ENPH Enphase Energy, Inc.

Overview and Growth

In fiscal 2025, Enphase Energy, Inc. recorded $1.47B of revenue, net income of $172.13M, and an operating cash inflow of $136.54M. Revenue of $1.47B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 10.7% from $1.33B in fiscal 2024, increasing the company’s operating scale. The company reported diluted EPS of $1.29, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $0.75 in fiscal 2024, the current result was 72.0% higher. The revenue-to-assets relationship was 0.42x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $687.00M as gross profit before recognizing operating expenses and other items. Gross margin was 46.6%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operating income was $157.53M, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 10.7% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $172.13M, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 11.7%, meaning that this portion of revenue remained as net income after all recognized expenses. Before income taxes, the company reported $204.81M of earnings, providing a bridge between the operating result and final net income. Measured against revenue, pretax income equaled 13.9%, adding a pre-tax profitability layer between revenue and net income. The company recognized $32.68M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 16.0% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

Total assets were $3.51B, supported by $2.42B of liabilities and $1.09B of shareholder equity. Current assets were $2.61B against $1.26B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 2.07x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $474.32M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 37.6% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Borrowings totaled $1.20B, adding a fixed financing obligation alongside the company’s equity capital. The debt-to-equity relationship was 1.11x, showing how much debt the company carried for each unit of book equity. The debt-to-assets relationship was 34.3%, comparing borrowing with the total asset balance. Relative to total assets, liabilities measured 69.0%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 13.5%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

The company reported $136.54M of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 0.79x, comparing cash generated by operations with the bottom-line earnings result. Capital spending was $40.64M, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 29.8% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $95.90M of positive free cash flow for the period. The free-cash-flow margin was 6.5%, measuring cash remaining after capital spending against revenue. The free-cash-flow-to-assets relationship was 2.7%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.