Enphase(ENPH) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter 2025 revenue was $343.3 million, a decrease of approximately 16.3% from $410.4 million in the third quarter of 2025[4] - Fiscal year 2025 revenue reached $1.47 billion, representing a 10.7% increase from $1.33 billion in fiscal year 2024[4] - Enphase Energy reported net revenues of $343.3 million for Q4 2025, a decrease of 16.3% from $410.4 million in Q3 2025 and an increase of 4.4% from $382.7 million in Q4 2024[36] - Enphase Energy's net income for Q4 2025 was $38.7 million, translating to a diluted net income per share of $0.29[36] - Gross profit (GAAP) for the year ended December 31, 2025, was $687,004,000, an increase from $629,138,000 in 2024[44] - Non-GAAP income for the year ended December 31, 2025, was $389,840,000, compared to $321,044,000 in 2024, reflecting a growth of approximately 21.4%[44] Margins and Expenses - Non-GAAP gross margin for Q4 2025 was 46.1%, down from 49.2% in Q3 2025, impacted by a 5.1 percentage point tariff effect[6] - The company's gross profit for Q4 2025 was $152.0 million, resulting in a gross margin of approximately 44.3%[36] - Gross margin (GAAP) for the year ended December 31, 2025, was 46.6%, compared to 47.3% in 2024[44] - Research and development expenses for Q4 2025 were $46.2 million, reflecting a decrease from $50.4 million in Q4 2024[36] - The company’s operating expenses (GAAP) for the year ended December 31, 2025, were $529,478,000, down from $551,846,000 in 2024[44] Cash Flow and Assets - Free cash flow for Q4 2025 was $37.8 million, with ending cash and equivalents totaling $1.51 billion[3] - Total current assets increased to $2.61 billion as of December 31, 2025, compared to $2.33 billion a year earlier, primarily driven by an increase in cash and cash equivalents[39] - Enphase Energy's cash and cash equivalents rose to $474.3 million in Q4 2025, compared to $369.1 million in Q4 2024[39] - Operating cash flow for the three months ended December 31, 2025, was $47,579,000, significantly higher than $13,918,000 in the previous quarter[41] - Total cash, cash equivalents, and restricted cash at the end of the period was $474,318,000, up from $401,880,000 at the beginning of the period[42] Shipments and Demand - Total shipments included approximately 1.55 million microinverters and 150.1 MWh of IQ Batteries in Q4 2025[2] - The sell-through demand for products in the U.S. increased by 21% in Q4 2025 compared to Q3 2025, the highest level in over two years[5] - The company shipped approximately 86.4 million microinverters and deployed over 5.1 million Enphase-based systems across more than 160 countries[32] - Enphase Energy anticipates continued growth in revenue and shipments of IQ Batteries in Q1 2026, although specific guidance was not provided[30] Shareholder Information - Enphase Energy has $268.7 million remaining under its current share repurchase authorization[9] - Stock-based compensation for the year ended December 31, 2025, amounted to $213,502,000, slightly higher than $211,093,000 in 2024[44] - Stock-based compensation for the latest quarter was $0.41 per share, slightly up from $0.39 in the previous quarter[45] - Total shares used in basic per share calculation (GAAP) was 130,967 thousand, a slight increase from 130,797 thousand in the previous quarter[45] - Total shares used in diluted per share calculation (GAAP) was 133,461 thousand, compared to 132,995 thousand in the previous quarter[45] Other Financial Metrics - Non-GAAP operating income for Q4 2025 was $79.4 million, down from $123.4 million in Q3 2025[7] - Net income for the three months ended December 31, 2025, was $38,713,000, compared to $66,638,000 for the previous quarter, and $62,160,000 for the same period last year[41] - Net income per share, basic (GAAP) for the latest quarter was $0.30, down from $0.51 in the previous quarter, and $0.46 a year ago[45] - Non-GAAP net income per share, basic was $0.71, compared to $0.90 in the previous quarter and $0.94 a year ago[45] - Net cash provided by operating activities (GAAP) increased to $47,579 thousand from $13,918 thousand in the previous quarter[45] - Free cash flow (Non-GAAP) reached $37,839 thousand, significantly up from $5,886 thousand in the previous quarter[45]