Enphase Energy | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 291.85 M

Revenue: As of FY2026 Q2, the actual value is USD 291.85 M, beating the estimate of USD 290.3 M.

EPS: As of FY2026 Q2, the actual value is USD 0.27, beating the estimate of USD 0.0758.

EBIT: As of FY2026 Q2, the actual value is USD 39.69 M.

Financial Highlights for Q2 2026

Revenue

Enphase Energy, Inc. reported total revenue of $291.9 million for the second quarter of 2026, an increase from $282.9 million in the first quarter of 2026, but a decrease from $363.153 million in the second quarter of 2025. This included $84.3 million of safe harbor revenue in Q2 2026, up from $34.5 million in Q1 2026. Revenue in the United States decreased approximately 3%, while revenue in Europe increased approximately 35%.

Gross Margin

GAAP gross margin was 60.0% in Q2 2026, compared to 35.5% in Q1 2026 and 46.9% in Q2 2025. Non-GAAP gross margin was 46.8% in Q2 2026, up from 43.9% in Q1 2026, but down from 48.6% in Q2 2025. Reciprocal tariffs reduced gross margin by approximately 2.0 percentage points in Q2 2026, an improvement from approximately 4.3 percentage points in Q1 2026.

Operating Expenses

GAAP operating expenses were $123.495 million in Q2 2026, down from $130.036 million in Q1 2026 and $133.486 million in Q2 2025. Non-GAAP operating expenses were $79.8 million in Q2 2026, compared to $77.0 million in Q1 2026, primarily due to increased investment in R&D.

Operating Income (Loss)

GAAP operating income was $51.519 million in Q2 2026, compared to a GAAP operating loss of -$29.643 million in Q1 2026 and GAAP operating income of $37.007 million in Q2 2025. Non-GAAP operating income increased to $56.7 million in Q2 2026, compared to $47.3 million in Q1 2026 and $98.613 million in Q2 2025.

Net Income (Loss)

GAAP net income was $36.079 million in Q2 2026, compared to a GAAP net loss of -$7.406 million in Q1 2026 and GAAP net income of $37.052 million in Q2 2025. Non-GAAP net income was $61.515 million in Q2 2026, compared to $62.256 million in Q1 2026 and $89.869 million in Q2 2025.

Operating Cash Flow

Enphase Energy, Inc. generated $40.3 million in cash flow from operations in Q2 2026, compared to $102.871 million in Q1 2026 and $26.629 million in Q2 2025.

Free Cash Flow

Free cash flow was $25.9 million in Q2 2026, compared to $82.973 million in Q1 2026 and $18.370 million in Q2 2025.

Cash, Cash Equivalents, and Marketable Securities

Enphase Energy, Inc. exited Q2 2026 with $937.7 million in cash, cash equivalents, and marketable securities.

Capital Expenditures

Capital expenditures were $14.4 million in Q2 2026, down from $19.9 million in Q1 2026.

Product Shipments

Enphase Energy, Inc. shipped approximately 1.59 million IQ® Microinverters (725.2 megawatts DC) and 113.8 megawatt hours (MWh) of IQ® Batteries in Q2 2026, an increase from 103.1 MWh of IQ Batteries shipped in Q1 2026. Approximately 1.58 million microinverters and battery inverters were shipped from Texas and South Carolina facilities. More than 25,000 installers worldwide are now certified to install IQ Batteries, up from over 24,000 in Q1 2026.

Third-Party Agreements

Year-to-date, agreements with third-party owners totaled approximately $1.08 billion, comprising $202.4 million under the 5% ITC Safe Harbor and $878.6 million under the Physical Work Test.

Tariff Refunds

Enphase Energy, Inc. received approximately $41.0 million in refunds from U.S. Customs and Border Protection (CBP) during Q2 2026, with an additional $11.0 million received after quarter end. Of this, $45.4 million was recognized as an increase to GAAP gross profit, improving GAAP gross margin by 15.6 percentage points, and $1.6 million was recognized as GAAP interest income.

Third Quarter 2026 Financial Outlook

For the third quarter of 2026, Enphase Energy, Inc. estimates revenue to be between $290.0 million and $320.0 million, including 130 to 150 MWh of IQ Batteries and approximately $75.0 million of safe harbor shipments. The company projects GAAP gross margin to range from 42.0% to 45.0% and non-GAAP gross margin from 44.0% to 47.0%, both accounting for about 2 percentage points of reciprocal tariff impact. GAAP operating expenses are expected to be $120.0 million to $124.0 million, while non-GAAP operating expenses are anticipated to be $76.0 million to $80.0 million.