Enphase Energy Announces Cost Reduction Plan

By Chris Stiles • Sunday, January 25 02:41 • Permanent Link

Enphase Energy, Inc. has announced strategic actions to align its resources with the priorities for 2026. The company is making targeted steps to simplify its organization, reduce costs, and focus investments on critical areas. As a result of these decisions, there will be a one-time restructuring and asset impairment charge of approximately $4.6 million.

In response to the changing market conditions, Enphase is aligning its cost structure to match the current environment. The company's non-GAAP operating expenses are currently approximately $80 million per quarter, but with slower near-term revenue growth, the company is targeting expenses of approximately $70 * $75 million per quarter starting from the third quarter of 2026.

Enphase is taking steps to strengthen its operating model and improve execution. This includes simplifying the organization, reducing non-essential spending, and transitioning certain smaller markets to a distribution-led coverage model. The company also plans to prioritize investment in its core product and software roadmap while scaling productivity through AI and automation.

As part of these strategic actions, Enphase has informed approximately 160 employees who will be impacted. The company has committed to treating each person with respect and care, providing severance packages, accelerated vesting of certain RSUs, and continued healthcare benefits.

Enphase remains committed to its quality, customer experience, and supporting its installers and channel partners. The company is focused on several growth initiatives for 2026, including working with partners to make prepaid lease with loan available to installers, accelerating adoption of its fourth-generation battery systems, capitalizing on battery retrofit opportunities in the Netherlands, and expanding fleet services and recurring revenue.

Badri Kothandaraman, President and CEO of Enphase Energy, Inc., expressed gratitude to the departing colleagues and emphasized the company's clear focus on execution, customer value, and maintaining exceptional quality and support as it looks toward 2026. As a result of these announcements, the company's shares have moved -1.07% on the market, and are now trading at a price of $34.98. For more information, read the company's full 8-K submission here.

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