Enphase Energy (NASDAQ: ENPH) has experienced a significant decline in its stock price, dropping approximately 40% this year and over 70% from a 52-week high of around $140. The company’s revenue has also plummeted 42%, falling from $2.29 billion in 2023 to $1.33 billion in 2024, driven largely by reduced residential solar demand.
Key challenges for Enphase include high interest rates making solar financing more expensive, an oversupply of inventory, and new tariffs up to 3,500% on solar components that could severely impact profit margins. In the latest financial results, Enphase reported earnings of $0.68 per share on $356 million in sales, missing expectations of $0.71 per share on $362 million in sales, with future guidance suggesting a continued decline. As a response to these issues, the company has laid off 500 employees and is attempting to transition battery cell manufacturing to the U.S.
