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Enphase Energy, Inc., a global energy technology firm and the leading provider of microinverter-based solar and battery solutions, released its financial results for the first quarter of 2025. The announcement included key highlights shared by the company’s President and CEO, Badri Kothandaraman. Enphase Energy reported revenue of $356.1 million for the first quarter of 2025, with a non-GAAP gross margin of 48.9%. During the quarter, the company shipped approximately 1.53 million microinverters, equivalent to 688.5 megawatts DC, along with 170.1 megawatt hours (MWh) of its IQ® Battery systems. Key highlights from Enphase Energy’s first quarter of 2025 include: Successfully completed testing of the IQ® Meter Collar with PG&E and four additional U.S. utilities. Demonstrated strong U.S. manufacturing performance, shipping around 1.21 million microinverters and 44.1 MWh of IQ® Batteries. Reported total revenue of $356.1 million. Achieved a GAAP gross margin of 47.2% and a non-GAAP gross margin of 48.9%, which includes a 10.6% benefit from the Inflation Reduction Act (IRA). Excluding the IRA benefit, the non-GAAP gross margin stood at 38.3%. Recorded GAAP operating income of $31.9 million and non-GAAP operating income of $94.6 million. Posted GAAP net income of $29.7 million and non-GAAP net income of $89.2 million. Reported GAAP diluted earnings per share of $0.22 and non-GAAP diluted earnings per share of $0.68. Generated $33.8 million in free cash flow, with ending cash, cash equivalents, restricted cash, and marketable securities totaling $1.53 billion.Enphase Energy’s revenue and earnings for the first quarter of 2025 are provided below, compared with the prior quarter: Q1 2025 revenue was $356.1 million, down from $382.7 million in Q4 2024. U.S. revenue dropped 13% due to seasonality and lower demand, partially offset by $54.3 million in safe harbor revenue. European revenue increased 7%, driven by higher IQ® Battery 5P shipments with FlexPhase. In Q1 2025, non-GAAP gross margin was 48.9%, down from 53.2% in Q4 2024, due to lower 45X production tax credits and product mix. Excluding the IRA benefit, it was 38.3%, down from 39.7%. Non-GAAP operating expenses were $79.4 million, down from $83.3 million, reflecting restructuring efforts. Operating income decreased to $94.6 million from $120.4 million in Q4 2024. At the end of Q1 2025, the company had $1.53 billion in cash and generated $48.4 million in operational cash flow. It paid off $102.2 million in convertible senior notes and spent $14.6 million in capital expenditures. The company repurchased 1.59 million shares for $100 million and spent $12.1 million on taxes for stock vesting, reducing diluted shares by 203,358. In Q1 2025, Enphase Energy shipped 170.1 MWh of IQ Batteries, up from 152.4 MWh in Q4 2024. The number of certified installers grew to over 10,900. The company also shipped 1.21 million microinverters from U.S. manufacturers, qualifying for 45X production tax credits. These products, along with other U.S.-made components, help PPA providers qualify for the domestic content bonus tax credit under the IRA. In Q2 2025, Enphase plans to launch the fourth-generation IQ® Battery 10C, IQ Meter Collar, and IQ® Combiner 6C in the U.S., simplifying backup installations and reducing costs. They will also introduce the IQ® Balcony Solar Kit in Germany and Belgium for efficient solar energy from apartment balconies. Q2 2025 Financial Outlook: Enphase Energy forecasts the following for the second quarter of 2025: Revenue: Estimated between $340 million and $380 million, including 160 to 180 MWh of IQ Battery shipments, and around $40 million from safe harbor revenue (sales for long-term installation). GAAP Gross Margin: Expected to range from 42.0% to 45.0%, including the Inflation Reduction Act (IRA) benefit and a two-percentage-point impact from new tariffs. Non-GAAP Gross Margin: Estimated between 44.0% and 47.0%, with IRA benefits, and 35.0% to 38.0% excluding IRA benefits, considering the tariff impact. Excludes stock-based compensation and acquisition-related expenses. Net IRA Benefit: Expected between $30 million and $33 million, based on the shipment of 1 million U.S.-made microinverters. GAAP Operating Expenses: Forecasted between $136 million and $140 million. Non-GAAP Operating Expenses: Expected between $78 million and $82 million, excluding approximately $58 million for stock-based compensation, acquisition-related costs, amortization, and restructuring charges. Tax Rate: GAAP tax rate is projected to be 21-23%, and non-GAAP tax rate to be 15-17%, factoring in IRA benefits. |
