Enphase Energy, Inc. Q3 2026 Earnings Recap

Enphase shares fell 16.0% after earnings, as weaker-than-expected sell-through and a sharply lower Q4 revenue outlook pointed to continued demand pressure. Management expects global sell-through to decline about 10% sequentially in Q4, with shipments planned below sell-through to reduce channel inventory.

Key Takeaways

• Q3 revenue was $293.3 million, including $85 million of safe-harbor revenue; global revenue and sell-through each rose about 1% sequentially, below the company’s original expectation of roughly 10% sell-through growth.
• U.S. sell-through increased 5% sequentially but fell 35% year over year. Management cited higher interest rates and the transition after the 25D tax credit expired.
• Q4 revenue guidance is $225 million–$255 million, including approximately $51.2 million of safe-harbor revenue. The company expects global sell-through to fall about 10% sequentially and plans to ship roughly $20 million below sell-through.
• Non-GAAP gross margin was 45% and operating margin was 18.3%. Channel inventory ended the quarter a little above normal for batteries and microinverters.
• There were pockets of growth: U.S. commercial sell-through rose about 50% sequentially as IQ9 Commercial Microinverters ramped, and Netherlands battery activations increased 23%.