Enphase Energy, Inc. reported significant financial performance improvements in its latest 10-Q filing for the quarter ending March 31, 2025. The company achieved net revenues of $356.1 million, a 35% increase from $263.3 million in the same period of 2024. This growth was primarily driven by an 11% rise in microinverter units sold and a substantial 125% increase in the megawatt-hours (MWh) of IQ Batteries shipped. The gross profit for the quarter was $168.2 million, reflecting a gross margin of 47.2%, up from 43.9% a year earlier.
In terms of operational changes, Enphase's customer base expanded, with approximately 4.8 million residential and commercial systems deployed across over 160 countries. The company shipped around 1.5 million microinverter units and 170.1 MWh of IQ Batteries during the quarter. However, the international market saw a decline in revenues, dropping to $92.8 million from $113.4 million, attributed to softening demand in Europe due to changes in government policies and lower utility rates.
Strategically, Enphase has been focusing on restructuring efforts initiated in 2023 and 2024 to enhance operational efficiencies and reduce costs. The company incurred restructuring and asset impairment charges of $3.2 million in the latest quarter, primarily related to employee severance and benefits. Additionally, Enphase has been actively repurchasing shares under its $1 billion repurchase program, buying back 1.6 million shares for $100 million during the quarter.
The company’s balance sheet reflects a decrease in total assets to $3.1 billion from $3.2 billion at the end of 2024, with cash and cash equivalents at $350.1 million. Total liabilities also decreased to $2.3 billion, primarily due to the settlement of $102.2 million in convertible notes due 2025. Enphase's total debt stood at $1.2 billion, with a significant portion classified as current liabilities due to the upcoming maturity of the Notes due 2026.
Looking ahead, Enphase anticipates continued challenges in demand, particularly in the U.S. and European markets, influenced by macroeconomic factors such as inflation and interest rates. The company remains committed to leveraging its technology and expanding its market presence while navigating these challenges. Enphase plans to fund its operations and strategic investments through existing cash reserves and cash generated from operations, while also evaluating potential financing options as needed.