The solar microinverter and battery energy storage provider posted revenue of $356.1 million, falling slightly short of expectations.
Enphase Energy, a global supplier of solar microinverters and battery energy storage, delivered its Q1, 2025 earnings, narrowly missing Wall Street consensus expectations for revenue.
The company delivered $356.1 million in revenue for Q1, falling short of expectations of $362 million.
In Q1 Enphase shipped 1.2 million microinverters and 44.1 MWh of the company’s residential battery storage product, the IQ Battery. More than 10,900 installers worldwide are certified to install its IQ Batteries.
The company lowered its revenue guidance for Q2 2025 to $360 million, lower than analyst estimates of $375 million. The company faces softened demand in the U.S. residential solar market as well as increased costs from tariff enforcement and ongoing uncertainty related to clean energy tax credits in the U.S.
Revenues declined quarter-over-quarter in the U.S. by 13% and increased in Europe 7%. Enphase attributed the increased revenue in Europe to higher sales of its IQ Battery 5P.
The company had gross margins of 48.9% in Q1, 2025, declining slightly from 53.2% in Q4,2024. It expects gross margin to be within a range of 42.0% to 45.0% in Q2, attributing 2% gross margin loss to new tariffs. The company sources its battery cells from China.
“Starting in Q3, we anticipate a 6% to 8% total gross margin impact after accounting for pricing adjustments,” said Badri Kothandaraman, chief executive officer, Enphase.
The company expects gross margin impacts from tariffs to decline by Q2, 2026 after decrease in margins through Q3, 2025 as it diversifies its battery cell supply chain away from China, which is currently tariffed at 145%.
Enphase exited the first quarter of 2025 with $1.53 billion in cash, cash equivalents, restricted cash and marketable securities and generated $48.4 million in cash flow from operations in the first quarter.
Enphase has new products on the way for the U.S. market, including its fourth-generation home battery, and a meter collar that helps solar projects avoid costly electrical upgrades.
The stock is down 13.5% in the trading session following the earnings report.
