Earnings Releases·Oct 27, 2026, 4:07 PM ET

Enphase Energy — Third Quarter 2026 Earnings Summary

Q3 2026 revenue reached $293.3 million, a slight increase from Q2 2026 but a significant 28.5% decline year-over-year from Q3 2025; GAAP and non-GAAP gross margins contracted to 43.3% and 45.0% respectively, down from 60.0%/46.8% in Q2 and 47.8%/49.2% in Q3 2025, while GAAP and non-GAAP net income fell to $23.4 million and $54.0 million.
Q4 2026 guidance projects revenue between $225.0 million and $255.0 million with GAAP and non-GAAP gross margins estimated at 38.0–41.0% and 40.0–43.0%, respectively, reflecting an anticipated 10% sequential decline in sell-through and approximately 2.0 percentage points of reciprocal tariff impact.
Strategic progress includes the successful demonstration of IQ SST technology with major hyperscalers, the opening of pre-orders for the IQ Battery C80, and the deployment of 900 V GaN monolithic bidirectional switch devices, though commercial IQ SST shipments are not expected until 2028.
The company faces headwinds from soft U.S. residential demand, European market weakness, and higher interest rates, which contributed to global sell-through growth of only 1% against a 10% expectation; additionally, investment impairments reduced GAAP and non-GAAP diluted EPS by $0.15 and $0.14.
Capital management activities included $129.957 million in common stock repurchases over the nine months ended September 30, 2026, and the settlement of $632.5 million in Notes, leaving the company with $931.8 million in cash, cash equivalents, and marketable securities.