Enphase Energy (ENPH) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was $343.3 million, down from $410.4 million in Q3 and $382.7 million in Q4 2024, with 1.55 million microinverters and 150 MWh of batteries shipped, and $37.8 million in free cash flow generated.

• U.S. revenue made up 89% of the mix, with international at 11%; U.S. revenue fell 13% sequentially, while European revenue dropped 29%.

• Gross margin reached 46.1% (non-GAAP), impacted by a 5.1 percentage point tariff effect, with operating income and expenses each at 23% of revenue (non-GAAP).

• Q4 2025 GAAP net income was $38.7 million; non-GAAP net income was $93.4 million.

• Customer service NPS improved to 79% in Q4, and average call wait time was 1.6 minutes.

Financial highlights

• FY 2025 revenue reached $1.47 billion, up from $1.33 billion in FY 2024.

• FY 2025 GAAP gross margin was 46.6%; non-GAAP gross margin was 48.2%.

• FY 2025 GAAP net income was $172.1 million; non-GAAP net income was $389.8 million.

• FY 2025 GAAP diluted EPS was $1.29; non-GAAP diluted EPS was $2.96.

• Q4 2025 free cash flow was $37.8 million; FY 2025 free cash flow was $480.1 million.

Outlook and guidance

• Q1 2026 revenue guidance is $270–$300 million, with about $35 million in safe harbor revenue.

• Q1 2026 GAAP gross margin expected at 40–43%, non-GAAP at 42–45%, both including a 5% reciprocal tariff impact.

• Q1 2026 non-GAAP operating expenses expected at $77–$81 million; GAAP at $137–$141 million.

• Q1 is expected to be the low point for demand, with improvement anticipated through 2026, especially in the second half.

• Headcount reduced by 6% to align costs with business needs.