Overview
- Shares fell about 11% Wednesday after the company projected second‑quarter revenue of $280 million to $310 million and warned demand would only tick up slightly.
- Enphase posted first‑quarter revenue of $282.9 million and adjusted earnings of $0.47 per share, and it shipped roughly 1.41 million microinverters and 103.1 MWh of batteries.
- Management said U.S. sell‑through dropped after policy changes cut a key buy‑out subsidy, which left dealer inventory above normal and led to a plan to under‑ship about $25 million in Q2 to clear stock.
- Gross margin came under pressure after Enphase sold $235 million of 2025 production tax credits at about 93% of face value and from reciprocal tariffs, and it now targets a 44%–47% non‑GAAP margin in Q2.
- To adapt, the company is scaling a Propel prepaid lease that keeps subsidies with third‑party ownership and is developing a solid‑state transformer for data centers with a demo planned this year, though analysts see little near‑term revenue from these moves.