Enphase Energy Q2 Earnings Match Estimates, Revenues Decline Y/Y

ENPH’s Revenues

Enphase Energy’s second-quarter revenues of $291.9 million missed the Zacks Consensus Estimate of $295 million by 1%. The top line also decreased 19.6% from the prior-year quarter’s reported figure of $363.2 million.

The year-over-year plunge was mainly due to weaker sales in the United States.

Enphase Energy’s Operational Update

The company’s adjusted gross margin decreased 180 basis points year over year to 46.8%.

Adjusted operating expenses rose 2.6% year over year to $79.8 million. 

The adjusted operating income totaled $56.7 million, down 42.5% from the year-ago quarter.

Enphase Energy’s Shipments Gain Momentum

ENPH’s shipments amounted to approximately 1.59 million microinverters and 113.8 megawatt-hours (MWh) of Enphase IQ Batteries.

More than 25,000 installers worldwide were certified to install IQ Batteries at quarter-end, up from more than 24,000 in the preceding quarter.

Financial Details of ENPH

Enphase Energy had $529.3 million in cash and cash equivalents as of June 30, 2026 compared with $474.3 million as of Dec. 31, 2025.

The net cash flow from operating activities was $143.2 million during the first six months of 2026 compared with $75 million in the prior-year period.

Q3 2026 Guidance by Enphase Energy

For the third quarter of 2026, ENPH expects revenues in the range of $290-$320 million. The Zacks Consensus Estimate for third-quarter revenues is pegged at $315.9 million, which is at the higher end of the company’s guided range.

Enphase Energy expects to ship IQ batteries in the range of 130-150 MWh in the third quarter.

Adjusted operating expenses are expected between $76 million and $80 million. This excludes approximately $44 million estimated for stock-based compensation expenses, acquisition-related costs and amortization, as well as restructuring and asset impairment charges.

The adjusted gross margin is anticipated in the range of 44-47%, excluding stock-based compensation expenses and acquisition-related amortization.

ENPH’s Zacks Rank

Enphase Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Solar Releases

First Solar, Inc. FSLR is scheduled to report second-quarter 2026 results on July 30, after market close. The Zacks Consensus Estimate for FSLR’s earnings is pegged at $2.74 per share, which suggests a year-over-year decline of 13.8%.

The consensus estimate for sales stands at $1.06 billion, which indicates a fall of 3.3%.

SolarEdge Technologies SEDG is slated to report second-quarter 2026 results on Aug. 5, before market open. The Zacks Consensus Estimate for SEDG’s earnings is pegged at 4 cents per share, which calls for a year-over-year surge of 104.9%.

The consensus estimate for sales is pegged at $341.7 million, which indicates an improvement of 18%.

Sunrun Inc. RUN is slated to report second-quarter 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for RUN’s earnings is pegged at 8 cents per share, which suggests a year-over-year decline of 92.5%.

The consensus estimate for sales is pegged at $722.9 million, which calls for a jump of 27%.

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