Recently, the United States photovoltaic inverter leader Enphase announced 2024 financial results, the annual revenue of $1.33 billion, down about 41.95%; Net income attributable to the parent was $103 million, down about 76.54% year over year, and earnings per share fell from $3.22 to $0.76.
Enphase, which had been growing rapidly for many years, finally hit a rough patch in 2024.
Founded in 2006, Enphase specializes in photovoltaic microinverter business and went public on the NASDAQ exchange in the U.S. in 2012.
In June 2018, Enphase acquired Sun Power’s microinverter subsidiary for $25 million in cash, becoming its exclusive supplier. In 2020, Enphase extended its business to energy storage and other fields, launching industry-leading products and solutions, thus entering a rapid growth phase.
According to Maximize Market Research, the microinverter market was valued at approximately 3 billion in 2019, and Enphase’s microinverter business revenue reached 770 million in 2020, with a global market share of 20-25%.
From 2020 to 2023, Enphase’s revenue increased from 774 million to 29.1 billion, and its net profit attributable to shareholders rose from 134 million to 439 million.
In the capital market, Enphase became a favorite among investors. In early 2020, Enphase’s share price was around 30, and in October 2022, it peaked at over 339, marking an increase of over 1000% and a market value of nearly $38 billion.
In 2023, despite multiple blows such as rising U.S. market interest rates, high inventory levels in the European market, and slowing demand, Enphase still delivered revenue of 2.29 billion and net profit attributable to shareholders of 439 million.
However, Enphase’s fortunes changed in 2024.
In the first quarter of 2024, Enphase suffered a setback with only 603MW of microinverter shipments, leading to a significant decline in performance and revenue of 263 million, with a net profit of 16 million.
There was not much improvement in the second and third quarters, with microinverter shipments of 608MW and 730MW, respectively. Cumulative shipments for the first three quarters were only on par with the first quarter of 2023.
Such poor performance led Enphase to announce layoffs of 500 employees and abandon its expansion plans in Mexico at the end of 2024.
During this period, Enphase’s share price also fell from over 300 to around 60, a decline of nearly 80%.
As of the close of trading on February 13, EST, Enphase’s share price was 62.59, with a total market value of 8.291 billion.
