Enphase Energy, Inc. (NASDAQ: ENPH) Q2 2025 Earnings | 07/23/2025

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Enphase Energy, Inc. reported its Q2 2025 results on July 23, 2025, delivering solid profitability and operational progress against industry and tariff headwinds. Total revenue for the quarter reached $363.2 million, marking a 19.6% increase from the same quarter last year and a slight sequential uptick. The company posted non-GAAP gross margin of 48.6%, supported by efficiency gains and favorable sales mix, while GAAP gross margin stood at 46.9%. Net income surged to $37.1 million, up 70.8% year-over-year, with diluted earnings per share of $0.28 (GAAP) and $0.69 on a non-GAAP basis, both beating expectations. Operating cash flow for the quarter was $26.6 million, generating free cash flow of $18.4 million. Enphase ended the period with $1.53 billion in cash, cash equivalents, and marketable securities. The company continued its share repurchase program, buying back 702,948 shares at an average price of $42.67 per share. Operational & Segment Highlights Microinverter & Battery Shipments: Enphase shipped approximately 1.53 million microinverters (675.4 MW DC) and a record 190.9 MWh of IQ Batteries. U.S.-manufactured microinverters increased, with 1.41 million units qualifying for clean energy production tax credits. Regional Performance: U.S. revenue grew approximately 3% quarter-over-quarter, reflecting seasonal demand. European revenue rose 11% sequentially, led by strong momentum in microinverter and battery sales, especially the IQ Battery 5P, with supporting deployment of FlexPhase architecture. Product & Market Notes: The company successfully concluded inventory normalization in the U.S. and Europe and maintained healthy channel metrics, enabling real-time demand fulfillment going forward. Battery demand continued to outstrip supply, and the company remains focused on scaling up production and introducing new-generation solutions. Profitability & Financial Metrics Revenue: $363.2 million (Q2 2024: $303.5 million; up 19.6% YoY) Net Income: $37.1 million (Q2 2024: $10.8 million; up 70.8% YoY) Non-GAAP Net Income: $89.9 million Diluted EPS: $0.28 (GAAP); $0.69 (non-GAAP; up from $0.43 in Q2 2024) Operating Margin: 10% (up from 3.6% in Q2 2024) Free Cash Flow: $18.4 million Strategic and Market Updates Management highlighted a strong recovery in the U.S. residential solar market and continued robust demand in Europe, particularly in the Netherlands, France, and Germany. The company emphasized successful execution of its inventory and channel strategies, along with investments in operational efficiency. Key initiatives included the ramp-up of U.S. manufacturing for both microinverters and batteries, ongoing product innovation, and progress toward using non-China cells in battery systems by the end of 2025. Enphase’s IQ Meter Collar was approved by 29 U.S. utilities, unlocking further deployment opportunities. 2025 Outlook & Guidance Q3 2025 Revenue Guidance: Management projects Q3 revenue in the range of $330 million to $370 million, including shipments of 190 to 210 megawatt-hours of IQ batteries. Gross Margin Expectation: GAAP gross margin expected between 41–44%, with a 3–5 percentage point impact from reciprocal tariffs. Focus Areas: Continued expansion of U.S. and European markets Scaling up of battery production to meet rising demand Innovation within the company’s product portfolio Ongoing cost control and operational efficiency About Inside Ticker: For more expert analysis and real-time updates on Enphase Energy, Inc. (NASDAQ: ENPH) and other market movers, follow Inside Ticker for in-depth reports, financial insights, and the latest news on leading companies. #EnphaseEnergy #ENPH #Q22025 #Earnings #FinancialResults #Solar #Microinverters #IQBattery #RevenueGrowth #StockMarket #Investing #NetIncome #GrossMargin #Guidance #ShareBuyback #Innovation #BusinessUpdate #2025Outlook