Revenue growth has contracted significantly, with a 20.6% year-over-year decline in 2026Q1 and gross margins compressing from a peak of 51.8% in 2024Q4 to 35.5% in the most recent quarter.
| 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 |
|---|
| Sales/Revenue | 1.4B | 1.47B | 1.33B | 2.29B | 2.33B | 1.38B | 774.42M | 624.33M | 316.16M | 286.17M | 322.59M | 357.25M | 343.9M | 232.85M | 216.68M | 149.52M | 61.66M | 20.19M |
| Revenue Growth % | -1.64% | 10.72% | -41.92% | -1.72% | 68.65% | 78.46% | 24.04% | 97.47% | 10.48% | -11.29% | -9.7% | 3.88% | 47.7% | 7.46% | 44.91% | 142.49% | 205.34% | - |
| Cost of Goods Sold | 780.64M | 785.98M | 701.25M | 1.23B | 1.36B | 827.63M | 428.44M | 403.09M | 221.71M | 230.12M | 264.58M | 249.03M | 230.86M | 165.43M | 161.39M | 120.45M | 55.16M | 23.22M |
| COGS % of Revenue | - | 53.36% | 52.71% | 53.8% | 58.19% | 59.88% | 55.32% | 64.56% | 70.13% | 80.42% | 82.02% | 69.71% | 67.13% | 71.05% | 74.48% | 80.56% | 89.46% | 115% |
| Gross Profit | 619.16M | 687M | 629.14M | 1.06B | 974.6M | 554.42M | 345.98M | 221.25M | 94.44M | 56.04M | 58.01M | 108.22M | 113.04M | 67.42M | 55.29M | 29.07M | 6.5M | -3.03M |
| Gross Margin % | 44.23% | 46.64% | 47.29% | 46.2% | 41.81% | 40.12% | 44.68% | 35.44% | 29.87% | 19.58% | 17.98% | 30.29% | 32.87% | 28.95% | 25.52% | 19.44% | 10.54% | -15% |
| Gross Profit Growth % | - | 9.2% | -40.56% | 8.6% | 75.79% | 60.25% | 56.38% | 134.26% | 68.52% | -3.39% | -46.4% | -4.27% | 67.68% | 21.94% | 90.2% | 347.08% | 314.66% | - |
| Operating Expenses | 523.84M | 522.35M | 551.85M | 612.65M | 526.33M | 338.59M | 159.54M | 118.52M | 92.85M | 95.42M | 120.71M | 127.53M | 117.47M | 89.57M | 86.45M | 57.78M | 27.22M | 13.66M |
| OpEx % of Revenue | - | 35.46% | 41.48% | 26.74% | 22.58% | 24.5% | 20.6% | 18.98% | 29.37% | 33.34% | 37.42% | 35.7% | 34.16% | 38.47% | 39.9% | 38.64% | 44.14% | 67.67% |
| Selling, General & Admin | 331.63M | 333.27M | 337.38M | 369.63M | 355.1M | 233.06M | 103.62M | 75.54M | 56.13M | 45.35M | 66.23M | 76.71M | 72.09M | 55.05M | 50.85M | 32.68M | 12.92M | 5.25M |
| SG&A % of Revenue | - | 22.63% | 25.36% | 16.14% | 15.23% | 16.86% | 13.38% | 12.1% | 17.75% | 15.85% | 20.53% | 21.47% | 20.96% | 23.64% | 23.47% | 21.86% | 20.96% | 26.02% |
| Research & Development | 183.77M | 189.07M | 201.31M | 227.34M | 168.85M | 105.53M | 55.92M | 40.38M | 32.59M | 33.16M | 50.7M | 50.82M | 45.39M | 34.52M | 35.6M | 25.1M | 14.3M | 8.41M |
| R&D % of Revenue | - | 12.84% | 15.13% | 9.92% | 7.24% | 7.64% | 7.22% | 6.47% | 10.31% | 11.59% | 15.72% | 14.23% | 13.2% | 14.83% | 16.43% | 16.79% | 23.18% | 41.65% |
| Other Operating Expenses | 3M | 0 | 13.15M | 15.68M | 2.38M | 0 | 0 | 2.6M | 4.13M | 16.92M | 3.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 95.32M | 164.66M | 77.29M | 445.74M | 448.26M | 215.83M | 186.44M | 102.73M | 1.6M | -39.38M | -62.7M | -19.31M | -4.43M | -22.16M | -31.16M | -28.71M | -20.72M | -16.69M |
| Operating Margin % | 6.81% | 11.18% | 5.81% | 19.46% | 19.23% | 15.62% | 24.07% | 16.45% | 0.5% | -13.76% | -19.44% | -5.4% | -1.29% | -9.52% | -14.38% | -19.2% | -33.6% | -82.67% |
| Operating Income Growth % | - | 113.03% | -82.66% | -0.56% | 107.69% | 15.77% | 81.49% | 6336.65% | 104.05% | 37.2% | -224.72% | -335.97% | 80.01% | 28.89% | -8.53% | -38.59% | -24.1% | - |
| EBITDA | 171.2M | 245.3M | 158.68M | 520.45M | 507.04M | 246.68M | 204.54M | 116.85M | 11.26M | -30.37M | -52.06M | -8.77M | 3.83M | -15.18M | -25.59M | -25.68M | -19.17M | -15.89M |
| EBITDA Margin % | 12.23% | 16.65% | 11.93% | 22.72% | 21.75% | 17.85% | 26.41% | 18.72% | 3.56% | -10.61% | -16.14% | -2.45% | 1.11% | -6.52% | -11.81% | -17.17% | -31.08% | -78.69% |
| EBITDA Growth % | -22% | 54.59% | -69.51% | 2.65% | 105.55% | 20.6% | 75.05% | 937.45% | 137.08% | 41.66% | -493.64% | -328.98% | 125.24% | 40.7% | 0.34% | -33.98% | -20.62% | - |
| D&A (Non-Cash Add-back) | 58.73M | 80.64M | 81.39M | 74.71M | 58.77M | 30.85M | 18.1M | 14.12M | 9.67M | 9M | 10.64M | 10.54M | 8.26M | 6.98M | 5.57M | 3.03M | 1.55M | 803K |
| EBIT | 147.9M | 209.34M | 129.06M | 521.98M | 461.49M | 166.08M | 140.41M | 99.81M | 464K | -37.13M | -63.21M | -20.2M | -5.42M | -23M | -31.13M | -29.28M | -20.86M | -16.69M |
| Net Interest Income | 55.21M | 58.2M | 68.4M | 60.89M | 4.22M | -44.46M | -18.84M | -7.18M | -9.63M | -7.94M | -2.77M | -501K | -1.86M | -2.06M | -6.44M | -3.01M | -875K | -231K |
| Interest Income | 58.31M | 62.72M | 77.31M | 69.73M | 13.66M | 695K | 2.16M | 2.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 39K | 125K |
| Interest Expense | 3.11M | 4.52M | 8.9M | 8.84M | 9.44M | 45.15M | 21M | 9.69M | 9.63M | 7.94M | 2.77M | 501K | 1.86M | 2.06M | 6.44M | 3.01M | 914K | 356K |
| Other Income/Expense | 48.74M | 40.16M | 42.87M | 67.4M | 3.79M | -94.9M | -67.03M | -12.62M | -11.82M | -5.96M | -3.29M | -1.39M | -2.86M | -2.89M | -6.41M | -3.58M | -1.06M | 16.69M |
| Pretax Income | 144.06M | 204.81M | 120.16M | 513.14M | 452.05M | 120.93M | 119.41M | 90.11M | -10.23M | -45.34M | -65.99M | -20.7M | -7.29M | -25.05M | -37.57M | -32.29M | -21.78M | -16.93M |
| Pretax Margin % | 10.29% | 13.9% | 9.03% | 22.4% | 19.39% | 8.75% | 15.42% | 14.43% | -3.24% | -15.84% | -20.46% | -5.8% | -2.12% | -10.76% | -17.34% | -21.6% | -35.32% | -83.81% |
| Income Tax | 9.06M | 32.68M | 17.5M | 74.2M | 54.69M | -24.52M | -14.59M | -71.03M | 1.4M | -149K | 1.48M | 1.38M | 766K | 863K | 651K | 0 | 0 | 0 |
| Effective Tax Rate % | 6.29% | 15.96% | 14.56% | 14.46% | 12.1% | -20.28% | -12.21% | -78.83% | -13.67% | 0.33% | -2.24% | -6.66% | -10.51% | -3.45% | -1.73% | 0% | 0% | 0% |
| 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 |
| Net Margin % | 9.64% | 11.69% | 7.72% | 19.16% | 17.05% | 10.52% | 17.3% | 25.81% | -3.68% | -15.79% | -20.91% | -6.18% | -2.34% | -11.13% | -17.64% | -21.6% | -35.32% | -83.81% |
| Net Income Growth % | -9.08% | 67.68% | -76.61% | 10.46% | 173.2% | 8.55% | -16.85% | 1485.98% | 74.27% | 33.01% | -205.51% | -174.24% | 68.93% | 32.2% | -18.36% | -48.28% | -28.67% | - |
| Net Income (Continuing) | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.03 | 1.29 | 0.75 | 3.08 | 2.77 | 1.02 | 0.95 | 1.23 | -0.12 | -0.54 | -1.34 | -0.49 | -0.19 | -0.62 | -1.24 | -0.82 | -19.27 | -14.98 |
| EPS Growth % | -7.31% | 72% | -75.65% | 11.19% | 171.57% | 7.37% | -22.76% | 1125% | 77.78% | 59.7% | -173.47% | -157.89% | 69.35% | 50% | -51.22% | 95.74% | -28.64% | - |
| EPS (Basic) | - | 1.31 | 0.76 | 3.22 | 2.94 | 1.09 | 1.07 | 1.38 | -0.12 | -0.54 | -1.34 | -0.49 | -0.19 | -0.62 | -1.24 | -0.82 | -19.27 | -14.98 |
| Diluted Shares Outstanding | 131.34M | 134.89M | 140M | 143.29M | 144.39M | 142.88M | 141.92M | 131.64M | 99.62M | 82.94M | 50.52M | 44.63M | 42.9M | 41.65M | 30.74M | 39.29M | 1.13M | 1.13M |
| Basic Shares Outstanding | 131.34M | 131.16M | 135.17M | 136.38M | 135.35M | 134.03M | 125.56M | 116.71M | 96.89M | 82.94M | 50.52M | 44.63M | 42.9M | 41.65M | 30.74M | 39.29M | 1.13M | 1.13M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical Demand and Inventory
As indicated by the most recent quarterly financial statements, Enphase Energy experienced a significant revenue decline of 20.6% year-over-year in 2026Q1, reflecting persistent challenges in residential solar adoption and the ongoing impact of high interest rates on consumer financing for new energy system installations.
The sharp deceleration in top-line growth suggests that the company is struggling to maintain momentum in its core US market. Investors should monitor whether this contraction represents a temporary inventory correction or a more structural shift in demand for residential solar solutions.
Based on reported figures, gross margins have exhibited significant fluctuation, peaking at 51.8% in 2024Q4 before compressing to 35.5% in 2026Q1, a trend that appears heavily influenced by the timing of domestic manufacturing tax credits and the company's ability to manage inventory-related pricing pressures.
The reliance on 45X tax credits to bolster profitability warrants further investigation, as these incentives may mask underlying margin erosion in the core hardware business. The recent compression suggests that competitive pricing dynamics may be intensifying as the company attempts to clear excess channel inventory.
According to the income statement data, operating income swung to a loss of $29.6 million in 2026Q1, demonstrating that the company's fixed cost structure is currently unable to scale efficiently against declining revenue, leading to a rapid deterioration in operating margins compared to previous periods.
The inability to maintain positive operating income during revenue downturns indicates a lack of sufficient operating leverage. Management's expense discipline appears tested, as SG&A costs remain relatively sticky despite the significant drop in top-line performance.
Financial disclosures reveal that stock-based compensation remains a substantial expense, totaling $49.0 million in 2026Q1, which significantly impacts net income and suggests that reported earnings may overstate the true cash-generating capability of the business during periods of operational stress and negative bottom-line results.
The persistent level of stock-based compensation, even as the company reports net losses, may indicate a misalignment between executive incentives and shareholder returns. Investors should carefully evaluate the impact of this non-cash expense on the long-term dilution of equity value.
As highlighted by the recent shift to negative net income, the company faces significant risks from potential inventory obsolescence and the possibility that the current business model is overly dependent on government subsidies, which may not provide a sustainable floor for long-term profitability and growth.
Short-term volatility in the residential solar market may continue to weigh on performance, particularly if channel inventory levels remain elevated. The reliance on a single geographic market for the majority of revenue suggests that any further regulatory or interest rate shocks could lead to continued earnings volatility.
Quick answers to the most common questions about buying ENPH stock.
For fiscal year 2025, Enphase Energy, Inc. (ENPH) reported total revenue of $1.47B. This represents a 7194.2% increase compared to $20.2M in 2009.
Enphase Energy, Inc. (ENPH) is profitable, generating $172.1M in net income for the fiscal year ending 2025 with a net profit margin of 11.7%.
Enphase Energy, Inc. (ENPH) reported an operating income of $164.7M, resulting in an operating profit margin of 11.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Enphase Energy, Inc. (ENPH) generated $687.0M in gross profit for the year, representing a gross profit margin of 46.6%. This demonstrates the company's core pricing power and production efficiency.