Enphase Energy (ENPH) investor relations material

Executive summary

• Q2 2026 revenue was $291.9 million, up from $282.9 million in Q1 2026 but down 20% year-over-year, with 1.59 million microinverters and 113.8 MWh of batteries shipped.

• U.S. revenue declined 3% sequentially and 16% year-over-year, while Europe saw a 35% sequential increase, driven by battery adoption.

• Gross margin improved to 60.0% (GAAP), mainly due to $45.4 million in tariff refunds.

• Net income for Q2 2026 was $36.1 million; non-GAAP net income was $61.5 million.

• New IQ9N and IQ9S microinverters and PowerMatch battery technology were launched and expanded.

Financial highlights

• GAAP gross margin was 60.0% (up from 35.5% in Q1 2026), non-GAAP gross margin was 46.8% (up from 43.9% in Q1 2026), both aided by tariff refunds.

• GAAP operating income was $51.5 million; non-GAAP operating income was $56.7 million.

• GAAP net income was $36.1 million; non-GAAP net income was $61.5 million.

• GAAP EPS was $0.27; non-GAAP EPS was $0.46.

• Cash, equivalents, and marketable securities totaled $937.7 million at quarter end.

Outlook and guidance

• Q3 2026 revenue expected between $290 million and $320 million, including $75 million in safe harbor revenue and 130–150 MWh of battery shipments.

• GAAP gross margin guidance: 42%–45%; non-GAAP: 44%–47%, both including ~2 percentage points tariff impact.

• Non-GAAP operating expenses expected at $76–$80 million for Q3.

• Global sell-through in Q3 expected to increase 10% over Q2.

• Demand softness in the solar industry is expected to persist due to regulatory and macroeconomic uncertainty.