AI Earnings Predictions for Enphase Energy Inc. (ENPH)

EX-99.1

2 a2026q3exx991pressrelease.htm

EX-99.1

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Exhibit 99.1

Enphase Energy Reports Financial Results for the Third Quarter of 2026

FREMONT, Calif., Oct 27, 2026 - Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company, announced today financial results for the third quarter of 2026, which included the summary below from its President and CEO, Badri Kothandaraman.

We reported quarterly revenue of $293.3 million in the third quarter of 2026 and shipped approximately 1.42 million IQ® Microinverters, or 655.2 megawatts DC, and 129.9 megawatt hours (MWh) of IQ® Batteries.

Highlights for the third quarter of 2026 are listed below:

•Successfully demonstrated 13.8 kV AC to 800 VDC conversion using our IQ® SST technology

•Developing IQ SST solutions for the AI data center needs of two global technology leaders

•Revenue of $293.3 million

•GAAP gross margin of 43.3%; non-GAAP gross margin of 45.0%

•GAAP operating income of $6.5 million; non-GAAP operating income of $53.6 million

•GAAP net income of $23.4 million; non-GAAP net income of $54.0 million

•GAAP diluted earnings per share (EPS) of $0.17; non-GAAP diluted EPS of $0.41

•GAAP and non-GAAP diluted EPS reduced by $0.15 and $0.14, due to impairment in investments

•Cash, cash equivalents and marketable securities of $931.8 million

Our revenue and earnings for the third quarter of 2026 are provided below, compared with the prior quarter:

(In thousands, except per share and percentage data)

GAAPNon-GAAP

Q3 2026Q2 2026Q3 2025Q3 2026Q2 2026Q3 2025

Revenue$293,329 $291,854 $410,427 $293,329 $291,854 $410,427

Gross margin43.3 %60.0 %47.8 %45.0 %46.8 %49.2 %

Operating expenses$120,652 $123,495 $130,080 $78,437 $79,820 $78,538

Operating income$6,466 $51,519 $66,159 $53,575 $56,697 $123,402

Net income$23,387 $36,079 $66,638 $54,000 $61,515 $117,300

Basic EPS$0.18 $0.27 $0.51 $0.41 $0.47 $0.90

Diluted EPS$0.17 $0.27 $0.50 $0.41 $0.46 $0.90

Total revenue for the third quarter of 2026 was $293.3 million, compared to $291.9 million in the second quarter. Third-quarter revenue included $85.0 million of safe harbor revenue, compared to $84.3 million in the second quarter. Revenue in the United States increased approximately 3%, a smaller than anticipated increase due to soft residential solar demand. Revenue in Europe decreased approximately 11%, due to summer seasonality and continued weakness in certain solar markets.

Global sell-through increased approximately 1% sequentially in the third quarter of 2026, below our expectation of 10% growth, contributing to revenue at the low end of our guidance range. U.S. sell-through increased 5% sequentially, but declined 35% year-over-year, broadly in line with third-party reports of U.S. residential solar market trends. European sell-through declined 12% sequentially in the third quarter, reflecting seasonality and softer demand, particularly in France.

Non-GAAP gross margin was 45.0% in the third quarter, compared to 46.8% in the second quarter. The decrease in gross margin was driven by product mix. Reciprocal tariffs reduced gross margin by approximately 1.3 percentage points, down from approximately 2.0 percentage points in the second quarter.

Non-GAAP operating expenses were $78.4 million in the third quarter, compared to $79.8 million in the second quarter. Non-GAAP operating income decreased to $53.6 million, compared to $56.7 million in the second quarter.

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We exited the third quarter of 2026 with $931.8 million in cash, cash equivalents and marketable securities, and generated approximately $0.1 million in cash flow from operations. Capital expenditures were $11.5 million, compared to $14.4 million in the second quarter.

We shipped 129.9 MWh of IQ Batteries in the third quarter, compared to 113.8 MWh in the second quarter. More than 26,000 installers worldwide are now certified to install IQ Batteries, up from more than 25,000 in the second quarter.

We announced a major milestone in the development of the IQ® Solid-State Transformer (IQ SST), successfully demonstrating 13.8 kV AC to 800 VDC conversion at our R&D lab in Austin, Texas. The demonstration brought together 132 power modules, with 44 connected in series on each of three phases, operating as a single integrated system. Importantly, IQ SST maintained a stable 800 VDC output during rapid load changes that simulate the dynamic power demands of AI compute racks.

By converting medium-voltage AC directly to 800 VDC, IQ SST is designed to eliminate multiple stages of conventional power conversion, reduce energy losses, and deliver more usable power to AI compute. Our next milestones are to validate operation at 34.5 kV and demonstrate a megawatt-scale system by the end of 2026.

During the third quarter of 2026, we more than doubled our IQ SST customer and partner pipeline to over 50. We are actively engaged with a leading hyperscaler and a global AI computing leader, whose technical requirements are helping shape

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