📊 ENPH Key Takeaways
Is Enphase Energy, Inc. (ENPH) a Good Investment?
Enphase Energy is executing a compelling turnaround with dramatic YoY profitability improvements (67.7% net income, 72.0% EPS) driven by 10.7% revenue growth and a healthy 35.5% gross margin. Strong free cash flow generation of $83M and a solid balance sheet support the transition to profitability, though the company must overcome current negative operating income and prove sustainable path to profitability.
Enphase Energy shows improving fundamentals, with double-digit revenue growth, sharply higher net income, and strong gross margins that indicate resilient product economics. The balance sheet has adequate liquidity and excellent interest coverage, but leverage remains meaningful and free cash flow conversion is still modest relative to revenue and earnings. Overall, the company appears fundamentally stable with improving profitability, but not strong enough across all dimensions to justify a more aggressive rating based on fundamentals alone.
Why Buy Enphase Energy, Inc. Stock? ENPH Key Strengths
- Substantial YoY improvement trajectory: net income +67.7%, EPS +72.0% indicating strong turnaround momentum
- Impressive 29.3% free cash flow margin generating $83M FCF despite reported unprofitability, suggesting quality of cash generation
- Healthy gross margin of 35.5% demonstrates product viability, pricing power, and sustainable unit economics
- Strong balance sheet with $497.5M cash, 3.80x current ratio, reasonable 0.52x debt/equity limiting financial distress risk
- Positive 10.7% YoY revenue growth provides topline tailwind for margin expansion
- Strong gross margin of 46.6% supports solid underlying unit economics
- Net income growth of 67.7% and EPS growth of 72.0% indicate meaningful profitability improvement
- Healthy liquidity with a 2.07x current ratio and 71.7x interest coverage reduces near-term financial stress
ENPH Stock Risks: Enphase Energy, Inc. Investment Risks
- Currently unprofitable: negative net income of -7.4M and operating loss of -29.6M with -10.5% operating margin
- Negative interest coverage ratio of -13.5x indicates operating income insufficient to cover debt service obligations
- Turnaround not yet proven; execution risk remains around achieving and sustaining profitability targets
- Meaningful debt burden of $572.5M while unprofitable constrains financial flexibility if turnaround stalls
- Debt-to-equity of 1.11x and $1.20B of long-term debt create balance sheet leverage risk
- Free cash flow margin of 6.5% is positive but relatively modest for a company with this gross margin profile
- Operating margin of 10.7% suggests profitability below gross profit level remains vulnerable to cost pressure or demand volatility
Key Metrics to Watch
- Operating income inflection point and path to positive operating margins
- Interest coverage ratio improvement to positive territory
- Operating cash flow sustainability relative to net income convergence
- Free cash flow margin and operating cash flow conversion
- Operating margin trend alongside revenue growth
Enphase Energy, Inc. (ENPH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 29.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.80x current ratio provides a solid financial cushion.
ENPH Profit Margin, ROE & Profitability Analysis
ENPH vs Technology Sector: How Enphase Energy, Inc. Compares
How Enphase Energy, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Enphase Energy, Inc. Stock Overvalued? ENPH Valuation Analysis 2026
Based on fundamental analysis, Enphase Energy, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Enphase Energy, Inc. Balance Sheet: ENPH Debt, Cash & Liquidity
ENPH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Enphase Energy, Inc.'s revenue has grown significantly by 66% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.08 reflects profitable operations.
ENPH Revenue Growth, EPS Growth & YoY Performance
ENPH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $282.9M | -$7.4M | $-0.06 |
| Q3 2025 | $380.9M | $40.5M | $0.30 |
| Q2 2025 | $303.5M | -$5.3M | $-0.04 |
| Q1 2025 | $263.3M | -$16.1M | $-0.12 |
| Q3 2024 | $380.9M | $40.5M | $0.30 |
| Q2 2024 | $303.5M | -$5.3M | $-0.04 |
| Q1 2024 | $263.3M | -$16.1M | $-0.12 |
| Q3 2023 | $551.1M | $114.0M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Enphase Energy, Inc. Dividends, Buybacks & Capital Allocation
ENPH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Enphase Energy, Inc. (CIK: 0001463101)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ENPH
What is the AI rating for ENPH?
Enphase Energy, Inc. (ENPH) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ENPH's key strengths?
Claude: Substantial YoY improvement trajectory: net income +67.7%, EPS +72.0% indicating strong turnaround momentum. Impressive 29.3% free cash flow margin generating $83M FCF despite reported unprofitability, suggesting quality of cash generation. ChatGPT: Strong gross margin of 46.6% supports solid underlying unit economics. Net income growth of 67.7% and EPS growth of 72.0% indicate meaningful profitability improvement.
What are the risks of investing in ENPH?
Claude: Currently unprofitable: negative net income of -7.4M and operating loss of -29.6M with -10.5% operating margin. Negative interest coverage ratio of -13.5x indicates operating income insufficient to cover debt service obligations. ChatGPT: Debt-to-equity of 1.11x and $1.20B of long-term debt create balance sheet leverage risk. Free cash flow margin of 6.5% is positive but relatively modest for a company with this gross margin profile.
What is ENPH's revenue and growth?
Enphase Energy, Inc. reported revenue of $282.9M.
Does ENPH pay dividends?
Enphase Energy, Inc. does not currently pay dividends.
Where can I find ENPH SEC filings?
Official SEC filings for Enphase Energy, Inc. (CIK: 0001463101) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ENPH's EPS?
Enphase Energy, Inc. has a diluted EPS of $-0.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ENPH a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Enphase Energy, Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ENPH stock overvalued or undervalued?
Valuation metrics for ENPH: ROE of -0.7% (sector avg: 22%), net margin of -2.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy ENPH stock in 2026?
Our dual AI analysis gives Enphase Energy, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ENPH's free cash flow?
Enphase Energy, Inc.'s operating cash flow is $102.9M, with capital expenditures of $19.9M. FCF margin is 29.3%.
How does ENPH compare to other Technology stocks?
Vs Technology sector averages: Net margin -2.6% (avg: 18%), ROE -0.7% (avg: 22%), current ratio 3.80 (avg: 2.5).