Shares of Enphase (ENPH) are down in after-hours trading after the solar company reported earnings for its second quarter of Fiscal Year 2025. Earnings per share came in at $0.69, which beat analysts’ consensus estimate of $0.62 per share. In addition, sales increased by 19.7% year-over-year, with revenue hitting $363.2 million. This also beat analysts’ expectations of $359.4 million.
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In the U.S., revenue increased by 3% compared to the previous quarter. This increase was mainly due to seasonal factors that were partially offset by lower safe harbor revenue, which is defined as any sales made to customers who plan to install the inventory in more than one year. Meanwhile, Enphase’s revenue in Europe increased by around 11% quarter-over-quarter. This was primarily due to higher microinverter and battery sales as the company ramped up shipments of its IQ Battery 5P with FlexPhase technology.
In addition, Enphase shipped 1.53 million microinverters during the quarter, which was a year-over-year increase from 1.4 million but flat quarter-over-quarter. Interestingly, it is worth noting that the number of microinverters shipped has fallen significantly since peaking in 2023, according to Main Street Data.

Enphase’s Guidance for 2025
Looking forward, management has provided the following guidance for Q3 2025:
- Revenue of between $330 million and $370 million versus analysts’ estimates of $368.4 million
- Non-GAAP gross margin of 43% to 46%
- Non-GAAP operating expenses ranging from $78 million to $82 million
As we can see, the company’s revenue outlook is worse than expected, which is what led to the after-hours move in the stock price.
Is Enphase a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on ENPH stock based on seven Buys, seven Holds, and 11 Sells assigned in the past three months. Furthermore, the average ENPH price target of $40.86 per share implies almost 4% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
