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1. Company Snapshot

1.a. Company Description

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally.The company offers semiconductor-based microinverter, which converts energy at the individual solar module level, and combines with its proprietary networking and software technologies to provide energy monitoring and control services.It also offers AC battery storage systems; Envoy communications gateway; and Enlighten cloud-based monitoring service, as well as other accessories.


The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store.Enphase Energy, Inc.was incorporated in 2006 and is headquartered in Fremont, California.

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1.b. Last Insights on ENPH

Breaking News: Enphase Energy Inc is facing a class action lawsuit for alleged securities law violations. The lawsuit claims the company made false or misleading statements between April 22 2025 and October 28 2025. Investors who purchased shares during this period may be eligible to participate. The deadline to seek the role of lead plaintiff is April 20 2026. Several law firms including Schall Law Firm DJS Law Group and Faruqi & Faruqi are representing investors. No recent earnings release was found. Analysts at various firms have not made recent recommendations on the stock.

1.c. Company Highlights

2. Enphase Energy's Q4 2025 Earnings: A Strong Performance Amidst Challenges

Enphase Energy reported a quarterly revenue of $343.3 million, with a non-GAAP gross margin of 46.1%, above the high end of their guidance range. The company's EPS came in at $0.71, beating estimates of $0.54. The revenue was comprised of microinverter and battery shipments, with the U.S. and international revenue mix being 89% and 11%, respectively. The company's cash, cash equivalents, and marketable securities balance stood at $1.51 billion, with a free cash flow of $37.8 million in Q4.

Publication Date: Feb -05

📋 Highlights
  • Revenue and Margin Performance: Reported $343.3M revenue, 46.1% non-GAAP gross margin (above guidance), and $37.8M free cash flow in Q4.
  • Product Shipments and Backlog: Shipped 1.55M microinverters and 150MWh batteries; IQ9 microinverter backlog exceeds 50,000 units for Q1 2026.
  • Battery Innovation: Launched fifth-gen battery with 50% higher energy density and 40% lower cost, targeting pilots in Q3 2026 and shipments by Q4.
  • Market Dynamics: U.S. revenue fell 13% QoQ due to $20.3M safe harbor decline vs. Q3’s $70.9M, but sell-through rose 21% to a 2+ year high.

Financial Performance

The company's financial performance was strong, with a non-GAAP operating income of 23% as a percentage of revenue. The GAAP operating expenses were $129.6 million, while non-GAAP operating expenses were $78.8 million. The company's guidance for Q1 2026 revenue is between $270 million and $300 million, with a GAAP gross margin of 40% to 43%. The revenue guidance includes approximately $35 million of safe harbor revenue.

Operational Highlights

Enphase Energy shipped 1.55 million microinverters and 150-megawatt hours of batteries in Q4. The company's global customer service NPS was 79% in Q4, up from 77% in Q3. The average call wait time was 1.6 minutes, indicating a high level of customer satisfaction. The company is making progress in its battery business, with the IQ batteries continuing to ramp up in the U.S.

Valuation Metrics

Enphase Energy's current valuation metrics indicate a P/E Ratio of 39.31, a P/B Ratio of 6.23, and a P/S Ratio of 4.59. The EV/EBITDA ratio stands at 24.03. With an ROE of 18.25% and an ROIC of 4.8%, the company's profitability metrics are notable. Analysts estimate next year's revenue growth at 10.9%, which may impact the company's valuation multiples.

Growth Prospects

The company is making significant progress in its fifth-generation battery development, which is expected to have a higher energy density and lower cost. Enphase Energy is also exploring prepaid lease programs, which could offset the impact of the 25D tax credit going away. The company's storage business is expected to boom, with every state likely to adopt battery storage in the next 10 years.

Regional Performance

In Europe, Enphase Energy's revenue decreased by 29% in Q4 compared to Q3, while sell-through decreased by 23%. The company is seeing a potential for predemand in the Netherlands ahead of the loss of net metering, with customers wanting to self-consume early and avoid a gap in their solar system's value.

3. NewsRoom

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ROSEN, NATIONAL INVESTOR COUNSEL, Encourages Enphase Energy, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action – ENPH

00:23

Source: globenewswire.com

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ROSEN, A LONGSTANDING LAW FIRM, Encourages Enphase Energy, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - ENPH

Feb -22

Source: newsfilecorp.com

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Enphase Energy Director Sells 1100 Shares After Strong Earnings

Feb -22

Source: fool.com

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ROSEN, A LONGSTANDING LAW FIRM, Encourages Enphase Energy, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - ENPH

Feb -21

Source: newsfilecorp.com

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INVESTOR DEADLINE: Enphase Energy, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Feb -21

Source: prnewswire.com

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ENPH Class Action Notice: Robbins LLP Reminds Investors of the Lead Plaintiff Deadline in the Enphase Energy, Inc. Class Action Lawsuit

Feb -20

Source: globenewswire.com

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ENPH Investors Have Opportunity to Lead Enphase Energy, Inc. Securities Fraud Lawsuit with the Schall Law Firm

Feb -20

Source: globenewswire.com

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ROSEN, NATIONAL TRIAL LAWYERS, Encourages Enphase Energy, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - ENPH

Feb -20

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.00%)

6. Segments

Solar Photovoltaic

Expected Growth: 15%

Enphase Energy's 15% growth in Solar Photovoltaic is driven by increasing adoption of renewable energy, declining solar panel costs, and rising demand for energy storage solutions. Additionally, Enphase's microinverter technology and monitoring software provide a competitive edge, while government incentives and tax credits further boost growth.

7. Detailed Products

Microinverters

Enphase Microinverters are compact, rugged, and highly reliable devices that convert DC power from each solar panel into AC power, providing maximum energy harvest and monitoring at the panel level.

Encharge Battery

Encharge is a scalable, all-in-one AC-coupled battery system that provides backup power during grid outages and optimizes energy usage when the grid is available.

Ensemble Energy Management

Ensemble is a comprehensive energy management system that integrates Enphase's solar, storage, and grid services to optimize energy usage and provide a seamless transition between grid and backup power.

IQ Gateway

The IQ Gateway is a networking device that connects Enphase systems to the internet, enabling remote monitoring, software updates, and data analytics.

Enphase App

The Enphase App is a mobile application that provides homeowners with real-time monitoring and control of their Enphase system, including energy production, consumption, and storage.

8. Enphase Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Enphase Energy, Inc. faces moderate threat from substitutes due to the presence of alternative energy storage solutions and solar panel manufacturers.

Bargaining Power Of Customers

Enphase Energy, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Enphase Energy, Inc. relies on a few key suppliers for components, which gives them some bargaining power, but the company's large scale of operations helps to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the solar energy industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The solar energy industry is highly competitive, with many established players and new entrants vying for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.91%
Debt Cost 3.95%
Equity Weight 43.09%
Equity Cost 11.41%
WACC 7.16%
Leverage 132.06%

11. Quality Control: Enphase Energy, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
EQT

A-Score: 5.4/10

Value: 5.4

Growth: 3.2

Quality: 6.6

Yield: 2.0

Momentum: 9.0

Volatility: 6.0

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Antero Resources

A-Score: 4.7/10

Value: 6.2

Growth: 3.8

Quality: 5.2

Yield: 0.0

Momentum: 8.0

Volatility: 5.0

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Nextracker

A-Score: 4.5/10

Value: 2.8

Growth: 5.4

Quality: 7.1

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

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Sunrun

A-Score: 4.0/10

Value: 8.5

Growth: 2.6

Quality: 2.9

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

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Array Technologies

A-Score: 3.6/10

Value: 7.0

Growth: 3.7

Quality: 2.8

Yield: 0.0

Momentum: 7.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Enphase Energy

A-Score: 3.0/10

Value: 3.7

Growth: 5.7

Quality: 5.8

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

46.56$

Current Price

46.56$

Potential

-0.00%

Expected Cash-Flows