10-Q · April 28, 2026
Enphase reported Q1 2026 revenue of $282.9 million and non‑GAAP diluted EPS of $0.47 while GAAP diluted EPS was a loss of $(0.06). Revenue declined materially versus the prior-year quarter ($356.0M in 2025Q1) and vs.…
Earnings analysis · 10-Q
ENPH earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Enphase delivered a sequential profitability recovery in Q2, with GAAP EPS of $0.27 and gross margin of 60.0%, but revenue of $291.9 million was down 20% year over year as U.S. and European demand remained weak. The…
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Enphase delivered a sequential profitability recovery in Q2, with GAAP EPS of $0.27 and gross margin of 60.0%, but revenue of $291.9 million was down 20% year over year as U.S. and European demand remained weak. The gross-margin surge was heavily influenced by a $45.4 million tariff refund, making the underlying margin run-rate less clear. Balance-sheet liquidity remains solid and first-half operating cash flow improved, but the filing emphasizes tariff uncertainty, battery-volume weakness, tax-credit changes and volatile safe-harbor revenue timing.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.27
What stood out
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Sequential earnings recovery despite lower sales
Q2 revenue was $291.9 million, down $71.3 million (20%) year over year, but broadly stable sequentially versus $296 million in Q1 2026. GAAP diluted EPS recovered to $0.27 from a $0.06 loss in Q1 2026 and versus $0.28 in Q2 2025.
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Margins rebounded sharply
Gross margin expanded to 60.0% from 38.2% in Q1 2026 and 46.9% a year earlier, while calculated operating margin improved to 17.7% from negative 5.8% sequentially and 13.7% in Q2 2025.
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Tariff refunds drove reported margin upside
The margin gain was substantially aided by $45.4 million of IEEPA tariff refunds recognized as a reduction of cost of revenue, contributing 15.6 percentage points to year-over-year gross-margin expansion.
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Microinverter and safe-harbor activity improved
Microinverter unit sales rose 4% to approximately 1.6 million units, and safe-harbor-related microinverter shipments rose to $84.3 million from $40.4 million a year earlier.
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First-half operating cash flow strengthened
Operating cash flow for the first six months rose to $143.2 million from $75.0 million, supported by $218.1 million and $34.9 million of proceeds from AMPTC sales in March and June, respectively.
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Liquidity remains ample
Liquidity remained substantial at $937.7 million of cash, cash equivalents and marketable securities and $1.4 billion of net working capital at June 30, 2026; total debt was $572.8 million.
What to watch
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Demand weakness persists in U.S. and Europe
Revenue fell 20% year over year to $291.9 million. U.S. revenue declined 16% to $226.9 million following expiration of the Section 25D residential clean-energy tax credit, while international revenue declined 29% to $65.0 million amid weak European demand and delayed purchasing.
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Margin benefit may not recur; tariffs remain volatile
The 60.0% gross margin included a $45.4 million IEEPA tariff refund, equal to a 15.6-percentage-point year-over-year benefit. New Section 301 tariffs of 10% to 12.5% announced July 23, 2026 apply to 60 trading partners, creating renewed cost and sourcing uncertainty.
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Battery volume contraction pressures absorption
IQ Battery shipments declined 40% to 113.8 MWh from 190.9 MWh, and management cited unfavorable absorption of fixed manufacturing and supply-chain costs over lower shipment volumes.
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Safe-harbor revenue timing is volatile
Safe-harbor agreements executed year to date total $1.0811 billion, while deferred revenue includes $151.4 million of related prepayments or billings at June 30. Deliveries and revenue recognition may occur through Q2 2031, increasing revenue and cash-flow timing variability.
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Cash balance reduced despite debt repayment
Cash, cash equivalents and marketable securities were $937.7 million, down $592.5 million year over year, principally following repayment of the 2026 notes and investments. The company also has $236.1 million of open inventory purchase obligations and $575.0 million of 2028 convertible-note principal.
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China battery-cell sourcing concentration
The updated risk factor identifies continued reliance on two China-based suppliers for LFP battery cells. Replacing these suppliers would require significant effort, while tariffs can affect materials sourced from China, India, Taiwan, Vietnam and Japan.
Management's outlook
The 10-Q does not provide a quantitative revenue or EPS outlook; management says product-delivery and revenue-recognition timing under safe-harbor agreements may extend through the second quarter of 2031 and increase period-to-period variability.
Earlier filings 4
10-K · February 17, 2026
Enphase presents a product-led strategy centered on integrated microinverters, batteries, EV chargers and software, pushing into higher-domestic-content U.S. manufacturing and new product launches (IQ Battery 10C,…
10-Q · October 28, 2025
Enphase reported Q3 net revenue of $410,427,000 (up from $380,873,000 a year earlier) with gross margin of 47.8% and operating margin of 16.1%, driving diluted EPS of $0.50. Liquidity remains sizeable with cash and cash…
10-Q · July 22, 2025
Enphase reported strong year-over-year top-line and margin improvement for Q2 2025: revenue rose to $363.153M (+$59.695M, +19.7% vs Q2 2024) and gross profit increased to $170.493M. Operating income improved to $37.007M…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.