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WARRANTY OBLIGATIONS
6 Months Ended
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,
2025202420252024
(In thousands)
Warranty obligations, beginning of period$203,447 $177,164 $192,889 $189,087 
Accruals for warranties issued during period7,609 6,424 14,918 12,522 
Expense (benefit) from changes in estimates5,509 (275)13,230 (12,636)
Settlements(6,677)(7,606)(13,259)(14,499)
Increase due to accretion expense3,246 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 period206,086 177,179 206,086 177,179 
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.