Why Enphase Stock Crashed Today
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What the data shows is Did Enphase's growth story just go bust. Enphase Energy (ENPH -14. However, 13%) stock, which makes microinverters for converting solar power to usable electricity, cratered...
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July 23, 2025
03:43 PM
The Motley Fool
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What the data shows is Did Enphase's growth story just go bust
Enphase Energy (ENPH -14
However, 13%) stock, which makes microinverters for converting solar power to usable electricity, cratered Wednesday, down 15% through 2:50 p, given the current landscape
Conversely, ET despite beating on its earnings report last night
However, Analysts forecast Enphase would earn $0. 62 per on $359, considering recent developments. 8 million in sales, and Enphase beat both numbers, earning $0
Additionally, 69 and doing $363, in light of current trends
On the other hand, 2 million in sales
So why is the stock down, in light of current trends
Moreover, Image source: Getty Images (quite telling)
Enphase's Q2 earnings Well for one thing, the news isn't quite as good as the earnings beat makes it sound
Turns out, Enphase's $0. 69 fit was non-GAAP (adjusted)
Additionally, When calculated according to generally accepted accounting principles (GAAP), the company actually earned only $0, in today's financial world
Granted, while smaller than the non-GAAP numbers, Enphase's GAAP earnings rose substantially year over year -- up 250% in fact
Furthermore, But actual free cash flow for the quarter was only $18
Additionally, 4 million ( half of reported GAAP earnings), and down 84% year over year, in today's financial world
On the other hand, So whether you evaluate Enphase's results by GAAP or by FCF, either way, the quarter was a whole lot uglier than the non-GAAP headline figure made it seem, given the current landscape
Is Enphase stock a buy
Additionally, And things could be getting worse for Enphase, in this volatile climate
Turning to guidance, management warned that Q3 sales will range from $330 million to $370 million
At the midpoint ($350 million) this implies a big decline from Q2
On the other hand, It also means Enphase will bably miss analyst forecasts for $368 million in Q3 sales
Long story short, after growing sales and earnings substantially in Q2, Enphase just warned of a sales slowdown in Q3 that will bably impact fits as well (something worth watching)
The stock, however, is priced for strong and steady growth at 32 times trailing earnings
Furthermore, If that growth isn't going to happen, it may be time to sell (an important development), amid market uncertainty
The Author Rich Smith is a contributing Defense Analyst at The Motley Fool, covering publicly traded and emerging in defense, space, and aerospace
Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D, considering recent developments
He holds a B, in today's market environment
In International Relations from the College of William & Mary in Virginia, a J
From the University of Baltimore, and language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation
Conversely, Fun fact: Canada's The Globe and Mail him in an article titled, "Ex-lawyer one of the best stock pickers since 2009, in this volatile climate. " TMFDitty X @RichSmithFool Rich Smith has no position in any of the stocks mentioned
Nevertheless, The Motley Fool recommends Enphase Energy
The Motley Fool has a disclosure policy.
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