Competitive PressureThe company is facing increased competition and a shift to lower-margin products, which is expected to lower its gross margins.
Market DemandDemand remains weak in both the U.S. and Europe, with higher interest rates, installer financial difficulties, and lack of policy clarity weighing on installations.
Profitability ChallengesEnphase's gross margin is expected to face significant headwinds from tariffs, impacting profitability.