Q1 2025 Enphase Energy Inc Earnings Call Transcript
Key Points
- Enphase Energy Inc (ENPH) reported a strong quarterly revenue of $356.1 million, shipping approximately 1.53 million microinverters and 170.1 megawatt hours of batteries.
- The company achieved a 49% gross margin and generated free cash flow of $33.8 million in Q1 2025.
- Enphase Energy Inc (ENPH) is expanding its product offerings, including the launch of the fourth-generation IQ battery and the IQ9 microinverter, which are expected to drive future growth.
- The company is actively diversifying its supply chain to mitigate the impact of tariffs, with plans to source battery cells from outside China by Q2 2026.
- Enphase Energy Inc (ENPH) is seeing growth in international markets, particularly in Europe, with new product introductions like the Flex phase battery and IQ EV charger.
- Enphase Energy Inc (ENPH) faces challenges from newly announced tariffs on products from China, which are expected to impact gross margins by 6% to 8% starting in Q3 2025.
- The US solar market is under pressure due to high interest rates and financial challenges faced by large national lease providers, impacting customer demand.
- The company's Q2 2025 revenue guidance is lower than Q1, with expected revenue between $340 million to $380 million, indicating potential demand softness.
- Enphase Energy Inc (ENPH) reported a decrease in US revenue by 13% in Q1 compared to Q4, primarily due to seasonality and softening customer demand.
- The company is experiencing elevated microinverter channel inventory, which could indicate slower sell-through and potential future inventory management challenges.
Good day and welcome to the Enphase Energy's first-quarter 2025 financial results call. (Operator Instructions) Please note that this event is being recorded.
I would now like to turn the conference over to Zach Freedman. Please go ahead.
Good afternoon, and thank you for joining us on today's conference call to discuss Enphase Energy's first quarter 2025 results. On today's call are Badri Kothandaraman, our President and Chief Executive Officer; Mandy Yang, our Chief Financial Officer; and Raghu Belur, our Chief Products Officer.
After the market closed today, Enphase issued a press release announcing the results of its first quarter ended March 31, 2025. During this conference call, Enphase management will make forward-looking statements, including, but not limited to, statements related to our expected future financial performance, market trends, the capabilities of our technology and products and the benefits to homeowners and installers our operations, including manufacturing,
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