Enphase Energy Reports Financial Results for the Second Quarter of 2024

Enphase Energy, Inc., a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced the financial results for the second quarter of 2024, which included the summary below from its President and CEO, Badri Kothandaraman.

Enphase Energy reported quarterly revenue of $303.5 million in the second quarter of 2024, along with 47.1% for non-GAAP gross margin. the companye shipped 1,402,602 microinverters, or approximately 608.3 megawatts DC, and 120.2 megawatt hours of IQ^® Batteries.

Financial highlights for the second quarter of 2024 are listed below:

• Quarterly revenue of $303.5 million
• GAAP gross margin of 45.2%; non-GAAP gross margin of 47.1% with net IRA benefit
• Non-GAAP gross margin of 41.0%, excluding net IRA benefit of 6.1%
• GAAP operating income of $1.8 million; non-GAAP operating income of $61.1 million
• GAAP net income of $10.8 million; non-GAAP net income of $58.8 million
• GAAP diluted earnings per share of $0.08; non-GAAP diluted earnings per share of $0.43
• Free cash flow of $117.4 million; ending cash, cash equivalents, and marketable securities of $1.65 billion

The revenue and earnings for the second quarter of 2024 are provided below, compared with the prior quarter:

(In thousands, except per share and percentage data)

Total revenue for the second quarter of 2024 was $303.5 million, compared to $263.3 million in the first quarter of 2024. The revenue in the United States for the second quarter of 2024 increased approximately 32%, compared to the first quarter of 2024. The revenue in Europe for the second quarter of 2024 remained flat when compared to the first quarter of 2024. Enphase Energy’s global channel inventory returned to normal levels as the company exited the second quarter of 2024.

Enphase Energy’s non-GAAP gross margin was 47.1% in the second quarter of 2024, compared to 46.2% in the first quarter of 2024. The non-GAAP gross margin, excluding net IRA benefit, was flat at 41.0% in the second quarter of 2024, compared to the first quarter of 2024. The non-GAAP operating expenses were $81.7 million in the second quarter of 2024, compared to $82.6 million in the first quarter of 2024. The non-GAAP operating income was $61.1 million in the second quarter of 2024, compared to $39.0 million in the first quarter of 2024.

Enphase Energy exited the second quarter of 2024 with $1.65 billion in cash, cash equivalents, and marketable securities and generated $127.0 million in cash flow from operations in the second quarter of 2024. The capital expenditures were $9.6 million in the second quarter of 2024, compared to $7.4 million in the first quarter of 2024.

In the second quarter of 2024, Enphase Energy repurchased 891,896 shares of its common stock at an average price of $112.02 per share for a total of approximately $99.9 million. The company also spent approximately $7.5 million dollars by withholding shares to cover taxes for employee stock vesting and options in the second quarter of 2024 that reduced the diluted shares by 66,126 shares.

Enphase Energy shipped 120.2 megawatt hours of IQ Batteries in the second quarter of 2024, compared to 75.5 megawatt hours in the first quarter of 2024. The company saw higher battery attach rates in California in the second quarter of 2024 driven by the increasing adoption of NEM 3.0. The company is now shipping its third generation of IQ Batteries, the IQ^® Battery 5P™, to the United States, Mexico, Canada, Puerto Rico, Australia, the United Kingdom, Italy, France, the Netherlands, and Luxembourg. More than 7,400 installers worldwide are certified to install the IQ Batteries, compared to more than 4,900 installers worldwide in the first quarter of 2024.

Enphase Energy showcased several new product innovations at Intersolar Europe in June 2024, including the IQ Battery 5P with FlexPhase backup, the IQ^® Balcony Solar Kit solution, and the IQ^® EV charger. The company expect to introduce these products into select European markets later this year. The company also introduced its AI-based IQ^® Energy Management software to manage dynamic electricity rates in the Netherlands and Belgium that can maximize savings for homeowners. Enphase Energy also recently launched Solargraf^®, its design and proposal software platform, in the Netherlands. Solargraf is now available to residential and commercial installers in the United States, Canada, Brazil, Germany, Austria, and the Netherlands.

The Inflation Reduction Act (IRA) has enabled Enphase Energy to manufacture in the United States, supporting jobs and advancing the country’s renewable energy economy. During the second quarter of 2024, the company shipped approximately 574,000 microinverters from its contract manufacturing facilities in the United States that Enphase Energy booked for 45X production tax credits.

Enphase Energy recently started shipping its IQ8™ Commercial Microinverters from its contract manufacturing facility in Texas. The IQ8P-3P™ Commercial three-phase Microinverters are designed to support 208 V small commercial buildings and are compatible with a wide range of solar panels up to 640 W.