Enphase Energy, Inc. (ENPH): Business Model Canvas [Dec-2025 Updated]

You're looking to map the actual mechanics behind Enphase Energy, Inc.'s market performance, and honestly, it's more complex than just selling solar inverters. As a former analyst tracking this space for years, I can tell you their Q3 2025 results-hitting $410.4 million in total revenue-are a direct function of this nine-block structure. See how their proprietary IQ technology and Enlighten platform translate into concrete cash flows, like the $70.9 million they pulled in from TPO safe harbor agreements alone? This canvas distills exactly how they manage their supply chain, secure key installer relationships, and build resilience into their model. Dive in below to see the precise building blocks that drive their value creation.

Enphase Energy, Inc. (ENPH) - Canvas Business Model: Key Partnerships

You're looking at the network that turns Enphase Energy, Inc.'s technology into deployed systems. This is where the rubber meets the road, translating product development into market penetration and revenue.

Solar installers and distributors for product sales and service represent the primary sales channel. As of the third quarter of 2025, Enphase Energy, Inc. shipped approximately 1.77 million microinverters, bringing the lifetime total to approximately 83.1 million microinverters shipped globally. More than 4.9 million Enphase-based systems have been deployed across over 160 countries. The U.S. market showed strength in Q3 2025, with U.S. revenue increasing approximately 29% compared to the second quarter of 2025.

The relationship with Third-Party Ownership (TPO) financing providers for large-scale deals is critical, especially following the July 2025 federal budget bill changes. Enphase Energy, Inc. announced a new safe harbor agreement with a leading TPO provider in November 2025, which is the third such agreement since the new law was signed. This specific agreement, covering IQ9 Microinverters produced at U.S. facilities, is projected to generate nearly \$68 million in revenue over approximately 12-24 months, starting in 2026.

The company maintains an asset-light production model through its reliance on contract manufacturers, though the footprint is shifting toward domestic and specific international sites. Enphase Energy, Inc. ceased contract manufacturing operations in Guadalajara, Mexico, focusing on 4 locations: 2 in the U.S., and 1 each in India and China. Global microinverter manufacturing capacity remains steady at around 7.25 million units/quarter, with 5 million of those units slated for manufacture in the U.S. facilities. In Q3 2025, over 1.5 million microinverters and a record 67.5 MWh of IQ Batteries were produced in the U.S. facilities in Texas and South Carolina.

Partnerships with Utility companies for grid services and Virtual Power Plant (VPP) programs are expanding, leveraging the IQ Battery systems. The IQ Meter Collar has been approved by 39 U.S. utilities to date. Enphase Energy, Inc. expanded its VPP support in Colorado, Puerto Rico, and Nova Scotia in February 2025. For example, in the Xcel Colorado Renewable Battery Connect Program, participants with an IQ Battery are eligible for an upfront incentive of \$350 per kW, capped at \$5,000 per site. For the PG&E Emergency Load Reduction Program, homeowners can earn \$2 per kilowatt-hour for using stored electricity during peak events, expecting to earn between \$100 to \$250 per year.

Compatibility with Solar panel manufacturers to ensure microinverter compatibility is managed through product evolution and deployment scale. The company shipped a record 195 MWh of batteries in Q3 2025. The IQ Battery 5P, launched to meet federal content thresholds, has over 45% U.S.-sourced materials as of Q3 2025. The company is preparing for the rollout of the IQ9 Microinverters, expected to begin shipping in the first quarter of 2026.

Here are some key operational and financial metrics related to these partnerships as of late 2025:

The reliance on this ecosystem is clear, especially given the regulatory environment:

• The transition to U.S.-built batteries with over 45% domestic content helps qualify for the net IRA benefit.
• The Q4 2025 gross margin guidance includes approximately 5 percentage points of impact from reciprocal tariffs.
• The company is on track to shift to non-China cell packs by late 2025 for batteries.
• The TPO safe harbor window for installers to make equipment purchases extends until the middle of 2026.

Finance: draft 13-week cash view by Friday.

Enphase Energy, Inc. (ENPH) - Canvas Business Model: Key Activities

Research and Development (R&D) of semiconductor-based power electronics

Enphase Energy, Inc. recorded GAAP Research and Development expenses of $47.843 million for the third quarter of 2025, up from $45.421 million in the second quarter of 2025.

Global supply chain management and US manufacturing ramp-up

The company shipped over 1.53 million microinverters and a record 67.5 MWh of IQ Batteries manufactured in the United States during the third quarter of 2025. Total shipments for Q3 2025 included approximately 1.77 million microinverters, equating to 784.6 MWdc of capacity, and a record 195.0 MWh of IQ Batteries. The US production facilities in Texas and South Carolina produced IQ8HC Microinverters, IQ8P-3P Commercial Microinverters, IQ Battery 5Ps, and IQ Battery 10Cs in Q3 2025. As of May 2, 2025, Enphase Energy reported that more than 6.5 million IQ Microinverters and 50 MWh of IQ batteries made in the United States had been deployed.

Software development for the Enlighten energy management platform

The Enlighten platform enables system management via a smart mobile app. The IQ Meter Collar has received approval from 39 U.S. utilities to date. As of April 2025, more than 2,500 SunPower customers had transitioned to Enphase monitoring. Overall, more than 5.0 million Enphase-based systems have been deployed across more than 160 countries.

• Total deployed Enphase-based systems: more than 5.0 million.
• Countries with deployments: more than 160.
• IQ Meter Collar utility approvals: 39.
• SunPower customer transitions to Enphase monitoring (since Aug 2024): over 2,500.

Sales and marketing to drive adoption through installer networks

GAAP Sales and Marketing expenses for the third quarter of 2025 were $49.671 million, compared to $50.708 million in the second quarter of 2025. The company's Q3 2025 revenue was $410.4 million.

Securing safe harbor agreements for future tax credit eligibility

Enphase Energy, Inc. announced its second safe harbor agreement in August 2025, which is expected to generate approximately $50 million in revenue and covers US-manufactured IQ8HC Microinverters. In November 2025, the company announced its third safe harbor agreement, projected to generate nearly $68 million in revenue over approximately 12-24 months beginning in 2026, covering IQ9 Microinverters produced at US facilities. These agreements help secure eligibility for the base investment tax credit and the domestic content bonus credit.

• Revenue expected from second safe harbor agreement (Aug 2025): approximately $50 million.
• Revenue projected from third safe harbor agreement (Nov 2025): nearly $68 million.
• Total revenue secured from the first three safe harbor agreements announced in 2025: approximately $118 million ($50M + $50M + $68M, assuming the second agreement was a new one, but the text states the third is the third since July 2025, and the second was announced in August, so the total from the two mentioned agreements is $50M + $68M = $118M).

Enphase Energy, Inc. (ENPH) - Canvas Business Model: Key Resources

Proprietary IQ Microinverter and IQ Battery technology patents

$1.48 billion in cash, cash equivalents, and marketable securities (Q3 2025)

The Enlighten cloud-based energy management software platform

US-based manufacturing capacity for microinverters and batteries

Deep domain expertise in power electronics and semiconductors

Here's the quick math on the operational scale supporting these resources as of late 2025:

The technology itself underpins these figures. For example, the IQ Battery 10C has a usable capacity of 10.0 kWh and a peak power output of 14.16 kW, featuring four embedded IQ8B microinverters. The IQ Battery 5P offers a peak output of 7.68 kW.

You should note the context around the domestic manufacturing:

• IQ8HC Microinverters, IQ8P-3P Commercial Microinverters, IQ Battery 5Ps, and IQ Battery 10Cs were produced at the Texas and South Carolina factories in Q3 2025.
• Products with the 'DOM' suffix help projects qualify for the Domestic Content Bonus Credit under the Inflation Reduction Act (IRA).
• The U.S. shipments in Q3 2025 qualified for approximately $172 million in production tax credit (PTC) receivable for shipments made in the first 9 months of 2025.

Finance: draft 13-week cash view by Friday.

Enphase Energy, Inc. (ENPH) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Enphase Energy, Inc. over the competition as of late 2025. It's about more than just hardware; it's about the integrated performance and the data you get back.

High system reliability and safety via module-level power electronics

The foundation of reliability rests on the microinverter architecture. As of the third quarter of 2025, Enphase Energy, Inc. had shipped approximately 84.8 million microinverters globally, supporting over 5.0 million deployed systems. This distributed approach inherently enhances safety and reliability compared to centralized inverters. Furthermore, the company is pushing domestic content, with U.S.-built batteries utilizing over 45% domestic content in Q3 2025, as part of a plan to shift to non-China cell packs by the end of 2025.

Here's a snapshot of the scale and recent performance:

Integrated solar-plus-storage-plus-EV charging home energy solution

Enphase Energy, Inc. offers a full stack, which is a major value driver. The company shipped a record 195.0 megawatt hours (MWh) of IQ Batteries in the third quarter of 2025. This integration is key, as the number of installers certified to install IQ Batteries grew to more than 19,500 worldwide in Q3 2025, up from more than 11,700 in Q2 2025. The system now includes EV charging capabilities, rounding out the home energy management picture. The company's Q3 2025 revenue hit $410.4 million, its highest level in two years.

Energy independence and resilience, especially during grid outages

The value proposition here is tangible, especially in markets facing grid instability or unfavorable utility policies. For instance, in the Netherlands, the impending sunset of net metering in 2026, combined with rising export penalties, creates an estimated $2 billion total opportunity for batteries in that region alone. This drives demand for systems that maximize self-consumption and provide backup power. You can see the financial commitment to the platform, with Enphase Energy, Inc. ending Q3 2025 with $1.48 billion in cash, cash equivalents, and marketable securities.

Superior system monitoring and remote diagnostics via the Enlighten App

The software layer, the Enlighten App, provides the visibility you need to manage performance. For customer support, the average customer call wait time in Q3 2025 was just two minutes, with a Net Promoter Score (NPS) of 77%. This monitoring allows for granular data access; you can generate customized daily consumption reports using 1 hour frequency data for consumed, import, or export metrics. That level of detail helps you spot inefficiencies fast. It's about making the complex simple.

Optimized battery life and savings with new PowerMatch technology

The PowerMatch technology, launched for IQ Battery 5P systems in Europe, directly addresses efficiency losses. Enphase testing suggests that systems using this technology may last up to 40% longer than select competitor batteries. This longevity translates to concrete financial benefits, potentially delivering up to an estimated $1,700 in additional savings over 15 years, depending on usage patterns and tariffs. The technology achieves this by using six embedded microinverters that scale output dynamically, activating only what's needed during low-power periods.

The customer experience metrics related to service quality include:

• Net Promoter Score (NPS) in Q3 2025: 77%
• NPS in Q2 2025: 79%
• Average customer call wait time in Q3 2025: Two minutes
• Data reporting frequency option in Enlighten App: 1 hour

Finance: draft 13-week cash view by Friday.

Enphase Energy, Inc. (ENPH) - Canvas Business Model: Customer Relationships

You're looking at how Enphase Energy, Inc. keeps its massive installed base happy and brings new partners into the fold. It's a multi-pronged approach, balancing digital scale with high-touch professional support. The relationship strategy is built on making the homeowner feel connected and making the installer feel empowered.

Automated, self-service monitoring and support via the Enlighten App

The Enlighten App, or MyEnlighten, is the primary digital touchpoint for homeowners. It's where they monitor production and, if they have the right hardware installed, consumption data. This self-service capability is key to managing relationships at scale across the installed base, which, as of mid-2025, included approximately 4.8 million Enphase-based systems deployed globally.

The performance of this self-service tool is reflected in user feedback:

• App Store rating: 4.6 out of 5.
• Google Play Store rating: 3.9 out of 5.
• The app provides access to 12-month raw data for analysis.

For those needing more detail, consumption monitoring requires additional hardware, like an Envoy-S Metered or an IQ Gateway, to unlock usage patterns in the app.

Dedicated technical support and training for certified installers

Enphase Energy, Inc. relies heavily on its installer network for the high-quality installation and frontline support that underpins product reliability. The company actively manages this relationship through tiered certification programs. As of the second quarter of 2025, more than 11,700 installers worldwide were certified to install their IQ Batteries, an increase from over 10,900 in the first quarter of 2025.

The structure of the Enphase Installer Network (EIN) defines the level of dedication:

• Platinum Installers: Longest track record, highest customer satisfaction scores, and certified for IQ Batteries.
• Gold Installers: Long track record, consistently great customer experience ratings, and certified for IQ Batteries.
• Silver Installers: Installed a sizable number of systems; some are certified for IQ Batteries.

The investment in this channel is reflected in the company's overall operating structure. For the third quarter of 2025, Enphase Energy, Inc.'s Non-GAAP Operating Expenses were $78.5 million.

Long-term product warranties (e.g., 25 years for microinverters)

Product longevity is a core relationship promise, backed by industry-leading guarantees. While the company manufactures the solar panels, it backs its core IQ8 Microinverters with a limited warranty of 25 years. The IQ Battery 5P units are engineered with a warranty of up to 15 years. Even newer product lines, like the IQ EV Charger 2, start with a five-year limited warranty and 24/7 support.

You can see the scale of the deployed base that these warranties cover:

Direct sales and account management for large distributors and TPO partners

Enphase Energy, Inc. manages key B2B relationships through direct engagement, particularly with large distributors and Third-Party Ownership (TPO) partners. The company is actively enhancing its Solargraf digital platform to better integrate with TPO models, a critical evolution as the market shifts. This direct engagement is vital for market penetration; for instance, the IQ Meter Collar was approved by 39 U.S. utilities as of the third quarter of 2025.

The company also maintains strong relationships with financing partners, evidenced by the announcement of a new Safe Harbor Agreement with a leading TPO Provider on November 20, 2025. The U.S. market remains central to this channel strategy, accounting for 79% of the company's revenue in the fourth quarter of 2024.

Key relationship metrics for the latest reported quarter (Q3 2025) include:

• Quarterly Revenue: $410.4 million.
• IQ Batteries Shipped: Record 195.0 MWh.
• Microinverters Shipped: Approximately 1.77 million units.

This channel focus helps drive adoption of the full Enphase Energy System.

Enphase Energy, Inc. (ENPH) - Canvas Business Model: Channels

You're looking at how Enphase Energy, Inc. gets its advanced microinverter and battery systems into the hands of homeowners and businesses. It's not a simple one-size-fits-all approach; they use a layered channel strategy to cover different market segments. Honestly, the numbers show a clear focus on empowering the installation network while securing future revenue through financing partners.

Global network of solar distributors (primary sales channel)

The global network of solar distributors remains the backbone for moving Enphase Energy, Inc. products. These partners are crucial for inventory management and getting the hardware to the boots-on-the-ground installers. While I don't have a precise count of all global distributors as of late 2025, we see evidence of expansion in key markets.

For instance, in India, Enphase Energy, Inc. recently added Sun-AP Ecopower and Redington as new distribution partners. Redington, specifically, offers solar PV products to installers through its network of more than 500 channel partners in India. This shows the strategy of building out regional distribution depth.

Overall system deployment gives you a sense of the scale these channels support. As of the second quarter of 2025, Enphase Energy, Inc. had shipped approximately 83.1 million microinverters, with more than 4.9 million Enphase-based systems deployed globally.

Certified professional solar installers and integrators

The certified installer base is where the rubber meets the road; they are the ones selling and installing the complete Enphase Energy System. You need a strong, trained network to handle the complexity of the IQ Batteries and the latest microinverters.

Here's a look at the growth in certified battery installers:

• Installers certified for IQ Batteries as of Q1 2025: More than 10,900 worldwide.
• Installers certified for IQ Batteries as of Q2 2025: More than 11,700 worldwide.

Enphase Energy, Inc. also supports these professionals directly through tools like the Solargraf® platform, which helps them create, manage, and close high-quality proposals quickly. The National Renewable Energy Laboratory (NREL) validated Solargraf's accuracy against its own System Advisor Model, which gives installers confidence in the design tool.

Direct sales to large Third-Party Ownership (TPO) financing companies

This channel is increasingly important, especially with the new federal tax credit framework post-July 2025. Safe harbor agreements allow Enphase Energy, Inc. to secure future revenue by locking in production for TPO providers who offer leases or Power Purchase Agreements (PPAs) to homeowners.

The financial impact of these agreements is concrete:

The November 2025 agreement specifically covers IQ9 Microinverters produced at U.S. manufacturing facilities. This channel is clearly a focus for securing future revenue streams, given the latest deal is projected to generate revenue over 12-24 months beginning in 2026.

The Solargraf platform is designed to streamline this by integrating directly with major TPO providers, including LightReach, EnFin, and GoodLeap, enabling instant, finance-ready proposals.

Utility partnerships for grid-interactive product deployment

Partnering with utilities for grid services, often called Virtual Power Plants (VPPs), turns distributed energy resources into a grid asset. This channel drives battery sales and creates recurring value for homeowners.

Here are the latest figures related to grid services and utility integration:

• IQ Meter Collar utility approvals (as of Q2 2025): 29 U.S. utilities.
• Battery capacity enrolled in VPP programs globally (as of Q2 2025): 210 MWh.

Specific utility program incentives show the direct benefit to adoption. For example, in Puerto Rico with LUMA Energy's Customer Battery Energy Sharing Program, participants with three IQ Battery 5Ps are eligible for approximately $1,000 per year if batteries deliver energy during demand response events. In Colorado, Xcel Energy customers can get an upfront incentive of $350/kW for installing an Enphase IQ Battery. Enphase Energy, Inc. also announced support expansion for VPPs in Puerto Rico, Colorado, and Nova Scotia in February 2025, powered by the IQ Battery 5P.

The company is definitely pushing the ecosystem integration. Finance: draft 13-week cash view by Friday.

Enphase Energy, Inc. (ENPH) - Canvas Business Model: Customer Segments

You're looking at the core groups Enphase Energy, Inc. sells its integrated solar and battery technology to as of late 2025. This isn't just about selling hardware; it's about selling resilience and energy control to distinct markets.

Residential Homeowners Seeking Premium, Reliable Solar-Plus-Storage

This segment is the bedrock for Enphase Energy, Inc., representing the largest volume of microinverter and battery shipments. The company is the world's leading supplier of microinverter-based solar and battery systems.

The scale of deployment shows this focus:

• Total global systems deployed: more than 5.0 million.
• Total microinverters shipped globally: approximately 84.8 million.
• Q3 2025 microinverter shipments: approximately 1.77 million units, or 784.6 megawatts DC.
• Q3 2025 IQ® Battery shipments: a record 195.0 megawatt hours (MWh).
• Q1 2025 residential battery storage shipments: 44.1 MWh of IQ Battery products.

The U.S. residential solar market showed signs of gradual recovery in Q2 2025, with sell-through improving from Q1 2025. Furthermore, Enphase Energy, Inc. is targeting specific needs within this segment, such as launching the IQ® Balcony Solar Kit in Germany and Belgium.

Small Commercial Businesses Requiring Efficient Energy Management

Enphase Energy, Inc. supports the small commercial sector with specialized hardware designed for three-phase power systems. This segment relies on the company's ability to provide grid-forming capabilities and efficient power distribution for their operations.

The product offering tailored for this segment includes:

Solar Financing Companies (TPO Providers) Buying in Bulk for Leases

Third-Party Ownership (TPO) providers are a crucial customer segment, purchasing equipment in volume to facilitate leases and Power Purchase Agreements (PPAs) for homeowners. Enphase Energy, Inc. actively secures agreements to support these financing partners navigating evolving U.S. tax credit rules.

The financial commitment from these bulk purchases is significant:

• Q1 2025 safe harbor revenue recognized: $54.3 million.
• Q2 2025 outlook included approximately $40.0 million of safe harbor revenue.
• A new safe harbor agreement announced November 20, 2025, is projected to generate nearly $68 million in revenue over approximately 12-24 months starting in 2026.

The Solargraf platform is integrated with key TPO players, including EnFin, GoodLeap, and LightReach.

Utility Companies Leveraging Distributed Energy Resources (DERs)

Utility companies represent a segment focused on grid stability, demand response, and integrating distributed energy resources like Enphase Energy, Inc.'s battery fleet. The company is actively engaging utilities on system interoperability and Virtual Power Plant (VPP) programs.

Key engagement metrics and milestones as of late 2025 include:

• IQ® Meter Collar testing completed with PG&E and four additional U.S. utilities in Q1 2025.
• Global battery enrollment in VPP programs in Q2 2025: 210 MWh.
• A VPP lease offering was launched in Vermont in collaboration with Green Mountain Power in December 2025.

Finance: draft 13-week cash view by Friday.

Enphase Energy, Inc. (ENPH) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Enphase Energy, Inc.'s operations as of late 2025. Honestly, understanding where the money goes is just as important as knowing where the revenue comes from, especially when supply chain pressures and new tariffs are in the mix.

Cost of Goods Sold (COGS), heavily influenced by component costs and tariffs

The cost of the product itself is a major lever. Enphase Energy, Inc. saw its gross margins directly hit by external factors in Q3 2025. The company reported a GAAP gross margin of 47.8% for the period. This was significantly impacted by new trade measures; specifically, the reciprocal global tariffs imposed on imported goods reduced the GAAP and non-GAAP gross margins by 4.9 percentage points in Q3 2025. To offset some of this, the company recognized a net benefit from the Inflation Reduction Act (IRA) of $42.5 million in Q3 2025. Management is actively working on cost structure improvements, noting that next-generation products like the IQ9 with GaN technology can support up to 10% higher power for the same cost structure.

Significant R&D investment to maintain technology leadership

Maintaining the lead in microinverter and battery technology requires consistent spending on Research and Development (R&D). While the specific R&D dollar amount for Q3 2025 isn't itemized separately from the operating expenses in the top-line reports, it is a critical component of the overall investment in future products. The company is focused on launching new generations, such as the fourth-generation battery piloted in late 2024/early 2025, which was designed with a better cost structure.

Manufacturing and logistics costs, including US factory ramp-up

The push for domestic content is a key driver of manufacturing and logistics costs, as Enphase Energy, Inc. ramps up its US footprint in Texas and South Carolina. In Q3 2025, the US factories shipped over 1.53 million microinverters and a record 67.5 MWh of IQ Batteries. These US-made products qualify for the Section 45X Advanced Manufacturing Production Tax Credit under the IRA. Logistics costs are tied to these production shifts and the overall volume, which saw total shipments of approximately 1.77 million microinverters and a record 195.0 MWh of IQ Batteries in the quarter. Capital expenditures for the quarter were relatively low at $8.0 million.

Sales, General, and Administrative (SG&A) expenses, including installer training

SG&A covers everything from sales force compensation to corporate overhead. These costs are bundled into the total Operating Expenses. A key part of the sales support structure involves ensuring installers can deploy the complex systems correctly. Enphase University provides an expanded training program, including online learning paths, to help installers sell, design, and commission solutions, which helps drive adoption and reduce costly service calls.

Non-GAAP operating expenses were $78.5 million in Q3 2025

When you look at the core, recurring operating costs, the non-GAAP figure is the one management often focuses on. For the third quarter of 2025, non-GAAP operating expenses were reported at $78.5 million, a slight increase from $77.8 million in Q2 2025. This figure is derived by excluding certain items from the GAAP total. For context, GAAP operating expenses were $130.1 million in Q3 2025.

Here's a quick look at the key operating expense components from the GAAP reporting for Q3 2025:

The difference between GAAP and Non-GAAP operating expenses is substantial, largely driven by stock-based compensation, which totaled $51.5 million in the reconciliation. This shows you the scale of non-cash charges factored into the GAAP view.

You should keep an eye on the Q4 2025 guidance for operating expenses, which is projected to be in the range of $77.0 million to $81.0 million on a non-GAAP basis. Finance: draft 13-week cash view by Friday.

Enphase Energy, Inc. (ENPH) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for how Enphase Energy, Inc. brought in the cash during the third quarter of 2025. Honestly, it's all about product sales, but a chunk of that revenue comes from specific agreements that smooth out the quarterly picture.

The total top line for the third quarter of 2025 hit $410.4 million, which was the company's highest revenue level in two years. This figure reflects a mix of hardware shipments and specific contractual revenue recognition.

The revenue streams are clearly anchored in hardware, but the timing of certain contracts plays a big role, too. Here's a look at the major components driving that $410.4 million.

Safe Harbor Revenue from TPO Agreements

A notable component of the revenue recognized was the safe harbor revenue, which came in at $70.9 million for the third quarter of 2025. This amount was up from the $40.4 million recognized in the second quarter of 2025. This revenue is tied to agreements that allow Enphase Energy to recognize revenue earlier, often related to production tax credits (PTC) or similar incentives.

Sales of IQ Microinverters and Related Components

The core of the business remains the sale of microinverters. During Q3 2025, Enphase Energy shipped approximately 1.77 million microinverters. That translates to a capacity of 784.6 megawatts DC. The U.S. manufacturing facilities contributed significantly, shipping approximately 1.53 million microinverters in the quarter.

Sales of IQ Battery Energy Storage Systems

Energy storage is a growing part of the revenue picture. Enphase Energy shipped a record 195.0 megawatt hours (MWh) of IQ Batteries in the third quarter of 2025. For context, the U.S. manufacturing sites shipped a record 67.5 MWh of IQ Batteries in the same period.

Software and Service Fees

While specific dollar amounts for software and service fees, like the Enlighten subscription or grid services, weren't explicitly broken out in the top-line summary, these recurring revenue elements support the overall financial structure. The company also noted that the IQ Meter Collar received approval from 39 U.S. utilities to date, which supports future service and integration revenue potential.

You can see the key shipment and revenue metrics laid out here:

The geographic split of revenue shows a strong domestic focus for the quarter:

• U.S. Revenue Mix: 85%
• International Revenue Mix: 15%

The U.S. market drove sequential growth, increasing approximately 29% compared to the second quarter, partly due to that higher safe harbor revenue. Conversely, European revenue softened, decreasing approximately 38% sequentially.

Finance: draft Q4 2025 revenue sensitivity analysis by Monday.