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WARRANTY OBLIGATIONS | 9 Months Ended
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Sep. 30, 2025
Product Warranties Disclosures [Abstract] |
WARRANTY OBLIGATIONS | WARRANTY OBLIGATIONS The Company’s warranty obligation activities were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
| (In thousands)
Warranty obligations, beginning of period | $ | 206,086 |  |  | $ | 177,179 |  |  | $ | 192,889 |  |  | $ | 189,087 |  |  |
Accruals for warranties issued during period | 7,924 |  |  | 7,763 |  |  | 22,842 |  |  | 20,285 |  |  |
Expense (benefit) from changes in estimates | 707 |  |  | 4,584 |  |  | 13,937 |  |  | (8,052) |  |  |
Settlements | (5,971) |  |  | (6,615) |  |  | (19,230) |  |  | (21,114) |  |  |
Increase due to accretion expense | 3,498 |  |  | 2,649 |  |  | 9,804 |  |  | 8,244 |  |  |
Change in discount rate | — |  |  | — |  |  | (5,715) |  |  | 759 |  |  |
Other | (2,103) |  |  | (1,328) |  |  | (4,386) |  |  | (4,977) |  |  |
Warranty obligations, end of period | 210,141 |  |  | 184,232 |  |  | 210,141 |  |  | 184,232 |  |  |
Less: warranty obligations, current | (31,473) |  |  | (35,755) |  |  | (31,473) |  |  | (35,755) |  |  |
Warranty obligations, non-current | $ | 178,668 |  |  | $ | 148,477 |  |  | $ | 178,668 |  |  | $ | 148,477 |  |  |
Changes in Estimates In the three months ended September 30, 2025, the Company recorded $0.7 million in warranty expense from changes in estimates, of which $7.6 million related to an increase in product replacement costs primarily for estimated additional tariff costs, partially offset by $6.9 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis for Enphase IQ® Battery systems. In the three months ended September 30, 2024, the Company recorded $4.6 million in warranty expense from changes in estimates, of which $8.4 million related to the Company proactively addressing certain component defects in a specific population of products that did not meet the Company’s high quality standards, $0.5 million related to increasing the warranty term to 20 years for microinverter units sold in Mexico, Colombia, Panama, Costa Rica and nine Caribbean countries, partially offset by $4.3 million related to a decrease in product replacement costs for Enphase IQ Battery systems and related accessories as the Company expanded its network of field service technicians in the United States to provide direct homeowner assistance. In the nine months ended September 30, 2025, the Company recorded $13.9 million in warranty expense from changes in estimates, of which $15.3 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, partially offset by $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, 2024, the Company recorded $8.1 million in warranty benefit from changes in estimates, of which $15.5 million related to a decrease in product replacement costs primarily associated with Enphase IQ Battery systems and related accessories as the Company expanded its network of field service technicians in the United States, Europe and Australia to provide direct homeowner assistance, and $4.4 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis for early generations of IQ Battery. This benefit was partially offset by $10.2 million related to the Company proactively addressing certain component defects in a specific population of products that did not meet the Company’s high quality standards, $1.1 million for continuing analysis of field performance data and diagnostic root-cause failure analysis for all other products, as well as $0.5 million related to increasing the warranty term to 20 years for microinverter units sold in Mexico, Colombia, Panama, Costa Rica and nine Caribbean countries.

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- Definition The entire disclosure for standard and extended product warranties and other product guarantee contracts, including a tabular reconciliation of the changes in the guarantor's aggregate product warranty liability for the reporting period. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 460 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a)(4) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482425/460-10-50-4 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 460 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a)(5) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482425/460-10-50-4 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 460 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482425/460-10-50-4 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 460 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482425/460-10-50-4 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 460 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482425/460-10-50-4 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 460 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482425/460-10-50-4 + Details
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