On this page of StockholderLetter.com we present the latest annual shareholder letter from Enphase Energy, Inc. — ticker symbol ENPH. Reading current and past ENPH letters to shareholders can bring important insights into the investment thesis.

 •  4/4/2025 Letter Continued (Full PDF)
 •  4/6/2023 ENPH Stockholder Letter
 •  4/4/2024 ENPH Stockholder Letter
 •  More "Semiconductors" Category Stockholder Letters
 •  ENPH Benford's Law Stock Score = 98

ENPH Shareholder/Stockholder Letter Transcript:

Annual Report
2024
ANNUAL REPORT 2024
IQ9TM Microinverter with GaN
Enphase Energy   s next-generation product
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Annual Report
2024
ANNUAL REPORT 2024
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IQ Battery 5Ps and IQ8P-3P, IQ8HC, and IQ8X Microinverters are assembled at our contract manufacturing
facilities in the United States
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Dear fellow shareholders,
We had a tough year. The solar industry, like many sectors tied to long-term
investment and policy, was hit hard by rising interest rates, shifting regulations,
and declining consumer confidence. At Enphase, we felt it across our core
markets. Our revenue fell by 42%, compared to 2023. Channel inventory
swelled, installers grew cautious, and demand cooled.
Badri Kothandaraman
President and CEO
The slowdown began quietly in 2023 and turned into a full-blown pullback
by mid-2024. In the United States, the shift to Net Energy Metering (NEM)
3.0 in California     our largest state market - combined with high interest
rates made solar paybacks less attractive. In Europe, utility prices declined,
policy uncertainty increased, and several of our partners, including long-time
distributors and installers, exited the business entirely.
For those of us who have seen cycles before, this one felt familiar but not any
easier. I believe we managed the year with discipline and grit. We exited 2024
with healthy gross margins, generated nearly half a billion dollars in free cash
flow, and maintained a strong balance sheet, including approximately $1.72
billion in cash, cash equivalents, restricted cash and marketable securities.
We remained profitable while many in the industry did not.
   I am proud of our team   s ongoing
dedication to developing technology
and products that further enable
energy independence, while serving
our communities and improving the
environment.   
This did not happen by luck. We made hard decisions early. We cut shipments to
distributors to allow the channel inventory to normalize. We maintained pricing
discipline rather than chase short-term volume. We continued investing in the
long game     new markets, smarter products, deeper installer training, and U.S.
manufacturing capacity that gave us both resilience and margin.
Throughout it all, we stayed true to the three values that Enphase was built
upon: innovation, quality, and customer experience. Those values are in our
products, our reliability, the loyalty of our installers, and our ability to bounce
back. I am proud of our team   s ongoing dedication to developing technology
and products that further enable energy independence, while serving our
communities and improving the environment.
The U.S. presidential election in late 2024 brought volatility to clean energy
stocks. Speculation around the future of the investment tax credit (ITC)
and the Inflation Reduction Act (IRA) has created uncertainty. But our focus
remains unchanged     we build for durability, not transient times.
In the pages ahead, I will share what we have learned, where we are focused,
and why we believe Enphase is better-positioned than ever to thrive in the
years ahead.
ANNUAL REPORT 2024
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 4/4/2025 Letter Continued (Full PDF)