U.S.-based microinverter and battery storage supplier Enphase Energy reported a revenue of $363.2 million in the second quarter (Q2) of the financial year (FY) 2025, up from $303.5 million in Q2 FY 2024, a 19.6% increase. The company’s U.S. revenue increased by approximately 3% quarter-over-quarter, largely driven by seasonal demand.

Enphase attributed the revenue growth to increased sales of its microinverters and battery shipments.

Badri Kothandaraman, President and CEO at Enphase Energy, said, “We have completed inventory normalization in the U.S. and Europe in Q2.” He added that this clears the way for more predictable, real-time demand fulfillment moving forward.

He also noted signs of improvement in the U.S. residential solar market. “The U.S. residential solar market is gradually recovering. Our sell-through was better than Q1,” said Kothandaraman, suggesting that the worst of the slowdown may be .

In Q2, the company reported a net profit of $37.1 million, a 70.8% increase from $10.8 million in the same quarter last year.

Enphase’s diluted earnings per share (EPS) came in at $0.28, compared to $0.08 in Q2 2024.

The company’s European revenue increased by approximately 11% due to strong sales of microinverters and batteries, particularly the IQ Battery 5P model, which saw wider deployment through the FlexPhase architecture.

“Europe was strong, particularly the Netherlands, France, and Germany,” said Kothandaraman.

Enphase shipped approximately 1.53 million microinverters in Q2 FY 2025, with a total DC capacity of 675.4 MW. It delivered a record 190.9 MWh of batteries, up from 170.1 MWh in the previous quarter. Of the microinverters shipped, 1.41 million units were produced at U.S. facilities, qualifying for the 45X advanced manufacturing production tax credit under the IRA.

Despite record shipments, battery demand remains ahead of supply. “Our batteries continue to be capacity-constrained. We shipped 190.9 MWh and still could not meet full demand,” Kothandaraman said.

This resulted in a net IRA benefit of $41.5 million for the quarter, although the company excluded approximately $19.5 million in incremental U.S. manufacturing costs.

Product and market expansion were key business highlights in Q2 FY 2025. Globally, it enrolled 210 MWh of batteries in virtual power plant programs.

Outlook

For Q3 FY 2025, Enphase expects to achieve revenues between $330 million and $370 million, with approximately 190 MWh to 210 MWh of battery shipments. The expected net IRA benefit is between $34 million and $38 million, based on 1.2 million units of U.S.-manufactured microinverters.

In April this year, Enphase Energy reported a 35.22% year-over-year rise in revenue to $356.1 million in the first quarter of 2025 from $263.34 million.