NEW YORK, July 28, 2026, 19:01 EDT
- Enphase stock gained 1.5% after the close to $36.85, recovering some ground after dropping 4.5% during regular trading.
- Revenue for the second quarter was $291.9 million, with adjusted earnings aligning with the analyst consensus at 46 cents.
- Revenue for the third quarter, excluding safe-harbor sales, is $230 million, representing a 10.8% increase from the previous quarter.
Shares of Enphase Energy NASDAQ:ENPH climbed 1.5% in after-hours trading on Tuesday, following guidance that pointed to a partial recovery in underlying sales. As of 19:00 EDT, the stock stood at $36.85.
The third-quarter revenue midpoint is set at $305 million. Of this, approximately $75 million is attributed to safe-harbor shipments. This results in an estimated $230 million when those sales are excluded.
The calculated value represents an increase of 10.8% compared to the second quarter, but is still 7.4% under the level seen in the first quarter. While the recovery can be quantified, it has yet to fully close the gap.
Revenue for the second quarter increased 3.2% from the prior quarter to $291.9 million, but declined 19.6% year-over-year. Adjusted earnings came in at 46 cents, in line with analyst forecasts. Revenue surpassed the $289.9 million analyst estimate by roughly $2 million.
Safe-harbor revenue rose sharply to $84.3 million, up from $34.5 million, and accounted for 28.9% of sales for the quarter. Excluding safe-harbor revenue, total revenue dropped 16.4% quarter-over-quarter to $207.6 million.
The comparison distinguishes between current order flow and reported growth.
| Metric | Q1 2026 | Q2 2026 | Q3 2026 midpoint |
|---|---|---|---|
| Total revenue | $282.9 mln | $291.9 mln | $305.0 mln |
| Safe-harbor revenue | $34.5 mln | $84.3 mln | About $75.0 mln |
| Revenue minus safe harbor | $248.4 mln | $207.6 mln | About $230.0 mln |
| Quarterly change minus safe harbor | — | -16.4% | +10.8% |
| Non-GAAP gross margin | 43.9% | 46.8% | 45.5% |
| Battery shipments | 103.1 MWh | 113.8 MWh | 140.0 MWh |
Q3 numbers reflect initial company estimates based on midpoint guidance. Revenue without safe harbor is derived from company reports. Q2 figures remain unaudited.
Enphase refers to safe-harbor sales as inventory that customers intend to deploy over a period exceeding one year. This scheduling means revenue does not closely reflect installations taking place at present.
Safe-harbor support is expected to decline further. Executives projected approximately $61 million for the fourth quarter, a decrease of $23.3 million compared to Q2. This places greater reliance on present demand to meet year-end objectives.
The current U.S. market continues to be soft. Sell-through dropped 34% year-on-year and declined 7% from the prior quarter. In contrast, Europe helped balance the results, showing a 35% increase in revenue and a 30% rise in sell-through.
Management forecasts a 10% increase in global sell-through for Q3. Europe is anticipated to see no growth over the summer period, positioning the United States as the primary driver of expansion.
Chief Executive Badri Kothandaraman anticipates channel under-shipment of approximately $15 million. “We are just cautious, we’d like to make sure we have a healthy channel inventory.” Investing.com
Batteries provide a more stable indication of demand. Shipments climbed 10.4% from the previous quarter, reaching 113.8 megawatt-hours. The midpoint forecast for the third quarter indicates a further 23% rise, reaching 140 megawatt-hours.
Margins increased as well. Non-GAAP gross margin rose to 46.8%, up from 43.9% in Q1. Tariffs accounted for a roughly two percentage point impact, compared to 4.3 points before. The midpoint of Q3 guidance falls to 45.5%.
Use care with the GAAP margin. A customs refund of $45.4 million boosted it by 15.6 percentage points, pushing reported gross margin up to 60%.
Free cash flow amounted to $25.9 million. Cash and marketable securities totaled $937.7 million at the end of June. The available liquidity allows for continued investment in products through the downturn.
The market response to the report was muted. Enphase shares ended the session down 4.5% at $36.32 prior to the results, as the S&P 500 edged up 0.2%. Despite a rebound, Enphase traded below its Monday close of $38.01.
Risks: Elevated interest rates, lapsed homeowner incentives, and guarded distributor sentiment could push back recovery. Adjustments to tariff rules and safe-harbor deadlines might further impact quarterly comparisons.
Wednesday’s standard session marks the initial high-volume test. Investors are looking for a rebound in U.S. sell-through to take over as safe-harbor backing diminishes.
