Enphase Energy, Inc. reported financial results for the third quarter of 2026, with total revenue of $293.3 million. The company shipped approximately 1.42 million IQ Microinverters and 129.9 megawatt hours (MWh) of IQ Batteries during the period.
GAAP metrics for the quarter included a gross margin of 43.3% and a net income of $23.4 million, resulting in diluted earnings per share (EPS) of $0.17. Non-GAAP figures, which exclude stock-based compensation and acquisition-related amortization, showed a gross margin of 45.0% and net income of $54.0 million, or $0.41 per share.
Revenue for the third quarter was roughly flat compared to the second quarter of 2026, which was $291.9 million. The company noted that global sell-through increased by approximately 1% sequentially, falling below its internal expectation of 10% growth. This shortfall was attributed to soft residential solar demand in the United States and seasonality in Europe. U.S. revenue increased approximately 3%, while European revenue decreased by approximately 11%.
Enphase reported a decrease in non-GAAP gross margin to 45.0% from 46.8% in the prior quarter. The company attributed this decline to changes in product mix and a reduction in the impact of reciprocal tariffs, which lowered margins by approximately 1.3 percentage points.
On the balance sheet, the company held $931.8 million in cash, cash equivalents, and marketable securities as of September 30, 2026. Capital expenditures for the quarter were $11.5 million.
Looking ahead, Enphase provided guidance for the fourth quarter of 2026. The company estimates revenue to be between $225.0 million and $255.0 million, with GAAP and non-GAAP gross margins expected to range between 38.0% and 41.0% and 40.0% and 43.0%, respectively.
