Results
We reported quarterly revenue of $291.9 million in the second quarter of 2026 and shipped approximately 1.59 million IQ ® Microinverters, or 725.2 megawatts DC, and 113.8 megawatt hours (MWh) of IQ ® Batteries.
Management commentary
Strong progress on development of IQ ® SST; achieved key technical milestones and deepened customer engagement with potential multi-gigawatt opportunities
Results
Revenue of $291.9 million
GAAP gross margin of 60.0%; non-GAAP gross margin of 46.8%
GAAP operating income of $51.5 million; non-GAAP operating income of $56.7 million
GAAP net income of $36.1 million; non-GAAP net income of $61.5 million
GAAP diluted earnings per share of $0.27; non-GAAP diluted earnings per share of $0.46
Free cash flow of $25.9 million; ending cash, cash equivalents and marketable securities of $937.7 million
Shipped 1.58 million microinverters and battery inverters from Texas and South Carolina facilities
Our revenue and earnings for the second quarter of 2026 are provided below, compared with the prior quarter:
Total revenue for the second quarter of 2026 was $291.9 million, compared to $282.9 million in the first quarter of 2026.
3Revenue in the United States decreased approximately 3%, while revenue in Europe increased approximately 35%.
6Non-GAAP gross margin was 46.8% in the second quarter, up from 43.9% in the first quarter.
2Reciprocal tariffs reduced gross margin by approximately 2.0 percentage points, down from approximately 4.3 percentage points in the first quarter.
5Non-GAAP operating expenses were $79.8 million in the second quarter, compared to $77.0 million in the first quarter, primarily due to increased investment in R&D. Non-GAAP operating income increased to $56.7 million, compared to $47.3 million in the first quarter.
We exited the second quarter of 2026 with $937.7 million in cash, cash equivalents and marketable securities, and generated $40.3 million in cash flow from operations.
Capital expenditures were $14.4 million, compared to $19.9 million in the first quarter.
During the second quarter, we received approximately $41.0 million in refunds from U.S. Customs and Border Protection (CBP), followed by an additional $11.0 million after quarter end.
The full $52.0 million impacted second-quarter GAAP results.
1Of this amount, $45.4 million was recognized as an increase to GAAP gross profit, improving GAAP gross margin by 15.6 percentage points; $1.6 million was recognized as GAAP interest income; and $5.0 million was capitalized as inventory as of June 30, 2026.
8We shipped 113.8 MWh of IQ Batteries in the second quarter, compared to 103.1 MWh in the first quarter.
More than 25,000 installers worldwide are now certified to install IQ Batteries, up from more than 24,000 in the first quarter.
Management commentary
During the second quarter, we accelerated development of the IQ ® Solid-State Transformer (IQ SST) for next-generation AI data centers.
We are actively engaged with customers and ecosystem partners, with a few opportunities advancing to the RFI and RFP stages and representing a potential multi-gigawatt pipeline.
7We achieved important milestones across the IQ SST power module, medium-voltage transformer, and system-control architecture, including a 15-module series stack operating at 4.16 kV AC with droop control, and remain on track for a full-system demonstration later this year.
Corporate events
We expanded our commercial portfolio during the second quarter.
In the United States, we began shipping our IQ9S-3P ™ Commercial Microinverter, a GaN-based 548 W microinverter designed for 480 V three-phase systems.
Together with the IQ9N-3P™ Commercial Microinverter, the IQ9S-3P broadens our offering for the U.S. commercial solar market.
We also launched our IQ9N ™ Residential Microinverter in the United States and key European markets in June 2026, followed by Australia and New Zealand in July.
Built with advanced GaN technology, the IQ9N is designed to pair with today’s high-power residential solar modules and help maximize energy harvest and system performance.
At Intersolar Europe in June 2026, we showcased our upcoming IQ ® Battery G5.
This AC-coupled battery is designed to provide higher energy density and flexible capacity through stackable 5 kWh modules that can scale up to 30 kWh.
4It uses 100 Ah prismatic cells and is expected to deliver approximately 50% higher energy density than the fourth-generation IQ ® Battery 10C, while reducing cost by approximately 40%.
We also showcased our IQ ® Bidirectional EV Charger at Intersolar Europe.
Built on our GaN power platform and designed to support modern 800 V DC electric vehicle architectures, the charger is engineered to move power efficiently and bidirectionally between the grid-facing AC system and the vehicle.
We are collaborating with several leading global automotive manufacturers to support the adoption of this product.
On July 27, 2026, Enphase Energy announced the publication of a new technical white paper titled "The Enphase Kestrel ASIC: A Purpose-Built Platform for Intelligent Power Conversion."
On July 21, 2026, Enphase Energy announced that homeowners across Europe with existing second-generation Enphase IQ Batteries can now enjoy home backup when they add an IQ ® System Controller and expand their energy storage while keeping the batteries they already own.
On July 16, 2026, Enphase Energy highlighted the safety and reliability of its IQ ® EV Charger 2 across Europe’s diverse climates.
On July 13, June 23, and June 11, 2026, Enphase Energy announced the launch of the new IQ9N Microinverter for residential solar systems in Australia and New Zealand, the United States, and key European markets, respectively.
On July 9, 2026, Enphase Energy announced that it opened pre-orders for the 20th anniversary limited edition IQ ® PowerPack 1500, a smart, portable power station designed to provide reliable power at home, at work, and outdoors.
On July 8, 2026, Enphase Energy announced it opened pre-orders for a smart thermostat with live solar, battery, and home power display.
On June 30, 2026, Enphase Energy announced that it has joined the Open Compute Project Foundation as a Platinum member to help advance open standards for next-generation AI data center power infrastructure.
On June 18, 2026, Enphase Energy announced that it began production shipments of its IQ9S-3P Commercial Microinverter, the company's most powerful microinverter currently available across the United States.
On June 17, 2026, Enphase Energy announced plans to showcase the IQ Battery G5, IQ9N Microinverter, IQ Bidirectional EV Charger, and IQ ® Energy Management platform at Intersolar Europe in Munich, Germany.
On May 21, 2026, Enphase Energy announced it published a technical white paper on its adoption of gallium nitride (GaN) bi-directional switch technology for next-generation distributed power electronics for AI data centers.
On May 18, 2026, Enphase Energy announced the launch of its PowerMatch ™ battery software technology across North America and selected countries in Central America and the Caribbean.
On May 4, 2026, Enphase Energy announced it published a technical white paper titled “IQ Solid-State Transformer: Intelligent Power for AI.”
Outlook
THIRD QUARTER 2026 FINANCIAL OUTLOOK
For the third quarter of 2026, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:
Revenue to be within a range of $290.0 million to $320.0 million, which includes shipments of 130 to 150 MWh of IQ Batteries.
GAAP gross margin to be within a range of 42.0% to 45.0%, including approximately 2 percentage points of reciprocal tariff impact.
Non-GAAP gross margin to be within a range of 44.0% to 47.0%, including approximately 2 percentage points of reciprocal tariff impact.
Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization.
GAAP operating expenses to be within a range of $120.0 million to $124.0 million.
Non-GAAP operating expenses to be within a range of $76.0 million to $80.0 million, excluding $44.0 million estimated for stock-based compensation expense, acquisition related amortization, and restructuring and asset impairment charges.
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