Enphase Energy Inc. (NASDAQ:ENPH) shares are trading lower premarket on Wednesday after the company reported mixed first-quarter earnings results after market close on Tuesday.

Earnings Snapshot

The company reported first-quarter revenue of $282.90 million, missing the consensus estimate of $283.72 million, according to Benzinga Pro.

Enphase reported adjusted earnings of 47 cents per share for the quarter, beating estimates of 42 cents per share.

The company shipped around 1.41 million microinverters and 103.1 megawatt hours of IQ batteries in the quarter.

It expects second-quarter revenue to be in the range of $280 million to $310 million, versus estimates of $298.71 million.

Also, the company guided battery shipments of 100–110 MWh and adjusted gross margin of 44%–47% in the second quarter.

The company expects only modest sequential growth in sell-through in the second quarter versus the first quarter, though demand remains about 10%–15% below earlier expectations.

Conference Call Takeaways

U.S. revenue fell 23% quarter over quarter, reflecting softer residential solar demand following the expiration of tax credits as well as seasonal factors.

Sell-through in the U.S. declined 48% sequentially but was down only 18% year over year, suggesting normalization after demand was pulled forward in the fourth quarter.

In contrast, European revenue rose 36% sequentially, supported by improving demand conditions and inventory normalization.

The company said it is currently testing a new AI-powered customer service assistant, with plans to extend its use to installers in the near term.

Its Propel prepaid lease program continues to gain traction, supported by rising installer participation and higher origination volumes.

In Europe, Enphase remains positive on growth prospects, driven by increasing adoption of battery systems, and expects sequential improvement despite ongoing market pressures.

The company’s upcoming product developments include a fifth-generation battery, a bi-directional EV charger, and a commercial storage solution, with the IQSST platform also targeting AI data center applications by 2028.

With this, the company targets an addressable U.S. market exceeding 11 GW by 2031.

Also, Enphase pointed to a significant retrofit market opportunity in Europe, noting approximately 475,000 systems in the Netherlands and around 400,000 in France.

ENPH Price Action: Enphase Energy shares were down 8.08% at $31.53 during premarket trading on Wednesday, according to Benzinga Pro data.

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