SoFi shares rise as record revenue, member growth drive strong Q3 results
FREMONT - Enphase Energy, Inc. (NASDAQ:ENPH) reported third quarter earnings that exceeded analyst expectations, but shares fell 2.8% as the company’s fourth quarter revenue guidance came in below consensus estimates.
The global energy technology company posted adjusted earnings per share of $0.90 for the third quarter, significantly beating the analyst estimate of $0.64. Revenue reached $410.4 million, surpassing the consensus estimate of $365.43 million and marking the company’s highest revenue level in two years. Revenue increased 7.8% compared to the same quarter last year.
However, Enphase’s fourth quarter revenue guidance of $310-350 million fell short of the $385.8 million analysts were expecting, triggering the negative market reaction despite the strong quarterly performance.
"We reported quarterly revenue of $410.4 million in the third quarter of 2025, along with 49.2% for non-GAAP gross margin," said Badri Kothandaraman, President and CEO of Enphase Energy. "We shipped approximately 1.77 million microinverters, or 784.6 megawatts DC, and a record 195.0 megawatt hours of IQ Batteries."
The company’s U.S. revenue increased approximately 29% compared to the second quarter, driven by higher demand and safe harbor revenue. However, European revenue decreased approximately 38% due to further softening in demand.
Enphase shipped a record 195.0 MWh of IQ Batteries in the third quarter, compared to 190.9 MWh in the previous quarter. The company also reported that its IQ Meter Collar is now approved by 39 utilities across the United States.
Free cash flow for the quarter was $5.9 million, and the company ended the period with $1.48 billion in cash, cash equivalents and marketable securities.
For the fourth quarter, Enphase expects to ship between 140 to 160 MWh of IQ Batteries, with non-GAAP gross margin projected to be within a range of 42.0% to 45.0%, including approximately five percentage points of reciprocal tariff impact.
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