ENPH Stock Plummets After Hours As Q1 Earnings Are Weighed Down By Federal Tax Credit Expiry

• The energy tech company posted a Q1 GAAP net loss of $7.4 million, or 6 cents per diluted share.
• Enphase, a leader in microinverter solar and battery systems, is counting on international markets, commercial sales, and new high-growth areas like data-center power to offset the near-term U.S. residential weakness.

Shares of Enphase Energy (ENPH) fell 11% after-hours on Tuesday after it reported a decrease in first-quarter revenue and swung to a GAAP net loss as U.S. residential solar demand fell sharply after the federal tax credit expired on clean energy tech.

The energy tech company posted a GAAP net loss of $7.4 million, or a loss of $0.06 per diluted share. That compares with net income of $38.7 million in the fourth quarter of 2025 and $29.7 million in the year-ago period.

On a non-GAAP basis, net income was $62.3 million, or $0.47 per share. Enphase ended the quarter with $930.6 million in cash, cash equivalents, and marketable securities.

U.S. revenue fell about 23% from the first quarter, hurt by the tax-credit expiration and normal seasonality. Europe revenue, by contrast, rose 36% sequentially. Adjusted gross margin was 43.9%, pressured by 4.3 percentage points from reciprocal tariffs.

Enphase shipped 1.41 million microinverters (627.6 megawatts DC) and 103.1 megawatt-hours of IQ Batteries in the period. Most microinverters were made at its U.S. factories in Texas and South Carolina. The company also recorded $34.5 million in safe-harbor revenue and has signed agreements year-to-date with third-party owners for products totaling about $843.6 million.

For the second quarter, Enphase guided revenue between $280 million and $310 million, which is in line with analyst expectations of $295 million, including roughly $85 million in safe-harbor shipments and 100 to 110 MWh of IQ Batteries. Non-GAAP gross margin is expected in the 44-47% range (including about 3 percentage points of tariff impact), with non-GAAP operating expenses of $75 million to $79 million.

The results show the solar industry shifting after the big residential tax incentive ended. Enphase, a leader in microinverter solar and battery systems, is counting on international markets, commercial sales, and new high-growth areas like data-center power to offset the near-term U.S. residential weakness.

How Did ENPH Retail Traders React?

On Stocktwits, retail sentiment around ENPH jumped from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘low’ to ‘extremely high’ levels.

A Stocktwits user opined that the transition to renewable energy generation is going to help the company in the long term.

Yet another expressed optimism about microinverters.

ENPH stock is down 26% over the past 12 months. 

Read More: CAR Stock Slips After Hours As Hedge Fund Drops Shares Worth Millions

For updates and corrections, email newsroom[at]stocktwits[dot]com.