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Enphase Energy Reports 35% Revenue Growth in Q1 2025 Amid Strong U.S. Demand and Battery Expansion

Enphase Energy, a leading U.S.-based microinverter and battery storage provider, posted a 35.22% year-over-year (YoY) revenue increase in Q1 2025, reaching $356.1 million, driven by robust sales of microinverters and IQ batteries. The company reversed its losses from last year, reporting a net profit of $29.73 million and earnings per share (EPS) of $0.22.

Enphase shipped 1.21 million microinverters—many eligible for 45X production tax credits—and 170.1 MWh of IQ batteries, including 44 MWh from its Texas facility. The company noted that more than 2,500 SunPower customers migrated to Enphase’s platform following SunPower’s bankruptcy. It now boasts a cumulative 81.5 million microinverters shipped (28.75 GW capacity) and 1.86 GWh of energy storage deployed.

Looking ahead, the company expects Q2 revenue between $340 million and $380 million, with 160–180 MWh in battery shipments. Enphase is cautiously navigating new tariffs—145% on Chinese products and 10% reciprocal tariffs—anticipating a 2% gross margin impact in Q2 and 6–8% in Q3 due to its current reliance on Chinese-sourced battery cell packs. Mitigation strategies, including alternative sourcing, are underway.

While Enphase saw growth in the U.S., including a 43% quarter-over-quarter surge in Q3 2024 and 6% sequential growth in Q4 2024, its European markets remain soft, with a 25% YoY revenue decline in Q4 2024 and 15% in Q3 2024. The company’s U.S.-based production footprint strengthens its eligibility for domestic content incentives under the Inflation Reduction Act (IRA), supporting continued competitiveness.