Enphase Energy Shares Are Surging 22% Despite Drop In Q4 Revenue – What’s Driving The Rally?

• The company posted a smaller-than-expected drop in its total revenue for the fourth quarter of 2025.
• Company’s adjusted diluted earnings per share of $0.71 in the fourth quarter beat analyst estimates of $0.59 per share, as per fiscal.ai. 
• The company expects Q1 2026 Revenue to be within a range of $270.0 million to $300.0 million, analysts expect Q1 revenue of $263.2 million. 

Enphase Energy shares rallied 22% during the extended hours of trading on Tuesday despite posting a drop in its fourth quarter revenue and profit from its year-ago quarter. 

The energy technology firm forecasted strong first quarter revenue that has impressed investors and sparked optimism among traders. 

Q4 Earnings

The company posted a smaller-than-expected drop in its total revenue for the fourth quarter of 2025. Its revenue was $343.3 million, compared to $382.7 million in the third quarter of 2025, hurt by decline in revenue in the United States due to the lower safe harbor and storage revenue. 

Analysts on average were expecting a revenue of $340.1 million, as per fiscal.ai. The revenue was also hit by softer demand for its services in the European region as well, the company said in a statement. 

Company’s adjusted diluted earnings per share of $0.71 in the fourth quarter beat analyst estimates of $0.59 per share, as per fiscal.ai. 

It said it exited the fourth quarter of 2025 with $1.51 billion in cash, cash equivalents and marketable securities and generated $47.6 million in cash flow from operations.

Outlook

The company expects Q1 2026 revenue to be within a range of $270.0 million to $300.0 million, which includes shipments of 100 to 120 MWh of IQ batteries. This outlook includes approximately $35.0 million of safe harbor shipments. Analysts expect Q1 revenue of $263.2 million. 

Enphase also expects adjusted gross margin to be within a range of 42.0% to 45.0%, including approximately five percentage points of reciprocal tariff impact. 

How Did Stocktwits Users React?

Retail sentiment around ENPH trended in ‘extremely high’ territory amid ‘extremely high’ message volume. 

One user praised the company’s management and said, “The leadership steering this company is top notch. Battery storage is the future and these guys are extremely competent and will deliver”. 

Another user said that the turnaround of ENPH is ‘well underway’.

Shares in the company have fallen 37% over the past 12 months. 

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

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