Microinverter and battery storage supplier Enphase Energy reported revenue of $282.9 million in the first quarter (Q1) of 2026, decreasing 20.6% year-over-year (YoY) from $356.1 million.

Net profit stood at $62.26 million, down 30.2% YoY from $89.24 million.

Earnings per share (EPS) came in at $0.47, compared to $0.68 in Q1 2025. However, it beat analysts’ expectations by $0.04.

Enphase attributed the drop in performance to demand pull-forward in the previous quarter, financing challenges in the U.S. residential solar market, seasonal weakness, reduced sell-through, and tariff impacts.

Enphase reported revenue of $343.32 million for Q4 2025, down 10.29% YoY from $382.71 million.

Business Updates

In Q1 2026, Enphase shipped approximately 1.41 million microinverters and 103.1 MWh of its IQ Batteries. It shipped 1.39 million microinverters from its Texas and South Carolina facilities, with the shipments booked under Section 45X of the Production Tax Credit.

Enphase’s battery shipments declined to 103.1 MWh from 150.1 MWh in the previous quarter. Its installer network grew from 22,000 to over 24,000.

The company also launched its IQ9N-3P commercial microinverter. Enphase has multiple products in the pipeline. These include the fifth-generation modular home battery, the 80 kWh IQ Vault 80 battery system, bidirectional electric vehicle chargers, and the 548 W gallium-nitride-based IQ9S-3P microinverter, designed for 480 V three-phase commercial systems.

It announced the development of its IQ Solid-State Transformer for AI data centers. Further, Enphase executed product agreements valued at $843.6 million under safe harbor and construction methods.

Enphase’s U.S. and international revenue mix in Q1 was 83% and 17%, respectively. Its revenue in the U.S. declined by 23%, primarily due to reduced demand for residential solar and batteries following the expiration of the 25D tax credits and seasonal changes.

The company’s safe harbor revenue increased to $34.5 million. Its overall sell-through declined 48% quarter-over-quarter, as Q4 saw higher demand pull-forward before the tax credit expired. The company’s sell-through declined 18% YoY.

Badri Kothandaraman, President and CEO at Enphase Energy, said, “Our Q1 sell-through results and Q2 sell-through expectations are roughly 10% to 15% below our prior view, a weaker start to the year, primarily due to unfavorable weather conditions and TPO financing challenges. We expect to offset some of this pressure in the second half of this year through prepaid lease adoption.”

Enphase’s revenue in Europe increased by 36% compared to Q4 2025. This was primarily driven by rising sell-in levels towards sell-through levels after Enphase undershipped its products to the continent in the previous quarter. The company said it is beginning to see early signs of improvement in April, with solar and battery adoption increasing across European markets compared with Q1 monthly averages.

The rising adoption is driven in part by rising power prices, with Europe increasingly becoming a battery-critical market. Enphase also plans to launch its fifth-generation battery in Europe in Q4.

On the global market, Enphase said it is undergoing a transition, specifically in the U.S. residential solar sector, where prepaid lease adoption is gaining traction.

Enphase also filed approximately around $50 million in refund claims after the U.S. Supreme Court invalidated certain tariffs. It expects reimbursements within 90 to 120 days.

The company implemented pricing adjustments, including microinverter price cuts in December and battery price revisions in the U.S. in March 2026 and globally from May 2026.

Q2 Outlook

Enphase expects its revenue to range between $280 million and $310 million in Q2 2026. The revenue calculations include shipments of 100 MWh to 110 MWh of IQ batteries.

The outlook also includes roughly $85 million of safe harbor shipments.

Enphase projects its non-GAAP margin to range from 44% to 47%. This includes approximately three percentage points of reciprocal tariff impact. The non-GAAP margin excludes stock-based compensation expense and acquisition-related amortization.

The company’s non-GAAP operating expenses are expected to range between $75 million and $79 million. This projection excludes $45 million, which is estimated to cover stock-based compensation expenses, amortization, restructuring, and asset impairment charges.