WARRANTY OBLIGATIONS

9 Months Ended

Sep. 30, 2026

Product Warranties Disclosures [Abstract]

The Company’s warranty obligation activities were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025

	(In thousands)
Warranty obligations, beginning of period	$	203,206	$	206,086	$	214,043	$	192,889
Accruals for warranties issued during period	6,990		7,924		18,274		22,842

Expense (benefit) from changes in estimates	(1,429)		707		(9,134)		13,937
Settlements	(6,296)		(5,971)		(16,556)		(19,230)
Increase due to accretion expense	3,491		3,498		10,373		9,804
Change in discount rate (1)	—		—		(3,332)		(5,715)
Change in profit element and risk premium (1)	—		—		(3,526)		781
Other	(1,951)		(2,103)		(6,131)		(5,167)
Warranty obligations, end of period	204,011		210,141		204,011		210,141
Less: warranty obligations, current	(26,990)		(31,473)		(26,990)		(31,473)
Warranty obligations, non-current	$	177,021	$	178,668	$	177,021	$	178,668

(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 September 30, 2026, the Company recorded approximately $1.4 million in warranty benefit from changes in estimates, primarily due to approximately $1.4 million change in IQ Battery replacement costs. In the three months ended September 30, 2025, the Company recorded approximately $0.7 million in warranty expense from changes in estimates, of which approximately $7.6 million related to an increase in product replacement costs, primarily for estimated additional tariff costs, partially offset by approximately $6.9 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis for Enphase IQ® Battery systems.

In the nine months ended September 30, 2026, the Company recorded approximately $9.1 million in warranty benefit from changes in estimates, primarily due to change in replacement costs from both lower tariff costs for majority of products and lower labor assumption for IQ Battery to be incurred.

In the nine months ended September 30, 2025, the Company recorded approximately $13.9 million in warranty expense from changes in estimates, of which approximately $15.3 million related to an increase in product replacement costs, primarily for estimated additional tariff costs and approximately $5.5 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis primarily for prior generation products, partially offset by approximately $6.9 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis for Enphase IQ Battery systems.