v3.26.1
Extended Maintenance Contracts and Warranty Reserve
3 Months Ended
Mar. 31, 2026
Extended Maintenance Contracts and Warranty Reserve  
Extended Maintenance Contracts and Warranty Reserve

9. Extended Maintenance Contracts and Warranty Reserve

Loss Accrual

On a quarterly basis, we evaluate any potential losses related to our extended maintenance contracts for sales of equipment, related infrastructure and other that have been sold. The following table shows the roll forward of balances in the accrual for loss contracts (in thousands):

Three months ended

Year ended

  ​ ​ ​

March 31, 2026

  ​ ​ ​

December 31, 2025

Beginning balance

$

67,987

$

134,356

Benefit for loss accrual

(7,797)

(23,901)

Releases to service cost of sales

(6,871)

(42,877)

Decrease to loss accrual related to customer warrants

(17)

(706)

Foreign currency translation adjustment

(113)

1,115

Ending balance

$

53,189

$

67,987

Product Warranty Reserve

On a quarterly basis, we evaluate our product warranty reserve. The Company applies a failure rate based on product type on total products under warranty identified through a contract-by-contract review to determine its product warranty reserve liability. The Company’s product warranty reserve liability balance as of March 31, 2026 and December 31, 2025 was $22.8 million and $23.0 million, respectively.