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FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance.
The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:
•Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of such assets or liabilities do not entail a significant degree of judgment.
•Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
•Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
The following table presents assets and liabilities measured at fair value on a recurring basis using the above input categories:
September 30, 2025December 31, 2024
(In thousands)
Level 1Level 2Level 3Level 1Level 2Level 3
Assets:
Cash equivalents, restricted cash and marketable securities:
Money market funds$144,482 $— $— $191,410 $— $— 
Certificates of deposit— — — 95,000 — — 
Commercial paper— 14,687 — — — — 
Marketable securities:
Certificates of deposit— 24,187 — — 30,092 — 
Commercial paper— 25,497 — — 30,713 — 
Corporate notes and bonds— 400,595 — — 449,570 — 
U.S. Treasuries— 39,996 — — 111,612 — 
U.S. Government agency securities— 585,769 — — 631,493 — 
Other assets:
Investments in debt securities— 6,300 52,519 — — 64,834 
Investment in tax equity fund— — 3,058 — — — 
Total assets measured at fair value$144,482 $1,097,031 $55,577 $286,410 $1,253,480 $64,834 
Liabilities:
Warranty obligations:
Current$— $— $24,133 $— $— $27,173 
Non-current— — 162,946 — — 143,743 
Total warranty obligations measured at fair value— — 187,079 — — 170,916 
Total liabilities measured at fair value$— $— $187,079 $— $— $170,916 
Notes due 2028 and Notes due 2026
The Company carries the Notes due 2028 (as defined in Note 9, “Debt”) and Notes due 2026 (as defined in Note 9, “Debt”) at face value less unamortized debt issuance costs on its condensed consolidated balance sheets. As of September 30, 2025, the fair value of the Notes due 2028 and Notes due 2026 was $494.5 million and $617.8 million, respectively. The fair value as of September 30, 2025 was determined based on the closing trading price per $100 principal amount as of the last day of trading for the period. The Company considers the fair value of the Notes due 2028 and Notes due 2026 to be a Level 2 measurement as they are not actively traded.
Investments in debt securities
In September 2025, the Company invested $6.3 million in cash to purchase convertible notes with an aggregate principal amount of $7.0 million issued by Complete Solaria, Inc. (“Complete Solaria”). The Company elected the fair value option for this investment. Accordingly, the convertible notes are measured at fair value on a recurring basis, with changes in fair value recognized in “Other expense, net” in the Company’s consolidated statement of operations. At initial recognition, the fair value of the notes approximated the purchase price. Subsequent changes in fair value, including those attributable to changes in credit risk and the embedded conversion feature, will be reflected in the Company’s condensed consolidated statements of operations. Interest income is accrued and recognized based on the stated coupon rate.
Investments in debt securities is recorded in “Other assets” on the accompanying condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024. The changes in the balance in investments in debt securities during the period were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
(In thousands)
Balance at beginning of period$55,693 $78,866 $64,834 $79,855 
Investment6,300 — 6,300 — 
Fair value adjustments included in other expense, net(3,174)(741)(12,315)(1,730)
Impairment — (16,988)— (16,988)
Balance at end of period$58,819 $61,137 $58,819 $61,137 
Investment in tax equity fund
In January 2025, June 2025 and September 2025, the Company made an investment in a tax equity fund contributing $6.9 million, $1.4 million and $1.4 million, respectively. The Company has elected to report its investment at fair value, which is equal to the present value of the remaining future cash flows expected to be received from the investment. The investment is included in “Other assets” on the accompanying condensed consolidated balance sheet as of September 30, 2025.
As of September 30, 2025, the fair value of the Company’s investment in tax equity fund was $3.1 million, representing its proportionate share of the tax equity fund’s net assets. As of September 30, 2025, the Company recognized a deferred tax asset of $6.2 million related to the difference between the initial investment amounts and its fair value. Additionally, the Company recognized an expense of $0.5 million for both the three and nine months ended September 30, 2025, respectively, included in “Other expense, net” in the condensed consolidated statements of operations.
Issuance of Loan Receivables
The loan receivables represent financing arrangements provided to certain direct and indirect customers. These loan receivables have contractual maturities ranging from one to three years and are recorded on amortized cost basis. Interest income is accrued and recognized based on the stated coupon rate, included in “Other expense, net” in the condensed consolidated statements of operations. The Company’s short-term and long-term loan receivables were as follows:
September 30,
2025
(In thousands)
Current$32,034 
Non-current16,466 
Loan receivables$48,500 
There was no activity in allowance for credit losses during the three and nine months ended September 30, 2025.
Fair Value Option for Warranty Obligations Related to Products Sold Since January 1, 2014
The Company estimates the fair value of warranty obligations by calculating the warranty obligations in the same manner as for sales prior to January 1, 2014 and applying an expected present value technique to that result. The expected present value technique, an income approach, converts future amounts into a single current discounted amount. In addition to the key estimates of return rates and replacement costs, the Company used certain Level 3 inputs, which are unobservable and significant to the overall fair value measurement. Such additional assumptions are based on the Company’s credit-adjusted risk-free rate (“discount rate”) and compensation comprised of a profit element and risk premium required of a market participant to assume the obligation.
The following table provides information regarding changes in nonfinancial 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,
2025202420252024
(In thousands)
Balance at beginning of period$182,179 $150,193 $170,916 $161,793 
Accruals for warranties issued during period7,918 7,752 22,814 20,251 
Changes in estimates554 2,161 8,430 (12,307)
Settlements(4,965)(4,707)(14,783)(17,043)
Increase due to accretion expense3,498 2,649 9,804 8,244 
Change in discount rate — — (5,715)759 
Other(2,105)(1,328)(4,387)(4,977)
Balance at end of period$187,079 $156,720 $187,079 $156,720 
Quantitative and Qualitative Information about Level 3 Fair Value Measurements
As of September 30, 2025 and December 31, 2024, 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 ValueValuation TechniqueDescription of Significant Unobservable InputSeptember 30,
2025		December 31,
2024
Warranty obligations for products sold since January 1, 2014Discounted cash flowsProfit element and risk premium17.5%16.8%
Credit-adjusted risk-free rate7.7%7.2%
Sensitivity of Level 3 Inputs - Warranty Obligations
Each of the significant unobservable inputs is independent of the other. The profit element and risk premium are estimated based on the requirements of a third-party participant willing to assume the Company’s warranty obligations. The discount rate is determined by reference to the Company’s own credit standing at the fair value measurement date, which increased in the nine months ended September 30, 2025 due to the increase in the risk free rate and market spreads, contributing to the $5.7 million change in warranty benefit captured in “Change in discount rate” in the table above. Under the expected present value technique, increasing the profit element and risk premium input by 100 basis points would result in a $1.4 million increase to the liability. Decreasing the profit element and risk premium by 100 basis points would result in a $1.4 million reduction to the liability. Increasing the discount rate by 100 basis points would result in a $12.6 million decrease to the liability. Decreasing the discount rate by 100 basis points would result in a $14.2 million increase to the liability.