Cash flow generation remains volatile, evidenced by an OCF/NI ratio of -13.89 in 2026Q1 and a historical reliance on significant share buybacks, such as the $199.7 million repurchase executed in 2024Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 191M | 136.54M | 513.69M | 696.78M | 744.82M | 352.03M | 216.33M | 139.07M | 16.13M | -28.44M | -32.95M | -21.16M | 24.22M | -872K | -44.65M | -367K | -17.85M | -18.89M |
| Operating CF Margin % | - | 9.27% | 38.61% | 30.42% | 31.95% | 25.47% | 27.93% | 22.27% | 5.1% | -9.94% | -10.22% | -5.92% | 7.04% | -0.37% | -20.6% | -0.25% | -28.95% | -93.53% |
| Operating CF Growth % | -129.94% | -73.42% | -26.28% | -6.45% | 111.58% | 62.72% | 55.56% | 762.06% | 156.72% | 13.69% | -55.73% | -187.36% | 2877.75% | 98.05% | -12064.85% | 97.94% | 5.48% | - |
| Net Income | 135M | 172.13M | 102.66M | 438.94M | 397.36M | 145.45M | 134M | 161.15M | -11.63M | -45.19M | -67.46M | -22.08M | -8.05M | -25.91M | -38.22M | -32.29M | -21.78M | -16.93M |
| Depreciation & Amortization | 86.19M | 81.69M | 81.39M | 74.71M | 52.4M | 30.85M | 18.1M | 14.12M | 9.67M | 9M | 10.64M | 10.54M | 8.26M | 6.98M | 5.57M | 3.03M | 1.55M | 803K |
| Stock-Based Compensation | 207.45M | 214.09M | 211.36M | 212.86M | 0 | 114.29M | 42.5M | 20.18M | 11.43M | 6.73M | 10.33M | 12.7M | 9.74M | 6.85M | 4.77M | 2.12M | 829K | 180K |
| Deferred Taxes | -5.6M | 6.08M | -58.32M | -43.35M | 3.63M | -31.24M | -17.12M | -73.38M | 123K | -1.39M | 651K | 642K | 960K | 967K | 668K | 32.42M | 24K | 0 |
| Other Non-Cash Items | 50.48M | 15.44M | 33.6M | -3.5M | 229.3M | 77.63M | 63.5M | 15.57M | 5.01M | 5.22M | 5.79M | 360K | 483K | 429K | 4.78M | -30.13M | 279K | 324K |
| Working Capital Changes | -282.51M | -352.89M | 143M | 17.13M | 62.13M | 15.06M | -24.65M | 1.43M | 1.52M | -2.81M | 7.1M | -23.32M | 12.83M | 9.81M | -22.21M | 24.49M | 1.24M | -3.27M |
| Change in Receivables | 43.63M | 3.84M | 211.64M | -12.48M | -107.56M | -151.16M | -34.32M | -68.75M | -13.52M | -4.8M | -18.02M | -2.48M | -13.75M | -5.23M | -11.04M | -9.87M | -1.66M | -5.69M |
| Change in Inventory | -146.68M | -123.04M | 48.59M | -63.89M | -75.27M | -29.26M | -9.71M | -15.79M | 9.73M | 5.96M | 8.84M | -19.21M | -5.01M | 3.26M | -8.62M | -6.71M | -3.04M | -700K |
| Change in Payables | -33.22M | 139.14M | -85.54M | -22.15M | 133.42M | 117.18M | 35.7M | 22.2M | 23.08M | -8.07M | 9.76M | -6.01M | 28.83M | 7.64M | 16.77M | 15.63M | 4.58M | 3.01M |
| Cash from Investing | 570.12M | 106.79M | 128.27M | -366.36M | -371.91M | -1.22B | -25.57M | -14.79M | -19.15M | -4.12M | -11.79M | -12.46M | -16.53M | -6.26M | -12.99M | -14.66M | -3.26M | -2.12M |
| Capital Expenditures | -45.93M | -40.64M | -33.6M | -110.4M | -46.44M | -52.26M | -20.56M | -14.79M | -4.15M | -4.12M | -12.85M | -12.76M | -14M | -6.26M | -12.99M | -14.66M | -3.26M | -2.17M |
| CapEx % of Revenue | 3.28% | 2.76% | 2.53% | 4.82% | 1.99% | 3.78% | 2.65% | 2.37% | 1.31% | 1.44% | 3.98% | 3.57% | 4.07% | 2.69% | 6% | 9.81% | 5.29% | 10.75% |
| Acquisitions | 0 | 0 | 0 | -15M | -62.16M | -293.65M | -5.01M | 0 | -15M | 0 | 1.05M | 0 | -2.54M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -54.5M | -69.55M | 0 | 0 | 0 | -250K | 0 | 0 | -15M | 0 | 372K | 300K | -300K | 0 | 0 | 0 | 0 | 48K |
| Cash from Financing | -678.63M | -241.62M | -460.27M | -516.77M | -17.13M | 309.41M | 191.68M | 65.85M | 80.61M | 43.3M | 34.38M | 20.56M | -3.34M | -58K | 51.44M | 26.48M | 52.47M | 25.52M |
| Debt Issued (Net) | 0 | -102.17M | -7K | 0 | 0 | 610.26M | 269.12M | 81.56M | 58.05M | 16.34M | 17.09M | 16.85M | -8.71M | -2.49M | -5.23M | 27.87M | 6.76M | 1.27M |
| Equity Issued (Net) | -23.21M | -121.43M | -378.68M | -396.13M | 10.37M | -271.72M | 0 | 0 | 19.77M | 0 | 0 | 0 | 0 | 0 | 56.67M | -537K | 45.74M | 24.33M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -31.67M | -129.96M | -391.36M | -410M | 0 | -500M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -655.42M | -18.03M | -81.59M | -120.65M | -27.5M | -29.14M | -77.44M | -15.71M | 2.8M | 26.95M | 17.29M | 3.71M | 5.37M | 2.43M | 0 | -847K | -29K | -83K |
| Net Change in Cash | 82.46M | 10.2M | 175.37M | -184.5M | 353.93M | -560.06M | 383.27M | 189.87M | 77.09M | 11.38M | -10.69M | -13.58M | 3.84M | -7.1M | -6.23M | 11.53M | 31.35M | 4.51M |
| Free Cash Flow | 145.07M | 95.9M | 480.09M | 586.38M | 698.37M | 299.52M | 195.78M | 124.28M | 11.98M | -32.56M | -45.8M | -33.92M | 10.22M | -7.13M | -57.63M | -15.03M | -21.11M | -21.06M |
| FCF Margin % | 10.36% | 6.51% | 36.09% | 25.6% | 29.96% | 21.67% | 25.28% | 19.91% | 3.79% | -11.38% | -14.2% | -9.5% | 2.97% | -3.06% | -26.6% | -10.05% | -34.24% | -104.27% |
| FCF Growth % | -69.27% | -80.02% | -18.13% | -16.04% | 133.16% | 52.99% | 57.53% | 937.3% | 136.79% | 28.9% | -35.01% | -431.82% | 243.4% | 87.63% | -283.49% | 28.82% | -0.27% | - |
| FCF per Share | 1.10 | 0.71 | 3.43 | 4.09 | 4.84 | 2.10 | 1.38 | 0.94 | 0.12 | -0.39 | -0.91 | -0.76 | 0.24 | -0.17 | -1.87 | -0.38 | -18.68 | -18.63 |
| FCF Conversion (FCF/Net Income) | 1.07x | 0.79x | 5.00x | 1.59x | 1.87x | 2.42x | 1.61x | 0.86x | -1.39x | 0.63x | 0.49x | 0.96x | -3.01x | 0.03x | 1.17x | 0.01x | 0.82x | 1.12x |
| Interest Paid | 0 | 0 | 255K | 455K | 455K | 733K | 1.88M | 2.69M | 6.34M | 5.82M | 2.7M | 358K | 1.39M | 1.39M | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 32.66M | 74.71M | 33.17M | 4.82M | 3.45M | 1.75M | 775K | 909K | 1.15M | 594K | 472K | 899K | 0 | 0 | 0 | 0 |
Inventory and Subsidy Dependence
As reported in recent financial statements, Enphase's operating cash flow has frequently decoupled from net income, with the OCF/NI ratio reaching -13.89 in 2026Q1, highlighting a significant reliance on non-cash adjustments and working capital shifts to sustain reported liquidity during periods of bottom-line contraction.
The persistent gap between net income and operating cash flow suggests that reported earnings may not fully capture the underlying cash-generating capacity of the business. Investors should monitor whether this divergence is a temporary byproduct of inventory management or a structural issue regarding the quality of earnings.
Based on quarterly filings, Enphase has experienced extreme swings in working capital, including a $125.8 million outflow in 2025Q3, which indicates that the company's cash position is highly sensitive to the timing of inventory accumulation and the subsequent clearing of channel stock.
These fluctuations suggest that the company's cash flow is heavily influenced by the cyclical nature of distributor demand rather than steady-state operational efficiency. The recurring need to manage large working capital swings may indicate that the business model remains vulnerable to sudden shifts in channel inventory levels.
According to recent SEC filings, Enphase's capital expenditures have remained relatively contained, with CapEx/Revenue ratios fluctuating between 2.0% and 7.0%, suggesting an asset-light model that prioritizes outsourced manufacturing over heavy investment in proprietary production facilities.
While this low capital intensity supports free cash flow generation, it also implies that the company's competitive moat relies heavily on R&D and software rather than physical infrastructure. Analysts should consider whether this level of investment is sufficient to maintain technological leadership in an increasingly commoditized microinverter market.
As evidenced by historical data, Enphase has aggressively utilized share buybacks, including a $199.7 million repurchase in 2024Q4, which appears to be a primary mechanism for capital deployment despite the inherent volatility in the company's underlying cash flow generation.
The decision to prioritize buybacks during periods of operational uncertainty warrants further investigation into management's long-term capital allocation strategy. Investors should assess whether these repurchases provide genuine value or if they represent an attempt to offset the dilutive impact of consistent stock-based compensation expenses.
Based on an analysis of cash flow statements, the consistent inclusion of stock-based compensation, often exceeding $50 million per quarter, obscures the true cash cost of operations and suggests that reported free cash flow may be overstated when accounting for equity-based dilution.
The reliance on SBC as a significant component of the compensation structure may indicate that the company is managing its cash burn by shifting costs to shareholders. This practice warrants caution, as it may mask the true economic cost of maintaining the company's talent and operational footprint.
Quick answers to the most common questions about buying ENPH stock.
Enphase Energy, Inc. (ENPH) generated $136.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Enphase Energy, Inc. (ENPH) generated $95.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Enphase Energy, Inc. (ENPH) spent $40.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Enphase Energy, Inc. (ENPH) spent $130.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.