Microinverter and battery storage supplier Enphase Energy’s revenue for the third quarter (Q3) of 2025 rose 7.8% year-over-year (YoY) to  $410.4 million from $380.87 million.

The company’s Q3 revenue is the highest in a quarter over the last two years.

The revenue in the quarter beat analysts’ expectations by $40.83 million.

Enphase attributed the revenue growth to higher demand for microinverters and batteries, as well as higher safe-harbor revenue in the quarter.

It secured safe-harbor revenue of $70.9 million, up from $40.4 million in the prior year.

Net income for the quarter also surged by 32.7% to $117.3 million from $88.4 million last year.

Earnings per share (EPS) were $0.9 compared to $0.65 in the same quarter of the previous year.

Its EPS for the quarter exceeded analysts’ expectations by $0.24.

9M Results

In the first nine months (9M) of 2025, Enphase reported a 19% YoY rise in revenue to $1.13 billion from $947.67 million.

Net income rose 52% to $296.41 million from $195.18 million during the same period of last year.

Its EPS stood at $2.26 compared to an EPS of $1.43 in 9M 2024.

Business Highlights

Enphase shipped 1.77 million microinverters and 195.0 MWh of IQ Batteries in Q3

Its U.S. manufacturing plant shipped 1.53 million microinverters and 67.5 MWh of IQ Batteries.

The company is shipping its IQ8HC Microinverters, IQ8P-3P Commercial Microinverters, IQ Battery 5Ps, and IQ Battery 10Cs from these facilities, which meet domestic content requirements.

It also ramped up shipments of the 4th-generation Enphase Energy System with integrated load control to customers in the U.S.

The company said in its earnings call that it is manufacturing the batteries using cell packs from China.

Badrinarayanan Kothandaraman, President, CEO & Director at Enphase Energy, said that the company is on track to source non-China cell packs by the end of this year, scaling into battery builds in the first half of 2026. “We expect limited exposure to the recent China-related tariffs as our supply chain transitions away from China.”

Its U.S. and international revenue mix for Q3 2025 was 85% and 15%, respectively. Enphase’s revenue from the U.S. market increased 29% compared to last year, primarily due to higher demand. However, its revenue in the European market decreased by 38% from the previous quarter.

Enphase also announced increased support for virtual power plants (VPPs). Enphase products now enable advanced energy market steering smart grid features, such as one-minute data streaming, instant alerts for VPP events and system maintenance, and solar curtailment to support grid constraints.

It also announced a complete off-grid solar and battery solution for the U.S. market.

Outlook

In Q4 2025, Enphase expects the revenue to be within the range of $310 million to $350 million. It also aims to achieve shipments of 140 MWh-160 MWh of IQ Batteries.

The company explained that it lowered its revenue guidance due to $70.9 million in safe-harbor revenue being moved from Q4 to Q3. The move was driven by customers’ demand for the product before the U.S. Treasury guidance in Q3.

It has also attributed the lowered revenue guidance to reduced product shipments to distributors, retailers, or wholesalers to remove excess inventory as it heads into 2026.

Enphase said it expects further ramp-up in U.S. demand in Q4, primarily due to homeowners moving to capture the expiring 25D tax credit before the end of this year.

In Q4 2025, the company plans to begin shipping its new IQ9N-3P Commercial Microinverter and IQ EV Charger 2 to customers in the U.S.

During its earnings call, the company said the industry will move towards a third-party operator (TPO) model in 2026.

Kothandaraman said that the company is working with several TPO partners on safe harbor planning and is well-positioned to support both methods—the 5% method and the physical work test method —based on each partner’s preference.

In Q1 2026, the company anticipates a larger-than-normal seasonal decline following the expiration of the 25D tax credit and estimates revenue of $250 million.

Enphase expects this decline due to rising U.S. power prices, declining interest rates, and new, attractive financing solutions entering the market.

In Q2 2025, Enphase Energy reported revenue of $363.2 million, a 19.6% increase YoY from $303.5 million. n Q1 2025, the company’s revenue rose by 35.22% YoY to $356.1 million.