Enphase Energy, Inc.

Natural and catastrophic events · Pandemic and public health crises

A disruption could also occur in one of our contract manufacturers' facilities due to any number of reasons, such as equipment failure, contaminated materials, process deviations, the effects of climate change and related extreme weather events, or social, geopolitical or health factors, including pandemics or widespread health epidemics such as the COVID-19 pandemic, which could adversely impact manufacturing yields or delay product shipments.

Geopolitical and trade · International conflicts and tensions

Trade disputes, trade restrictions, tariffs and other geopolitical tensions between the United States and other countries may also exacerbate unfavorable macroeconomic conditions including inflationary pressures, foreign exchange volatility, financial market instability, and economic recessions or downturns, which may also negatively impact customer demand for our products or services.

Natural and catastrophic events · Natural disasters and extreme weather

Our corporate headquarters in Fremont, California is located near major earthquake fault lines and our Petaluma, California facility is near fault lines and the sites of recent catastrophic wildfires. We rely on third-party manufacturing facilities, including for all product assembly and final testing of our products, which are performed at third-party manufacturing facilities, in China and India.

Supply chain and procurement · Supplier financial distress and capability

We depend on sole-source and limited-source suppliers for key components of our products, such as our ASICs and lithium-ion batteries. Any of the sole-source and limited-source suppliers upon whom we rely could experience quality and reliability issues, stop producing our components, cease operations, face climate-related disruptions, or be acquired by, or enter into exclusive arrangements with, our competitors.

Core operations · Capacity utilization and efficiency

Manufacturing problems could result in delays in product shipments, which would adversely affect our revenue, competitive position and reputation. We have in the past and may in the future experience delays, disruptions or quality control problems in our manufacturing operations. Our product development, manufacturing and testing processes are complex and require significant technological and production process expertise.

Supply chain and procurement · Raw material availability and cost volatility

If we or our contract manufacturers are unable to obtain raw materials in a timely manner or if the price of raw materials increases significantly, production time and product costs could increase, which may adversely affect our business. The manufacturing and packaging processes used by us and our contract manufacturers depend on raw materials such as copper, aluminum, silicon and petroleum-based products.

Project and contract management · Project execution and delivery risks

We may fail to capture customers as we design and develop new products and update existing products. We are pursuing opportunities in energy management and energy storage that are highly competitive markets. Developing new products or next generation products is complex and requires significant preparation, precautionary safety measures, time-consuming string calculations, extensive design expertise and specialized installation equipment, training and knowledge.

Core operations · Facility damage and equipment failure

A disruption could also occur in one of our contract manufacturers' facilities due to any number of reasons, such as equipment failure, contaminated materials, process deviations, the effects of climate change and related extreme weather events, or social, geopolitical or health factors, including pandemics or widespread health epidemics such as the COVID-19 pandemic, which could adversely impact manufacturing yields or delay product shipments.

Human capital and workforce · Key personnel dependence and succession

For example, we are highly dependent on our president and chief executive officer, Badrinarayanan Kothandaraman. Mr. Kothandaraman possesses technical knowledge of our business, operations and strategy, and he has substantial experience and contacts that help us implement our goals, strategy and plan. If we lose his services or if he decides to join a competitor or otherwise compete directly or indirectly with us, our business, operating results and financial condition could be materially harmed.

Market and investment · Asset valuation and impairment

An impairment in the carrying value of goodwill or other intangible and long-lived assets could negatively affect our operating results. We record goodwill from the purchase consideration paid in excess of the fair value of the net assets recorded in connection with a business acquisition. As of December 31, 2025, goodwill and intangible assets, net, were approximately $214.8 million and $22.3 million, respectively.

Capital structure and performance · Financial performance volatility

Our quarterly revenue and results of operations have varied in the past and may continue to vary significantly from quarter to quarter. As a result, the trading price of our common stock has been, and is likely to continue to be, volatile and could be subject to wide fluctuations in response to various factors, some of which are beyond our control.

Market and investment · Market volatility and economic cycles

Our portfolio of marketable securities is subject to market, interest and credit risk that may reduce its value. As of December 31, 2025, we held $1,038.5 million of investments in marketable securities. These investments consisted primarily of U.S. Treasuries, U.S. Government agency securities, commercial paper and corporate notes and bonds.

Cybersecurity and data protection · Insider threats and access controls

Intentional or non-malicious breaches by employees or others may pose a risk that valuable data, including our intellectual property, trade secrets or personal information of our employees, customers or users, or other business partners may be exposed to unauthorized persons or to the public, or that risks of loss or misuse of this information could occur.

Digital transformation and innovation · Technology obsolescence and evolution

Any failure by us to adopt new or enhanced technologies or processes, or to react to changes in existing technologies, could result in product obsolescence, the loss of competitiveness of our products, decreased revenue and a loss of market share to competitors.

Stakeholder relations · Supplier and vendor relationships

We depend on solar distributors, installers and providers of solar financing to assist in selling our products to customers, and if they fail to perform at the expected level, or at all, our business, financial condition and results of our operations could be harmed. We primarily sell our solutions through solar distributors, as well as directly to solar equipment installers and developers of third-party solar finance offerings (such as TPOs).

Corporate governance · Internal controls and risk management

If we fail to maintain an effective system of internal controls or are unable to remediate any deficiencies in our internal controls, we might not be able to report our financial results accurately or prevent fraud; in that case, our stockholders could lose confidence in our financial reporting, which would harm our business and could negatively impact the price of our stock.

Reputation and brand · Esg environmental social governance performance

Expectations relating to ESG considerations and related reporting obligations may expose our business to potential liabilities, increased costs, and reputational harm. Many stakeholders including governments, regulators, investors, employees and business partners are focused on corporate environmental, social and governance ('ESG') considerations such as greenhouse gas emissions, natural resource management, human rights and human capital management practices.

Strategic execution · Geographic expansion and market entry

Our recent and planned expansion into existing and new markets could subject us to additional business, financial and competitive risks. We currently offer solar energy systems targeting the residential and commercial markets throughout the world, and we intend to continue to expand into other international markets. Our success in new geographic and product markets will depend on a number of factors, such as: acceptance of microinverters, batteries and EV chargers in markets in which they have not traditionally been used.

Strategic execution · Merger acquisition and divestiture risks

We have made and expect to continue to make acquisitions. If we fail to successfully select, execute or integrate our acquisitions, then our business and operating results could be harmed and our stock price could decline. From time to time, we will undertake acquisitions to add new product lines and technologies, gain new sales channels or enter new sales territories.

Legal and litigation · Product liability and warranty claims

Since some of our products are electricity-producing devices, it is possible that our systems could result in injury, whether by product malfunctions, defects, improper installation, or other causes. We rely on third party installers to install our products according to our installation guides and with local laws. Any significant installation problems could cause us significant harm, including, the occurrence of significant service costs.