Enphase Energy (ENPH) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $282.9 million, down 21% year-over-year and from $343.3 million in Q4 2025, with 1.41 million microinverters and 103 MWh of batteries shipped; free cash flow was $83 million.

• Net loss for the quarter was $7.4 million (GAAP), while non-GAAP net income was $62.3 million; non-GAAP EPS was $0.47.

• Gross margin declined to 35.5% (GAAP), impacted by tariffs, AMPTC sale, and lower shipment volumes; non-GAAP gross margin was 43.9%.

• U.S. revenue declined 23% sequentially and 11% year-over-year due to tax credit expiration and seasonality, while Europe grew 36% sequentially.

• Restructuring initiatives in January 2026 resulted in $3.8 million in charges and cost savings.

Financial highlights

• Non-GAAP operating income was $47.3 million; GAAP operating loss was $29.6 million.

• Cash, equivalents, and marketable securities were $930.6 million after settling $632.5 million in convertible notes.

• Free cash flow was $83 million, with $102.9 million from operations.

• Capital expenditures were $19.9 million, mainly for U.S. manufacturing.

• Total debt was $572.5 million, down from $1.2 billion a year earlier.

Outlook and guidance

• Q2 2026 revenue guidance: $280 million–$310 million, including ~$85 million safe harbor revenue.

• Q2 GAAP gross margin expected at 42%–45%; non-GAAP at 44%–47%, both including ~3 percentage points tariff impact.

• Q2 non-GAAP operating expenses expected at $75 million–$79 million.

• Q2 battery shipments expected at 100–110 MWh.

• Management expects continued market volatility due to legislative changes, macroeconomic uncertainty, and evolving U.S. trade and tariff policies.