WARRANTY OBLIGATIONS

6 Months Ended

Jun. 30, 2026

Product Warranties Disclosures [Abstract]

The Company’s warranty obligation activities were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

	(In thousands)
Warranty obligations, beginning of period	$	204,207	$	203,447	$	214,043	$	192,889
Accruals for warranties issued during period	6,026		7,609		11,284		14,918

Expense (benefit) from changes in estimates	(302)		5,509		(7,705)		13,230
Settlements	(4,782)		(6,677)		(10,260)		(13,259)
Increase due to accretion expense	3,370		3,246		6,882		6,306
Change in discount rate(1)	(3,332)		(5,715)		(3,332)		(5,715)
Change in profit element and risk premium(1)	—		—		(3,526)		781
Other	(1,981)		(1,333)		(4,180)		(3,064)
Warranty obligations, end of period	203,206		206,086		203,206		206,086
Less: warranty obligations, current	(27,784)		(33,136)		(27,784)		(33,136)
Warranty obligations, non-current	$	175,422	$	172,950	$	175,422	$	172,950

(1) Refer to Note 9, “Fair Value Measurements,” for additional information about the monetary impact for changes in discount rate and changes in the profit element and risk premium.

Changes in Estimates

On a quarterly basis, the Company uses the best and most complete underlying information available, following a consistent, systematic and rational methodology to determine its warranty obligations. The Company considers all available evidence to assess the reasonableness of all key assumptions underlying its estimated warranty obligations for each generation of microinverter, battery and related accessories. The changes in estimates discussed below resulted from consideration of new or additional information becoming available and subsequent developments. Changes in estimates included in the table above were comprised of the following:

In the three months ended June 30, 2026, the Company recorded $0.3 million in warranty benefit from changes in estimates, primarily due to $0.1 million change in replacement costs and $0.2 million change in return rate expected to be claimed under the Company’s warranty over time. In the three months ended June 30, 2025, the Company recorded $5.5 million in warranty expense from changes in estimates, of which $3.7 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis primarily for prior generation products and $1.8 million related to an increase in product replacement costs primarily for estimated additional tariff costs.

In the six months ended June 30, 2026, the Company recorded $7.7 million in warranty benefit from changes in estimates, primarily due to change in replacement costs from lower tariff costs to be incurred. In the six months ended June 30, 2025, the Company recorded $13.2 million in warranty expense from changes in estimates, of which $7.7 million related to an increase in product replacement costs primarily for estimated additional tariff costs and $5.5 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis primarily for prior generation products.