Table of Contents ENPHASE ENERGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Years Ended December 31, 2023 2022 2021 Cash flows from operating activities: Net income $ 438,936 $ 397,362 145,449 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 74,708 58,775 30,846 Net amortization (accretion) of premium (discount) on marketable securities (15,561) (2,632) 1,593 Provision for doubtful accounts 1,153 119 477 Asset impairment 10,603 1,200 — Non-cash interest expense 8,380 8,167 44,387 Loss on partial settlement of convertibles notes — — 56,497 Deemed repayment of convertible notes attributable to accreted debt discount — — (15,718) Gain on settlement of debt securities — — (6,569) Net gain from change in fair value of debt securities (8,078) (735) (3,042) Stock-based compensation 212,857 216,802 114,286 Deferred income taxes (43,348) 3,633 (31,241) Changes in operating assets and liabilities: Accounts receivable (12,478) (107,556) (151,160) Inventory (63,887) (75,273) (29,258) Prepaid expenses and other assets (59,777) (68,423) (26,885) Accounts payable, accrued and other liabilities (22,149) 133,416 117,183 Warranty obligations 57,641 57,773 27,016 Deferred revenues 117,780 122,189 78,167 Net cash provided by operating activities 696,780 744,817 352,028 Cash flows from investing activities: Purchases of property and equipment (110,401) (46,443) (52,258) Purchase of intangible asset — — (250) Investments in private companies (15,000) (16,000) (58,000) Redemption of investment in private companies — — 26,569 Business acquisitions, net of cash acquired — (62,162) (235,652) Purchases of marketable securities (2,081,431) (907,430) (934,956) Maturities and sale of marketable securities 1,840,477 660,129 35,000 Net cash used in investing activities (366,355) (371,906) (1,219,547) Cash flows from financing activities: Issuance of convertible notes, net of issuance costs — — 1,188,439 Purchase of convertible note hedges — — (286,235) Sale of warrants — — 220,800 Principal payments and financing fees on debt — — (1,694) Partial repurchase of convertible notes — — (290,247) Proceeds from exercise of equity awards and employee stock purchase plan 13,870 10,370 7,484 Payment of withholding taxes related to net share settlement of equity awards (120,646) (27,496) (29,136) Repurchase of common stock (409,998) — (500,000) Net cash provided by (used in) financing activities (516,774) (17,126) 309,411 Effect of exchange rate changes on cash and cash equivalents 1,853 (1,857) (1,955) Net increase (decrease) in cash and cash equivalents (184,496) 353,928 (560,063) Cash and cash equivalents—Beginning of period 473,244 119,316 679,379 Cash and cash equivalents—End of period $ 288,748 $ 473,244 $ 119,316 Enphase Energy, Inc. | 2023 Form 10-K | 73