The company expanded operations with contract manufacturers in the United States to produce five million microinverters per quarter and began shipping residential and commercial microinverters and batteries with higher domestic content to qualify for domestic content bonus tax credit.

A restructuring plan was implemented to better align the workforce and cost structure with business needs, strategic priorities, and ongoing commitment to profitable growth, while increasing operational efficiencies and reducing operating costs.

The company expanded deployments of its IQ8 series Microinverters and began shipping its third-generation Enphase Energy System with IQ Battery 5P in several new markets globally, including India.

Management implemented restructuring initiatives to increase operational efficiencies and execution, reduce operating costs, and better align the workforce and cost structure with current market conditions.

Management continues to prioritize great customer service, scaling business processes, increasing efficiencies, and developing hardware and software to enhance the Enphase Energy System offering.

Management expanded operations with contract manufacturers in the United States to reduce supply chain risk and take advantage of new incentives for domestic manufacturing.

The reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar electricity applications could reduce demand for solar PV systems and harm our business.

Unfavorable macroeconomic and market conditions may adversely affect our industry, business and financial results. These conditions include increased inflationary pressures, tariffs and interest rates, fluctuations in foreign currency exchange rates, potential economic slowdowns or recessions, geopolitical pressures and potential regulatory changes.

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.

The solar industry is highly competitive, and we expect to face increased competition as new and existing competitors introduce products or develop alternative technologies.

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.

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.

Manufacturing problems could result in delays in product shipments, which would adversely affect our revenue, competitive position and reputation.

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.

We plan to continue to devote substantial resources to research and development with the objective of developing new products and systems and increasing the value or reducing the cost of existing products and systems.

We operate in an industry in which innovation, investment in new ideas and protection of our intellectual property rights are critical for success.

We are dependent on information technology systems, infrastructure and data. We or third parties upon which we rely could be subject to breaches of our information technology systems caused by system security risks, failure of our data protection, cyber-attacks and erroneous or non-malicious actions or failures to act by our employees or others with authorized access to our networks, which could cause significant reputational, legal and financial damages.

The company continued to repurchase shares under its existing program, indicating a commitment to returning capital to shareholders.

We currently do not intend to pay dividends on our common stock and, consequently, your only opportunity to achieve a return on your investment is if the price of our common stock appreciates.

We have made, and continue to seek to make, investments in companies around the world to further our strategic objectives and support our key business initiatives.

We align our risk assessment and climate strategy with the recommendations of the Taskforce for Climate-Related Financial Disclosures (“TCFD”), as all existing and emerging climate risk disclosure regulations are modeled on this framework.

We believe that sound corporate governance is critical to helping us achieve our goals, including with respect to designing products that address both energy generation and consumption.

We are committed to promoting and cultivating an inclusive and diverse culture that welcomes and celebrates everyone without bias. In addition, we look to actively engage within our communities to foster and attain social equity.

Our business has been and could continue to be affected by seasonal trends and construction cycles. Historically, the majority of our revenue are from the North American and European regions, which experience higher sales of our products in the second, third and fourth quarters and have been affected by seasonal customer demand trends, including weather patterns and construction cycles.

U.S. federal, state and local government bodies, as well as non-U.S. government bodies provide supportive policies and incentives to owners, distributors, system integrators and manufacturers of solar energy and battery storage systems to promote the use of these resources.

We have understood the climate change threat from the beginning and have been creating clean energy technologies needed to directly combat it, protect our environment and enable sustainable development.