All heat pumps have their limits, while some may push the boundaries of cool temperatures. Contrary to people's beliefs, heat pumps work great even in very cold seasons.
They can operate in low temperatures with double the efficiency of standard or gas heating, like electric furnaces or baseboard heaters. Heat pumps don't directly pump air: they use the heat from the surrounding air and utilize it to warm your home.
However, a marginal difference in thermal energy makes a significant difference in its efficiency. To counter this drawback: heat pumps need to work harder to maintain a similar indoor temperature. It's because of this reason that heat pumps begin to lose their effectiveness at about 40 degrees F and reduce the efficiency much more at about 25 degrees F.