Table of Contents Risk Factors Summary Investing in our securities involves a high degree of risk. The following is a summary of the principal factors that make an investment in our securities speculative or risky, as more fully described below in the section titled “Risk Factors.” This summary should be read in conjunction with the “Risk Factors” section and should not be relied upon as an exhaustive summary of the material risks facing our business. In addition to this summary, you should consider the information set forth in the “Risk Factors” section and the other information contained in this Annual Report on Form 10-K before investing in our securities: Risk Related to our Business, Operations and Our Industry • Unfavorable macroeconomic and market conditions may adversely affect our industry, business and financial results. • If demand for solar energy solutions does not grow or grows at a slower rate than we anticipate, our business will suffer. • The reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar electricity applications could reduce demand for solar photovoltaic systems and harm our business. • The solar industry is highly competitive, and we expect to face increased competition as new and existing competitors introduce products or develop alternative technologies, which could negatively impact our business, financial condition and results of operations. • Our recent and planned expansion into existing and new markets could subject us to additional business, financial and competitive risks. • We may fail to capture customers as we design and develop new products, and update existing products. • We depend upon a small number of outside contract manufacturers, and our business and operations could be disrupted if we encounter problems with these contract manufacturers. • We rely primarily on distributors, installers and providers of solar financing to assist in selling our products to customers, and the failure of these customers to perform at the expected level, or at all, would have an adverse effect on our business, financial condition and results of our operations. • We depend on limited-source suppliers for key components and products. If we are unable to source these components and products on a timely basis, we will not be able to deliver our products to our customers. • Challenges relating to supply chain constraints, including with respect to raw materials, semiconductors and integrated circuits, could adversely impact our revenue, gross margins and results of operations. • 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. • Manufacturing problems could result in delays in product shipments, which would adversely affect our revenue, competitive position and reputation. • The loss of, or events affecting, one of our major customers could reduce our sales and have an adverse effect on our business, financial condition and results of operations. • Our energy systems, including our storage solutions, IQ8 microinverters, ACM products and Ensemble OS technology, may not achieve broader market acceptance, which would prevent us from increasing our revenue and market share. • If our products contain manufacturing or software defects, our business and financial results could be harmed. • If we fail to retain our key personnel or if we fail to attract additional qualified personnel, we may not be able to achieve our anticipated level of growth and our business could suffer. • Restructuring activities could disrupt our business and adversely affect our results of operations. Enphase Energy, Inc. | 2023 Form 10-K | 5