Enphase Energy, Inc.ENPH
Enphase Energy, Inc. Earnings Per Share Disclosure
NET INCOME PER SHARE
Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed in a similar manner, but it also includes the effect of potential common shares outstanding during the period, when dilutive.
The following table presents the computation of basic and diluted net income per share for the periods presented:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Net income | $ | 172,133 | $ | 102,658 | $ | 438,936 | |||||||||||
| Notes due 2028 and Notes due 2026 financing costs, net | 1,967 | 2,486 | 2,573 | ||||||||||||||
| Adjusted net income | $ | 174,100 | $ | 105,144 | $ | 441,509 | |||||||||||
| Denominator: | |||||||||||||||||
Shares used in basic per share amounts: | |||||||||||||||||
| Weighted average common shares outstanding | 131,162 | 135,167 | 136,376 | ||||||||||||||
Shares used in diluted per share amounts: | |||||||||||||||||
| Weighted average common shares outstanding used for basic calculation | 131,162 | 135,167 | 136,376 | ||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||
| Employee stock-based awards | 353 | 474 | 1,782 | ||||||||||||||
| Notes due 2023 | — | — | 638 | ||||||||||||||
| Notes due 2025 | — | 288 | — | ||||||||||||||
2025 Warrants | — | — | 419 | ||||||||||||||
| Notes due 2026 | 1,353 | 2,057 | 2,057 | ||||||||||||||
| Notes due 2028 | 2,018 | 2,018 | 2,018 | ||||||||||||||
| Weighted average common shares outstanding for diluted calculation | 134,886 | 140,004 | 143,290 | ||||||||||||||
| Basic and diluted net income per share | |||||||||||||||||
| Net income per share, basic | $ | 1.31 | $ | 0.76 | $ | 3.22 | |||||||||||
| Net income per share, diluted | $ | 1.29 | $ | 0.75 | $ | 3.08 | |||||||||||
Diluted earnings per share for the year ended December 31, 2025 includes the dilutive effect of potentially dilutive common shares by application of the treasury stock method for stock options, RSUs, PSUs, ESPP, and includes potentially dilutive common shares by application of the if-converted method for the Notes due 2026 and the Notes due 2028. Diluted earnings per share for the year ended December 31, 2024 includes the dilutive effect of potentially dilutive common shares by application of the treasury stock method for stock options, RSUs, PSUs, ESPP, Notes due 2025, and includes potentially dilutive common shares by application of the if-converted method for the Notes due 2026 and Notes due 2028. Potentially dilutive common shares for the year ended December 31, 2023 include stock options, RSUs, PSUs, ESPP, Notes due 2023, Notes due 2026, Notes due 2028 and the 2025 Warrants. To the extent these potential common shares are antidilutive, they are excluded from the calculation of diluted net income per share.
The Company under the relevant sections of the indenture, irrevocably may elect to settle principal in cash and any excess conversion value in cash or shares of the Company’s common stock for the Notes due 2028. If and when the Company makes such election, there would be no adjustment to net income and the Company would use the average share price to determine the potential number of shares issuable upon an assumed conversion to be included in the diluted share count.
The Notes due 2026 are convertible at any time from September 1, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date of March 1, 2026. Upon conversion, the Company has elected, on August 28, 2025, to settle the Notes due 2026 with a combination of cash and shares of the Company’s common stock, whereby the principal amount would be settled in cash and any excess conversion value would be settled in shares of the Company's common stock. As a result, after the election date, there is no adjustment to net income and the Company uses the average share price to determine the potential number of shares issuable upon an assumed conversion to be included in the diluted share count.
The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net income per share attributable to common stockholders because their effect would have been antidilutive:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Employee stock-based awards | 3,234 | 1,359 | 1,113 | ||||||||||||||
2025 Warrants | 619 | — | — | ||||||||||||||
| Notes due 2025 | 200 | — | 1,253 | ||||||||||||||
| Notes due 2026 | 704 | — | — | ||||||||||||||
| 2026 Warrants | 2,057 | 5,673 | 3,038 | ||||||||||||||
| 2028 Warrants | 2,018 | 5,566 | 2,981 | ||||||||||||||
| Total | 8,832 | 12,598 | 8,385 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 10, 2025 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.