Enphase Energy, Inc. filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $1.2 billion, a 19.9% decline on the year before. That growth rate was down 9.5 percentage points from the quarter earlier.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
View chart data
| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | -41.9% | 5.8% | 36.1% |
| FY25 Q1 | -22.2% | 9.7% | 33.2% |
| FY25 Q2 | 4.4% | 11.7% | 25.2% |
| FY25 Q3 | 21.0% | 12.6% | 14.4% |
| FY25 Q4 | 10.7% | 10.7% | 6.5% |
| FY26 Q1 | -1.6% | 6.9% | 10.4% |
| FY26 Q2 | -10.4% | 8.3% | 11.5% |
| FY26 Q3 | -19.9% | 4.2% | 11.2% |
The main points
Net income fell 53.6% over the year while free cash flow dropped 37.7%, indicating reported profit and cash are moving at different speeds. Capital spending rose 42.4% even as operating cash flow fell 25.5%, leaving less of the generated cash retained.
Profitability
Reported cash is holding up better than reported profit. The trailing gross margin was 45.8%. The trailing operating margin stood at 4.2%, down 8.4 percentage points from a year earlier, while the trailing net margin was 7.5%. Net income over the twelve months was $90.8 million, which fell 53.6% on the year before.
The cash picture
Spending is outrunning the cash the business brings in, so less is left over. Operating cash flow over the twelve months was $190.9 million, down 25.5% on the year before. Capital spending was $55.5 million, or 4.6% of revenue. Free cash flow, operating cash flow less capital spending, was $135.4 million, down 37.7% on the year before. The free-cash-flow margin was 11.2%, down 3.2 percentage points from a year earlier.
The share base
The average diluted share count fell 2.8% over the year.
Against its own history
Set against the company’s own record: today’s free-cash-flow margin of 11.2% is higher than 58% of the company’s own past quarterly readings, which have ranged from −26.6% to 36.1%. Today’s operating margin of 4.2% is higher than 28% of past readings (−21.0% to 24.1%). Today’s twelve-month revenue growth rate of −19.9% is higher than 13% of past readings (−53.9% to 110.7%).
Guidance
The company gave its third quarter of 2026 guidance for revenue of $290.0 million to $320.0 million, for IQ battery shipments for IQ Batteries of 130 to 150, for safe harbor shipments revenue for safe harbor shipments of $75.0 million, and for GAAP gross margin of 42% to 45%.
What it means for our valuation
These trends feed directly into what the shares are worth in our model. In our model, growth 5 percentage points lower would lower the value by 21.8%, and 5 percentage points higher would raise it by 28.6%. A free-cash-flow margin 1 percentage point lower would lower it by 7.6%.
What to watch
The next filing will show whether the trends above continue, slow or reverse.
