Enphase Energy Inc

Equity Research 28 July 2026 | 10:16PM EDT

Enphase Energy Inc. (ENPH) Near-term outlook not as bad as feared, owing to safe harbor + Europe; SST customer traction potential next catalyst; Buy

ENPH 12m Price Target: $55.00 Price: $36.32 Upside: 51.4% BUY Brian Lee, CFA ENPH’s 2Q26 results and 3Q26 revenue guidance were relatively | Goldman Sachs & Co. LLC inline with expectations. Importantly, the 3Q26 guidance includes Tyler Bisset, CFA $75mn of safe harboring activity as compared to $84mn in 2Q26, | Goldman Sachs & Co. LLC with management anticipating another ~$61mn of activity in 4Q26 (all ahead of expectations). Looking ahead, ENPH continues to see Keshav Choudhary | Goldman Sachs India SPL robust demand in Europe, particularly for battery storage, amid expanding prepaid lease traction in the US as well as positive tailwinds from new products/end markets that aim to drive some Key Data _____________________________________ Market cap: $5.0bn incremental growth in 2H26 and beyond. Lastly, management Enterprise value: $4.2bn 3m ADTV: $372.6mn continues to see positive customer engagement regarding its United States solid-state transformer (SST) product for data centers, with several Americas Clean Energy M&A Rank: 3 customers advancing towards RFI and RFP negotiations representing GS Forecast __________________________________ a multi-GW pipeline. We remain Buy rated, with our full takeaways 12/25 12/26E 12/27E 12/28E

from the quarter contained here within. Revenue ($ mn) New Revenue ($ mn) Old 1,473.0 1,473.0 1,178.7 1,167.6 1,279.9 1,279.3 1,460.2 1,445.6 EBITDA ($ mn) EBIT ($ mn) Implications EPS ($) New EPS ($) Old n 2Q26 inline with expectations. ENPH reported 2Q26 revenue P/E (X)

of $292mn vs. GSe/FactSet consensus of $296mn/$290mn and Dividend yield (%) 0.0 0.0 0.0 0.0 Net debt/EBITDA (X) (1.3) (5.6) (6.0) (5.1) was within the guidance range of $280mn-$310mn (inclusive of 6/26 9/26E 12/26E 3/27E $84mn of safe harbor activity vs. $35mn in 1Q26). Revenue in EPS ($) the US decreased by 3% qoq, with sell-through also declining by GS Factor Profile ______________________________ 7% qoq. Conversely, Europe revenue improved by 35% qoq amid Growth

30% qoq growth in sell-through. Given the strength in Europe, Financial Returns

the US/international revenue mix shifted to 78%/22% from Multiple

83%/17% in 1Q26. Non-GAAP gross margins came in at 46.8%, Integrated towards the upper end of the guidance range of 44%-47%, and included a 2.0% tariff impact (vs. 4.3% in 1Q26). ENPH delivered Percentile 20th 40th 60th 80th 100th

1.59mn microinverters within the quarter, above our 1.48mn ENPH relative to Americas Coverage

unit estimate. Notably, ENPH shipped 113.8 MWh of battery ENPH relative to Americas Clean Energy

storage, which exceeded the 100 MWh-110 MWh guidance Source: Company data, Goldman Sachs Research estimates. See disclosures for details. range. With ENPH’s results largely as expected, non-GAAP EPS of $0.46 was inline with GSe/consensus views of $0.46.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Enphase Energy Inc. (ENPH)

Enphase Energy Inc. (ENPH) Balance Sheet ($ mn) _______________________________________ BUY Rating since Jan 19, 2026 12/25 12/26E 12/27E 12/28E Cash & cash equivalents ,233.6 893.2 Accounts receivable Inventory Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets 2,606.9 2,390.5 2,806.6 2,630.3 P/E (X) Net PP&E EV/EBITDA (X) Net intangibles -- -- -- -- EV/sales (X) 3.7 3.4 3.0 2.5 Total investments 0.0 0.0 0.0 0.0 FCF yield (%) Other long-term assets EV/DACF (X) Total assets 3,509.8 3,132.9 3,607.5 3,464.1 CROCI (%) ROE (%) Accounts payable Net…