Stock Collapses Over 15% on Revised Guidance
Enphase Energy's stock price dropped by more than 15% on October 28, 2025, after the company reported its third-quarter financial results. The sharp decline was triggered by management's disclosure that elevated channel inventory would reduce battery storage shipments in the fourth quarter. Furthermore, the company acknowledged that the expiration of the Residential Clean Energy Credit, a key federal incentive under Internal Revenue Code Section 25D, would negatively impact revenues in the first quarter of 2026. This news contradicted previous company statements and triggered a significant sell-off as investors adjusted to the revised operational outlook.
Lawsuits Allege Fraudulent Statements from April to October 2025
Following the stock's decline, multiple law firms, including The Schall Law Firm, Pomerantz LLP, and Robbins Geller Rudman & Dowd LLP, have initiated class-action lawsuits against Enphase Energy. The suits, filed in the U.S. District Court for the Northern District of California, allege that Enphase and its top executives violated federal securities laws. The core allegation is that the company made false and misleading statements between April 22, 2025, and October 28, 2025. Specifically, the complaints claim Enphase overstated its ability to manage its sales channel inventory and misrepresented its capacity to mitigate the financial effects of the terminating tax credit. Investors who purchased ENPH securities during this period are encouraged to contact the firms before the April 20, 2026, deadline to be considered for the lead plaintiff role.
Edgen Stock·Mar 23 2026, 07:40
