Enphase Q2 Revenue Drops 20% but Gross Margin Surges to 60% on Tariff Refunds
ENPH sits 44% above its 52-week low of $25.775.
Summary
Enphase Energy reported Q2 2026 revenue of $291.9M, down 20% YoY, but gross margin surged to 60% on tariff refunds. Net income was $36.1M. The company settled $632.5M in convertible notes and extended its buyback program.
Key Events · Earnings and Guidance · ENPH
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Revenue Down 20% YoY
Q2 2026 revenue of $291.9M vs $363.2M in Q2 2025, driven by a 40% drop in battery MWh shipped and weaker European demand.
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Gross Margin Surges to 60%
Gross margin improved from 46.9% to 60.0% YoY, primarily due to $45.4M in IEEPA tariff refunds recognized in cost of revenues.
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Net Income Flat at $36.1M
Net income of $36.1M vs $37.1M a year ago, as higher gross profit was offset by a $20.7M increase in income tax provision.
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$632.5M Convertible Notes Settled in Cash
The 2026 convertible notes were fully settled for cash in March 2026, eliminating potential dilution from those notes.
Analysis · ENPH · Manufacturing
Enphase Energy's Q2 2026 results present a mixed picture. Revenue fell 20% year-over-year to $291.9 million, driven by a 40% plunge in battery shipments and softening demand in Europe. However, gross margin jumped to 60.0% from 46.9% a year ago, boosted by $45.4 million in IEEPA tariff refunds. Net income was essentially flat at $36.1 million. The company also settled $632.5 million in convertible notes with cash, avoiding dilution, and extended its $1 billion buyback program to 2029. Ongoing securities litigation and tariff uncertainty remain key risks.
At the time of this filing, ENPH was trading at $37.23 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $4.8B. The 52-week trading range was $25.78 to $73.74. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.