Enphase Energy shares tumbled over 15% in overnight trading after the battery and solar company fell short of expectations and lowered its outlook, citing weak residential demand.
The company reported earnings of 41 cents a share and revenue of $293 million, a 28% drop from a year ago. Analysts expected earnings of 51 cents a share and revenue of $304 million.
Enphase sees fourth quarter revenue of $225 million to $255 million, which is also below expectations, and it sees adjusted gross margin in a range of 40% to 43%, including two percentage points of tariff impacts.
The company said its core U.S. residential solar market continues to face headwinds from higher interest rates and the expiration of federal tax credits.
"We are addressing these near-term challenges while positioning Enphase for a new phase of growth," the company said.
Those growth plans include a fifth generation battery for residential markets, a prepaid lease program to encourage residential solar and battery adoption, commercial solar and battery products, electric vehicle chargers for global markets, and power converters for AI data centers.
"Together we believe these opportunities expand our addressable market, leverage our power electronics expertise, and position Enphase for sustainable long-term growth," the company said.
Enphase stock is down 9.79% this month, on pace for the worst month since July 2026, when it fell 23.76%, according to Dow Jones Market Data. The stock is down 7.15% this year.
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