ENPHCAUTIOUS

ENPH Gross Margin Analysis

60.0%

Updated 441h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after direct production costs; at 60.0%, ENPH keeps 60 cents of every dollar before other expenses.

Sector Performance

70th percentile

ENPH

60.0%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

35.5%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after direct production costs; at 60.0%, ENPH keeps 60 cents of every dollar before other expenses.

That level sits above the sector median of 46.4%, placing the company at the 70th percentile among peers. The year-over-year change is N/A, and the quarter-over-quarter change is +69.0%; the eight-quarter trend is N/A because only two historical values are available: 60.0% and 35.5%. The current margin is high, but the jump from 35.5% to 60.0% in one quarter makes the level harder to trust as a stable baseline. This combination supports the CAUTIOUS verdict: the margin is favorable versus peers, yet the missing longer trend and sharp swing leave real uncertainty about future performance.

Frequently Asked Questions

What does the Gross Margin tell investors about ENPH?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are ENPH's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.