Enphase Energy, Inc. reported significant declines in revenue and profitability for the third quarter and the first nine months of 2024, as detailed in its 10-Q filing. For the three months ended September 30, 2024, net revenues were $380.9 million, a decrease of 31% from $551.1 million in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $947.7 million, down 52% from $1.99 billion year-over-year. This decline was attributed to a slowdown in demand in both the U.S. and European markets, influenced by higher interest rates, increased channel inventory, and changes in net energy metering policies.
Gross profit for the third quarter of 2024 was $178.2 million, down 32% from $262.0 million in the prior year, while gross profit for the nine-month period fell to $430.8 million, a 53% decrease from $911.7 million. The company's income from operations also saw a sharp decline, with $49.8 million for Q3 2024 compared to $118.0 million in Q3 2023, and $22.5 million for the nine months ended September 30, 2024, down from $456.0 million in the same period of 2023.
Net income for the third quarter was $45.8 million, a decrease of 60% from $114.0 million in Q3 2023, while net income for the nine months ended September 30, 2024, was $40.5 million, down from $418.0 million in the previous year. Basic net income per share for Q3 2024 was $0.34, compared to $0.84 in Q3 2023.
The company’s total current assets decreased to $2.36 billion as of September 30, 2024, from $2.44 billion at the end of 2023. Cash and cash equivalents also fell to $256.3 million from $288.7 million. Total stockholders' equity decreased to $931.4 million from $983.6 million at year-end 2023.
Enphase has been implementing a restructuring plan initiated in late 2023 to enhance operational efficiencies and reduce costs, which has resulted in decreased research and development, sales and marketing, and general administrative expenses. The company recorded restructuring charges of $3.8 million for the nine months ended September 30, 2024, primarily related to contract terminations and employee severance.
In terms of strategic developments, Enphase authorized a share repurchase program in July 2023, allowing for the repurchase of up to $1.0 billion of common stock. As of September 30, 2024, the company had repurchased 1.66 million shares for $191.7 million, with $598.3 million remaining under the program. The company also faced legal challenges, including a breach of contract lawsuit filed by Zola Electric International, Ltd. and several securities class action lawsuits.
About Enphase Energy, Inc.
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