Enphase 10-Q Details Q3 Revenue Drop to $293.3M and Margin Compression to 43.3%
ENPH is trading near its 52-week low of $25.775 (1.1% above the low) on elevated volume (3.1× avg).
Summary
Enphase's Q3 10-Q shows revenue down 29% to $293.3M with gross margin at 43.3%, and net income of $23.4M that leaned on a $27.0M tax benefit while absorbing a $26.6M non-cash investment write-down. Cash and securities of $931.8M remain after paying off the 2026 converts.
Key Events · Earnings and Guidance · ENPH
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Q3 Revenue Falls 29% Year-Over-Year
Net revenues were $293.3M versus $410.4M a year ago, with U.S. revenue down 33% to $233.5M after the Section 25D residential credit expired.
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Gross Margin Compresses to 43.3%
Gross margin fell 4.5 points from 47.8%, driven by price cuts, lower battery and microinverter volumes, and a 1.9-point hit from marking AMPTC credits to fair value; operating income was $6.5M versus $66.2M.
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Net Income Aided by Tax Benefit
Net income of $23.4M included a $27.0M tax benefit and absorbed a $26.6M non-cash fair-value reduction on debt securities — neither reflects operating cash generation.
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Liquidity Holds at $931.8M After Convert Payoff
Cash, cash equivalents and marketable securities were $931.8M at September 30, 2026, down $546.1M year-over-year largely on the $632.5M cash settlement of the 2026 notes; remaining debt is $573.2M of 2028 converts.
Analysis · ENPH · Manufacturing
The 10-Q fills in the numbers behind the same-day earnings release: revenue fell 29% year-over-year to $293.3M and gross margin compressed 4.5 points to 43.3%, leaving operating income of just $6.5M against $66.2M a year ago. The quarter's $23.4M net income was propped up by a $27.0M tax benefit and dented by a $26.6M non-cash write-down on private debt securities — neither is operating cash flow. What matters for the thesis is the balance sheet: $931.8M of cash and securities remains after retiring the $632.5M 2026 converts, so there is no near-term liquidity crisis even as demand weakens. The filing also discloses a new Tigo patent suit and a CFO 10b5-1 plan covering 9,304 shares.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 29.9% of the 1374 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ENPH was trading at $26.05 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $3.9B. The 52-week trading range was $25.78 to $73.74. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.