Enphase Energy Inc. reported second-quarter 2026 revenue of $291.9 million, supported by higher battery shipments, improving profitability and continued investment in next-generation energy technologies, including solid-state transformers for AI data centres.
During the quarter, the company shipped approximately 1.59 million IQ® Microinverters, equivalent to 725.2 MW DC, along with 113.8 MWh of IQ® Batteries.
Enphase reported GAAP gross margin of 60.0% and non-GAAP gross margin of 46.8%, while GAAP operating income reached $51.5 million and non-GAAP operating income totalled $56.7 million. The company posted GAAP net income of $36.1 million, or $0.27 per diluted share, and non-GAAP net income of $61.5 million, or $0.46 per diluted share.
Revenue increased from $282.9 million in the first quarter of 2026, driven partly by $84.3 million in safe harbour revenue, compared with $34.5 million in the previous quarter. U.S. revenue declined by approximately 3%, while European revenue grew by around 35% during the period.
Enphase generated $40.3 million in operating cash flow and $25.9 million in free cash flow, ending the quarter with $937.7 million in cash, cash equivalents and marketable securities.
The company also received approximately $52 million in refunds from the U.S. Customs and Border Protection (CBP), with the majority recognised as an increase in GAAP gross profit, contributing to higher reported margins.
Battery deployments continued to expand, with 113.8 MWh of IQ Batteries shipped during the quarter, up from 103.1 MWh in the first quarter. The company said more than 25,000 installers worldwide are now certified to install its battery systems.
Enphase also reported significant progress in developing its IQ® Solid-State Transformer (IQ SST), designed for next-generation AI data centres. According to the company, the product has achieved several technical milestones, while discussions with customers and ecosystem partners have advanced to request-for-information (RFI) and request-for-proposal (RFP) stages, representing a potential multi-gigawatt opportunity pipeline. The company expects to demonstrate the complete system later this year.
During the quarter, Enphase expanded its commercial and residential product portfolio by launching the IQ9S-3P™ Commercial Microinverter for the U.S. commercial solar market and the IQ9N™ Residential Microinverter across the United States and key European markets. The residential product was also introduced in Australia and New Zealand in July.
At Intersolar Europe 2026, the company unveiled its upcoming IQ® Battery G5, featuring modular 5 kWh stackable units capable of scaling to 30 kWh. The battery is designed to deliver approximately 50% higher energy density and 40% lower costs than the previous-generation IQ® Battery 10C.
Enphase also showcased its IQ® Bidirectional EV Charger, designed for 800 V DC electric vehicle architectures. The company said it is collaborating with several global automotive manufacturers to support commercial deployment of the technology.
Commenting on the results, President and CEO Badri Kothandaraman said the company made strong progress during the quarter, driven by improving financial performance, growing battery adoption and continued innovation across solar, energy storage and grid technologies.
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