Enphase Energy Inc. (ENPH) reported third-quarter financial results after the closing bell on Tuesday, and the numbers were not pretty. The company missed on both the top and bottom lines, and its guidance for the current quarter came in well below what analysts were expecting.

Enphase Energy Q3 Highlights

Enphase posted third-quarter revenue of $293.33 million, missing the consensus estimate of $304.04 million, according to MarketDash Pro. Adjusted earnings came in at 41 cents per share, short of the 51 cents per share analysts had forecast.

Global sell-through increased approximately 1% sequentially in the quarter. That was well below expectations for 10% growth and contributed to the lower total revenue.

The company said it shipped approximately 1.42 million IQ microinverters and 129.9 megawatt hours of IQ batteries during the quarter. Enphase also noted that it demonstrated 13.8 kV AC to 800 VDC conversion using its IQ SST technology during the period.

Management pointed to a tough backdrop in its core market: "Our core U.S. residential solar market continues to face headwinds from higher interest rates and the expiration of the Section 25D federal tax credit. We are addressing these near-term challenges while positioning Enphase for a new phase of growth," the company said.

Enphase generated approximately $100,000 in cash flow from operations during the quarter and exited the period with $931.8 million in cash, cash equivalents and marketable securities.

Looking ahead, Enphase expects fourth-quarter revenue to be in the range of $225 million to $255 million. That is far below the $298.39 million consensus estimate. Management will discuss the quarter on an earnings call at 4:30 p.m. ET.

ENPH Shares Fall

Enphase shares were down 10.41% in after-hours trading on Tuesday, changing hands at $26.55 at the time of publication, according to MarketDash Pro.