Enphase to reduce global workforce by 160 employees due to decline in Q4 microinverter sales, with shipments totaling 682MW

Enphase Energy, a leading microinverter supplier, recently disclosed in a filing with the US Securities and Exchange Commission (SEC) its plans to downsize its global workforce by approximately 160 employees. This reduction in staffing, affecting less than 6% of the company’s workforce, is a strategic decision to focus on research and development investments in core products and software. Enphase aims to enhance productivity through artificial intelligence and automation, anticipating these job cuts to take place within the first half of 2026.

Shortly after the SEC filing, Enphase reported its financial results for the fourth quarter of 2025, showing a decrease in both quarterly and yearly revenue. Revenue in Q4 2025 amounted to US$343 million, a decline from the previous quarter’s US$410 million and lower than the Q4 2024 revenue of US$382 million. This dip in revenue was experienced in both the US and European markets, with a 13% and 29% decline, respectively, attributed to lower safe harbor and storage revenue in the US, and reduced demand in Europe.

Wood Mackenzie analysts foresee a further contraction in global inverter shipments in 2026, estimating a 9% decline to 523GW, driven by market volatility in major regions like China, the US, and Europe. Despite the quarterly revenue decline, Enphase’s total revenue for the 2025 financial year increased slightly from US$1.33 billion in 2024 to US$1.47 billion in 2025.

Similarly, shipments of microinverters in Q4 2025 mirrored the downward trend, with Enphase shipping 682.6MW compared to previous periods, leading to an overall stagnation in shipments for the entire year of 2025 at 2.8GW, similar to the previous year’s figures. Most of Enphase’s microinverter shipments originate from its US facilities in Texas and South Carolina, with the company also producing batteries at the Texas plant. The company introduced microinverters utilizing gallium nitride (GaN) technology in Q4 2025 to meet industry requirements for commercial solar projects.

Looking ahead, Enphase anticipates revenue in Q1 2026 to range between US$270-300 million, accompanied by nearly US$35 million in safe harbor revenue. Despite recent challenges, Enphase remains optimistic about its future prospects as it navigates the evolving landscape of the solar energy market.