Promise vs. Reality: The Enphase Energy Performance Gap

NEW YORK , March 26, 2026 /PRNewswire/ -- "Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections," stated Joseph E. Levi, Esq., managing partner of Levi & Korsinsky, LLP.

Investors in Enphase Energy, Inc. (NASDAQ: ENPH) who purchased securities between April 22, 2025 and October 28, 2025 and suffered losses are encouraged to find out if you can recover investment losses or contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

ENPH shares fell $5.56, or 15.15%, closing at $31.14 on October 29, 2025, after the Company disclosed results and guidance that contradicted months of optimistic projections. The lead plaintiff deadline is April 20, 2026.

The Promise

Throughout the Class Period, management projected confidence on multiple fronts. On the Q2 Earnings Call on July 22, 2025, the Company guided Q3 2025 revenue of $330 million to $370 million and claimed it was "approximately 75% booked to the midpoint." Management described channel inventory management as being in "very good shape" and assured investors that 25D Credit pull-forward demand would "make the channel at reasonable levels by the end of the year." On TPO partnerships, management stated it was "in deep discussions" and "having conversations with almost 80% of them right now on safe harbor."

The Reality

On October 28, 2025, the gap between promise and outcome became clear:

• Q4 2025 Revenue Guidance: Promised range implied by analysts at $374.4M to $383M; actual guidance came in at $310M to $350M, a shortfall of up to $73M at the midpoint
• Q3 2025 Revenue Quality: Reported $410.4M included $70.9M of safe harbor revenue "pulled in from Q4 to Q3," meaning organic Q3 revenue was approximately $339.5M, falling 8.24% below the low end of guidance
• Channel Inventory: Management reversed course, announcing it was "reducing shipments of product to the channel in order to destock" after months of assuring investors destocking would not be necessary
• Q1 2026 Revenue: Estimated at $250M, far below analyst consensus of $321M and Goldman Sachs's initial $300M view
• 25D Credit Impact: Management acknowledged "a larger-than-normal seasonal decline" from 25D expiration after previously projecting that demand would offset the credit's termination

What the Lawsuit Alleges About the Gap

A securities class action contends that management overstated Enphase's ability to manage channel inventory and mitigate the effects of the 25D Credit termination throughout the Class Period. The contrast between projected outcomes and actual results forms the core of the allegations: investors received assurances of disciplined inventory control and robust demand catalysts while, the action claims, the Company's operational position was materially weaker than represented.

Check your eligibility to recover losses in the ENPH securities action or call (888) SueWallSt.

LEAD PLAINTIFF DEADLINE: April 20, 2026

Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.

CONTACT:

SueWallSt
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@SueWallSt.com
Tel: (888) SueWallSt
Fax: (212) 363-7171

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