FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents assets and liabilities measured at fair value on a recurring basis using the above input categories:


	September 30, 2026						December 31, 2025

	(In thousands)
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	44,150	$	—	$	—	$	186,677	$	—	$	—

Commercial paper	—		—		—		—		14,985		—
U.S. Treasuries	—		19,970		—		—		29,885		—
U.S. Government agency securities	—		6,000		—		—		—		—
Marketable securities:
Certificates of deposit	—		—		—		—		14,515		—
Commercial paper	—		13,405		—		—		12,908		—
Corporate notes and bonds	—		239,480		—		—		373,383		—
U.S. Treasuries	—		64,147		—		—		63,754		—
U.S. Government agency securities	—		234,149		—		—		573,976		—
Equity securities - SunPower common stock	267		—		—		—		—		—
Other current assets:
Investments in debt securities	—		—		24,408		—		—		—
Other assets:
Investments in debt securities	—		2,319		29,746		—		6,300		55,046
Investment in equity instruments	—		—		5,000		—		—		5,000
Investment in tax equity fund	—		—		380		—		—		754
Total assets measured at fair value	$	44,417	$	579,470	$	59,534	$	186,677	$	1,089,706	$	60,800

Liabilities:


Warranty obligations:
Current	$	—	$	—	$	22,771	$	—	$	—	$	23,259
Non-current	—		—		164,191		—		—		169,963
Total warranty obligations measured at fair value	—		—		186,962		—		—		193,222
Total liabilities measured at fair value	$	—	$	—	$	186,962	$	—	$	—	$	193,222

Schedule of Carrying Amount and Fair Value

As of September 30, 2026, the carrying amount and fair value of the Notes due 2028 was as follows:


	Carrying Amount		Fair Value

	(In thousands)
Notes due 2028	$	573,163	$	530,438

Schedule of Significant Unobservable Inputs used in the Fair Value Measurement of Assets Designated as Level 3

The changes in the balance of investments in debt securities were as follows:


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

	(In thousands)
Balance at beginning of period	$	87,948	$	55,693	$	61,346	$	64,834
Secured revolving credit facility, net	(4,944)		6,300		24,408		6,300
Fair value reduction included in other expense, net	(26,531)		(3,174)		(29,281)		(12,315)

Balance at end of period	$	56,473	$	58,819	$	56,473	$	58,819

Schedule of Principal Outstanding of Loan Receivables

The principal outstanding under the loan receivables were as follows:


	September 30, 2026
	(In thousands)
Current	$	34,113
Non-current	1,500
Loan receivables	$	35,613

Schedule of Variable Interest Entities

The following table presents the carrying amounts of the Company’s variable interests and its maximum exposure to loss as of September 30, 2026:


Arrangement	Balance Sheet Classification	Carrying Amount (Fair Value)		Maximum Exposure
		(In thousands)
Non-controlling equity investment (19.99%)	Other assets	$	5,000	$	5,000
$1.5 million secured loan receivable — Loan 1	Other assets	$	1,777	$	1,777
$1.0 million secured loan receivable — Loan 2	Prepaid expenses and other current assets	$	1,082	$	1,082
$30.0 million secured revolving credit facility (approximately $24.4 million drawn)	Prepaid expenses and other current assets	$	24,408	$	30,000
$35.0 million letters of credit (drawn: None)	Accrued and other liabilities	—		$	35,000

Schedule of Changes in Nonfinancial Liabilities Related to Warrant Obligations Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The following table provides information regarding changes in non-financial liabilities related to the Company’s warranty obligations measured at fair value on a recurring basis using significant unobservable inputs designated as Level 3 for the periods indicated:


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

	(In thousands)
Balance at beginning of period	$	185,447	$	182,179	$	193,222	$	170,916
Accruals for warranties issued during period	6,970		7,918		18,238		22,814
Changes in estimates	(2,074)		554		(9,037)		8,430
Settlements	(4,920)		(4,965)		(12,843)		(14,783)
Increase due to accretion expense	3,491		3,498		10,373		9,804
Change in profit element and risk premium	—		—		(3,526)		781
Change in discount rate	—		—		(3,332)		(5,715)
Other	(1,952)		(2,105)		(6,133)		(5,168)
Balance at end of period	$	186,962	$	187,079	$	186,962	$	187,079

Schedule of Significant Unobservable Inputs used in the Fair Value Measurement of Liabilities Designated as Level 3

As of September 30, 2026 and December 31, 2025, the significant unobservable inputs used in the fair value measurement of the Company’s liabilities designated as Level 3 were as follows:

Percent Used

(Weighted Average)

Item Measured at Fair Value

Valuation Technique

Description of Significant Unobservable Input

September 30,
2026

December 31,
2025

Warranty obligations for products sold since January 1, 2014

Discounted cash flows

Profit element and risk premium

14.9%

17.5%

Credit-adjusted risk-free rate

7.5%

7.3%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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