Key Highlights

  • Enphase Energy reported third quarter revenue of USD 293.3 million, down 29% year over year and below consensus estimates.
  • Net income was USD 23.4 million, or USD 0.18 per basic share, down from USD 66.6 million a year earlier.
  • U.S. net revenue declined 33% to USD 233.5 million, primarily due to the expiration of a federal residential tax credit.
  • International net revenue was roughly stable at USD 59.8 million, supported by higher demand in Europe for IQ Batteries.

U.S. Market Decline Drives Overall Revenue Lower

Enphase Energy (NASDAQ:ENPH) reported third quarter net revenues of USD 293.3 million, down 29% from USD 410.4 million in the same period of 2025. The company sold approximately 1.4 million microinverter units and shipped 129.9 megawatt hours of IQ Batteries during the quarter, compared with approximately 1.8 million units and 195.0 megawatt hours a year earlier.

U.S. net revenue declined 33% to USD 233.5 million, which the company attributed primarily to the expiration of the federal residential clean energy tax credit under Section 25D of the tax code. Microinverter shipments tied to safe harbor transactions, in which customers lock in pricing ahead of regulatory changes, were USD 85.0 million for the quarter, up from USD 70.9 million a year earlier.

International Revenue Holds Steady on European Demand

International net revenue was approximately USD 59.8 million, down just 1% from USD 60.4 million a year earlier. Revenue from markets outside Europe declined, but this was substantially offset by higher demand within Europe, where revenue increased approximately USD 6.8 million, driven in part by regulatory changes in the Netherlands that have encouraged a shift toward combined solar and storage systems.

The company also reported higher revenue from its EV charging products as it expanded related product offerings and sales channels. Net income for the quarter was USD 23.4 million, or USD 0.18 per basic share, compared with USD 66.6 million, or USD 0.51 per basic share, a year earlier.

Nine Month Trends and Policy Considerations

For the nine months ended September 30, 2026, net revenues declined 23% to USD 877.8 million, reflecting a 38% decrease in IQ Battery megawatt hours shipped and an 8% decrease in microinverter units sold over the period. Nine month net income was USD 52.1 million, compared with USD 133.4 million in the same period of 2025.

The expiration of the federal residential tax credit remains the primary driver of the U.S. revenue decline, a policy change that could continue to weigh on domestic demand in coming quarters unless offset by growth in commercial, international or storage-attached product categories.

Demand Trends to Monitor

U.S. microinverter and IQ Battery shipment volumes relative to the declines reported this quarter, continued European demand growth following recent regulatory changes in markets such as the Netherlands, and the trajectory of EV charging product revenue are among the data points that may shape how subsequent quarters compare with this one. The post tax credit U.S. demand environment remains the central variable the company has flagged for investors.