Microinverter and battery storage supplier Enphase Energy recorded total revenue of $382.71 million in the fourth quarter (Q4) of 2024, reflecting a 26.5% year-over-year (YoY) increase and exceeding analyst expectations by $5.21 million.

The company’s revenue in the U.S. increased approximately 6% sequentially, driven by higher microinverter sales, while revenue in Europe declined by 25% due to softening regional demand.

The company’s U.S. and international revenue mix for Q4 stood at 79% and 21%, respectively.

Revenue increase in the U.S. was driven by an 11% rise in microinverter sales due to strong demand for higher domestic content microinverters. However, battery sales declined by 8% due to reduced channel restocking. Overall, the sell-through of products remained flat compared to Q3.

The company’s earnings per share (EPS) came in at $0.94, surpassing expectations by $0.19. Net income for the quarter rose to $125.86 million, a 71% YoY increase from $73.47 million in the corresponding period last year.

Enphase Energy shipped 152.4 MWh of its IQ Batteries in Q4, down 13.4% YoY from 172.9 MWh in Q3.

During Q4 2024, it shipped approximately 1.69 million microinverters from its U.S. contract manufacturing facilities, benefiting from the 45X production tax credits. The company also improved its higher domestic content product offerings to ensure its microinverters and battery storage solutions comply with evolving regulations.

Full-year 2024

Enphase Energy recorded a total revenue of $1.33 billion in 2024, a 72% decline from $2.29 billion in 2023.

The company’s EPS for the year came in at $2.37, down from $4.41 in 2023. It earned a net income of $321.04 million, reflecting a 48% YoY decrease from $613.24 million.

Despite the decline, Enphase maintained strong profitability and free cash flow while investing in new products and expanding its domestic manufacturing footprint.

Asked at the earnings call with analysts about the anti-dumping duty/countervailing duty investigations into active anode material from China, the management said the company is tracking the developments closely.

“There are still a lot of unknowns with regards to whether it is the anode material being imported in that gets the tariff or will the entire cell or cell pack get the tariff. In general, our plan is, from a supply chain point of view, to have geographic diversity, which we have done on the microinverter side and we’re preparing to do that on the battery side,” Raghuveer R. Belur, Co-Founder, said. 

Outlook Q1 2025

For Q1 2025, Enphase expects its revenue to stand between $340 million and $380 million, including shipments of 150 to 170 MWh of IQ Batteries. The company’s financial outlook includes approximately $50 million in safe harbor revenue.

Enphase Energy expects its non-generally accepted accounting principles (GAAP) gross margins to range between 48% and 51% with net Inflation Reduction Act benefits and between 38% and 41% excluding the benefits. The company anticipates non-GAAP operating expenses to be between $81 million and $85 million, excluding $62 million allocated for stock-based compensation, acquisition-related expenses, amortization, restructuring, and asset impairment charges.

Sell-through gradually increased through 2024, and the third-generation battery, optimized for grid-tied applications, has been introduced internationally. The company is diversifying its supply chain in response to tariff and ADC concerns and manufacturing in the U.S., China, and India while reducing reliance on Chinese raw materials.

It expects to grow battery shipments throughout 2025.

Enphase Energy reported a revenue of $380.9 million in Q3 2024, a 31% YoY drop from $551.08 million.