Enphase Energy 2025 Q3 Earnings Beats Estimates with 7.8% Revenue Growth and 45.6% Net Income Surge

Enphase Energy (ENPH) reported fiscal 2025 Q3 earnings on October 28, 2025, surpassing expectations with a 7.8% revenue increase to $410.43 million and a 50% rise in EPS to $0.51. The company raised its gross margin to 49.2% and provided Q4 revenue guidance of $310–$350 million, below estimates due to U.S. tariff impacts.

Revenue

Enphase’s total revenue for Q3 2025 reached $410.43 million, reflecting robust demand in the U.S. and a record 195.0 MWh of IQ Batteries shipped. The breakdown included $383 million from products delivered at a point in time, with $27.43 million attributed to products and services delivered over time. This performance underscores the company’s ability to leverage its microinverter technology and expand its energy storage solutions.

Earnings/Net Income

The company’s EPS surged 50% year-over-year to $0.51, driven by a 45.6% increase in net income to $66.64 million. This growth highlights Enphase’s operational efficiency and strong gross margin of 49.2%. The earnings outperformance is a positive indicator of the company’s financial health and market positioning.

Post-Earnings Price Action Review

Enphase’s 30-day post-earnings strategy yielded mixed results, with an average return of +12.3% following revenue beats but a recent 8% decline in Q3 2025 due to cautious Q4 guidance. The stock’s volatility, compounded by sector-specific risks like tariffs and competition, necessitates refined strategies such as filtering trades by guidance alignment and implementing stop-loss orders. Despite short-term challenges, Enphase’s long-term growth potential in renewable energy remains compelling for tech-focused investors. <visualization dataurl="https://cdn.ainvest.com/news/visual/visual_components/viz_vurjokk0.json"></visualization>

CEO Commentary

CEO Badri Kothandaraman emphasized U.S. demand growth (+29% QoQ) and product innovation, including the 4th-gen Energy System and GaN-powered commercial microinverters. Gross margin improvement to 49.2% and expanded IQ Battery certifications highlight strategic execution amid global headwinds.

Guidance

Enphase expects Q4 2025 revenue of $310–$350 million, with gross margins of 40–43% (including ~5% tariff impact). Operating expenses are projected at $130–$134 million (GAAP) or $77–$81 million (non-GAAP), reflecting disciplined cost management.

Additional News

Enphase launched an off-grid energy solution with IQ Battery 5P and grid-forming microinverters, enhancing its product portfolio despite a 52-week price decline of -55.33%. Recent challenges include a Mizuho downgrade citing U.S. solar demand declines and market share pressures. The company also announced pre-orders for IQ EV Charger 2 and IQ9N-3P Commercial Microinverter, signaling innovation in residential and commercial markets.

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