The Company leases office facilities under noncancellable operating leases that expire on various dates through 2036, some of which may include options to extend the leases for up to 12 years.


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

	(In thousands)
Operating lease costs	$	2,653	$	2,623	$	8,120	$	9,546


	September 30, 2026		December 31, 2025

	(In thousands, except years and percentage data)
Operating leases:
Operating lease, right of use asset, net (Other assets)	$	36,237	$	34,573

Operating lease liabilities, current (Accrued liabilities)	$	8,687	$	8,211
Operating lease liabilities, non-current (Other liabilities)	32,709		31,195
Total operating lease liabilities	$	41,396	$	39,406

Supplemental lease information:
Weighted average remaining lease term	5.3 years		5.6 years
Weighted average discount rate	6.1%		6.3%


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

	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,026	$	2,193	$	8,896	$	6,510

Non-cash investing activities:
Lease liabilities arising from obtaining right-of-use assets	$	3,221	$	—	$	9,190	$	7,260

The Company has contractual obligations related to component inventory that it and its contract manufacturers procure on its behalf in accordance with its production forecast as well as other inventory related purchase commitments. As of September 30, 2026, these purchase obligations totaled approximately $262.4 million.

The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. An accrual for a loss contingency is recognized when it is probable and the amount of loss or recovery can be reasonably estimated. The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts above management’s expectations, the Company’s business, results of operations, financial position and cash flows for that reporting period could be materially adversely affected.

On August 19, 2026, Tigo Energy Innovations LLC filed a complaint in the United States District Court for the Western District of Texas against the Company, alleging infringement of ten patents by certain of the Company’s products. The complaint seeks unspecified damages and other relief. Given the uncertainty of litigation and the preliminary stage of the case, the Company cannot reasonably estimate the possible loss or range of loss, if any, associated with the matter. The Company disputes the allegations in this lawsuit and intends to defend the matter vigorously.

On February 20, 2026, the United States Supreme Court issued a ruling in Learning Resources, Inc. v. Trump invalidating certain tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”). Following this ruling, the U.S. Court of International Trade directed U.S. Customs and Border Protection (“CBP”) to establish a process for the submission and review of refund claims related to the affected IEEPA tariffs.

The Company received refunds and associated interest of approximately $52.0 million during the nine months ended September 30, 2026, from CBP related to tariffs paid during fiscal 2025 and the first quarter of fiscal 2026, of which approximately $1.6 million and approximately $47.0 million was recognized as a reduction to cost of revenues during the three and nine months ended September 30, 2026, respectively; approximately $0.1 million and approximately $1.7 million was recognized as interest income in the three and nine months ended September 30, 2026, respectively; and approximately $3.3 million was capitalized as a cost of inventory as of September 30, 2026.

The Company has submitted additional refund claims for tariffs previously paid and continues to evaluate the recoverability of these amounts. As the approval and timing of such refunds remain uncertain and are contingent upon CBP’s review and validation process, the Company has not recognized a receivable as of September 30, 2026 and will not recognize such amounts until they are realized or realizable. The ultimate impact of any future approved refunds, if any, could be material.

Separately, on February 20, 2026, the same day the Supreme Court invalidated the IEEPA tariffs, the President issued a proclamation imposing a temporary import surcharge under Section 122 of the Trade Act of 1974 ("Section 122"). Unlike the IEEPA tariffs discussed above, which were imposed under emergency economic powers authority and applied at varying country-specific rates, the Section 122 surcharge was imposed pursuant to a statute that authorizes a temporary import surcharge of up to 15% ad valorem for a period not exceeding 150 days under specified balance-of-payments circumstances.

On May 7, 2026, the U.S. Court of International Trade held that the Section 122 proclamation was invalid and granted relief to certain named plaintiffs. The government appealed the ruling, and the Federal Circuit granted a stay of the judgment and injunction pending appeal. As of the date of this filing, the appeal remains pending. The Section 122 surcharge expired on July 24, 2026, upon reaching the applicable 150-day statutory limit.

If the Section 122 proclamation is ultimately held invalid and refund mechanisms applicable to the Company are established, the Company may be eligible to recover some or all of the Section 122 duties paid. However, the outcome of the appeal and the Company’s entitlement to, and the availability, timing and amount of any potential refunds remain uncertain and are subject to further judicial and administrative proceedings. Accordingly, no receivable for potential Section 122 tariff refunds has been recognized as of September 30, 2026.

On July 23, 2026, following Section 301 investigation initiated by the U.S. Trade Representative on March 12, 2026 and determinations announced on June 2, 2026, the Administration announced new tariffs of 10% or 12.5% on imports from 60 trading partners. The tariffs took effect on July 24, 2026, subject to specified product and other

exemptions. It remains uncertain whether additional tariffs or other trade restrictions may be imposed under alternative statutory authorities, whether such measures would withstand legal challenge, and whether any refund process will be available with respect to duties previously paid.