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Enphase Energy, Inc., a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, has announced financial results for the fourth quarter of 2024, which included the summary below from its President and CEO, Badri Kothandaraman. Enphase Energy reported quarterly revenue of $382.7 million in the fourth quarter of 2024, along with 53.2% for non-GAAP gross margin. The company shipped approximately 2.01 million microinverters, or 878.0 megawatts DC, and 152.4 megawatt hours of IQ® Batteries. Financial highlights for the fourth quarter of 2024 are listed below: Strong U.S. manufacturing: shipped 1.69 million microinverters and 6.7-megawatt hours of IQ Batteries Quarterly revenue of $382.7 million GAAP gross margin of 51.8%; non-GAAP gross margin of 53.2% with net IRA benefit Non-GAAP gross margin of 39.7%, excluding net IRA benefit of 13.5% GAAP operating income of $54.8 million; non-GAAP operating income of $120.4 million GAAP net income of $62.2 million; non-GAAP net income of $125.9 million GAAP diluted earnings per share of $0.45; non-GAAP diluted earnings per share of $0.94 Free cash flow of $159.2 million; ending cash, cash equivalents, restricted cash and marketable securities of $1.72 billion Enphase Energy’s revenue and earnings for the fourth quarter of 2024 are provided below, compared with the prior quarter: (In thousands, except per share and percentage data) Enphase Energy’s revenue and earnings for the fiscal year 2024 are provided below, compared with the prior year: (In thousands, except per share and percentage data) Revenue: Q4 2024 revenue was $382.7 million, up from $380.9 million in Q3. U.S. Revenue: Increased by 6% due to higher microinverter sales. Europe Revenue: Decreased by 25% due to softening demand. Non-GAAP Gross Margin: 53.2% in Q4 vs. 48.1% in Q3; excluding IRA benefit, it was 39.7% vs. 38.9%. Operating Expenses: Non-GAAP operating expenses were $83.3 million, up from $81.6 million due to higher R&D spending. Operating Income: Non-GAAP operating income was $120.4 million in Q4, up from $101.4 million in Q3. Cash Position: Ended Q4 with $1.72 billion in cash and equivalents. Cash Flow & CapEx: Generated $167.3 million in operating cash flow; capex was $8.1 million vs. $8.5 million in Q3. Stock Repurchase: Bought 2,883,438 shares at $69.25 per share, totaling $199.7 million. Employee Stock Vesting: Spent $5 million on tax withholdings, reducing diluted shares by 68,532. IQ Batteries: Shipped 152.4 MWh in Q4, down from 172.9 MWh in Q3. Installer Base: Over 10,300 certified IQ Battery installers, up from 9,000+. Microinverter Shipments: Delivered 1.69 million microinverters from U.S. facilities eligible for 45X tax credits. Domestic Content: Expanded U.S.-made products, including IQ8HC™, IQ8X™, IQ8P-3P™ microinverters, and IQ® Battery 5Ps. New Products: Progress on IQ® Meter Collar, IQ® Combiner, and fourth-gen IQ Battery. IQ® PowerPack 1500: Launched a 1.5 kWh smart, portable energy system. IQ® EV Charger 2: Introduced a next-gen EV charger in Europe for seamless solar and battery integration. IQ® Battery 5P™ with FlexPhase: Began shipments to Germany, Austria, and Switzerland in January 2025 for single- and three-phase backup power. Business Highlights Jan. 30, 2025: Expanded into Vietnam and Malaysia with IQ8P™ Microinverters. Jan. 27, 2025: Integrated with Octopus Energy’s smart tariffs in the UK, including Intelligent Octopus Flux. Jan. 23, 2025: IQ8™ Microinverters now comply with the Build America, Buy America (BABA) Act. Jan. 13, 2025: Shipped IQ Battery 5P with FlexPhase to Germany, Austria, and Switzerland. Jan. 9, 2025: Expanded into Colombia, Panama, and Costa Rica with IQ8P Microinverters. Jan. 7, 2025: IQ8 Microinverters selected for a 2.2 MW solar project at Belgoprocess in Belgium. Dec. 17, 2024: Shipped IQ Battery 5P to India. Dec. 5 & 9, 2024: Partnered with Frank Energie and NextEnergy in the Netherlands for grid imbalance energy. Dec. 3, 2024: Launched Busbar Power Control software to allow larger solar and battery installations. Nov. 11, 2024: Introduced AI-powered DIY permitting on Solargraf® for U.S. solar installers. Nov. 4, 2024: Launched IQ Battery 5P and IQ8 Microinverters in Romania. First Quarter 2025 Financial Outlook For the first quarter of 2025, Enphase Energy estimates both GAAP and non-GAAP financial results as follows: Revenue to be within a range of $340.0 million to $380.0 million, which includes shipments of 150 to 170 megawatt hours of IQ Batteries. The first quarter of 2025 financial outlook includes approximately $50.0 million of safe harbor revenue. We define safe harbor revenue as any sales made to customers who plan to install the inventory over more than one year. GAAP gross margin to be within a range of 46.0% to 49.0% with net IRA benefit Non-GAAP gross margin to be within a range of 48.0% to 51.0% with net IRA benefit and 38.0% to 41.0% excluding net IRA benefit. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization Net IRA benefit to be within a range of $36.0 million to $39.0 million based on estimated shipments of 1,200,000 units of U.S. manufactured microinverters GAAP operating expenses to be within a range of $143.0 million to $147.0 million Non-GAAP operating expenses to be within a range of $81.0 million to $85.0 million, excluding $62.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization, restructuring and asset impairment charges. For 2025, GAAP and non-GAAP annualized effective tax rate with IRA benefit, excluding discrete items, is expected to be within a range of 17.0% to 19.0%. |
