Enphase Energy reported fourth-quarter 2025 adjusted earnings of $0.71 per share, surpassing the consensus estimate of $0.58 by more than 22%. Quarterly revenue reached $343.32 million, edging out the Street projection of $340.59 million. This represents year-over-year revenue growth of approximately 15% over Q4 2024, driven by strong demand for residential solar solutions in North America and Europe.

During the quarter, Enphase generated free cash flow of $37.8 million, bolstering its balance sheet at a time when many competitors face working-capital constraints. The company ended December 31 with $1.51 billion in combined cash, cash equivalents and marketable securities. Management highlighted improved inventory turns in its Texas and South Carolina manufacturing facilities, which helped reduce working-capital requirements by 8% sequentially.

Enphase shipped 1.31 million microinverters and 51.1 megawatt-hours of IQ battery systems in Q4, reflecting a record quarterly deployment rate. The company introduced its IQ9N-3P commercial microinverter platform, built on gallium nitride power conversion technology, and received approval for its IQ Meter Collar from 52 U.S. utilities, covering roughly 30 million customer accounts. These product milestones are expected to support further market penetration in the commercial and utility-scale segments.

For the first quarter of 2026, Enphase projects revenue in the range of $270 million to $300 million, above the average analyst forecast of $262.2 million. Management pointed to continued strength in residential solar installations, expansion into third-party ownership (TPO) projects and anticipated tariff relief in key export markets. Investors will be watching capacity ramp timelines and gross margin trends, as the company navigates component cost pressures and shifting incentive structures globally.