Enphase Energy Reports 42% Revenue Decline to $1.33 Billion for Fiscal Year 2024

Enphase Energy, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with net revenues of $1.33 billion, a decrease of 42% from $2.29 billion in 2023. The company attributed this decline primarily to a 58% drop in microinverter units shipped, which fell from approximately 15.5 million in 2023 to about 6.5 million in 2024. Despite this, the average selling price (ASP) for microinverters increased, partially offsetting the revenue loss. The company also saw a 48% increase in the shipment of IQ Batteries, totaling 521 MWh, compared to 351.6 MWh in the previous year.

In terms of profitability, Enphase reported a net income of $102.7 million, down from $438.9 million in 2023. The gross profit for the year was $629.1 million, with a gross margin of 47.3%, slightly up from 46.2% in the prior year. The decrease in net income was influenced by a broad-based slowdown in demand, particularly in the U.S. and Europe, driven by higher interest rates and changes in net energy metering policies. The company also faced challenges with elevated inventory levels among distributors and installers, which led to reduced sales.

Strategically, Enphase has focused on expanding its manufacturing capabilities in the United States, with a capacity to produce five million microinverters per quarter. This move is intended to leverage domestic content tax credits under the Inflation Reduction Act (IRA). The company has also launched new products, including the IQ8 series microinverters and the IQ Battery 5P, which have been deployed in various international markets. As of December 31, 2024, Enphase had shipped approximately 80 million microinverters and deployed around 4.7 million residential and commercial systems across more than 160 countries.

Operationally, Enphase's workforce consisted of 2,781 full-time employees as of the end of 2024, with a significant presence in India, where 1,502 employees are based. The company has implemented a restructuring plan aimed at aligning its workforce and cost structure with current market conditions, which included a reduction of approximately 17% of its workforce. The company also reported a notable increase in its cash reserves, totaling $1.7 billion, which it plans to utilize for strategic investments and operational needs.

Looking ahead, Enphase anticipates continued challenges in the solar market due to macroeconomic factors, including inflation and interest rates, which may impact demand for its products. The company remains committed to enhancing its product offerings and expanding its market share, particularly in emerging markets, while navigating the evolving regulatory landscape that affects the solar energy sector.