Enphase Energy Inc (ENPH)
Description
Enphase Energy Inc is a global energy technology company that designs, manufactures, and sells smart solar generation, storage, and management solutions using microinverters, battery systems, and a cloud-based energy platform.
Historical Reports
Financial Information
- Report Date
- 2025-04-30
- Report Period
- Q1 2025
- Debt
- $1.20 billion
- Debt History
- Debt decreased by approximately 7.8% from $1.302 billion at December 2024 to $1.202 billion at March 2025
- Debt Trend
- Decreasing
Profit Information
- Profit
- $29.73 million
- Profit History
- Profit increased by approximately 84.7% from $16.10 million in Q1 2024
- Profit Trend
- Increasing
Detailed Report
Enphase Energy Inc 10-Q Q1 2025 Financial Report
Report Date: 2025-04-30
Period Covered: Q1 2025 (Quarter ended March 31, 2025)
Executive Summary
- Net Revenue: $356.08 M (+35.2% YoY)
- Gross Profit: $168.24 M (+45.7% YoY), Gross Margin 47.2% vs 43.8%
- Net Income: $29.73 M vs $16.10 M (+84.7%)
- Total Debt: $1.20 B vs $1.30 B (–7.8%)
- Operating Cash Flow: $48.4 M vs $49.2 M
Profit & Debt Analysis
Enphase delivered robust top-line growth driven by a 25% increase in microinverter shipments (8.15 million units) and a 125% increase in battery shipments (1,701 MWh). Gross margin expanded by 3.4 pp to 47.2%, reflecting:
- Recognition of $53.6 M in AMPTC benefits under the Inflation Reduction Act (vs $18.6 M a year ago)
- Higher U.S. domestic manufacturing costs partially offset by tax credits
- Warranty cost increases and product mix shifts
Net income rose 84.7% to $29.7 M, benefiting from margin expansion and operating-expense reductions tied to the 2024 restructuring plan (headcount and facility savings).
Total debt fell by $101.5 M to $1.202 B as Enphase paid down its 2025 convertible notes at maturity.
Key Drivers
- IRA tax credits (AMPTC) boosted gross margin by ~10 pp.
- Successful channel inventory normalization in the U.S.
- Continued R&D focus yielded new IQ8 microinverters and battery models.
- European demand softness due to policy changes dampened international revenue.
Pros & Cons
Pros:
- Strong unit growth in core microinverters and storage systems
- Margin tailwinds from U.S. tax incentives
- Debt reduction and improved leverage
Cons:
- Sluggish European market due to regulatory shifts
- Concentrated supply chain for LFP battery cells in China
- Exposure to potential new tariffs and trade-policy risks
Outlook
Enphase intends to maintain balanced growth through product innovation, continued U.S. manufacturing expansion, and disciplined cost controls. Ongoing macro and trade uncertainties may introduce volatility in shipments and margins.
Statistics Breakdown
Revenue by geography: U.S. $263.24 M (74%), International $92.85 M (26%). Timing of recognition: Point-in-time (product delivery) $322.89 M, Over-time (services) $33.20 M. Shipments: 8.15 M microinverters, 1.701 GWh battery capacity.
Company Direction Insights
Enphase is on a growth trajectory, leveraging U.S. tax incentives and expanding domestic manufacturing to bolster margins and reduce external dependencies. Profitability gains and debt pay-down improve financial health, while continued R&D promises new product introductions. However, the company must navigate European policy headwinds, trade-tariff risks, and supply-chain concentration in Chinese battery components. Maintaining flexible supply chains and further diversifying manufacturing will be key to sustaining momentum.