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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 faces near term challenges with 2026 likely marking a trough before a potential recovery driven by rising electricity demand and AI tailwinds. The company's recent quarter showed mixed results with US revenue growing but European sales declining. Management guided for weaker Q4 revenue and margins. Despite ongoing risks including cyclical headwinds and competition from Tesla, Enphase's valuation appears attractive if growth resumes post 2026. Analysts at recommend a buy on the stock given its potential for recovery.

1.c. Company Highlights

2. Enphase Energy's Q3 2025 Earnings: A Strong Performance Amidst Challenges

Enphase Energy reported a robust third quarter with revenue reaching $410.4 million, its highest level in two years. The company shipped 1.77 million microinverters and a record 195 megawatt hours of batteries. Non-GAAP gross margin stood at 49.2%, while GAAP gross margin was 47.8%. Earnings per share (EPS) came in at $0.9, beating estimates of $0.62. The company's cash balance stood at $1.48 billion at the end of Q3.

Publication Date: Oct -31

📋 Highlights
  • Q3 Revenue Record: Achieved $410.4M revenue (highest in 2 years), driven by 1.77M microinverters and 195MWh battery shipments, including $70.9M safe harbor revenue.
  • U.S. Growth: Revenue increased 29% QoQ (vs. 38% Europe decline), with 1.53M domestic microinverters shipped and 45X production tax credits booked.
  • 2026 Market Recovery: Anticipation of Q4 2025 tax credit-driven demand (guidance $310–350M), followed by Q1 2026 trough ($250M) and improved H2 2026 outlook with interest rate declines and new financing models.
  • Battery Cost Reduction: Fifth-gen battery to cut system costs by 50% (via 100Ah cells, 50% higher energy density) and expand into 480V commercial solar with IQ9 GaN microinverters (launch Dec 2025).
  • Margin Resilience: Non-GAAP gross margin stable at 49.2% (vs. 47.8% GAAP), with $1.48B cash reserves and 50MWh battery shipment drop in Q4 to maintain 2026 channel health.

Revenue Drivers and Guidance

The company's revenue was driven by strong demand in the U.S., with revenue increasing 29% in Q3 compared to Q2, primarily due to higher safe harbor revenue. For Q4, Enphase expects revenue to be in the range of $310 million to $350 million. The company anticipates a larger-than-normal seasonal decline in Q1 2026 following the expiration of the 25D tax credit, estimating revenue of $250 million.

Product Innovations and Market Expansion

Enphase is entering the 480-volt commercial solar market with its IQ9 and GaN microinverter, expected to ship in December and ramp up in 2026. The company is also leveraging strategic partnerships to capture the battery retrofit opportunity in the Netherlands. New products, including the IQ bidirectional EV charger and the fifth-generation battery system, are poised to expand Enphase's market and reduce system costs.

Valuation and Outlook

With a P/E Ratio of 20.15 and an EV/EBITDA of 14.89, Enphase's valuation suggests a premium for its growth prospects. Analysts estimate next year's revenue growth at -16.5%. However, Enphase's diversified product portfolio, strategic partnerships, and expanding market presence are expected to drive recovery in the second half of 2026.

Operational Efficiency and Margin

Enphase is focusing on operational excellence and trimming down spending to track revenue in 2026. The company's gross margins have been stable in the 45% to 50% range despite revenue pressure. With the expected recovery in the battery market and the introduction of new products, Enphase is well-positioned to maintain its gross margin profile.

3. NewsRoom

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Enphase: This Fallen Angel Has A Sneaky AI Thesis

Dec -03

Source: seekingalpha.com

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Uber Technologies ($UBER) | Archer Aviation ($ACHR) | Enphase Energy ($ENPH) | EVgo ($EVGO)

Dec -03

Source: youtube.com

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Enphase Energy Announces New Safe Harbor Agreement with a Leading TPO Provider

Nov -20

Source: globenewswire.com

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Should Investors Buy Enphase Energy Stock on the Dip?

Nov -17

Source: fool.com

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Why Is Enphase Energy Stock Crashing, and Is It a Buying Opportunity?

Nov -17

Source: fool.com

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Enphase Energy IQ8 Microinverters Power Solar Projects at Gas Stations Worldwide

Nov -06

Source: globenewswire.com

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Teacher Retirement System of Texas Raises Position in Enphase Energy, Inc. $ENPH

Nov -06

Source: defenseworld.net

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Spire Wealth Management Grows Stock Holdings in Enphase Energy, Inc. $ENPH

Nov -06

Source: defenseworld.net

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

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EQT

A-Score: 5.4/10

Value: 5.3

Growth: 3.2

Quality: 6.5

Yield: 2.0

Momentum: 9.5

Volatility: 6.0

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Antero Resources

A-Score: 5.0/10

Value: 6.6

Growth: 3.9

Quality: 6.0

Yield: 0.0

Momentum: 8.5

Volatility: 5.0

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Nextracker

A-Score: 4.4/10

Value: 2.2

Growth: 5.6

Quality: 7.4

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

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Array Technologies

A-Score: 3.8/10

Value: 6.9

Growth: 3.7

Quality: 2.9

Yield: 0.0

Momentum: 8.0

Volatility: 1.0

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Sunrun

A-Score: 3.4/10

Value: 8.0

Growth: 2.6

Quality: 2.9

Yield: 0.0

Momentum: 6.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Enphase Energy

A-Score: 3.0/10

Value: 3.7

Growth: 5.8

Quality: 5.8

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.25$

Current Price

31.25$

Potential

-0.00%

Expected Cash-Flows