Enphase Energy

Enphase Energy (Nasdaq: ENPH) sells home solar microinverters, batteries and EV chargers through distributors, not to homeowners directly, and the profit leans on a U.S. manufacturing tax credit. FY2025 (year ended Dec 31, 2025) revenue was $1.47B (+11%): U.S. $1,188.7M (+27%), international $284.3M (−28%). It sold about 6.4 million microinverters (−2%) and shipped 706.1 MWh of IQ Batteries (+36%). Gross profit was $687.0M (46.6% margin), and $238.7M of the 2025 cost of revenue was offset by the Advanced Manufacturing Production Tax Credit (AMPTC, the Section 45X credit, 16.2 points of margin). Operating income was $157.5M and net income $172.1M, so without that credit the year would likely have been an operating loss (INFERENCE). One customer was about 39% of revenue. In H1 2026 the U.S. residential tax credit (Section 25D) expired and revenue fell 20% to $574.8M (Q2 $291.9M, −20%); Q2 gross margin was 60.0% only because of $45.4M of one-time tariff refunds, and Enphase paid off its $632.5M 2026 convertible notes in cash in March 2026, leaving $937.7M of cash and securities and $575.0M of 2028 notes.

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