Recent News
On August 5, 2025 the company announced a safe-harbor agreement covering U.S.-manufactured IQ8HC microinverters to help projects preserve eligibility for federal tax credits. On August 19, 2025 Enphase disclosed a second safe-harbor agreement expected to generate roughly $50 million in revenue tied to U.S.-made microinverters. On October 7, 2025 the company scheduled a conference call to review third-quarter 2025 financial results, setting a date for investor commentary and updated guidance.
Technical Analysis
Directional indicators show bullish bias while trend strength remains weak: DI+ at 26.88 and increasing indicates bullish directional pressure, while DI- at 19.37 has peaked and reversed, which also supports a bullish directional reading. ADX at 13.41 signals no strong underlying trend, implying momentum may need confirmation to extend a sustained move.
MACD reads -0.07 and has turned higher versus a -0.15 signal line; the MACD crossing above its signal line marks a bullish momentum shift that complements rising DI+ and suggests near-term upside pressure on price.
MRO at -21.36 places price below model target, indicating potential for price appreciation as mean-reversion forces act; the negative MRO therefore aligns with other bullish momentum signals pointing toward a corrective move higher.
RSI sits at 49.43 with a dip-and-reversal pattern; that neutral-to-positive RSI behavior supports a recovery attempt from recent consolidation rather than an overbought impulse.
Price relationships favor short-term strength but longer-term caution: the close at $37.09 trades above the 12-day EMA ($36.81), 20-day average ($36.61) and 50-day average ($36.93), and the 12-day EMA trend shows increase, reinforcing near-term upside bias. Price remains well below the 200-day average ($47.58), which keeps the longer-term context constrained even as short-term indicators align bullishly. Bollinger bandwidth compresses near the current band midrange (upper ~ $37.76; lower ~ $35.46), consistent with a controlled volatility environment that can precede directional continuation if momentum validates the move.
Fundamental Analysis
Revenue totaled $363.2 million for the period ending 2025-06-30, with gross profit of $170.5 million and gross margin at 46.95%, above the industry peer mean of 39.25%, which supports a premium multiple despite near-term demand headwinds. Non-GAAP gross margin held near the mid-40s in recent reports, consistent with the company’s higher-margin microinverter and battery mix.
Operating and EBIT margins stand at 11.11% and 11.85% respectively; both margins fall below the industry peer mean for EBIT margin (16.90% industry peer mean and 17.44% industry peer median), indicating profitability lags peer central tendencies even as gross margins remain healthy. EBIT margin contracted QoQ by 13.81% but improved YoY by 167.53%.
Earnings per share reported at $0.69 versus an estimate of $0.62, producing an EPS surprise of 11.29%, which signals operational beat relative to consensus for the quarter reported. Forward EPS sits at $0.915 with a forward P/E near 51.12, while the trailing P/E reads 159.08; both ratios remain above the industry peer mean P/E of 88.70, reflecting a valuation premium tied to growth expectations and margin profile.
Balance-sheet and cash metrics provide cushion: cash and short-term investments total $1,530,184,000 and the cash ratio measures 1.32. Free cash flow totaled $18,370,000 yielding 0.32%, below the industry peer mean free-cash-flow yield of 1.03%, indicating lower conversion of earnings into discretionary cash relative to peers. Debt metrics show total debt of $1,208,798,000 and debt-to-equity of 1.37, which sits above the industry peer mean debt-to-equity of 0.56 and implies heavier leverage versus the peer average.
Revenue growth registered 1.99% year-over-year but contracted QoQ by 128.53%; operating margin improved YoY by 150.79% while operating margin contracted QoQ by 19.20%. Return on equity stands at 4.21% versus the industry peer mean of 4.98%, indicating modest shareholder returns relative to peer central tendency. WMDST values the stock as over-valued at current market multiples given the premium P/E and P/B levels versus peer central tendencies and below-average cash conversion metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-22 |
| NEXT REPORT DATE: | 2025-10-21 |
| CASH FLOW | Begin Period Cash Flow | $ 415.1 M |
| Operating Cash Flow | $ 26.6 M | |
| Capital Expenditures | $ -8.26 M | |
| Change In Working Capital | $ -95.53 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -44.55 M | |
| End Period Cash Flow | $ 370.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 363.2 M | |
| Forward Revenue | $ 293.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 192.7 M | |
| Depreciation | $ 20.1 M | |
| Depreciation and Amortization | $ 20.1 M | |
| Research and Development | $ 45.4 M | |
| Total Operating Expenses | $ 322.8 M | |
| PROFITABILITY | ||
| Gross Profit | $ 170.5 M | |
| EBITDA | $ 63.1 M | |
| EBIT | $ 43.0 M | |
| Operating Income | $ 40.3 M | |
| Interest Income | $ 14.9 M | |
| Interest Expense | $ 815.0 K | |
| Net Interest Income | $ 14.1 M | |
| Income Before Tax | $ 42.2 M | |
| Tax Provision | $ 5.2 M | |
| Tax Rate | 12.21 % | |
| Net Income | $ 37.1 M | |
| Net Income From Continuing Operations | $ 37.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.62 | |
| EPS Actual | $ 0.69 | |
| EPS Difference | $ 0.07 | |
| EPS Surprise | 11.29 % | |
| Forward EPS | $ 0.92 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.2 B | |
| Intangible Assets | $ 247.3 M | |
| Net Tangible Assets | $ 633.4 M | |
| Total Current Assets | $ 2.3 B | |
| Cash and Short-Term Investments | $ 1.5 B | |
| Cash | $ 370.5 M | |
| Net Receivables | $ 223.2 M | |
| Inventory | $ 173.0 M | |
| Long-Term Investments | $ 193.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 162.7 M | |
| Short-Term Debt | $ 631.2 M | |
| Total Current Liabilities | $ 1.2 B | |
| Net Debt | $ 832.2 M | |
| Total Debt | $ 1.2 B | |
| Total Liabilities | $ 2.3 B | |
| EQUITY | ||
| Total Equity | $ 880.6 M | |
| Retained Earnings | $ -309.22 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.74 | |
| Shares Outstanding | 130.736 M | |
| Revenue Per-Share | $ 2.78 | |
| VALUATION | Market Capitalization | $ 5.8 B |
| Enterprise Value | $ 5.5 B | |
| Enterprise Multiple | 87.186 | |
| Enterprise Multiple QoQ | -22.51 % | |
| Enterprise Multiple YoY | -78.511 % | |
| Enterprise Multiple IPRWA | high: 259.951 ENPH: 87.186 mean: 67.111 median: 63.645 low: -219.031 |
|
| EV/R | 15.15 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.61 | |
| Asset To Liability | 1.383 | |
| Debt To Capital | 0.579 | |
| Debt To Assets | 0.38 | |
| Debt To Assets QoQ | -2.227 % | |
| Debt To Assets YoY | 1121.162 % | |
| Debt To Assets IPRWA | high: 0.807 ENPH: 0.38 median: 0.293 mean: 0.255 low: 0.002 |
|
| Debt To Equity | 1.373 | |
| Debt To Equity QoQ | -7.885 % | |
| Debt To Equity YoY | 1131.509 % | |
| Debt To Equity IPRWA | high: 1.558 ENPH: 1.373 median: 0.661 mean: 0.558 low: -0.922 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.613 | |
| Price To Book QoQ | -33.04 % | |
| Price To Book YoY | -61.797 % | |
| Price To Book IPRWA | high: 12.594 ENPH: 6.613 mean: 6.068 median: 4.517 low: -7.517 |
|
| Price To Earnings (P/E) | 159.079 | |
| Price To Earnings QoQ | 77.255 % | |
| Price To Earnings YoY | -39.507 % | |
| Price To Earnings IPRWA | high: 287.529 ENPH: 159.079 mean: 88.696 median: 86.196 low: -168.539 |
|
| PE/G Ratio | -2.704 | |
| Price To Sales (P/S) | 16.035 | |
| Price To Sales QoQ | -28.679 % | |
| Price To Sales YoY | -68.217 % | |
| Price To Sales IPRWA | high: 42.058 ENPH: 16.035 mean: 15.2 median: 13.0 low: 0.0 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 51.121 | |
| Forward PE/G | -0.869 | |
| Forward P/S | 19.867 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -6.093 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.116 | |
| Asset Turnover Ratio QoQ | 3.133 % | |
| Asset Turnover Ratio YoY | 21.847 % | |
| Asset Turnover Ratio IPRWA | high: 0.479 mean: 0.194 median: 0.187 ENPH: 0.116 low: 0.001 |
|
| Receivables Turnover | 1.618 | |
| Receivables Turnover Ratio QoQ | 2.106 % | |
| Receivables Turnover Ratio YoY | 71.128 % | |
| Receivables Turnover Ratio IPRWA | high: 2.906 ENPH: 1.618 mean: 1.504 median: 1.38 low: 0.267 |
|
| Inventory Turnover | 1.215 | |
| Inventory Turnover Ratio QoQ | -0.028 % | |
| Inventory Turnover Ratio YoY | 40.311 % | |
| Inventory Turnover Ratio IPRWA | high: 2.529 ENPH: 1.215 median: 1.08 mean: 1.026 low: 0.063 |
|
| Days Sales Outstanding (DSO) | 56.391 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 65.856 | |
| Cash Conversion Cycle Days QoQ | -20.86 % | |
| Cash Conversion Cycle Days YoY | -60.864 % | |
| Cash Conversion Cycle Days IPRWA | high: 272.391 mean: 101.64 median: 88.157 ENPH: 65.856 low: -85.228 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.322 | |
| CapEx To Revenue | -0.023 | |
| CapEx To Depreciation | -0.411 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.5 B | |
| Net Invested Capital | $ 2.1 B | |
| Invested Capital | $ 2.1 B | |
| Net Tangible Assets | $ 633.4 M | |
| Net Working Capital | $ 1.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.316 | |
| Current Ratio | 1.969 | |
| Current Ratio QoQ | 3.877 % | |
| Current Ratio YoY | -53.483 % | |
| Current Ratio IPRWA | high: 7.762 mean: 2.181 median: 2.016 ENPH: 1.969 low: 0.034 |
|
| Quick Ratio | 1.82 | |
| Quick Ratio QoQ | 2.762 % | |
| Quick Ratio YoY | -53.333 % | |
| Quick Ratio IPRWA | high: 7.334 ENPH: 1.82 mean: 1.653 median: 1.456 low: 0.201 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 19.155 | |
| Cost Of Debt | 0.059 % | |
| Interest Coverage Ratio | 52.785 | |
| Interest Coverage Ratio QoQ | 120.784 % | |
| Interest Coverage Ratio YoY | 772.16 % | |
| Interest Coverage Ratio IPRWA | ENPH: 52.785 high: 31.214 median: 17.0 mean: 13.377 low: -130.23 |
|
| Operating Cash Flow Ratio | 0.067 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 67.54 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.341 % | |
| Revenue Growth | 1.985 % | |
| Revenue Growth QoQ | -128.528 % | |
| Revenue Growth YoY | -86.971 % | |
| Revenue Growth IPRWA | high: 79.411 % mean: 10.125 % median: 9.438 % ENPH: 1.985 % low: -43.951 % |
|
| Earnings Growth | -58.824 % | |
| Earnings Growth QoQ | 112.668 % | |
| Earnings Growth YoY | -357.357 % | |
| Earnings Growth IPRWA | high: 200.0 % median: 26.316 % mean: 20.097 % ENPH: -58.824 % low: -133.333 % |
|
| MARGINS | ||
| Gross Margin | 46.948 % | |
| Gross Margin QoQ | -0.635 % | |
| Gross Margin YoY | 3.865 % | |
| Gross Margin IPRWA | high: 98.998 % ENPH: 46.948 % mean: 39.247 % median: 36.34 % low: -49.356 % |
|
| EBIT Margin | 11.846 % | |
| EBIT Margin QoQ | -13.81 % | |
| EBIT Margin YoY | 167.525 % | |
| EBIT Margin IPRWA | high: 123.871 % median: 17.436 % mean: 16.898 % ENPH: 11.846 % low: -211.309 % |
|
| Return On Sales (ROS) | 11.105 % | |
| Return On Sales QoQ | -19.201 % | |
| Return On Sales YoY | 150.79 % | |
| Return On Sales IPRWA | high: 43.501 % mean: 16.278 % median: 15.487 % ENPH: 11.105 % low: -352.254 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 18.4 M | |
| Free Cash Flow Yield | 0.315 % | |
| Free Cash Flow Yield QoQ | -25.355 % | |
| Free Cash Flow Yield YoY | -58.931 % | |
| Free Cash Flow Yield IPRWA | high: 4.857 % mean: 1.034 % median: 0.912 % ENPH: 0.315 % low: -16.248 % |
|
| Free Cash Growth | -45.661 % | |
| Free Cash Growth QoQ | -42.032 % | |
| Free Cash Growth YoY | -125.266 % | |
| Free Cash Growth IPRWA | high: 364.739 % median: 50.564 % mean: 28.922 % ENPH: -45.661 % low: -329.708 % |
|
| Free Cash To Net Income | 0.496 | |
| Cash Flow Margin | 21.444 % | |
| Cash Flow To Earnings | 2.102 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.179 % | |
| Return On Assets QoQ | 25.962 % | |
| Return On Assets YoY | 247.788 % | |
| Return On Assets IPRWA | high: 17.834 % median: 2.58 % mean: 1.827 % ENPH: 1.179 % low: -36.426 % |
|
| Return On Capital Employed (ROCE) | 2.134 % | |
| Return On Equity (ROE) | 0.042 | |
| Return On Equity QoQ | 14.726 % | |
| Return On Equity YoY | 243.429 % | |
| Return On Equity IPRWA | high: 0.433 mean: 0.05 median: 0.047 ENPH: 0.042 low: -0.601 |
|
| DuPont ROE | 4.381 % | |
| Return On Invested Capital (ROIC) | 1.813 % | |
| Return On Invested Capital QoQ | 17.575 % | |
| Return On Invested Capital YoY | -316.348 % | |
| Return On Invested Capital IPRWA | high: 8.434 % mean: 3.192 % median: 3.068 % ENPH: 1.813 % low: -15.502 % |
|