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WARRANTY OBLIGATIONS | 6 Months Ended
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Jun. 30, 2025
Product Warranties Disclosures [Abstract] |
WARRANTY OBLIGATIONS | WARRANTY OBLIGATIONS The Company’s warranty obligation activities were as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30, |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
| (In thousands)
Warranty obligations, beginning of period | $ | 203,447 |  |  | $ | 177,164 |  |  | $ | 192,889 |  |  | $ | 189,087 |  |  |
Accruals for warranties issued during period | 7,609 |  |  | 6,424 |  |  | 14,918 |  |  | 12,522 |  |  |
Expense (benefit) from changes in estimates | 5,509 |  |  | (275) |  |  | 13,230 |  |  | (12,636) |  |  |
Settlements | (6,677) |  |  | (7,606) |  |  | (13,259) |  |  | (14,499) |  |  |
Increase due to accretion expense | 3,246 |  |  | 2,690 |  |  | 6,306 |  |  | 5,595 |  |  |
Change in discount rate | (5,715) |  |  | 759 |  |  | (5,715) |  |  | 759 |  |  |
Other | (1,333) |  |  | (1,977) |  |  | (2,283) |  |  | (3,649) |  |  |
Warranty obligations, end of period | 206,086 |  |  | 177,179 |  |  | 206,086 |  |  | 177,179 |  |  |
Less: warranty obligations, current | (33,136) |  |  | (30,261) |  |  | (33,136) |  |  | (30,261) |  |  |
Warranty obligations, non-current | $ | 172,950 |  |  | $ | 146,918 |  |  | $ | 172,950 |  |  | $ | 146,918 |  |  |
Changes in Estimates 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 three months ended June 30, 2024, the Company recorded $0.3 million in warranty benefit from changes in estimates, of which $1.8 million and $1.4 million related to a decrease in product replacement costs and continuing analysis of field performance data and diagnostic root-cause failure analysis, respectively, for Enphase IQ® Battery storage systems, partially offset by an increase of $2.9 million for continuing analysis of field performance data and diagnostic root-cause failure analysis for all other products. 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. In the six months ended June 30, 2024, the Company recorded $12.6 million in warranty benefit from changes in estimates, of which $11.1 million and $4.4 million related to a decrease in product replacement costs and continuing analysis of field performance data and diagnostic root-cause failure analysis, respectively, for Enphase IQ® Battery storage systems, partially offset by an increase of $2.9 million for continuing analysis of field performance data and diagnostic root-cause failure analysis for all other products.

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