Tue, Apr 22, 8:28 PM (25 days ago)
**Enphase Energy, Inc. (ENPH) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $356.1 million, up 35% YoY, driven by a 11% increase in microinverter units sold and a 125% increase in IQ Batteries MWh shipped. - **Gross Profit:** $168.2 million, up 46% YoY, with a gross margin of 47.2%, an increase of 3.3 percentage points YoY. - **Operating Expenses:** $136.3 million, down 5.6% YoY, with reductions in R&D, sales and marketing, and G&A expenses. - **Net Income:** $29.7 million, a significant improvement from a loss of $16.1 million in Q1 2024. - **EPS:** Basic $0.23, Diluted $0.22, compared to a loss of $0.12 in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $48.4 million, slightly down from $49.2 million in Q1 2024. - **Investing Cash Flow:** $113.1 million, primarily from maturities of marketable securities. - **Financing Cash Flow:** -$214.2 million, mainly due to stock repurchases and debt settlements. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** $415.1 million, down from $464.1 million in Q4 2024. - **Debt:** $1.2 billion, down from $1.3 billion in Q4 2024, primarily due to the settlement of Notes due 2025. **Trends and Uncertainties:** - **Demand:** Continued softness in demand in the U.S. and Europe due to higher interest rates, channel inventory corrections, and policy changes. - **Tariffs and Trade:** Uncertainty around tariffs and trade restrictions, particularly for components sourced from China. - **Product Mix:** Changes in product mix and higher warranty expenses impacted gross margins. **Future Operations:** - **Growth:** Focus on expanding market share, improving operational efficiencies, and investing in strategic initiatives. - **Risk Management:** Monitoring geopolitical developments, trade policies, and macroeconomic trends to mitigate potential impacts on operations and financial performance. **Stock Repurchase Program:** - **2023 Repurchase Program:** $100 million spent in Q1 2025, with $298.7 million remaining for future repurchases. **Segment Information:** - **Single Segment:** Enphase operates as a single segment, focusing on solar PV solutions. **Legal and Regulatory:** - **Lawsuits:** Ongoing securities class action and shareholder derivative lawsuits, with the company disputing the allegations and intending to defend vigorously. **Forward-Looking Statements:** - **Expectations:** Continued focus on innovation, market expansion, and operational excellence to drive long-term growth and shareholder value.