Enphase Energy (ENPH)
NASDAQ:ENPH
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Enphase Energy
(NASDAQ:ENPH)
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Rating:55Neutral
Price Target:
$36.00
▲(15.16% Upside)
Action:ReiteratedDate:04/07/26
ENPH scores mid-range primarily due to solid underlying profitability and an improving leverage profile, but the overall rating is held back by materially weaker cash generation and cooled revenue momentum. Technicals are notably bearish with the stock below all major moving averages, while valuation (P/E ~27) is only modestly supportive given the current growth/cash-flow backdrop. Earnings call tone was constructive on a 2026 recovery, but near-term margin and timing risks remain.
Positive Factors
Margin / Product Economics
Enphase's core module‑level microinverter business and integrated system sales sustain a structurally high gross margin (~48%) and healthy EBIT (~16%). Persistent product economics help absorb cyclical volume swings, support reinvestment in R&D and manufacturing, and underpin long‑term profitability.
Negative Factors
Weakened Cash Generation
Operating cash flow and free cash flow have declined materially versus prior years, reducing internal funding capacity. Lower absolute cash generation constrains capex, R&D pacing and the ability to absorb timing mismatches or opportunistic M&A, increasing reliance on external financing during sustained soft demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin / Product Economics
Enphase's core module‑level microinverter business and integrated system sales sustain a structurally high gross margin (~48%) and healthy EBIT (~16%). Persistent product economics help absorb cyclical volume swings, support reinvestment in R&D and manufacturing, and underpin long‑term profitability.
Read all positive factors
Enphase Energy (ENPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.10B
Dividend YieldN/A
Average Volume (3M)5.04M
Price to Earnings (P/E)27.1
Beta (1Y)0.67
Revenue Growth20.97%
EPS Growth226.98%
CountryUS
Employees2,781
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)0.71
Shares Outstanding131,098,820
10 Day Avg. Volume5,038,169
30 Day Avg. Volume5,037,105
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)3.87
Price to Sales (P/S)2.85
P/FCF Ratio43.83
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue3.27
Enterprise Value/Gross Profit7.01
Enterprise Value/Ebitda16.73
Forecast
1Y Price Target
$44.04Price Target Upside40.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering23
EPS Forecast (FY)2.13
Revenue Forecast (FY)$1.25B
Enphase Energy Business Overview & Revenue Model
Company Description
Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinvert...
How the Company Makes Money
Enphase primarily makes money by selling hardware and associated software-enabled platform services used in residential solar-plus-storage systems. Its core revenue stream is the sale of microinverters (sold per module) and required balance-of-sys...
Enphase Energy Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyEnphase Energy Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presented a generally constructive outlook: Enphase reported solid revenue, strong free cash flow, a healthy cash balance and notable product progress (IQ9, PowerMatch, new EV charger and a 5th-gen battery roadmap). Management raised Q1 guidance and highlighted improving sell-through and channel lean. Counterbalancing this are meaningful margin headwinds from reciprocal tariffs (estimated ~5.1% impact), sequential declines in profitability metrics, regional weakness in Europe, increased inventory from taking vendor ownership and timing uncertainty on large PTC refunds plus a sizable convertible note maturing in March 2026. Overall the company appears financially stable and executing strategic product and go-to-market initiatives while managing near-term macro and timing challenges.Positive Updates
Solid Q4 Revenue and Shipments
Reported Q4 revenue of $343.3 million; shipped ~1.55 million microinverters (including ~1.31M from U.S. plants) and 150.1 MWh of IQ batteries; Q4 included $20.3M of safe-harbor revenue.
Negative Updates
Sequential Margin Compression and Tariff Headwind
Non-GAAP gross margin declined to 46.1% in Q4 from 49.2% in Q3 (≈ -3.1 percentage points); GAAP gross margin fell to 44.3% from 47.8% (≈ -3.5 pp). Management cited reciprocal tariffs that reduced gross margins by ~5.1% in Q4.
Read all updates
Q4-2025 Updates
Positive
Negative
Solid Q4 Revenue and Shipments
Reported Q4 revenue of $343.3 million; shipped ~1.55 million microinverters (including ~1.31M from U.S. plants) and 150.1 MWh of IQ batteries; Q4 included $20.3M of safe-harbor revenue.
Read all positive updates
Company Guidance
Enphase guided Q1 revenue of $270–$300 million (≈90% booked to the midpoint), which includes roughly $35 million of safe‑harbor revenue and assumes shipments of ~120 MWh of IQ batteries; it expects GAAP gross margin of 40%–43% and non‑GAAP gross margin of 42%–45%, each including about a 5‑percentage‑point reciprocal‑tariff impact. GAAP operating expenses are guided to $137–$141 million (including ~ $60 million of stock‑based compensation, acquisition‑related amortization and restructuring/impairment items) while non‑GAAP operating expenses are expected to be $77–$81 million, with a target non‑GAAP run rate of $70–$75 million per quarter starting in Q3 2026 after a ~6% headcount reduction. Management reiterated that Q1 should be the demand trough and that underlying demand and margins are expected to improve through 2026, particularly in the second half.Enphase Energy Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.47B | 1.33B | 2.29B | 2.33B | 1.38B |
| Gross Profit | 687.00M | 629.14M | 1.06B | 974.60M | 554.42M |
| EBITDA | 289.98M | 210.45M | 596.69M | 520.26M | 196.93M |
| Net Income | 172.13M | 102.66M | 438.94M | 397.36M | 145.45M |
Balance Sheet | |||||
| Total Assets | 3.51B | 3.25B | 3.38B | 3.08B | 2.08B |
| Cash, Cash Equivalents and Short-Term Investments | 1.51B | 1.62B | 1.70B | 1.61B | 1.02B |
| Total Debt | 1.24B | 1.33B | 1.32B | 1.31B | 1.05B |
| Total Liabilities | 2.42B | 2.42B | 2.40B | 2.26B | 1.65B |
| Stockholders Equity | 1.09B | 833.02M | 983.62M | 825.57M | 430.17M |
Cash Flow | |||||
| Free Cash Flow | 95.90M | 480.09M | 586.38M | 698.37M | 299.52M |
| Operating Cash Flow | 136.54M | 513.69M | 696.78M | 744.82M | 352.03M |
| Investing Cash Flow | 106.79M | 128.27M | -366.36M | -371.91M | -1.22B |
| Financing Cash Flow | -241.62M | -460.27M | -516.77M | -17.13M | 309.41M |
Enphase Energy Technical Analysis
Negative
31.26
Price Trends
42.36
Negative
37.39
Negative
36.93
Negative
Market Momentum
-2.85
Positive
31.76
Neutral
8.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENPH, the sentiment is Negative. The current price of 31.26 is below the 20-day moving average (MA) of 39.39, below the 50-day MA of 42.36, and below the 200-day MA of 36.93, indicating a bearish trend. The MACD of -2.85 indicates Positive momentum. The RSI at 31.76 is Neutral, neither overbought nor oversold. The STOCH value of 8.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENPH.
Enphase Energy Risk Analysis
Enphase Energy disclosed 53 risk factors in its most recent earnings report. Enphase Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enphase Energy Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $2.53B | -4.26 | -80.50% | ― | -0.14% | 66.71% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.15B | -0.75 | -18.83% | 10.19% | -34.29% | -732.90% | |
58 Neutral | $1.17B | 42.34 | 5.78% | ― | 2.68% | 2.90% | |
55 Neutral | $4.10B | 27.11 | 18.25% | ― | 20.97% | 226.98% | |
53 Neutral | $1.10B | -26.92 | -15.43% | ― | 35.75% | 37.97% | |
47 Neutral | $3.13B | 9.51 | 15.46% | ― | 13.79% | -527.48% |
* Technology Sector Average
ENPH
Enphase Energy
31.26
-20.63
-39.76%
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69.25%
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3.56
104.40%
Enphase Energy Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Enphase Energy Monetizes U.S. Manufacturing Tax Credits
Positive
Apr 6, 2026
On March 31, 2026, Enphase Energy entered into a Tax Credit Transfer Agreement with a leading financial institution to sell $235 million in advanced manufacturing production tax credits generated from 2025 U.S. production activities under Section ...
Business Operations and StrategyFinancial Disclosures
Enphase Energy Launches Global Restructuring to Cut Costs
Negative
Jan 23, 2026
On or around January 20, 2026, Enphase Energy initiated a restructuring plan to align its cost base with softer near-term demand following the expiration of the U.S. 30% Residential Clean Energy Tax Credit at the end of 2025, as well as to sharpen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.