As an energy technology leader, Enphase Energy net worth eflects its growing role in the solar and battery market.
At Ando Money, we bring you an in-depth analysis of this innovative company’s financial performance, focusing on the key metrics driving its profitability and market value.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Enphase Energy |
| Full Name | Enphase Energy, Inc. |
| Website | enphase.com |
| Industry | Energy Technology |
| Traded as | NASDAQ: ENPH |
| ISIN | N/A |
| Founded | 2006 |
| Founders | N/A |
| Country/Territory | USA |
| Headquarters | Fremont, California |
| Chief Executive Officer | Badri Kothandaraman |
| Number of Employees | 3,157 (2023) |
| Market Cap | $14.34 billion |
| Total Assets | $3.167 billion |
| Total Equity | $884.5 million |
| Revenue | $303.5 million (Q2 2024) |
| Net Income | $10.8 million (Q2 2024) |
What is the Net Worth/Market Cap of Enphase Energy in 2024?
Enphase Energy’s net worth in 2024 is reflected in its market cap, valued at approximately $14.34 billion as of October 2024.
This positions the company among leading players in the energy sector. It stands strong compared to similar brands, making it a key player to watch in the evolving solar technology landscape.
For a broader perspective on how Enphase measures up against other companies in the sector, here are some noteworthy competitors and related entities:
- SolarEdge Technologies
- SunPower Corporation
- First Solar
- Tesla Energy
- SMA Solar Technology
- Generac Power Systems
- Canadian Solar
- Sunnova Energy International
- Schneider Electric
- Panasonic
To see how these companies rank among the most successful enterprises, visit our list of top companies.
Enphase Energy Financial Performance Overview
Key Financial Metrics Driving Profitability
Enphase reported $303.5 million in revenue for Q2 2024, reflecting solid growth compared to $263.3 million in Q1.
The company’s non-GAAP gross margin stood at 47.1%, with the GAAP gross margin reaching 45.2%. These margins indicate a significant contribution from revenue streams, reflecting operational efficiency and profitability.
The GAAP operating income was $1.8 million, whereas the non-GAAP operating income, which excludes factors like stock-based compensation, was significantly higher at $61.1 million.
Similarly, the GAAP net income for Q2 2024 was $10.8 million, while the non-GAAP net income was $58.8 million.
Product Shipments and Revenue Impact
The key contributors to Enphase’s revenue were its microinverter shipments, with 1,402,602 units shipped in Q2, translating to around 608.3 MW DC.
Additionally, the company shipped 120.2 megawatt hours of IQ Batteries, driving growth in its energy storage segment.
The rising demand for battery solutions, especially in regions like California, led to a higher attach rate, contributing positively to Enphase’s revenue.
Geographic Revenue Distribution
From a geographic standpoint, the revenue in the U.S. saw an impressive rise of 32% compared to Q1 2024.
While the U.S. marked a strong revenue boost, Europe maintained steady performance without a significant change quarter-over-quarter.
This regional distribution underscores the U.S. as a major market for Enphase’s growth in 2024.
Innovations and Product Launches Influencing Revenue
The launch of new products like the IQ Battery 5P, IQ EV charger, and IQ Balcony Solar Kit contributed to Enphase’s revenue.
These innovations reflect the company’s commitment to offering advanced and efficient energy solutions.
The introduction of these products into different markets, including the U.S. and select European countries, has boosted Enphase’s presence and financial performance.
Cost Management and Operational Efficiency
Effective cost management played a pivotal role in maintaining Enphase’s profitability. The GAAP operating expenses were $135.4 million, while non-GAAP expenses stood at $81.7 million, showing efficiency in operations.
The company actively manages its stock-based compensation, acquisitions, and restructuring expenses to drive growth while controlling costs.
The Role of Tax Credits and Government Policies
A notable factor influencing Enphase’s financial performance is the Inflation Reduction Act (IRA), which provided tax credits for U.S.-manufactured microinverters.
This benefit amounted to around 6.1% of the gross margin, offering a net IRA benefit of $18.4 million in Q2 2024. Such policies have a significant impact on the company’s net profitability and long-term growth.
Cash Flow and Asset Management
Enphase managed its cash flows effectively, generating a free cash flow of $117.4 million in Q2. The company ended the quarter with a robust $1.65 billion in cash, cash equivalents, and marketable securities.
Total assets were $3.167 billion, with a strong focus on optimizing working capital and reducing inventory levels to ensure financial stability and growth.
Shareholder Activity and Financial Health
Enphase’s shareholder activity in Q2 2024 included the repurchase of 891,896 shares at an average price of $112.02 per share, totaling around $99.9 million.
These repurchases signify the company’s confidence in its financial health and potential for future growth. Additionally, Enphase’s stock-based compensation strategies provide incentives for long-term stability and growth.
Outlook for Revenue and Financial Projections
For Q3 2024, Enphase estimates revenue between $370 million to $410 million and expects shipments of 160 to 180 megawatt hours of IQ Batteries.
The projected GAAP gross margin is anticipated to be between 45% and 48%, while the non-GAAP gross margin may range from 47% to 50% with net IRA benefits.
FAQs About Enphase Energy
How Did Enphase Energy Perform in Q2 2024?
Enphase Energy reported revenue of $303.5 million with a GAAP net income of $10.8 million and a non-GAAP net income of $58.8 million for Q2 2024.
What Are Enphase Energy’s Main Products?
The company specializes in microinverter-based solar and battery systems. Key products include IQ microinverters, IQ Batteries, IQ EV chargers, and the IQ Balcony Solar Kit.
What Is the Role of the IRA in Enphase Energy’s Financials?
The Inflation Reduction Act provided Enphase with manufacturing tax credits, contributing 6.1% to the gross margin and adding a net IRA benefit of $18.4 million in Q2 2024.
How Does Enphase Energy Manage Its Operating Expenses?
Enphase maintains profitability through cost control measures like stock-based compensation management, acquisitions, and optimizing restructuring expenses. Non-GAAP operating expenses for Q2 2024 were $81.7 million.
What Was the Cash Flow Position of Enphase in Q2 2024?
The company generated $117.4 million in free cash flow and ended the quarter with $1.65 billion in cash, cash equivalents, and marketable securities.
Conclusion
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