Enphase Energy exceeded its revenue guidance for Q3 2025, reporting $410.4 million, its highest revenue level in the last 2 years, up from $363.2 million in the previous quarter. This was thanks to $70.9 million in safe harbor revenue the company pulled in from Q4 to meet customer demand, higher than the $40.4 million it earned in Q2 2025, as well as higher demand in the US (see Enphase Energy Sails Through Q2 2025 With $37M Net Income).
The US led revenue growth during the quarter with a 29% sequential improvement. On the other hand, Enphase says demand softened in Europe, leading to a 38% decline in revenue.
It shipped 784.6 MW DC, or 1.77 million, of microinverters and 195 MWh of IQ Batteries during Q3. This includes 1.53 million microinverters and 67.5 MWh of IQ Batteries manufactured in the US, up from 46.9 MWh in Q2.
It delivered a 47.8% GAAP gross margin. Enphase’s GAAP net income expanded to $66.6 million, up from $37 million in Q2 2025 and $45.7 million in Q3 2024 (see US Market Drives Enphase Energy’s Q3 2024 Revenues).
On the Q3 earnings call, Enphase Energy President, CEO & Director Badri Kothandaraman stressed that its microinverter channel inventory returned to normal during the reporting quarter, while battery inventory was slightly elevated due to sell-ins of its new 4th generation battery.
Enphase said it is seeing strong demand from US residential homeowners rushing to capture Section 25D tax credits before they expire at the end of this year (see OBBBA Could Cut US Residential Solar Capacity By 46% By 2030). Kothandaraman shared that in the initial 3 weeks of October, the company’s US sell-through was up over 20% compared to the Q3 average.
Yet, it remains conservative with Q4 2025 guidance as it further lowers its inventory. For the last quarter of 2025, Enphase expects to report $310 million to $350 million in revenues, sans safe-harbor shipments. This includes shipments of 140 MWh to 160 MWh of IQ Batteries. GAAP gross margin is expected within a range of 40% to 43%. Management says it is approximately 75% booked to the midpoint of the Q4 guidance.
The company expects demand to drop following the expiration of the residential tax credits. For Q1 2026, it guides for $250 million in revenues while expecting conditions to improve through the remainder of the year. This improvement will likely be driven by an increase in power prices in the US, a decline in interest rates, and new and attractive financing solutions.
