U.S.-based microinverter and battery storage supplier Enphase Energy reported a 35.22% year-over-year (YoY) rise in revenue to $356.1 million in the first quarter (Q1) of 2025 from $263.34 million.

The company attributed the revenue growth to rising sales of its microinverters and IQ batteries.

It reported a net profit of $29.73 million, up from a net loss of $16.09 million in the same period last year.

Enphase Energy’s earnings per share (EPS) came in at $0.22 compared to a loss of $0.12 compared to Q1 2024.

The company said it shipped 170.1 MWh of IQ batteries in Q1 2025 and 1.21 million microinverters from its contract manufacturers in the U.S. , which are eligible for the 45X production tax credits.

As of March 2025, the company had cumulatively shipped 81.5 million microinverters with 28.75 GW capacity and 1.86 GWh of energy storage systems.

In April 2025, it announced that more than 2,500 SunPower customers have transitioned to Enphase Energy monitoring since SunPower’s bankruptcy filing in August 2024.

The company has a global capacity of around 7.25 million microinverters per quarter, with five million of these inverters in the U.S. Its domestically produced microinverters help residential lease/power purchase agreement providers and commercial asset owners qualify for the 10% domestic content ITC tax benefit.

The company shipped 44 MWh of batteries from their Texas facility during the quarter.

In an earning’s call, the company said the recently announced 145% tariff on Chinese products and the 10% reciprocal tariffs on imports from other countries are expected to have minimal impact on its microinverters and accessories due to a diversified supply chain.

However, it expects a higher impact on its batteries as it sources nearly 95% of battery cell packs from China. The tariffs are expected to reduce Enphase Energy’s gross margin by approximately 2% in Q2 of the financial year 2025. The tariff’s effect is expected to be limited in Q2 due to the company’s pre-tariff inventory.

In Q3, the company anticipates a 6% to 8% impact on its total gross margin after accounting for pricing adjustments due to reciprocal tariffs.

The company has already identified tangible sourcing options outside China.

It expects its revenue for Q2 to range from $340 million to $380 million, which includes shipments of 160 MWh to 180 MWh of IQ Batteries.

In Q4 2024, Enphase Energy recorded a total revenue of $382.71 million, reflecting a 26.5% 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.

In Q3 2024, the company reported a revenue of $380.9 million, a 31% drop from $551.08 million a year ago. It faced weakening demand in Europe, where revenue fell by 15%. Despite this, U.S. sales surged 43% quarter-over-quarter as inventory normalization boosted shipments.