Enphase Energy expects its GAAP gross margin for Q1 2026 to be reduced by approximately 6.7 percentage points compared to prior guidance due to the sale of $235 million in tax credits.
Key takeaways
The company sold $235 million of 2025 production tax credits for $218.55 million, resulting in a $16.5 million discount.
Transaction-related fees of approximately $2.5 million were incurred for the tax credit sale.
These amounts will be excluded from non-GAAP financial measures for Q1 2026 as they relate to prior year credits.
The tax credit sale is expected to reduce GAAP gross margin by approximately 6.7 percentage points compared to prior guidance.