Enphase Energy reported third-quarter revenue of $293.3 million, down from $410.4 million a year earlier, and forecast fourth-quarter revenue of $225 million to $255 million, well below the third quarter, as US residential solar demand stayed weak.
Enphase Energy reported third-quarter 2026 revenue of $293.3 million on 27 October, down from $410.4 million in the same quarter a year earlier, with net income of $23.4 million and diluted earnings per share of $0.17 on a GAAP basis, or $0.41 on a non-GAAP basis. The company shipped about 1.42 million microinverters, or 655.2 megawatts DC, and 129.9 megawatt-hours of IQ batteries in the quarter. Shares fell about 16% in after-hours trading, according to Stocktwits.
GAAP gross margin was 43.3% and non-GAAP gross margin 45.0%, while GAAP operating income was $6.5 million. Cash, cash equivalents and marketable securities totalled $931.8 million. A $26.5 million impairment in investments reduced GAAP and non-GAAP diluted earnings per share by $0.15 and $0.14 respectively. Third-quarter revenue included $85.0 million of safe-harbour revenue, and global sell-through rose only about 1% sequentially, well below the roughly 10% growth the company had earlier expected.
For the fourth quarter, Enphase forecast revenue of $225 million to $255 million, including about $51.2 million of safe-harbour revenue and battery shipments of 100 to 120 megawatt-hours. It expects GAAP gross margin of 38% to 41% and non-GAAP gross margin of 40% to 43%, with both ranges including about two percentage points of reciprocal tariff impact, and sell-through down about 10% sequentially. President and chief executive Badri Kothandaraman told the earnings call that the company was not seeing any meaningful recovery in US demand, attributing the softness to elevated interest rates and the expiration of tax credits on renewable energy installations.
The company's release confirms the revenue, earnings, margin, cash, shipment and safe-harbour figures for the third quarter, and the earnings call transcript confirms the fourth-quarter guidance, the sell-through outlook and Kothandaraman's assessment of US demand. The share-price figure needs care: Stocktwits and Quiver put the after-hours fall at about 16%, while other coverage put the 27 October regular-session fall at 10.6%, so this story attributes the after-hours figure and does not present it as the session close. The $85 million safe-harbour figure is the third-quarter actual, distinct from the $51.2 million in the fourth-quarter guidance, and the two are not interchangeable.
The outlook matters because it shows a solar company choosing to shrink channel inventory rather than chase sales into a weak market, planning to ship about $20 million below sell-through in the fourth quarter. That discipline protects margins in the near term but concedes that residential demand will not recover this year. Against that, management points to longer-term work outside rooftop solar, including solid-state transformer technology for AI data centres, with the release noting successful demonstration of high-voltage conversion and development work for two global technology leaders.
Whether that longer-term work can offset a shrinking home-solar market will become clearer when Enphase reports fourth-quarter results and shows whether sell-through stabilised or fell as forecast.