countries in Europe, is our most advanced residential charger to date. This product can support up to 22 kW of three-phase charging and operate either as a standalone charger or fully integrated with Enphase microinverters and batteries. Finally, our customers are enjoying the plug-and-play simplicity of our IQ® PowerPack 1500, our first foray into the portable consumer market.
In the second quarter of 2025, we expect to introduce our fourth-generation IQ® Battery 10C, IQ Meter Collar, and IQ® Combiner 6C products in the United States. Together, these products will make backup installations easy and help reduce costs. We also expect to launch our IQ® Balcony Solar Kit, a simple and efficient solution for harnessing solar energy from panels installed on apartment balconies, in Germany and Belgium.
BUSINESS HIGHLIGHTS
On April 8 and 9, 2025, Enphase Energy announced the launch of its IQ Battery 5P with FlexPhase with backup capability for customers in Luxembourg and Poland.
On April 3, 2025, Enphase Energy announced the introduction of its IQ® System Controller in France and the Netherlands, enabling backup power.
On April 1, 2025, Enphase Energy announced that more than 2,500 SunPower customers have transitioned to Enphase monitoring since SunPower’s bankruptcy filing in August 2024.
On March 18, 2025, Enphase Energy welcomed Brazil’s ABNT NBR 17193 fire safety standard, which outlines stringent recommendations like rapid shutdown requirements for solar installations in all buildings.
On March 11, 2025, Enphase Energy announced production shipments of its newest electric vehicle (EV) charger, the IQ EV Charger 2, in 14 European markets.
On March 3, 2025, Enphase Energy announced increased deployments of its solution for expanding legacy net energy metering (NEM) solar energy systems in California as utilities streamline their approval process.
On Feb. 11, 2025, Enphase Energy announced the launch of an expanded IQ Battery 5P product with support for both single-phase 120/208 V and split-phase 120/240 V, for new home projects in California.
On Feb. 6, 2025, Enphase Energy announced that it is expanding its support for grid services programs – or virtual power plants (VPPs) – in Puerto Rico, Colorado, and Nova Scotia, Canada, powered by the IQ Battery 5P.
SECOND QUARTER 2025 FINANCIAL OUTLOOK
For the second quarter of 2025, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:
- Revenue to be within a range of
$340.0 million to$380.0 million , which includes shipments of 160 to 180 MWh of IQ Batteries. The second quarter of 2025 financial outlook includes approximately$40.0 million of safe harbor revenue. We define safe harbor revenue as any sales made to customers who plan to install the inventory over more than one year. - GAAP gross margin to be within a range of
42.0% to45.0% with net IRA benefit, including approximately two percentage points of new tariff impact. - Non-GAAP gross margin to be within a range of
44.0% to47.0% with net IRA benefit and35.0% to38.0% excluding net IRA benefit, including approximately two percentage points of new tariff impact. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization. - Net IRA benefit to be within a range of
$30.0 million to$33.0 million based on estimated shipments of 1,000,000 units of U.S. manufactured microinverters. - GAAP operating expenses to be within a range of
$136.0 million to$140.0 million . - Non-GAAP operating expenses to be within a range of
$78.0 million to$82.0 million , excluding$58.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization, restructuring and asset impairment charges.
For 2025, Enphase expects a GAAP tax rate of 21
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Use of non-GAAP Financial Measures
Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), net IRA benefit, and free cash flow.
These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.
As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:
Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.
Acquisition related expenses and amortization. This item represents expenses incurred related to Enphase Energy’s business acquisitions, which are non-recurring in nature, and amortization of acquired intangible assets, which is a non-cash expense. Acquisition related expenses and amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.
Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs, accelerated stock-based compensation expense and asset write-downs of property and equipment and acquired intangible assets, and other contract termination costs resulting from restructuring initiatives.
Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.
Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.
Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock upon conversion of the Notes due 2025, Notes due 2026, and Notes due 2028, and includes the dilutive effect of employee’s stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful supplemental information to the ongoing financial performance.
Net IRA benefit. This item represents the advanced manufacturing production tax credit (AMPTC) from the IRA for manufacturing microinverters in the United States, partially offset by the incremental manufacturing cost incurred in the United States relative to manufacturing in Mexico, India, and China. The AMPTC is accounted for by Enphase Energy as an income-based government grants that reduces cost of revenues in the condensed consolidated statements of operations.
Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.
Conference Call Information
Enphase Energy will host a conference call for analysts and investors to discuss its first quarter 2025 results and second quarter 2025 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at https://investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (877) 344-7529; replay access code 9557806, beginning approximately one hour after the call.
Forward-Looking Statements
This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its second quarter of 2025 financial outlook, including revenue, shipments of IQ Batteries by MWh, gross margin with net IRA benefit and excluding net IRA benefit, estimated shipments of U.S. manufactured microinverters, operating expenses, and annualized effective tax rate with IRA benefit; its expectations regarding the expected net IRA benefit; its expectations on the timing and introduction of new products and updates to existing products, including the IQ Battery 10C, IQ Meter Collar, and IQ Combiner 6C products in the United States, and the IQ Balcony Solar Kit in Germany and Belgium; its expectations regarding the domestic content bonus tax credit for its product offerings; and the capabilities, advantages, features, and performance of its technology and products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents on file with the SEC from time to time and available on the SEC’s website at www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.
A copy of this press release can be found on the investor relations page of Enphase Energy’s website at https://investor.enphase.com.
About Enphase Energy, Inc.
Enphase Energy, a global energy technology company based in Fremont, CA, is the world's leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 81.5 million microinverters, and approximately 4.8 million Enphase-based systems have been deployed in over 160 countries. For more information, visit https://investor.enphase.com.
© 2025 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.
Contact:
Zach Freedman
Enphase Energy, Inc.
Investor Relations
ir@enphaseenergy.com
| ENPHASE ENERGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
| Net revenues | $ | 356,084 | $ | 382,713 | $ | 263,339 | |||||
| Cost of revenues | 187,843 | 184,420 | 147,831 | ||||||||
| Gross profit | 168,241 | 198,293 | 115,508 | ||||||||
| Operating expenses: | |||||||||||
| Research and development | 50,174 | 50,390 | 54,211 | ||||||||
| Sales and marketing | 48,948 | 51,799 | 53,307 | ||||||||
| General and administrative | 34,035 | 31,901 | 35,182 | ||||||||
| Restructuring and asset impairment charges | 3,162 | 9,399 | 1,907 | ||||||||
| Total operating expenses | 136,319 | 143,489 | 144,607 | ||||||||
| Income (loss) from operations | 31,922 | 54,804 | (29,099 | ) | |||||||
| Other income, net | |||||||||||
| Interest income | 17,032 | 18,417 | 19,709 | ||||||||
| Interest expense | (2,047 | ) | (2,252 | ) | (2,196 | ) | |||||
| Other income (expense), net | (14 | ) | (1,270 | ) | 87 | ||||||
| Total other income, net | 14,971 | 14,895 | 17,600 | ||||||||
| Income before income taxes | 46,893 | 69,699 | (11,499 | ) | |||||||
| Income tax provision | (17,163 | ) | (7,539 | ) | (4,598 | ) | |||||
| Net income (loss) | $ | 29,730 | $ | 62,160 | $ | (16,097 | ) | ||||
| Net income (loss) per share: | |||||||||||
| Basic | $ | 0.23 | $ | 0.46 | $ | (0.12 | ) | ||||
| Diluted | $ | 0.22 | $ | 0.45 | $ | (0.12 | ) | ||||
| Shares used in per share calculation: | |||||||||||
| Basic | 131,869 | 133,815 | 135,891 | ||||||||
| Diluted | 136,208 | 138,128 | 135,891 | ||||||||
| ENPHASE ENERGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||||||
| March 31, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 350,077 | $ | 369,110 | |||
| Restricted cash | 65,013 | 95,006 | |||||
| Marketable securities | 1,116,780 | 1,253,480 | |||||
| Accounts receivable, net | 225,625 | 223,749 | |||||
| Inventory | 144,025 | 165,004 | |||||
| Prepaid expenses and other assets | 295,725 | 220,735 | |||||
| Total current assets | 2,197,245 | 2,327,084 | |||||
| Property and equipment, net | 142,219 | 147,514 | |||||
| Intangible assets, net | 37,408 | 42,398 | |||||
| Goodwill | 212,359 | 211,571 | |||||
| Other assets | 211,447 | 205,542 | |||||
| Deferred tax assets, net | 305,408 | 315,567 | |||||
| Total assets | $ | 3,106,086 | $ | 3,249,676 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 115,374 | $ | 90,032 | |||
| Accrued liabilities | 212,169 | 196,887 | |||||
| Deferred revenues, current | 167,771 | 237,225 | |||||
| Warranty obligations, current | 33,298 | 34,656 | |||||
| Debt, current | 630,677 | 101,291 | |||||
| Total current liabilities | 1,159,289 | 660,091 | |||||
| Long-term liabilities: | |||||||
| Deferred revenues, non-current | 333,704 | 341,982 | |||||
| Warranty obligations, non-current | 170,149 | 158,233 | |||||
| Other liabilities | 61,032 | 55,265 | |||||
| Debt, non-current | 571,214 | 1,201,089 | |||||
| Total liabilities | 2,295,388 | 2,416,660 | |||||
| Total stockholders’ equity | 810,698 | 833,016 | |||||
| Total liabilities and stockholders’ equity | $ | 3,106,086 | $ | 3,249,676 | |||
| ENPHASE ENERGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | 29,730 | $ | 62,160 | $ | (16,097 | ) | ||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 19,915 | 20,665 | 20,137 | ||||||||
| Net accretion of premium (discount) on marketable securities | 3,512 | (7,490 | ) | 2,825 | |||||||
| Provision (benefit) for doubtful accounts | 62 | 2,206 | (130 | ) | |||||||
| Asset impairment | 27 | 4,702 | 332 | ||||||||
| Non-cash interest expense | 1,679 | 2,188 | 2,132 | ||||||||
| Net gain from change in fair value of debt securities | (323 | ) | (3,697 | ) | (942 | ) | |||||
| Stock-based compensation | 55,633 | 51,830 | 60,833 | ||||||||
| Deferred income taxes | 8,560 | (30,675 | ) | (8,292 | ) | ||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 1,760 | 2,684 | 77,359 | ||||||||
| Inventory | 20,979 | (6,167 | ) | 5,702 | |||||||
| Prepaid expenses and other assets | (75,553 | ) | (16,487 | ) | (10,897 | ) | |||||
| Accounts payable, accrued and other liabilities | 54,232 | (27,396 | ) | (66,284 | ) | ||||||
| Warranty obligations | 10,558 | 8,657 | (11,923 | ) | |||||||
| Deferred revenues | (82,357 | ) | 104,112 | (5,554 | ) | ||||||
| Net cash provided by operating activities | 48,414 | 167,292 | 49,201 | ||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (14,608 | ) | (8,064 | ) | (7,371 | ) | |||||
| Investment in tax equity fund | (6,904 | ) | — | — | |||||||
| Purchases of marketable securities | (200,826 | ) | (93,138 | ) | (472,268 | ) | |||||
| Maturities and sale of marketable securities | 335,398 | 351,843 | 497,373 | ||||||||
| Net cash provided by investing activities | 113,060 | 250,641 | 17,734 | ||||||||
| Cash flows from financing activities: | |||||||||||
| Settlement of Notes due 2025 | (102,168 | ) | — | (2 | ) | ||||||
| Repurchase of common stock | (99,964 | ) | (199,666 | ) | (41,996 | ) | |||||
| Payment of excise tax on net stock repurchases | — | (2,773 | ) | — | |||||||
| Proceeds from issuance of common stock under employee equity plans | 67 | 4,719 | 1,186 | ||||||||
| Payment of withholding taxes related to net share settlement of equity awards | (12,110 | ) | (5,012 | ) | (60,042 | ) | |||||
| Net cash used in financing activities | (214,175 | ) | (202,732 | ) | (100,854 | ) | |||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,675 | (7,410 | ) | (1,177 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | (49,026 | ) | 207,791 | (35,096 | ) | ||||||
| Cash, cash equivalents and restricted cash—Beginning of period | 464,116 | 256,325 | 288,748 | ||||||||
| Cash, cash equivalents and restricted cash—End of period | $ | 415,090 | $ | 464,116 | $ | 253,652 | |||||
| ENPHASE ENERGY, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In thousands, except per share data and percentages) (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
| Gross profit (GAAP) | $ | 168,241 | $ | 198,293 | $ | 115,508 | |||||
| Stock-based compensation | 4,239 | 3,678 | 4,182 | ||||||||
| Acquisition related amortization | 1,580 | 1,784 | 1,891 | ||||||||
| Gross profit (Non-GAAP) | $ | 174,060 | $ | 203,755 | $ | 121,581 | |||||
| Gross margin (GAAP) | 47.2 | % | 51.8 | % | 43.9 | % | |||||
| Stock-based compensation | 1.2 | 0.9 | 1.6 | ||||||||
| Acquisition related amortization | 0.5 | 0.5 | 0.7 | ||||||||
| Gross margin (Non-GAAP) | 48.9 | % | 53.2 | % | 46.2 | % | |||||
| Operating expenses (GAAP) | $ | 136,319 | $ | 143,489 | $ | 144,607 | |||||
| Stock-based compensation(1) | (50,885 | ) | (47,884 | ) | (56,651 | ) | |||||
| Acquisition related expenses and amortization | (2,849 | ) | (2,884 | ) | (3,462 | ) | |||||
| Restructuring and asset impairment charges(1) | (3,162 | ) | (9,399 | ) | (1,907 | ) | |||||
| Operating expenses (Non-GAAP) | $ | 79,423 | $ | 83,322 | $ | 82,587 | |||||
| (1)Includes stock-based compensation as follows: | |||||||||||
| Research and development | $ | 21,647 | $ | 20,951 | $ | 24,550 | |||||
| Sales and marketing | 16,396 | 15,893 | 18,178 | ||||||||
| General and administrative | 12,842 | 11,041 | 13,923 | ||||||||
| Restructuring and asset impairment charges | 509 | 267 | — | ||||||||
| Total | $ | 51,394 | $ | 48,152 | $ | 56,651 | |||||
| Income (loss) from operations (GAAP) | $ | 31,922 | $ | 54,804 | $ | (29,099 | ) | ||||
| Stock-based compensation | 55,124 | 51,563 | 60,833 | ||||||||
| Acquisition related expenses and amortization | 4,429 | 4,668 | 5,353 | ||||||||
| Restructuring and asset impairment charges | 3,162 | 9,399 | 1,907 | ||||||||
| Income from operations (Non-GAAP) | $ | 94,637 | $ | 120,434 | $ | 38,994 | |||||
| Net income (loss) (GAAP) | $ | 29,730 | $ | 62,160 | $ | (16,097 | ) | ||||
| Stock-based compensation | 55,124 | 51,563 | 60,833 | ||||||||
| Acquisition related expenses and amortization | 4,429 | 4,668 | 5,353 | ||||||||
| Restructuring and asset impairment charges | 3,162 | 9,399 | 1,907 | ||||||||
| Non-cash interest expense | 1,678 | 2,188 | 2,132 | ||||||||
| Non-GAAP income tax adjustment | (4,880 | ) | (4,116 | ) | (6,172 | ) | |||||
| Net income (Non-GAAP) | $ | 89,243 | $ | 125,862 | $ | 47,956 | |||||
| Net income (loss) per share, basic (GAAP) | $ | 0.23 | $ | 0.46 | $ | (0.12 | ) | ||||
| Stock-based compensation | 0.42 | 0.39 | 0.45 | ||||||||
| Acquisition related expenses and amortization | 0.04 | 0.03 | 0.04 | ||||||||
| Restructuring and asset impairment charges | 0.02 | 0.07 | 0.01 | ||||||||
| Non-cash interest expense | 0.01 | 0.02 | 0.02 | ||||||||
| Non-GAAP income tax adjustment | (0.04 | ) | (0.03 | ) | (0.05 | ) | |||||
| Net income per share, basic (Non-GAAP) | $ | 0.68 | $ | 0.94 | $ | 0.35 | |||||
| Shares used in basic per share calculation GAAP and Non-GAAP | 131,869 | 133,815 | 135,891 | ||||||||
| Net income (loss) per share, diluted (GAAP) | $ | 0.22 | $ | 0.45 | $ | (0.12 | ) | ||||
| Stock-based compensation | 0.42 | 0.39 | 0.44 | ||||||||
| Acquisition related expenses and amortization | 0.04 | 0.04 | 0.04 | ||||||||
| Restructuring and asset impairment charges | 0.03 | 0.07 | 0.01 | ||||||||
| Non-cash interest expense | 0.01 | 0.02 | 0.02 | ||||||||
| Non-GAAP income tax adjustment | (0.04 | ) | (0.03 | ) | (0.04 | ) | |||||
| Net income per share, diluted (Non-GAAP) | $ | 0.68 | $ | 0.94 | $ | 0.35 | |||||
| Shares used in diluted per share calculation GAAP | 136,208 | 138,128 | 135,891 | ||||||||
| Shares used in diluted per share calculation Non-GAAP | 132,133 | 134,053 | 136,730 | ||||||||
| Income-based government grants (GAAP) | $ | 53,631 | $ | 68,040 | $ | 18,617 | |||||
| Incremental cost for manufacturing in U.S. | (15,773 | ) | (16,123 | ) | (4,882 | ) | |||||
| Net IRA benefit (Non-GAAP) | $ | 37,858 | $ | 51,917 | $ | 13,735 | |||||
| Net cash provided by operating activities (GAAP) | $ | 48,414 | $ | 167,292 | $ | 49,201 | |||||
| Purchases of property and equipment | (14,608 | ) | (8,064 | ) | (7,371 | ) | |||||
| Free cash flow (Non-GAAP) | $ | 33,806 | $ | 159,228 | $ | 41,830 | |||||
This press release was published by a CLEAR® Verified individual.
FAQ
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