Enphase Energy, a global leader in microinverters and energy storage systems, disclosed in a U.S. Securities and Exchange Commission (SEC) filing that it will lay off nearly 160 employees worldwide.
The layoffs account for less than 6% of the company’s total workforce. Enphase also stated that it will prioritize increasing investment in the research and development of its core products and software, while enhancing production efficiency through artificial intelligence and automation. The company plans to complete the layoffs by the first half of 2026.
Just days after submitting the 8-K filing to the SEC, the company released its financial results for the fourth quarter of 2025, showing declines in both quarterly and annual revenue. In Q4 2025, Enphase reported revenue of $343 million, down from the previous quarter’s two-year high of $410 million and also lower than the $382 million recorded in Q4 2024.
Enphase noted that quarterly revenue in the U.S. and European markets fell by 13% and 29%, respectively. The decline in U.S. revenue was attributed to reduced safe harbor incentives ($20.3 million in Q4 2025 vs. $70.9 million in the previous quarter) and a drop in energy storage revenue. The decline in European revenue was due to “further weakening demand.”
According to previously disclosed data, Enphase shipped 150.1 MWh of batteries in Q4 2025, a decrease from the previous quarter (195 MWh).
U.S. battery production increased from 46.9 MWh in Q2 2025 to 67.5 MWh in Q3 2025, with the IQ Battery 10C (fourth-generation battery) accounting for 40% of U.S. battery shipments.
A recent report by analysis firm Wood Mackenzie predicts that the downward trend in inverter demand in the European market during Q4 2025 will continue into 2026. The firm expects global inverter shipments to contract by 9% to 523 GW in 2026, with major markets such as China, the U.S., and Europe facing renewed volatility.
However, full-year revenue for 2025 showed slight growth, increasing from $1.33 billion in 2024 to $1.47 billion.
Microinverter Shipments Stagnate in 2025
In Q4 2025, microinverter shipments followed the same trend as revenue, declining both quarterly and year-over-year. Data shows that Enphase shipped 682.6 MW of microinverters during the quarter, down nearly 200 MW from the same period in 2024 and 100 MW from Q3 2025.
Full-year microinverter shipments for 2025 reached 2.8 GW, essentially flat compared to the previous year, with an increase of less than 12 MW. This is significantly lower than the levels seen in 2022 and 2023, when the company shipped well over 5.5 GW annually.
Enphase stated that the majority of its microinverters are manufactured at its facilities in Texas and South Carolina, with the Texas plant also handling battery production. On the battery front, the company shipped 150.1 MWh of IQ Batteries in Q4 2025, down from 195 MWh in Q3.
In Q4 2025, Enphase also began shipping its first microinverters utilizing gallium nitride (GaN) technology. These products comply with domestic content requirements for commercial solar projects and regulations related to “Foreign Entities of Concern” (FEOC).
Looking ahead, Enphase forecasts revenue for Q1 2026 to be in the range of $270 million to $300 million, with safe harbor incentives expected to be around $35 million.
