Microinverter and battery storage supplier Enphase Energy reported revenue of $343.32 million for the fourth quarter (Q4) of 2025, down 10.29% year-over-year (YoY) from $382.71 million.

The revenue, however, in Q4 surpassed analysts’ expectations by $3.2 million.

The company’s Q4 revenue included $2.3 million of safe harbor revenue.

During Q4, Enphase’s revenue mix comprised of 89% U.S. and 11% international markets.

Revenue from the U.S. market decreased 13%  from the third quarter, primarily due to lower safe harbor and storage revenue.

However, the sell-through demand for Enphase’s products in the U.S.  increased by 21% in Q4 of 2025, compared to the previous quarter last year.

The sell-through demand for its products was at its highest level in more than two years, driven by increased solar and battery installations ahead of the Section 25D tax credit expiration.

Europe revenue dropped by 29%, compared to the third quarter, due to softening demand. The sell-through for Europe also fell by 23%.

Net income for the quarter declined 25.77% YoY to $93.43 million, compared with $125.86 million.

Earnings per share (EPS) came in at $0.71 compared to an EPS of $0.94 in the corresponding quarter of the previous year.

The EPS beat analysts’ expectations by $0.13.

Enphase said it expects a surge in demand for large battery retrofit opportunities in the Netherlands, driven by rising solar export penalties and the planned phaseout of net metering by the end of 2026. It expects a total battery retrofit opportunity of roughly $2 billion.

France is also seeing increased interest in batteries due to reduced feed-in tariffs, leading to a shift in residential solar economics toward self-consumption. However, Enphase said the retrofit opportunity is more modest than in the Netherlands due to the prevalence of fixed energy contracts in France.

The company said that, with rising utility rates and the introduction of dynamic tariffs in France, demand for battery energy storage systems is set to surge.

Australia is also expected to see traction in energy storage solutions, backed by a mature rooftop solar market and an increasing consumer focus on self-consumption, resilience, and virtual power projects.

Full Year Results

For the full year of 2025, Enphase posted a revenue of $1.47 billion, up 10.53% YoY from $1.33 billion.

Net income rose 21.43% to $389.84 million, compared with $321.04 million in the prior year.

EPS for the year stood at $2.96, compared to an EPS of $2.37 in the previous year.

Business Highlights

Enphase shipped approximately 682.6 MW (DC) of microinverters and 150.1 MWh of IQ Batteries.

During Q4, the company shipped 1.31 million microinverters from its Texas and South Carolina manufacturing facilities. It also shipped 51.1 MWh of IQ batteries from its Texas facility.

In Q4, it announced two TPO orders totaling $123 million, including $55 million under the 5% safe harbor method and $68 million under the physical work test method.

Last year, Enphase announced a new safe harbor agreement with a leading solar and battery financing company that offers leases and PPAs to homeowners, projected to generate nearly $68 million in revenue over approximately 12-24 months beginning in 2026.

Currently, Enphase has four microinverter manufacturing plants with capacities exceeding 5 million microinverters per quarter, and two cell-pack suppliers in China.

Its backlog orders exceeded 50,000 microinverters in Q1.

2026 Outlook

Enphase expects the revenue to be within the range of $270 million to $300 million.

In the Q4 FY 2026 earnings call, Badrinarayanan Kothandaraman, President, CEO, and Director, said that due to rising utility rates in the U.S., Enphase expects a surge in demand for energy solutions in Q2 of 2026.

The company also expects the prepaid lease model to accelerate battery adoption. Additionally, it believes that its foreign entity of concern-compliant, and domestic content offerings are also likely to support sequential growth in battery volumes throughout the year.

Kothandaraman added that storage will be a significant long-term growth driver, supported by tax credits that extend well beyond solar.

The company stated that it believes the energy storage market will remain in demand until 2030 or 2031.

Kothandaraman also opined that solar-plus-storage solutions will gain dominance in every U.S. state over the next 10 years.

He added that, in the coming years, batteries will start pulling solar capacities and not the other way round. Highlighting the trend, Kothandaraman said that the attach rate in Germany and Italy was 80%.

Enphase also highlighted that battery suppliers in China are facing some cost pressure.

The company said that it is working with battery cell suppliers in non-China markets to enable a new non-China supply chain. It added that the ramp-up of supply capacities from non-China markets will be realized in the second quarter of 2026.

Enphase expects to receive its first non-China battery cell in Q1.

In Q3 2025, Enphase Energy’s revenue rose 7.8% YoY to $410.4 million from $380.87 million.