Enphase Energy, Inc.
For the period ended Sep 30, 2025. Filed Oct 28, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 28, 2025
ENPH$28.47-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-22.
0001463101-25-000101
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-28.
0001463101-25-000112
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 93 previous paragraphs and 99 current paragraphs.
42 unchanged; 48 reworded; 6 added; 2 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Safe Harbor Agreements. During the three and nine months ended September 30, 2025, we entered into multiple safe harbor agreements with customers, including solar and battery financing companies that offer TPO arrangements to homeowners, such as leases and power purchase agreements. These agreements reflect our increasing engagement in the TPO segment, which we expect to be an important growth channel for U.S. residential solar and battery adoption following the scheduled expiration of the ITC available under Section 25D of the Code on December 31, 2025. The timing and structure of these safe harbor transactions have resulted in higher variability in our quarterly revenue recognition and overall financial performance.
Current report
We began accepting pre-orders for our new IQ9N-3P™ Commercial Microinverter in September 2025. This is the first microinverter powered by advanced gallium nitride technology and designed for three-phase 480Y/277 V (wye) grid configurations, without using external transformers. The IQ9N-3P Commercial Microinverter helps simplify design complexity, lowers installation and balance of system costs, and improves system efficiency for 480 V commercial projects.
Current report
We announced a new IQ®Bidirectional EV Charger architecture in September 2025, featuring vehicle-to-home and vehicle-to-grid capability. The charger connects to the DC port of the EV and lets homeowners charge their EV, power their home seamlessly during outages, and share energy with the grid – all managed through the Enphase App.
Current report
Net revenues in the United States were $350.0 million in the three months ended September 30, 2025, as compared to $284.0 million in the same period in 2024, an increase of $66.0 million, or 23%, primarily driven by $70.9 million of microinverter shipments in the three months ended September 30, 2025 that are associated with safe harbor transactions with customers.
Current report
Net revenues in the United States were $884.6 million in the nine months ended September 30, 2025, as compared to $632.7 million in the same period in 2024, an increase of $251.9 million, or 40%, primarily driven by $110.3 million of microinverter shipments in the nine months ended September 30, 2025 that are associated with orders that were prepaid in December 2024 for products to be delivered in 2025 and $70.9 million of microinverter shipments that are associated with safe harbor transactions with customers.
Current report
General and administrative expense increased by $2.2 million, or 2%, in the nine months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily due to $2.3 million increase in higher personnel-related expenses due to bonus program and stock-based compensation, partially offset by actions in connection with the restructuring initiatives implemented in 2024 that lowered professional services costs by $0.1 million.
Removed paragraphs (2)
Previous report
Net revenues in the United States were $534.6 million in the six months ended June 30, 2025, as compared to $348.7 million in the same period in 2024, an increase of $185.9 million, or 53%, primarily driven by $110.3 million of microinverter shipments in the six months ended June 30, 2025 that are associated with orders that were prepaid in December 2024 for products to be delivered in 2025, as well as a return to more normalized channel inventory levels in the six months ended June 30, 2025. Net revenues from international geographical markets were $184.7 million in the six months ended June 30, 2025, as compared to $218.1 million in the same period in 2024, a decrease of $33.4 million, or 15%, primarily driven by continued softening in demand from customers in Europe, which was impacted by changes in government policies and lower utility rates.
Previous report
General and administrative expense decreased by $0.7 million, or 1%, in the six months ended June 30, 2025, as compared to the same period in 2024. The decrease was primarily due to actions implemented in connection with the restructuring initiatives implemented in 2024 that lowered personnel-related costs by $1.6 million, partially offset by an increase in professional services of $0.9 million.
Reworded paragraphs (48)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read together with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements reflecting our current expectations and involves risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “aim” or “continue” or the negative of these terms or other comparable terminology. Such statements, include but are not limited to statements regarding: our expectations as to future financial performance, including expenses, liquidity sources and cash requirements; the capabilities, advantages, features, and performance of our technology and products; timing of new product releases, and the anticipated market adoption of our current and future products; our expectations regarding demand for our products; our business strategies, including anticipated trends and operating conditions; growth of and development in markets we target, and our expansion into new and existing markets; our performance in operations, including factors affecting our supply chain; our product quality and customer service; our expectations regarding the macroeconomic environment, geopolitical developments, including the effects of tariffs, which may impact our business operations, financial performance and the markets in which we, our suppliers, manufacturers and installers operate; and the importance of benefits from government incentives for solar products, including through the impact of recent changes in the tax laws, rules and regulations. You should be aware that the forward-looking statements contained in this report are based on our current views and assumptions, and are subject to known and unknown risks, uncertainties and other factors that may cause actual events or results to differ materially. For a discussion identifying some of the important factors that could cause actual results to vary materially from those anticipated in the forward-looking statements, see below, those discussed in the section entitled “Risk Factors” herein and those included in our Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 10, 2025 (the “Form 10-K”). Unless the context requires otherwise, references in this report to “Enphase,” “we,” “us” and “our” refer to Enphase Energy, Inc. and its consolidated subsidiaries.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read together with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements reflecting our current expectations and involves risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “aim” or “continue” or the negative of these terms or other comparable terminology. Such statements, include but are not limited to statements regarding: our expectations as to future financial performance, including expenses, liquidity sources and cash requirements; the capabilities, advantages, features, and performance of our technology and products; timing of new product releases, and the anticipated market adoption of our current and future products; our expectations regarding demand for our products; our business strategies, including anticipated trends and operating conditions; growth of and development in markets we target, and our expansion into new and existing markets; our performance in operations, including factors affecting our supply chain; our product quality and customer service; our expectations regarding the macroeconomic environment, geopolitical developments, including the effects of tariffs, which may impact our business operations, financial performance and the markets in which we, our suppliers, manufacturers and installers operate; our expectations regarding potential growth through engagement in the third-party ownership (“TPO”) segment; and the importance of government incentives for solar products, including the impact of recent changes in the tax laws, rules and regulations. You should be aware that the forward-looking statements contained in this report are based on our current views and assumptions, and are subject to known and unknown risks, uncertainties and other factors that may cause actual events or results to differ materially. For a discussion identifying some of the important factors that could cause actual results to vary materially from those anticipated in the forward-looking statements, see below, those discussed in the section entitled “Risk Factors” herein and those included in our Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 10, 2025 (the “Form 10-K”). Unless the context requires otherwise, references in this report to “Enphase,” “we,” “us” and “our” refer to Enphase Energy, Inc. and its consolidated subsidiaries.
Previous wording
We are a global energy technology company. We deliver smart, easy-to-use solutions that manage solar generation, storage and communication on one platform. Our intelligent microinverters work with virtually every solar panel made, and when paired with our smart technology, result in one of the industry’s best-performing clean energy systems. As of June 30, 2025, we have shipped approximately 83.1 million microinverters, and more than 4.9 million Enphase residential and commercial systems have been deployed in over 160 countries.
Current wording
We are a global energy technology company. We deliver smart, easy-to-use solutions that manage solar generation, storage and communication on one platform. Our intelligent microinverters work with virtually every solar panel made, and when paired with our smart technology, result in one of the industry’s best-performing clean energy systems. As of September 30, 2025, we have shipped approximately 84.8 million microinverters, and more than 5.0 million Enphase residential and commercial systems have been deployed in over 160 countries.
Previous wording
Trade Tariff Uncertainties. It is uncertain what impact new or existing tariffs, trade restrictions or retaliatory actions may have on us, the solar industry and our customers. We have relocated a significant portion of our contract manufacturing to the United States while continuing to utilize contract manufacturing in China and India. However, certain critical components for our products are still sourced from outside the United States.
Current wording
Trade Tariff Uncertainties. The impact of new or existing tariff, trade restrictions or retaliatory actions on us, the solar industry and our customers continue to create uncertainty and impact on our business operations. We have relocated a significant portion of our contract manufacturing to the United States while continuing to utilize contract manufacturing in China and India. However, certain critical components for our products are still sourced from outside the United States.
Previous wording
For example, lithium iron phosphate ("LFP") battery cells used in our energy storage systems are currently supplied exclusively by two vendors located in China. While we are actively exploring alternative suppliers outside of China, the global supply chain for LFP battery cells remains heavily concentrated in China, and identifying qualified suppliers with the necessary expertise and capacity remains challenging.
Current wording
For example, lithium iron phosphate ("LFP") battery cells used in our energy storage systems are still supplied exclusively by two vendors located in China. While we are actively exploring alternative suppliers outside of China, the global supply chain for LFP battery cells remains heavily concentrated in China, and identifying qualified suppliers with the necessary expertise and capacity remains challenging.
Previous wording
Demand for Products. The demand environment for our products remained challenged during the first half of 2025, following a broad-based slowdown that began in the second quarter of 2023 in the United States and in the third quarter of 2023 in Europe. This prolonged softness in demand has continued to adversely impact certain distributors and installers, contributing to reduced liquidity, bankruptcies and business closures across the channel. These disruptions have negatively affected our revenue and profitability, and led to higher allowances for credit losses.
Current wording
Demand for Products. The prolonged softness in demand has continued to adversely impact certain distributors and installers, contributing to reduced liquidity, bankruptcies and business closures across the channel. These disruptions have negatively affected our revenue and profitability and resulted in higher allowances for credit losses. In addition, uncertainty related to potential changes in legislation, including from the OBBB, which eliminates or reduces existing tax credits for clean energy programs, as well as evolving U.S. trade and tariff policies, may further contribute to market volatility and adversely impact customer demand for our products, pricing and our financial performance.
Previous wording
IQ Microinverters. We ship IQ8™ series microinverters into 58 countries worldwide. We are also shipping IQ8 Microinverters with peak output power of 480 W AC for the residential and small-commercial market in North America, and grid-tied applications in South Africa, Mexico, Brazil, India, Thailand, the Philippines, France, Spain, Switzerland, Poland, Columbia, Panama, Costa Rica, Vietnam, Malaysia, Japan and 13 Caribbean countries. Our IQ8 Microinverters are designed to maximize energy production and can manage a continuous DC current of 14 amperes, supporting higher powered solar modules through increased energy harvesting.
Current wording
IQ Microinverters. We ship IQ8™ series microinverters into 58 countries worldwide. We are also shipping IQ8 Microinverters with peak output power of 480 W AC for the residential and small-commercial market in North America, and grid-tied applications in South Africa, Mexico, Brazil, India, Thailand, the Philippines, France, Spain, Switzerland, Poland, Columbia, Panama, Costa Rica, Vietnam, Malaysia, Australia and 13 Caribbean countries. Our IQ8 Microinverters are designed to maximize energy production and can manage a continuous direct current (“DC”) of 14 amperes, supporting higher powered solar modules through increased energy harvesting.
Previous wording
Our new IQ8 Microinverter, the IQ8P-3P™ for the small commercial solar market in North America, enables a peak output power of up to 480 W, supporting small three-phase commercial applications and newer, high-powered solar panels.
Current wording
Our new IQ8 Microinverter, the IQ8P-3P™, which enables a peak output power of up to 480 W, supporting small three-phase commercial applications and newer, high-powered solar panels, is shipping into North America for customers in the small commercial solar market.
Previous wording
We now ship the IQ8HC™ Microinverters supplied from our contract manufacturing facilities in the United States with higher domestic content than previous models when paired with other U.S.-made solar equipment that could qualify for the domestic content bonus tax credit under the Inflation Reduction Act of 2022 (the “IRA”).
Current wording
We now ship our IQ8HC™ Microinverters supplied from contract manufacturing facilities in the United States with higher domestic content than previous models when paired with other U.S.-made solar equipment that could qualify for the domestic content bonus tax credit under the Inflation Reduction Act of 2022 (the “IRA”).
Previous wording
In 2025, we released a software update that enables homeowners with existing legacy IQ7™ Microinverter-based systems to expand their solar capacity with IQ8™ Microinverters. This software facilitates seamless interoperability between legacy and current system architectures and is available in North America, Europe, and other key markets.
Current wording
In 2025, we released a software update that enables homeowners with existing legacy IQ7™ Microinverter-based systems to expand their solar capacity with IQ8 Microinverters. This software facilitates seamless interoperability between legacy and current system architectures and is available in North America, Europe, Australia, South Africa, Philippines and other key markets.
Previous wording
The IQ Battery 5P is modular with 5 kWh capacity and the IQ8 Microinverters provide a peak output power of 384 W. The IQ Battery 5P is available for customers in Australia, New Zealand, the United States, Puerto Rico, Mexico, Canada, the United Kingdom, Italy, France, the Netherlands, Luxembourg, Belgium, Romania and India. We currently ship our IQ Battery 5P with FlexPhase, an all-in-one AC-coupled system that delivers reliable backup power and supports both single-phase and three-phase applications, to customers in Germany, Austria, Switzerland, Luxembourg, Poland, Spain, Portugal, France, the Netherlands, Belgium, Sweden, Denmark, Greece, Croatia, Slovenia, Romania and Slovakia.
Current wording
Our IQ Battery 5P is modular with 5 kWh capacity and provides a peak output power of 384 W. Our IQ Battery 5P is available for customers in Australia, New Zealand, the United States, Puerto Rico, Mexico, Canada, the United Kingdom, Italy, France, the Netherlands, Luxembourg, Belgium, Romania and India. We currently ship our IQ Battery 5P with FlexPhase, an all-in-one AC-coupled system that delivers reliable backup power and supports both single-phase and three-phase applications, to customers in Germany, Austria, Switzerland, Luxembourg, Poland, Spain, Portugal, France, the Netherlands, Belgium, Sweden, Denmark, Greece, Croatia, Slovenia, Slovakia, Latvia, Lithuania, Estonia, Romania, Australia, New Zealand and India.
Previous wording
We started shipping our fourth-generation Enphase Energy System, featuring the IQ® Battery 10C, IQ® Meter Collar and the IQ® Combiner 6C into the United States in June 2025. The IQ Battery 10C is designed to be 30% more energy-dense, occupy 60% less wall space, and cost less than previous models. The IQ Meter Collar simplifies whole-home backup by providing microgrid interconnection device functionality, while the IQ Combiner 6C further streamlines installation by consolidating interconnection equipment into one enclosure. Together, these components are designed to simplify the entire backup installation process and enhance reliability.
Current wording
We started shipping our fourth-generation Enphase Energy System, featuring the IQ®Battery 10C, IQ®Meter Collar and the IQ®Combiner 6C into the United States in June 2025. The IQ Battery 10C is designed to be 30% more energy-dense, occupy 60% less wall space, and cost less than previous models. The IQ Meter Collar simplifies whole-home backup by providing microgrid interconnection device functionality, while the IQ Combiner 6C further streamlines installation by consolidating interconnection equipment into one enclosure. Together, these components are designed to simplify the entire backup installation process and enhance reliability. We announced in August 2025 the initial shipments of our IQ Battery 10C, supplied from our contract manufacturing facilities in the United States, delivering additional value in growing TPO market.
Previous wording
IQ® Balcony Solar System. We launched IQ Balcony Solar System in Germany and Belgium. The system is designed for plug-and-play installation and enables apartment residents and homeowners with limited roof space to generate solar energy from balconies, patios and small outdoor areas. The IQ Balcony Solar System includes Enphase IQ8HC™ Microinverters, IQ® Balcony Gateway, and other components.
Current wording
IQ® Balcony Solar System. We launched our IQ Balcony Solar System in Germany and Belgium in May 2025. This system is designed for plug-and-play installation and enables apartment residents and homeowners with limited roof space to generate solar energy from balconies, patios and small outdoor areas. Our IQ Balcony Solar System includes Enphase IQ8HC Microinverters, IQ® Balcony Gateway, and other components.
Previous wording
IQ® Energy Management. We introduced IQ Energy Management in France. This solution integrates with Enphase solar and battery systems to enable smart management of variable electricity rates. It also supports integration with select third-party electric vehicle (“EV”) chargers, heat pumps, and resistive electric water heaters, providing homeowners with enhanced control over energy consumption and costs.
Current wording
IQ® Energy Management. We introduced IQ Energy Management in France in May 2025. This solution integrates with Enphase solar and battery systems to enable smart management of variable electricity rates. It also supports integration with select third-party electric vehicle (“EV”) chargers, heat pumps, and resistive electric water heaters, providing homeowners with enhanced control over energy consumption and costs. We also recently introduced the expansion of IQ Energy Management capabilities to include select electric water heaters in Belgium, the Netherlands and Switzerland.
Previous wording
Our smart IQ® EV Chargers sold in the United States and Canada are Wi-Fi-equipped and include smart control and monitoring capabilities. The IQ EV Charger is designed to seamlessly integrate into our solar and battery system to help homeowners maximize electricity cost savings by charging directly from solar energy.
Current wording
Our smart IQ® EV Chargers sold in the United States and Canada are Wi-Fi-equipped and include smart control and monitoring capabilities. Our IQ EV Charger is designed to seamlessly integrate into our solar and battery systems to help homeowners maximize electricity cost savings by charging directly from solar energy.
Previous wording
Our most advanced residential charger to date, the IQ EV Charger 2 supports up to 22 kW of three-phase charging and can operate either as a standalone charger or fully integrated with our IQ Microinverters and IQ Batteries.
Current wording
Our most advanced residential charger to date, the IQ EV Charger 2 supports up to 22 kW of three-phase charging and can operate either as a standalone charger or fully integrated with our IQ Microinverters and IQ Batteries. We ship IQ EV Charger 2 into 14 countries in Europe and recently expanded across Europe to now include Greece, Romania, Ireland and Poland. In June 2025, we started shipping IQ EV Charger 2 to Australia and New Zealand. We also opened pre-orders in the United States for the IQ EV Charger 2 in September 2025.
Previous wording
Net revenues increased by $59.7 million, or 20%, in the three months ended June 30, 2025, as compared to the same period in 2024, driven primarily by a 9% increase in microinverter units sold and 59% increase in IQ Batteries Megawatt-hours (“MWh”) shipped. During the three months ended June 30, 2025, we sold approximately 1.5 million microinverter units and shipped 190.9 MWh of IQ Batteries, as compared to approximately 1.4 million microinverter units and 120.2 MWh of IQ Batteries shipped in the three months ended June 30, 2024.
Current wording
Net revenues increased by $29.6 million, or 8%, in the three months ended September 30, 2025, as compared to the same period in 2024, driven primarily by a 2% increase in microinverter units sold and 13% increase in IQ Batteries Megawatt-hours (“MWh”) shipped. During the three months ended September 30, 2025, we sold approximately 1.8 million microinverter units and shipped 195.0 MWh of IQ Batteries, as compared to approximately 1.7 million microinverter units and 172.9 MWh of IQ Batteries shipped in the three months ended September 30, 2024.
Previous wording
Net revenues in the United States were $271.3 million in the three months ended June 30, 2025, as compared to $198.7 million in the same period in 2024, an increase of $72.6 million, or 37%, primarily driven by $40.4 million of microinverter shipments in the three months ended June 30, 2025 that are associated with orders that were prepaid in December 2024 for products to be delivered in 2025, as well as a return to more normalized channel inventory levels in the three months ended June 30, 2025. Net revenues from international geographical markets were $91.8 million in the three months ended June 30, 2025, as compared to $104.7 million in the same period in 2024, a decrease of $12.9 million, or 12%, primarily driven by continued softening in demand from customers in Europe, which was impacted by changes in government policies and lower utility rates.
Current wording
Net revenues from international geographical markets were $60.4 million in the three months ended September 30, 2025, as compared to $96.8 million in the same period in 2024, a decrease of $36.4 million, or 38%, primarily driven by continued softening in demand from customers in Europe, which was impacted by the overall slower economic growth in Europe in addition to changes in government policies and lower utility rates.
Previous wording
Net revenues increased by $152.4 million, or 27%, in the six months ended June 30, 2025, as compared to the same period in 2024, driven primarily by a 10% increase in microinverter units sold and 84% increase in IQ Batteries MWh shipped. During the six months ended June 30, 2025, we sold approximately 3.1 million microinverter units and shipped 361.0 MWh of IQ Batteries, as compared to approximately 2.8 million microinverter units and 195.7 MWh of IQ Batteries shipped in the three months ended June 30, 2024.
Current wording
Net revenues increased by $182.0 million, or 19%, in the nine months ended September 30, 2025, as compared to the same period in 2024, driven primarily by a 7% increase in microinverter units sold and 51% increase in IQ Batteries MWh shipped. During the nine months ended September 30, 2025, we sold approximately 4.8 million microinverter units and shipped 556.0 MWh of IQ Batteries, as compared to approximately 4.5 million microinverter units and 368.6 MWh of IQ Batteries shipped in the three months ended September 30, 2024.
Previous wording
Cost of revenues increased by $26.4 million, or 16%, for the three months ended June 30, 2025, as compared to the same period in 2024. This increase was primarily driven by a higher volume of microinverter units sold and increased MWh of IQ Batteries shipped. This increase also included $19.5 million of incremental costs for manufacturing in the United States during the three months ended June 30, 2025, as compared to $5.9 million for the same period in 2024. This increase in cost of revenues was partially offset by benefits recognized from tax credits under the AMPTC for U.S. manufactured microinverters and IQ Batteries MW shipped to customers. The AMPTC benefits recognized were $61.0 million for the three months ended June 30, 2025, as compared to $24.3 million for the same period in 2024, resulting in a net IRA benefit of $41.5 million and $18.4 million, respectively.
Current wording
Cost of revenues increased by $11.5 million, or 6%, for the three months ended September 30, 2025, as compared to the same period in 2024. This increase was primarily driven by a higher volume of microinverter units sold, increased MWh of IQ Batteries shipped and higher tariffs. This increase also included $25.1 million of incremental costs for manufacturing in the United States during the three months ended September 30, 2025, as compared to $11.4 million for the same period in 2024. This increase in cost of revenues was partially offset by benefits recognized from tax credits under the AMPTC for U.S. manufactured microinverters and IQ Batteries MW shipped to customers. The AMPTC benefits recognized were $67.6 million for the three months ended September 30, 2025, as compared to $46.6 million for the same period in 2024, resulting in a net IRA benefit of $42.5 million and $35.2 million, respectively.
Previous wording
Gross margin increased by 1.7 percentage points in the three months ended June 30, 2025, as compared to the same period in 2024. The increase was primarily due to recognition of a 11.4% percentage point net IRA benefit in the three months ended June 30, 2025, as compared to a 6.1% percentage point net IRA benefit in the same period in 2024, partially offset by product mix and higher warranty expense from changes in estimates for an increase in tariff costs on product replacements.
Current wording
Gross margin increased by 1.0 percentage point in the three months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily due to recognition of a 10.3 percentage point net IRA benefit in the three months ended September 30, 2025, as compared to a 9.2 percentage point net IRA benefit in the same period in 2024, due to a higher proportion of sales from U.S. manufactured microinverters and IQ Battery MWh shipped, partially offset by product mix and increased tariff costs.
Previous wording
Cost of revenues increased by $66.4 million, or 21%, for the six months ended June 30, 2025, as compared to the same period in 2024. This increase was primarily driven by a higher volume of microinverter units sold and increased MWh of IQ Batteries shipped. This increase also included $35.3 million of incremental costs for manufacturing in the United States during the six months ended June 30, 2025, as compared to $10.8 million for the same period in 2024. This increase in cost of revenues was partially offset by benefits recognized from tax credits under the AMPTC for U.S. manufactured microinverters and IQ Batteries MW shipped to customers. The AMPTC benefits recognized were $114.7 million for the six months ended June 30, 2025, as compared to $42.9 million for the same period in 2024, resulting in a net IRA benefit of $79.4 million and $32.1 million, respectively.
Current wording
Cost of revenues increased by $77.9 million, or 15%, for the nine months ended September 30, 2025, as compared to the same period in 2024. This increase was primarily driven by a higher volume of microinverter units sold, increased MWh of IQ Batteries shipped and higher tariffs. This increase also included $60.5 million of incremental costs for manufacturing in the United States during the nine months ended September 30, 2025, as compared to $22.2 million for the same period in 2024. This increase in cost of revenues was partially offset by benefits recognized from tax credits under the AMPTC for U.S. manufactured microinverters and IQ Batteries MWh shipped to customers. The AMPTC benefits recognized were $182.3 million for the nine months ended September 30, 2025, as compared to $89.5 million for the same period in 2024, resulting in a net IRA benefit of $121.8 million and $67.3 million, respectively.
Previous wording
Gross margin increased by 2.5 percentage points in the six months ended June 30, 2025, as compared to the same period in 2024. The increase was primarily due to recognition of a 11.0 percentage point net IRA benefit in the six months ended June 30, 2025, as compared to a 5.7 percentage point net IRA benefit in the same period in 2024, partially offset by product mix and higher warranty expense from changes in estimates for an increase in tariff costs on product replacements.
Current wording
Gross margin increased by 1.9 percentage points in the nine months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily due to recognition of a 10.8 percentage point net IRA benefit in the nine months ended September 30, 2025, as compared to a 7.1 percentage point net IRA benefit in the same period in 2024, due to a higher proportion of sales from U.S. manufactured microinverters and IQ Battery MWh shipped, partially offset by product mix and increased tariff costs.
Previous wording
Research and development expense decreased by $3.5 million, or 7%, in the three months ended June 30, 2025, as compared to the same period in 2024. The decrease was primarily due to actions implemented in connection with the restructuring initiatives implemented in 2024 that lowered equipment, supplies and professional services by $1.9 million, and personnel-related expenses due to a reduction in headcount by $1.2 million.
Current wording
Research and development expense decreased by $0.6 million, or 1%, in the three months ended September 30, 2025, as compared to the same period in 2024. The decrease was primarily due to actions in connection with the restructuring initiatives implemented in 2024 that lowered equipment, supplies and professional services costs by $1.3 million, partially offset by $0.7 million in higher personnel-related expenses due to bonus program and stock-based compensation.
Previous wording
Research and development expense decreased by $7.5 million, or 7%, in the six months ended June 30, 2025, as compared to the same period in 2024. The decrease was primarily due to actions implemented in connection with the restructuring initiatives implemented in 2024 that lowered personnel-related expenses due to a reduction in headcount by $5.8 million, and lowered professional services by $1.4 million. The amount of research and development expenses may fluctuate from period to period due to the differing levels and stages of development activity for our products.
Current wording
Research and development expense decreased by $8.1 million, or 5%, in the nine months ended September 30, 2025, as compared to the same period in 2024. The decrease was primarily due to actions in connection with the restructuring initiatives implemented in 2024 that lowered personnel-related expenses due to a reduction in headcount by $5.0 million and lowered equipment, supplies and professional services costs by $3.1 million. The amount of research and development expenses may fluctuate from period to period due to the differing levels and stages of development activity for our products.
Previous wording
Sales and marketing expense decreased by $1.1 million, or 2%, in the three months ended June 30, 2025, as compared to the same period in 2024. The decrease was primarily due to actions implemented in connection with the restructuring initiatives implemented in 2024 that lowered professional services and advertising costs by $1.8 million, partially offset by $0.7 million in higher personnel-related expenses due to increased headcount to support our customer service initiatives.
Current wording
Sales and marketing expense decreased by $1.2 million, or 3%, in the three months ended September 30, 2025, as compared to the same period in 2024. A decrease of $1.5 million was primarily due to our network of field service technicians providing warranty services as well as serving the growing Enphase Care and third-party upgrade program for the IQ Gateway. The decrease was also from actions in connection with the restructuring initiatives implemented in 2024 that lowered professional services, equipment and advertising costs by $1.3 million, partially offset by $1.6 million in higher personnel-related expenses due to our commission and bonus program.
Previous wording
Sales and marketing expense decreased by $5.4 million, or 5%, in the six months ended June 30, 2025, as compared to the same period in 2024. The decrease was primarily due to actions implemented in connection with the restructuring initiatives implemented in 2024 that lowered professional services and advertising costs by $4.1 million, and personnel-related expenses due to a reduced headcount by $1.4 million.
Current wording
Sales and marketing expense decreased by $6.7 million, or 4%, in the nine months ended September 30, 2025, as compared to the same period in 2024. A decrease of $2.4 million was primarily due to our network of field service technicians providing warranty services as well as serving the growing Enphase Care and third-party upgrade program for the IQ Gateway. The decrease was also from actions in connection with the restructuring initiatives implemented in 2024 that lowered professional services, equipment and advertising costs by $4.3 million.
Previous wording
General and administrative expense increased by $0.5 million, or 1%, in the three months ended June 30, 2025, as compared to the same period in 2024. The increase was primarily due to an increase in costs related to professional services.
Current wording
General and administrative expense increased by $2.9 million, or 10%, in the three months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily due to $3.9 million in higher personnel-related expenses due to bonus program and stock-based compensation, partially offset by actions in connection with the restructuring initiatives implemented in 2024 that lowered professional services costs by $1.0 million.
Previous wording
Restructuring and asset impairment charges were incurred in connection with restructuring initiatives implemented in 2023 and 2024 to increase operational efficiencies, reduce operating costs, and to better align our workforce and cost structure with current market conditions, our business needs, and strategic priorities. Restructuring charges of $3.3 million in the three months ended June 30, 2025, primarily consisted of $1.5 million of asset impairment charges, $1.0 million of employee related expenses and $0.8 million of contract termination charges. Restructuring charges of $1.2 million in the three months ended June 30, 2024, primarily consisted of $0.9 million of employee related expenses, $0.3 million of contract termination charges and less than $0.1 million of asset impairment charges.
Current wording
Restructuring and asset impairment charges were incurred in connection with restructuring initiatives implemented in 2023 and 2024 to increase operational efficiencies, reduce operating costs, and to better align our workforce and cost structure with current market conditions, our business needs, and strategic priorities. Restructuring charges of $1.3 million in the three months ended September 30, 2025, primarily consisted of $0.7 million of contract termination charges and $0.6 million of employee-related expenses. Restructuring charges of $0.7 million in the three months ended September 30, 2024, primarily consisted of $0.6 million of asset impairment charges and $0.1 million of one-time termination benefits and other employee-related expenses.
Previous wording
Restructuring charges of $6.5 million in the six months ended June 30, 2025, primarily consisted of $4.4 million of employee related expenses, $1.5 million of asset impairment charges and $0.6 million of contract termination charges. Restructuring charges of $3.1 million in the six months ended June 30, 2024, primarily consisted of $1.6 million of contract termination charges, $1.1 million of employee related expenses, and $0.4 million of asset impairment charges.
Current wording
Restructuring and asset impairment charges of $7.8 million in the nine months ended September 30, 2025, primarily consisted of $4.9 million of employee related expenses, $1.4 million of asset impairment charges and $1.5 million of contract termination charges. Restructuring and asset impairment charges of $3.8 million in the nine months ended September 30, 2024, primarily consisted of $1.6 million of contract termination charges, $1.2 million of employee severance, one-time benefits and other employee-related expenses, and $1.0 million of asset impairment charges.
Previous wording
Interest income of $14.9 million decreased in the three months ended June 30, 2025, as compared to $19.2 million in the three months ended June 30, 2024, primarily due to lower average cash balance and lower interest rates.
Current wording
Interest income of $15.4 million decreased in the three months ended September 30, 2025, as compared to $20.0 million in the three months ended September 30, 2024, primarily due to lower average cash, cash equivalents and marketable securities, and lower interest rates.
Previous wording
Interest expense of $0.8 million in the three months ended June 30, 2025, primarily included $0.8 million for the amortization of debt issuance costs with our 0.0% convertible senior notes due 2026 (the “Notes due 2026”) and our 0.0% convertible senior notes due 2028 (the “Notes due 2028”), and other interest. Interest expense of $2.2 million in the three months ended June 30, 2024, primarily included $2.2 million for the coupon interest, debt discount amortization with our 0.25% convertible senior notes due 2025 (the “Notes due 2025”), and amortization of debt issuance costs with the Notes due 2025, Notes due 2026 and Notes due 2028.
Current wording
Interest expense of $0.8 million in the three months ended September 30, 2025, primarily included $0.8 million for the amortization of debt issuance costs with our 0.0% convertible senior notes due 2026 (the “Notes due 2026”) and our 0.0% convertible senior notes due 2028 (the “Notes due 2028”). Interest expense of $2.2 million in the three months ended September 30, 2024, primarily included $2.2 million for the coupon interest, debt discount amortization with our 0.25% convertible senior notes due 2025 (the “Notes due 2025”), and amortization of debt issuance costs with the Notes due 2025, Notes due 2026 and Notes due 2028.
Previous wording
Other expense, net, of $8.9 million in the six months ended June 30, 2025, primarily consisted of $9.1 million non-cash expense related to change in the fair value of debt securities and $0.1 million in realized loss on investments, partially offset by $0.3 million net gain due to foreign currency denominated monetary assets and liabilities. Other expense, net, of $7.5 million in the six months ended June 30, 2024, primarily related to $6.0 million impairment of investment in a private company, $1.0 million non-cash expense related to change in the fair value of debt securities, and $0.5 million net loss due to foreign currency denominated monetary assets and liabilities.
Current wording
Other expense, net, of $3.7 million in the three months ended September 30, 2025, primarily consisted of $3.2 million non-cash expense related to change in the fair value of debt securities and $0.5 million change in the fair value of our tax equity fund investment. Other expense, net, of $16.8 million in the three months ended September 30, 2024, primarily related to a $17.0 million impairment of investment in a private company and a $0.5 million net loss due to foreign currency denominated monetary assets and liabilities, partially offset by $0.6 million non-cash net gain related to change in the fair value of debt securities and $0.1 million in realized gain on investments.
Previous wording
Interest income of $31.9 million decreased in the six months ended June 30, 2025, as compared to $38.9 million in the three months ended June 30, 2024, primarily due to lower average cash balance and lower interest rates.
Current wording
Interest income of $47.4 million decreased in the nine months ended September 30, 2025, as compared to $58.9 million in the three months ended September 30, 2024, primarily due to lower average cash, cash equivalents and marketable securities, and lower interest rates.
Previous wording
Interest expense of $2.9 million in the six months ended June 30, 2025, primarily included $2.9 million for the coupon interest, debt discount amortization with the Notes due 2025, and amortization of debt issuance costs with the Notes due 2025, Notes due 2026 and Notes due 2028, and other interest. Interest expense of $4.4 million in the six months ended June 30, 2024, primarily included $4.4 million for the coupon interest, debt discount amortization with the Notes due 2025, and amortization of debt issuance costs with the Notes due 2025, Notes due 2026 and Notes due 2028.
Current wording
Interest expense of $3.7 million in the nine months ended September 30, 2025, primarily included $3.7 million for the coupon interest, debt discount amortization with the Notes due 2025, and amortization of debt issuance costs with the Notes due 2025, Notes due 2026 and Notes due 2028, and other interest. Interest expense of $6.7 million in the nine months ended September 30, 2024, primarily included $6.7 million for the coupon interest, debt discount amortization with the Notes due 2025, and amortization of debt issuance costs with the Notes due 2025, Notes due 2026 and Notes due 2028.
Previous wording
Other expense, net, of $8.9 million in the three months ended June 30, 2025, primarily consisted of $9.5 million non-cash expense related to change in the fair value of debt securities and $0.1 million change in tax equity, partially offset by $0.7 million net gain due to foreign currency denominated monetary assets and liabilities. Other expense, net, of $7.6 million in the three months ended June 30, 2024, primarily related to $6.0 million impairment of investment in a private company, $1.9 million non-cash expense related to change in the fair value of debt securities, and $0.1 million in realized loss on investments, partially offset by $0.4 million net gain due to foreign currency denominated monetary assets and liabilities.
Current wording
Other expense, net, of $12.7 million in the nine months ended September 30, 2025, primarily consisted of $12.3 million non-cash expense related to change in the fair value of debt securities and $0.5 million change in the fair value of our tax equity fund investment, partially offset by $0.1 million net gain due to foreign currency denominated monetary assets and liabilities. Other expense, net, of $24.3 million in the nine months ended September 30, 2024, primarily related to $23.0 million impairment of investments in private companies, $1.1 million net loss due to foreign currency denominated monetary assets and liabilities, and $0.3 million non-cash net loss related to change in the fair value of debt securities, partially offset by $0.1 million in realized gain on investments.
Previous wording
The income tax provision was $5.2 million in the three months ended June 30, 2025, as compared to an income tax provision of $0.4 million in the same period in 2024. The increase was primarily due to higher projected tax expense as our operations in U.S. and foreign jurisdictions were more profitable in 2025, and an increase in tax expense from equity compensation shortfalls in 2025, as compared to the same period in 2024.
Current wording
The income tax provision was $10.4 million in the three months ended September 30, 2025, as compared to $5.0 million in the same period in 2024. The increase was primarily due to higher projected tax expense as our operations in U.S. and foreign jurisdictions were more profitable in 2025, and an increase in tax expense from equity compensation shortfalls in 2025, as compared to the same period in 2024. The 2025 income tax provision also excludes a discrete tax benefit recognized in 2024 related to the impairment of an investment in a private company.
Previous wording
The income tax provision was $22.3 million in the six months ended June 30, 2025, as compared to an income tax provision of $5.0 million in the same period in 2024. The increase was primarily due to higher projected tax expense as our operations in U.S. and foreign jurisdictions were more profitable in 2025, an increase in tax expense from equity compensation shortfalls in 2025, and prior year true up adjustments in 2025, as compared to the same period in 2024.
Current wording
The income tax provision was $32.7 million in the nine months ended September 30, 2025, as compared to $10.0 million in the same period in 2024. The increase was primarily due to higher projected tax expense as our operations in U.S. and foreign jurisdictions were more profitable in 2025, an increase in tax expense from equity compensation shortfalls in 2025, and prior year true up adjustments in 2025, as compared to the same period in 2024. The 2025 income tax provision also excludes a discrete tax benefit recognized in 2024 related to the impairment of an investment in a private company.
Previous wording
As of June 30, 2025, we had $1.1 billion in net working capital, including cash, cash equivalents and marketable securities of approximately $1.5 billion, of which approximately $1.4 billion were held in the United States. Our cash, cash equivalents and marketable securities primarily consist of U.S. Government agency securities and treasuries, money market mutual funds, corporate notes, commercial paper and bonds, and both interest-bearing and non-interest-bearing deposits, with the remainder held in various foreign subsidiaries. We consider amounts held outside the United States to be accessible and have provided for the estimated withholding tax liability on the repatriation of our foreign earnings.
Current wording
As of September 30, 2025, we had $1.2 billion in net working capital, including cash, cash equivalents and marketable securities of approximately $1.5 billion, of which approximately $1.3 billion were held in the United States. Our cash, cash equivalents and marketable securities primarily consist of U.S. Government agency securities and treasuries, money market mutual funds, corporate notes and bonds, commercial paper and certificate of deposit, and both interest-bearing and non-interest-bearing deposits, with the remainder held in various foreign subsidiaries. We consider amounts held outside the United States to be accessible and have provided for the estimated withholding tax liability on the repatriation of our foreign earnings.
Previous wording
Our cash, cash equivalents and marketable securities decreased by $116.2 million for the six months ended June 30, 2025, as compared to the same period in 2024, primarily due to repurchases of common stock pursuant to our share repurchase program, payout of the Notes due 2025, and payments of withholding taxes related to net share settlement of equity awards, partially offset by cash generated from operations.
Current wording
Our cash, cash equivalents and marketable securities decreased by $288.7 million from September 30, 2024 to September 30, 2025, primarily due to repurchases of common stock pursuant to our share repurchase program, payout of the Notes due 2025, investments in private companies, issuance of loan receivables and payments of withholding taxes related to net share settlement of equity awards, partially offset by cash generated from operations.
Previous wording
Total carrying amount of debt decreased by $95.3 million for the six months ended June 30, 2025, as compared to the same period in 2024, primarily due to the payout of the Notes due 2025, partially offset by accretion of issuance costs.
Current wording
Total carrying amount of debt decreased by $96.6 million from September 30, 2024 to September 30, 2025, primarily due to the payout of the Notes due 2025, partially offset by accretion of issuance costs.
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Net revenues from international geographical markets were $245.1 million in the nine months ended September 30, 2025, as compared to $315.0 million in the same period in 2024, a decrease of $69.9 million, or 22%, primarily driven by continued softening in demand from customers in Europe, which was impacted by the overall slower economic growth in Europe in addition to changes in government policies and lower utility rates.
Current report — wording carried from elsewhere
For the long-term period (beyond 12 months), we plan to continue growing cash flows from operations to support our business operations and strategic investment plans. We regularly evaluate our liquidity position, debt obligations and anticipated cash needs. As part of this ongoing assessment, we may pursue additional financing through the issuance of equity or the debt financing, as necessary, to support our operational and investment needs.
Current report — wording carried from elsewhere
We anticipate that access to the debt market will be more constrained compared to prior periods due to elevated interest rates and recent policy changes to solar tax incentives following the enactment of the OBBB. Our ability to secure debt or any other additional financing that we may choose to, or need to, obtain will depend on, various factors including our development efforts, business plans, operating performance and prevailing capital market conditions.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
We ship IQ EV Charger 2 into 14 countries in Europe and recently expanded across Europe to now include Greece, Romania, Ireland, and Poland. In June 2025, we started shipping IQ EV Charger 2 to Australia and New Zealand.