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Revenue Recognition
 9 Months Ended
Sep. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Contract Balances
The following table provides information about accounts receivables, contract assets, customer deposits and deferred
revenue from contracts with customers (in thousands):
September 30,December 31,
20262025
Accounts receivable$634,743 $371,796 
Contract assets858,646 241,186 
Customer deposits661,354 78,207 
Deferred revenue93,026 65,608 
Accounts receivable and contract assets increased by $262.9 million and $617.5 million, respectively, for the nine months ended September 30, 2026, primarily due to higher revenue volume, increased project activity driven by growing demand for our products and installation services, and the timing of billing milestones.
The increase in customer deposits of $583.1 million for the nine months ended September 30, 2026, was primarily driven by receipt of new deposits associated with recently executed customer agreements and milestone payments on ongoing projects, partially offset by certain deposits becoming non-refundable and reclassified to deferred revenue.
For additional information on contract assets and liabilities, see Part II, Item 8, Note 3—Revenue Recognition, section Contract Balances in our 2025 Form 10-K.
Contract Assets
Three Months EndedNine Months Ended
September 30,September 30,
2026202520262025
Beginning balance$428,298 $129,798 $241,186 $145,162 
Transferred to accounts receivable from contract assets recognized at the beginning of the period
(33,539)(31,638)(108,584)(99,699)
Revenue recognized and not billed as of the end of the period463,887 160,724 726,044 213,421 
Ending balance$858,646 $258,884 $858,646 $258,884 
Deferred Revenue
Deferred revenue activity during the three and nine months ended September 30, 2026 and 2025, consisted of the following (in thousands):
Three Months EndedNine Months Ended
September 30,September 30,
2026202520262025
Beginning balance$84,478 $56,172 $65,608 $66,304 
Additions1,147,259 331,487 2,447,700 862,407 
Revenue recognized(1,138,711)(333,984)(2,420,282)(875,036)
Ending balance$93,026 $53,675 $93,026 $53,675 

For additional information on deferred revenue, see Part II, Item 8, Note 3—Revenue Recognition, section Deferred Revenue in our 2025 Form 10-K.
As of September 30, 2026, and December 31, 2025, we have unsatisfied performance obligations of $661.2 million and $394.4 million, respectively, primarily related to product sales and installation services. We expect to recognize the associated revenue within the next 1 to 2 years, consistent with customers’ project deployment schedules. Revenue related to site restoration services of $3.3 million as of September 30, 2026 will be recognized upon completion of the related services following the end of the 15-year contractual service term. In addition, as of September 30, 2026, and December 31, 2025, we had unsatisfied performance obligations of $56.2 million and $25.0 million, respectively, related mainly to deferred service
contracts which we expect to recognize over the remaining contractual terms ranging from 1 to 25 years.
We do not disclose the value of the unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.
Disaggregated Revenue
We disaggregate revenue from contracts with customers into four revenue categories: product, installation, service and electricity (in thousands):
Three Months EndedNine Months Ended
September 30,September 30,
2026202520262025
Revenue from contracts with customers:
Product revenue$1,073,610 $384,314 $2,662,371 $892,794 
Installation revenue84,855 65,773 161,764 136,796 
Service revenue
67,557 58,607 198,459 166,604 
Electricity revenue5,006 4,637 15,581 32,655 
Total revenue from contract with customers1,231,028 513,331 3,038,175 1,228,849 
Revenue from contracts that contain leases:
Electricity revenue4,809 5,717 14,081 17,462 
Total revenue$1,235,837 $519,048 $3,052,256 $1,246,311 
Commitment to Issue Share-Based Consideration Payable to Customer’s Customer
On October 28, 2025, in connection with the partnership between the Company and Oracle Corporation (“Oracle”) to provide on-site solid state power for AI data centers, subject to the negotiation of a warrant mutually acceptable to the Company and Oracle, we agreed to issue to Oracle a warrant (the “Warrant”) to purchase up to an aggregate of 3,531,073 shares of common stock, with an exercise price of $113.28 per share, which was the closing market price on October 28, 2025. For additional details on the Warrant, see Part II, Item 8, Note 3—Revenue Recognition, section Commitment to Issue Share-Based Consideration Payable to Customer’s Customer in our 2025 Form 10-K.
On April 9, 2026 (the “Grant Date”), the Warrant was issued. The Warrant was fully vested upon issuance, immediately exercisable in whole or in part, at any time during the six months from the Grant Date and was classified as equity. Consistent with ASC 606 and ASC 718, Compensation—Stock Compensation (“ASC 718”), as clarified by ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer, we remeasured the fair value of the Warrant as of the Grant Date. The fair value of the Warrant was determined using a Black-Scholes option pricing model in accordance with ASC 718’s fair value measurement framework. The following weighted-average assumptions were used to estimate the fair value of the Warrant on April 9, 2026, and the commitment to issue the Warrant on December 31, 2025:
April 9,December 31,
20262025
Risk-free interest rate3.7%3.6%
Expected term (years)0.50.5
Expected dividend yield——
Expected volatility115.0%96.2%
As of the Grant Date and December 31, 2025, the estimated fair value of the Warrant and the commitment to issue the Warrant was $251.6 million and $55.9 million, respectively. Following the Grant Date, the fair value of the Warrant was fixed, and is accounted for as consideration payable to a customer’s customer, recognized as a reduction of revenue as the underlying
Energy Server systems sold under the Oracle arrangement are delivered.
On May 1, 2026 (the “Exercise Date”), Oracle completed a cashless exercise of the Warrant, resulting in the issuance of 1,905,433 shares of our common stock. Under the terms of the warrant agreement, Oracle could elect either net or gross settlement. Because the net settlement would result in 1.4 million fewer shares being issued than a gross settlement, we agreed to issue Oracle an additional 248,798 shares of common stock as an inducement for Oracle to elect net settlement. These incremental shares represented additional consideration with a fair value of $72.3 million. As a result, the aggregate fair value of the shares issued upon exercise of the Warrant, including the incremental shares, was $323.9 million.
Prior to the Exercise Date, $12.9 million had been recognized in Additional Paid-in Capital. Following the Exercise Date, we recorded an incremental $311.0 million to Additional Paid-in Capital, with corresponding debits to current and long-term Customer Consideration Asset of $91.0 million and $215.5 million, respectively, as of September 30, 2026, and recorded revenue adjustments resulting in an increase of $0.5 million and a reduction of $1.4 million for the three and nine months ended September 30, 2026, respectively. Customer Consideration Asset represents upfront share‑based consideration payable to a customer’s customer and is amortized as a reduction of revenue as the underlying Energy Server systems sold under the Oracle arrangement are delivered.
As of September 30, 2026, $17.3 million has been recognized on a cumulative basis as a reduction of revenue related to the Warrant.