0001463101false00014631012023-07-272023-07-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________________________
FORM 8-K
________________________________________________

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 27, 2023
________________________________________________
enpha06.jpg
ENPHASE ENERGY, INC.
(Exact name of registrant as specified in its charter)
________________________________________________
Delaware 001-35480 20-4645388
(State or other jurisdiction of Incorporation) (Commission File No.) (IRS Employer Identification No.)

47281 Bayside Parkway
Fremont, CA 94538
(Address of principal executive offices, including zip code)
(707) 774-7000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.00001 par value per shareENPHNasdaq Global Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 





Item 2.02. Results of Operations and Financial Condition.
On July 27, 2023, Enphase Energy, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the second quarter ended June 30, 2023. A copy of the press release is furnished as Exhibit 99.1 to this report. Information on the Company’s website is not, and will not be deemed, a part of this report or incorporated into this or any other filings that the Company makes with the Securities and Exchange Commission.
The information in Item 2.02 of this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and shall not be incorporated by reference in any registration statement or other document filed under the Securities Act or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filings, except as shall be expressly set forth by specific reference in such a filing.
Item 8.01. Other Events.
Previously in the Company's 2023 Proxy Statement, the Company announced that David Ranhoff, the Company's Executive Vice President and Chief Commercial Officer, intended to transition to a part-time role in June 2023 as Commercial Advisor. However, Mr. Ranhoff and the Company have decided that he will continue in a full-time capacity as the Company's Executive Vice President and Chief Commercial Officer.
Share Repurchase Program
On July 27, 2023, the Company also announced that its Board of Directors authorized the repurchase of up to an aggregate of $1.0 billion of the Company's common stock. Subject to applicable rules and regulations, the stock repurchases may be made from time to time, through solicited or unsolicited transactions in the open market, in privately negotiated transactions or pursuant to a Rule 10b5-1 plan. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws, and other considerations. The share repurchase program may be discontinued or amended at any time by the Company's Board of Directors and expires on July 26, 2026.

A copy of the press release is attached as Exhibit 99.2 to this current report on Form 8-K and is incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:July 27, 2023ENPHASE ENERGY, INC.
 By:/s/ Mandy Yang
  Mandy Yang
  Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)




Exhibit 99.1
enpha061.jpg
Enphase Energy Reports Financial Results for the Second Quarter of 2023
FREMONT, Calif., July 27, 2023 - Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today financial results for the second quarter of 2023, which included the summary below from its President and CEO, Badri Kothandaraman.
We reported quarterly revenue of $711.1 million in the second quarter of 2023, along with 46.2% for non-GAAP gross margin. We shipped 5,198,441 microinverters, or approximately 2,121.3 megawatts DC, and 82.3 megawatt hours of IQ Batteries.
Financial highlights for the second quarter of 2023 are listed below:
Quarterly revenue of $711.1 million
GAAP gross margin of 45.5%; non-GAAP gross margin of 46.2%
GAAP operating income of $170.3 million; non-GAAP operating income of $230.5 million
GAAP net income of $157.2 million; non-GAAP net income of $205.6 million
GAAP diluted earnings per share of $1.09; non-GAAP diluted earnings per share of $1.47
Free cash flow of $225.2 million; ending cash, cash equivalents, and marketable securities of $1.8 billion
Our revenue and earnings for the second quarter of 2023 are provided below, compared with the prior quarter:
(In thousands, except per share and percentage data)
GAAPNon-GAAP
Q2 2023Q1 2023Q2 2022Q2 2023Q1 2023Q2 2022
Revenue$711,118 $726,016 $530,196 $711,118 $726,016 $530,196 
Gross margin45.5 %45.0 %41.3 %46.2 %45.7 %42.2 %
Operating expenses$153,022 $158,708 $124,969 $98,162 $98,375 $71,169 
Operating income$170,320 $167,663 $94,036 $230,468 $233,562 $152,412 
Net income$157,191 $146,873 $76,976 $205,599 $192,319 $149,852 
Basic EPS$1.15 $1.07 $0.57 $1.51 $1.41 $1.11 
Diluted EPS$1.09 $1.02 $0.54 $1.47 $1.37 $1.07 
Total revenue for the second quarter of 2023 was $711.1 million, compared to $726.0 million in the first quarter of 2023. Our revenue in the United States for the second quarter of 2023 decreased over 12% due to macroeconomic conditions, while our revenue in Europe increased approximately 25%, compared to the first quarter of 2023.
Our non-GAAP gross margin was 46.2% in the second quarter of 2023, compared to 45.7% in the first quarter of 2023, driven by increased IQ8 product mix and improved logistics. Our non-GAAP operating expenses were $98.2 million in the second quarter of 2023, compared to $98.4 million in the first quarter of 2023. Our non-GAAP operating income was $230.5 million in the second quarter of 2023, compared to $233.6 million in the first quarter of 2023.
We exited the second quarter of 2023 with $1.8 billion in cash, cash equivalents, and marketable securities and generated $269.2 million in cash flow from operations in the second quarter of 2023. Our capital expenditures were $44.0 million in the second quarter of 2023, compared to $22.5 million in the first quarter of 2023. The increase was primarily due to investment in U.S. manufacturing and R&D equipment.
IQ8 Microinverters constituted approximately 78% of all our microinverter shipments during the second quarter of 2023. In addition to the U.S., we are now shipping IQ8 Microinverters into France, the Netherlands, Spain, Portugal, Poland, and Germany to support newer high-powered solar panels.
1


Our IQ Battery shipments were 82.3 megawatt hours in the second quarter of 2023, compared to 102.4 megawatt hours in the first quarter of 2023. We recently introduced IQ Batteries into Spain and Portugal and launched the IQ Battery 5P, our most powerful battery-to-date, in Australia, the United States, and Puerto Rico during the second quarter of 2023. The IQ Battery 5P is modular and can deliver 3.84 kW continuous power and 7.68 kW peak power, enabling homeowners to start heavy loads like air conditioners easily during power outages. More than 3,500 installers worldwide are certified to install our IQ Batteries.
We began shipments of our microinverters in the second quarter of 2023 from our contract manufacturer Flex in Columbia, South Carolina. We are pleased that President Biden was able to visit the Flex facility and inaugurate the function. In addition, we began shipments from our new contract manufacturing partner Foxconn in Mount Pleasant, Wisconsin. We shipped approximately 50,000 units from these two U.S. contract manufacturers in the second quarter of 2023 and realized a net IRA benefit of $1.6 million. The Inflation Reduction Act (“IRA”) has enabled us to begin manufacturing in the United States, creating new jobs, advancing the country's clean energy economy, and contributing to the growth of our business. We remain on track to begin shipments from a third U.S. contract manufacturer in the third quarter of 2023.
As part of our share repurchase program authorized by our Board of Directors in May 2021, we repurchased approximately 1.25 million shares in the second quarter of 2023 at an average price of $159.43 for a total of approximately $200 million. This completed our $500 million share repurchase program authorized in May 2021.
Our Board of Directors has recently authorized a new share repurchase program pursuant to which we may repurchase up to an aggregate of $1.0 billion of our common stock. Subject to applicable rules and regulations, the stock repurchases may be made from time to time, through solicited or unsolicited transactions in the open market, in privately negotiated transactions or pursuant to a Rule 10b5-1 plan. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws, and other considerations. The share repurchase program may be discontinued or amended at any time by our Board of Directors and expires on July 26, 2026.
BUSINESS HIGHLIGHTS

On July 20, 2023, Enphase Energy announced that it expanded its global relationship with renewable energy company BayWa r.e., a leading global developer and solar photovoltaic distributor, to distribute Enphase’s family of IQ8 Microinverters in Poland.
On July 17, 2023, Enphase Energy announced that Solargraf℠, its cloud-based design and proposal software platform used by solar installers for creating production system proposals and plan documents for both residential and commercial customers, is now available in Brazil.
On June 29, 2023, Enphase Energy announced that it expanded its relationship with 4blue, a full-service wholesaler of solar and battery systems, to distribute IQ® Microinverters and IQ Batteries in the Netherlands, Germany, Belgium, and Luxembourg.
On June 26, 2023, Enphase Energy announced the launch of IQ8 Microinverters, with peak output AC power of 384 W, in Germany to support newer high-powered solar modules.
On June 12, 2023, Enphase Energy announced the launch of the IQ Energy Router family of devices in Germany and Austria to enable the integration of select third-party electric vehicle chargers and heat pumps into Enphase solar and battery systems.
On May 30, 2023, Enphase Energy announced that it expanded its relationship with Natec, a leading wholesaler of solar and battery products, to distribute IQ Microinverters and IQ Batteries across Europe.
On May 4, 2023, Enphase Energy announced the launch of IQ8 Microinverters, with peak output AC power of 384 W, in Poland to support newer high-powered solar modules.
2


THIRD QUARTER 2023 FINANCIAL OUTLOOK
For the third quarter of 2023, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:
Revenue to be within a range of $550.0 million to $600.0 million, which includes shipments of 80 to 100 megawatt hours of IQ Batteries
GAAP gross margin to be within a range of 41.0% to 44.0%, before net IRA benefit
Non-GAAP gross margin to be within a range of 42.0% to 45.0%, excluding stock-based compensation expense and acquisition related amortization and before net IRA benefit
Net IRA benefit to be within a range of $14.5 to $16.5 million based on estimated shipments of 600,000 units of U.S. manufactured microinverters
GAAP operating expenses to be within a range of $159.0 million to $163.0 million
Non-GAAP operating expenses to be within a range of $101.0 million to $105.0 million, excluding $58.0 million estimated for stock-based compensation expense and acquisition related expenses and amortization
GAAP and non-GAAP annualized effective tax rate with IRA benefit is expected to be within a range of 20.0% to 22.0%
Follow Enphase Online
Read the Enphase blog.
Follow @Enphase on Twitter.
Visit us on Facebook and LinkedIn.
Watch Enphase videos on YouTube.
Use of non-GAAP Financial Measures
Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), and free cash flow.
These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.
As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:
3


Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.
Acquisition related expenses and amortization. This item represents expenses incurred related to Enphase Energy’s business acquisitions, which are non-recurring in nature, and amortization of acquired intangible assets, which is a non-cash expense. Acquisition related expenses and amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.
Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment related charges due to the nature of the expenses being unplanned and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs and asset write-downs of property and equipment, and other contract termination costs resulting from restructuring initiatives.
Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.
Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to report the non-GAAP tax amount based on cash tax expense and reserves for periods prior to 2023. Effective January 1, 2023, Enphase Energy updated its methodology of computing the non-GAAP income tax adjustment from reporting cash tax expense and reserves to the projected non-GAAP annualized effective tax rate as Enphase Energy utilized most of its net operating loss and tax credit carryforwards in the year ended December 31, 2022 and became a significant cash taxpayer in the United States. Going forward, Enphase Energy will exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.
Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.
Conference Call Information
Enphase Energy will host a conference call for analysts and investors to discuss its second quarter 2023 results and third quarter 2023 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (877) 344-7529; replay access code 6951053, beginning approximately one hour after the call.
Forward-Looking Statements
This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its third quarter of 2023 financial outlook, gross margin, operating expenses, and annualized effective tax rate; its expectations regarding the expected net IRA benefit and the ability of the IRA to contribute to its growth; timing, price, and volume of repurchases under the new share repurchase program; its expectations on the timing of the introduction of IQ Batteries into new countries globally; the capabilities, advantages, features, and performance of its technology and products; the anticipated demand for and availability of its products and services; and growth in deployments of Enphase products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K and other documents on file with the SEC from time to time and available on the SEC’s website at www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.
4


A copy of this press release can be found on the investor relations page of Enphase Energy’s website at investor.enphase.com.
About Enphase Energy, Inc.
Enphase Energy, a global energy technology company based in Fremont, CA, is the world's leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 68 million microinverters, and more than 3.5 million Enphase-based systems have been deployed in over 145 countries. For more information, visit www.enphase.com.
© 2023 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, Solargraf, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.


Contact:

Zach Freedman
Enphase Energy, Inc.
Investor Relations
ir@enphaseenergy.com
5


ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months EndedSix Months Ended
June 30,
2023
March 31,
2023
June 30,
2022
June 30,
2023
June 30,
2022
Net revenues$711,118 $726,016 $530,196 $1,437,134 $971,488 
Cost of revenues387,776 399,645 311,191 787,421 575,510 
Gross profit323,342 326,371 219,005 649,713 395,978 
Operating expenses:
Research and development60,043 57,129 39,256 117,172 74,975 
Sales and marketing58,405 64,621 53,588 123,026 94,932 
General and administrative34,397 36,265 32,125 70,662 70,211 
Restructuring charges177 693 — 870 — 
Total operating expenses153,022 158,708 124,969 311,730 240,118 
Income from operations170,320 167,663 94,036 337,983 155,860 
Other income (expense), net
Interest income16,526 13,040 796 29,566 1,256 
Interest expense(2,219)(2,156)(2,168)(4,375)(4,904)
Other income (expense), net(33)426 (456)393 (2,597)
Total other income (expense), net14,274 11,310 (1,828)25,584 (6,245)
Income before income taxes184,594 178,973 92,208 363,567 149,615 
Income tax provision(27,403)(32,100)(15,232)(59,503)(20,818)
Net income$157,191 $146,873 $76,976 $304,064 $128,797 
Net income per share:
Basic$1.15 $1.07 $0.57 $2.23 $0.96 
Diluted$1.09 $1.02 $0.54 $2.11 $0.91 
Shares used in per share calculation:
Basic136,607 136,689 135,196 136,650 134,768 
Diluted145,098 145,986 143,725 145,608 143,602 


6


ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30,
2023
December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents$278,676 $473,244 
Marketable securities1,521,816 1,139,599 
Accounts receivable, net520,306 440,896 
Inventory166,111 149,708 
Prepaid expenses and other assets73,880 60,824 
Total current assets2,560,789 2,264,271 
Property and equipment, net151,657 111,367 
Operating lease, right of use asset, net22,954 21,379 
Intangible assets, net85,960 99,541 
Goodwill214,290 213,559 
Other assets195,283 169,291 
Deferred tax assets, net234,949 204,872 
Total assets$3,465,882 $3,084,280 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$79,075 $125,085 
Accrued liabilities425,285 295,939 
Deferred revenues, current109,176 90,747 
Warranty obligations, current36,686 35,556 
Debt, current93,383 90,892 
Total current liabilities743,605 638,219 
Long-term liabilities:
Deferred revenues, noncurrent354,296 281,613 
Warranty obligations, noncurrent144,029 95,890 
Other liabilities50,251 43,520 
Debt, noncurrent1,201,114 1,199,465 
Total liabilities2,493,295 2,258,707 
Total stockholders’ equity972,587 825,573 
Total liabilities and stockholders’ equity$3,465,882 $3,084,280 


7


ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months EndedSix Months Ended
June 30,
2023
March 31,
2023
June 30,
2022
June 30,
2023
June 30,
2022
Cash flows from operating activities:
Net income$157,191 $146,873 $76,976 $304,064 $128,797 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization17,828 16,591 13,999 34,419 28,102 
Net amortization (accretion) of premium (discount) on marketable securities(10,157)(7,548)1,248 (17,705)2,703 
Provision for doubtful accounts449 180 (16)629 131 
Asset impairment— — 1,200 — 1,200 
Non-cash interest expense2,106 2,034 2,046 4,140 4,025 
Net (gain) loss from change in fair value of debt securities(1,754)(1,744)(987)(3,498)129 
Stock-based compensation54,166 59,655 53,064 113,821 100,861 
Deferred income taxes(10,615)(16,181)12,452 (26,796)15,617 
Changes in operating assets and liabilities:
Accounts receivable(3,968)(79,529)51,770 (83,497)27,546 
Inventory(15,548)(855)(33,830)(16,403)(55,866)
Prepaid expenses and other assets(20,536)(21,457)(18,310)(41,993)(21,352)
Accounts payable, accrued and other liabilities24,685 82,540 12,033 107,225 10,228 
Warranty obligations34,681 14,588 12,972 49,269 22,878 
Deferred revenues40,715 51,085 16,033 91,800 38,094 
Net cash provided by operating activities269,243 246,232 200,650 515,475 303,093 
Cash flows from investing activities:
Purchases of property and equipment(44,002)(22,476)(8,691)(66,478)(21,066)
Purchases of marketable securities(577,521)(695,387)(60,061)(1,272,908)(60,061)
Maturities and sale of marketable securities557,471 354,333 116,298 911,804 193,033 
Business acquisitions, net of cash acquired— — (3,055)— (27,680)
Net cash provided by (used in) investing activities(64,052)(363,530)44,491 (427,582)84,226 
Cash flows from financing activities:
Proceeds from exercise of equity awards and employee stock purchase plan556 40 4,183 596 4,587 
Repurchase of common stock(200,000)— — (200,000)— 
Payment of withholding taxes related to net share settlement of equity awards(12,790)(71,845)(5,463)(84,635)(14,807)
Net cash used in financing activities(212,234)(71,805)(1,280)(284,039)(10,220)
Effect of exchange rate changes on cash and cash equivalents(326)1,904 (238)1,578 (942)
Net increase (decrease) in cash and cash equivalents(7,369)(187,199)243,623 (194,568)376,157 
Cash and cash equivalents—Beginning of period286,045 473,244 251,850 473,244 119,316 
Cash and cash equivalents —End of period$278,676 $286,045 $495,473 $278,676 $495,473 
8


ENPHASE ENERGY, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data and percentages)
(Unaudited)
Three Months EndedSix Months Ended
June 30,
2023
March 31,
2023
June 30,
2022
June 30,
2023
June 30,
2022
Gross profit (GAAP)$323,342 $326,371 $219,005 $649,713 $395,978 
Stock-based compensation3,398 3,669 3,131 7,067 5,638 
Acquisition related amortization1,890 1,897 1,445 3,787 2,744 
Gross profit (Non-GAAP)$328,630 $331,937 $223,581 $660,567 $404,360 

Gross margin (GAAP)45.5 %45.0 %41.3 %45.2 %40.8 %
Stock-based compensation0.5 %0.5 %0.6 %0.5 %0.5 %
Acquisition related amortization0.2 %0.2 %0.3 %0.3 %0.3 %
Gross margin (Non-GAAP)46.2 %45.7 %42.2 %46.0 %41.6 %

Operating expenses (GAAP)$153,022 $158,708 $124,969 $311,730 $240,118 
Stock-based compensation (1)
(50,768)(55,986)(49,933)(106,754)(95,223)
Acquisition related expenses and amortization(3,884)(3,654)(3,867)(7,538)(7,476)
Restructuring and asset impairment charges(208)(693)— (901)— 
Operating expenses (Non-GAAP)$98,162 $98,375 $71,169 $196,537 $137,419 

(1) Includes stock-based compensation as follows:
Research and development
$23,765 $21,478 $16,266 $45,243 $29,995 
Sales and marketing
14,515 21,419 22,176 35,934 35,233 
General and administrative
12,488 13,089 11,491 25,577 29,995 
Total
$50,768 $55,986 $49,933 $106,754 $95,223 

Income from operations (GAAP)$170,320 $167,663 $94,036 $337,983 $155,860 
Stock-based compensation54,166 59,655 53,064 113,821 100,861 
Acquisition related expenses and amortization5,774 5,551 5,312 11,325 10,220 
Restructuring and asset impairment charges208 693 — 901 — 
Income from operations (Non-GAAP)$230,468 $233,562 $152,412 $464,030 $266,941 

Net income (GAAP)$157,191 $146,873 $76,976 $304,064 $128,797 
Stock-based compensation54,166 59,655 53,064 113,821 100,861 
Acquisition related expenses and amortization5,774 5,551 5,312 11,325 10,220 
Restructuring and asset impairment charges208 693 — 901 — 
Non-cash interest expense2,106 2,034 2,048 4,140 4,027 
Non-GAAP income tax adjustment(13,846)(22,487)12,452 (36,333)15,617 
9


Three Months EndedSix Months Ended
June 30,
2023
March 31,
2023
June 30,
2022
June 30,
2023
June 30,
2022
Net income (Non-GAAP)$205,599 $192,319 $149,852 $397,918 $259,522 

Net income per share, basic (GAAP)$1.15 $1.07 $0.57 $2.23 $0.96 
Stock-based compensation0.40 0.44 0.39 0.83 0.75 
Acquisition related expenses and amortization0.04 0.04 0.04 0.08 0.08 
Restructuring and asset impairment charges— 0.01 — 0.01 — 
Non-cash interest expense0.02 0.01 0.02 0.03 0.03 
Non-GAAP income tax adjustment(0.10)(0.16)0.09 (0.27)0.11 
Net income per share, basic (Non-GAAP)$1.51 $1.41 $1.11 $2.91 $1.93 
Shares used in basic per share calculation GAAP and Non-GAAP136,607 136,689 135,196 136,650 134,768 
Net income per share, diluted (GAAP)$1.09 $1.02 $0.54 $2.11 $0.91 
Stock-based compensation0.39 0.43 0.38 0.81 0.73 
Acquisition related expenses and amortization0.05 0.04 0.04 0.08 0.08 
Restructuring and asset impairment charges0.01 0.01 — 0.01 — 
Non-cash interest expense0.02 0.02 0.02 0.03 0.03 
Non-GAAP income tax adjustment(0.09)(0.15)0.09 (0.20)0.11 
Net income per share, diluted (Non-GAAP) (2)
$1.47 $1.37 $1.07 $2.84 $1.86 
Shares used in diluted per share calculation GAAP145,098 145,986 143,725 145,608 143,602 
Shares used in diluted per share calculation Non-GAAP (3)
139,770 140,658 139,650 140,280 139,527 
Net cash provided by operating activities (GAAP)$269,243 $246,232 $200,650 $515,475 $303,093 
Purchases of property and equipment(44,002)(22,476)(8,691)(66,478)(21,066)
Free cash flow (Non-GAAP)$225,241 $223,756 $191,959 $448,997 $282,027 

(2)    Calculation of non-GAAP diluted net income per share for the three months ended June 30, 2023, March 31, 2023 and June 30, 2022, as well as the six months ended June 30, 2023 and 2022, excludes convertible Notes due 2023 interest expense, net of tax of less than $0.1 million in each period from non-GAAP net income.
(3)    Effect of dilutive in-the-money portion of convertible senior notes and warrants are included in the GAAP weighted-average diluted shares in periods where we have GAAP net income. We excluded convertible Notes due 2025, Notes due 2026 and Notes due 2028 totaling 5,328 thousand shares in each of the three months ended June 30, 2023 and, March 31, 2023, and the six months ended June 30, 2023, from non-GAAP weighted-average diluted shares as we entered into convertible note hedge transactions that reduce potential dilution to our common stock upon any conversion of the Notes due 2025, Notes due 2026 and Notes due 2028. We excluded convertible Notes due 2026 and Notes due 2028 totaling 4,075 thousand shares in each of the three and six months ended June 30, 2022 from non-GAAP weighted-average diluted shares as we entered into convertible note hedge transactions that reduce potential dilution to our common stock upon any conversion of the Notes due 2025, Notes due 2026 and Notes due 2028.
10

Exhibit 99.2
enpha06.jpg
Enphase Energy Announces New Share Repurchase Program
Program Authorizes up to $1 Billion of Shares of Common Stock to be Repurchased
FREMONT, Calif., July 27, 2023 - Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today that its Board of Directors approved a new share repurchase program with authorization to purchase up to $1.0 billion of shares of its common stock.
“Given our confidence in our long-term strategy and the value we see in our stock, our board has authorized an additional $1.0 billion for share repurchases,” said Badri Kothandaraman, president and CEO of Enphase Energy. “Our significant free cash flow generation allows us to continue investing for the long term, while also opportunistically buying back stock through a repurchase program.”
Enphase Energy’s Board of Directors has recently authorized a new share repurchase program pursuant to which Enphase Energy may repurchase up to an aggregate of $1.0 billion of its common stock. Subject to applicable rules and regulations, the stock repurchases may be made from time to time, through solicited or unsolicited transactions in the open market, in privately negotiated transactions or pursuant to a Rule 10b5-1 plan. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws, and other considerations. The share repurchase program may be discontinued or amended at any time by Enphase Energy’s Board of Directors and expires on July 26, 2026.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding Enphase Energy’s intended share repurchases; the timing, price, and volume of repurchases under the new share repurchase program; free cash flow generation; and value of its common stock and future growth. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K and other documents on file with the SEC from time to time and available on the SEC’s website at www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.
A copy of this press release can be found on the investor relations page of Enphase Energy’s website at investor.enphase.com.
About Enphase Energy, Inc.
Enphase Energy, a global energy technology company based in Fremont, CA, is the world's leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 68 million microinverters, and more than 3.5 million Enphase-based systems have been deployed in over 145 countries. For more information, visit www.enphase.com.
© 2023 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.


1


Contact:

Zach Freedman
Enphase Energy, Inc.
Investor Relations
ir@enphaseenergy.com
2
v3.23.2
Cover Page Cover Page
Jul. 27, 2023
Cover [Abstract]  
Entity Central Index Key 0001463101
Document Type 8-K
Document Period End Date Jul. 27, 2023
Entity Registrant Name ENPHASE ENERGY, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-35480
Entity Tax Identification Number 20-4645388
Entity Address, Address Line One 47281 Bayside Parkway
Entity Address, City or Town Fremont
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94538
City Area Code 707
Local Phone Number 774-7000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.00001 par value per share
Trading Symbol ENPH
Security Exchange Name NASDAQ
Security Exchange Name false
Amendment Flag false

Enphase Energy (NASDAQ:ENPH)
Historical Stock Chart
From Nov 2023 to Dec 2023 Click Here for more Enphase Energy Charts.
Enphase Energy (NASDAQ:ENPH)
Historical Stock Chart
From Dec 2022 to Dec 2023 Click Here for more Enphase Energy Charts.