Core Insights - Enphase Energy reported Q3 2025 revenue of $410.4 million, a 13% increase from $363.2 million in Q2, marking the highest revenue in two years, driven by stronger U.S. demand and safe-harbor sales [1][2][6] - Non-GAAP EPS reached $0.90, reflecting a 30% increase from $0.69 in Q2, indicating a strong sequential earnings recovery [1][6] - The company anticipates a sequential decline in Q4 due to softer volumes and tariff headwinds [1] Financial Performance - Q3 revenue: $410.4 million, up 13% from Q2 [6] - Non-GAAP Gross Margin: 49.2%, up from 48.6%, despite a 4.9-percentage-point drag from tariffs [2][6] - Non-GAAP Operating Income: $123.4 million, a 25% increase from $98.6 million [6] - Non-GAAP Net Income: $117.3 million, up 30% from $89.9 million [6] - Free Cash Flow: $5.9 million, down from $18.4 million due to working-capital movements [6] Revenue Breakdown - U.S. Revenue: Increased approximately 29% quarter-over-quarter, driven by robust installer activity and safe-harbor shipments [6] - Europe Revenue: Decreased about 38%, reflecting demand softness and inventory correction [6] Product and Operations - Enphase shipped approximately 1.77 million microinverters and a record 195 MWh of IQ Batteries in Q3 [2] - The installer base for IQ Batteries expanded to over 19,500 globally [6] - New product rollout includes the 4th-gen Enphase Energy System in the U.S. [6] Q4 2025 Guidance - Expected revenue: $310–$350 million, excluding safe-harbor shipments [6] - Gross margin guidance: GAAP 40–43%; non-GAAP 42–45%, each including approximately 5 percentage points tariff impact [6] - Operating expenses: GAAP $130–134 million; non-GAAP $77–81 million [6]

Core Insights - Enphase Energy, Inc. (ENPH) is set to release its Q3 2025 results on October 28, with an earnings surprise of 11.29% in the last quarter [1][10] Factors Impacting Q3 Results - ENPH launched the IQ Battery 5P with FlexPhase in Australia and began shipping units from U.S. facilities, which comply with new federal requirements [2] - The company expanded its product offerings in Europe with the IQ8P Microinverter and the fourth-generation Enphase Energy System [3] - ENPH introduced the IQ EV Charger 2 in Australia, New Zealand, and several European countries [4] - Increased shipments of microinverters and batteries, driven by strong solar demand, are expected to enhance service reliability and overall performance [5] Regional Performance Expectations - Continued growth is anticipated in the U.S., while seasonal softness is expected in Europe due to weaker demand [6] - Growth in Australia is projected to pick up, supported by the launch of the FlexPhase battery and high-powered microinverters [6] Financial Expectations - The Zacks Consensus Estimate for ENPH's sales is $361.8 million, indicating a 5% decline year-over-year [8] - The earnings per share estimate is 62 cents, reflecting a 4.6% year-over-year decrease [8] - Total megawatts (MWs) shipped are estimated at 735 MWs, a 0.7% increase from the previous year [8] Earnings Predictions - ENPH has an Earnings ESP of 11.90%, suggesting a potential earnings beat this quarter [10][11] - New product launches and reduced tariff headwinds may positively impact quarterly revenues and earnings [10][11]