The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and accompanying notes included elsewhere in this annual report on Form 20-F. The following discussion contains forward-looking statements based on current expectations that involve risks and uncertainties. Our actual results may differ materially as a result of various factors, including those set forth under “Item 3. Key Information—D. Risk Factors” or in other parts of this annual report on Form 20-F. For year-over-year comparisons between 2024 and 2023, refer to “Item 5. Operating and Financial Review and Prospects” in our Form 20-F for the year ended December 31, 2024, filed with the SEC on April 30, 2025. A Operating Results Key Factors Affecting Our Results of Operations Our operating results are affected by a number of factors, including (i) global economic conditions such as inflationary and interest rate pressures, and currency volatility; (ii) supply and demand dynamics in the solar power and battery storage energy industry, including seasonality; (iii) mix of products and services we provide, as well as the timing and scale of project sales; (iv) pricing of solar power and battery energy storage products; and (v) the costs of raw materials, including solar ingots, polysilicon, wafers, silver-based metallic pastes, cells and lithium-ion components relative to the selling prices of modules and battery energy storage products. Our operating results may also be affected by (i) raw materials availability and supply chain constraints; (ii) effects that current credit, interest rate and market conditions could have on the value of our project assets; and (iii) changes in trade regulations and treaties, including renewable energy incentives, including those contained in the IRA and OBBBA, government grants, antidumping and countervailing duties. We also are subject to other risks as outlined in “Item 3. Key Information—D. Risk Factors.” We are closely monitoring macro-economic developments, including inflation, interest rates, monetary policy changes and foreign currency fluctuations, as well as elevated geopolitical tensions, hostilities and political conflicts around the world, and how they may adversely impact our and our customers’, contractors’, suppliers’ and partners’ respective businesses. In particular, weak economic conditions or unfavorable changes in any of these general factors could materially and adversely affect our results of operations. 51 Table of Contents Our business and revenue growth depend on the increasing demand for solar power, driven by its increasing cost competitiveness with other power generation technologies, its advantages over other renewable sources, and expanding battery energy storage deployment to reduce intermittency of renewables generation. Public support for renewable energy, driven by energy security and environmental concerns, continue to accelerate industry adoption. Although solar technology has been available for decades, significant market expansion has occurred only recently. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Company and Our Industry—We may be adversely affected by volatility in the solar power and battery energy storage market and industry conditions; in particular, the demand for our solar power and battery energy storage products and services may not grow as expected or may decline.” Industry demand is affected by seasonality. Demand tends to be lower in winter, when adverse weather conditions can complicate the installation conditions. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Company and Our Industry—Our revenues and results of operations are subject to significant fluctuations, which make our financial performance difficult to predict.” In addition, grid interconnection constraints have heightened the need for battery energy storage integration in order to shift the feed of electricity into the grid to benefit from peak demand periods and overcome limitations in grid transmission capacity. The current electricity and capacity market design and rules may not adequately compensate for the integration of battery energy storage systems, and as such may hinder, slow down or limit the growth rate of solar power or battery energy storage adoption and implementation. Our solar module pricing is based on the actual flash test results or nameplate capacity, expressed in watts-peak, and is affected by market demand and supply, module efficiency and power output. Higher efficiency modules usually command premium pricing. The average selling prices of our solar modules decreased from $0.23 per watt in 2023 to $0.16 per watt in 2024 and remained at $0.16 per watt in 2025. We anticipate further price reductions driven by industry trends. Our battery energy storage pricing is based on storage capacity, expressed in watts-hour, and is affected by market demand, storage capacity and material costs. Higher storage capacity and longer duration products generally command higher price premium. Our profitability is highly dependent on the cost of silicon raw materials, solar ingots, wafers, cells, silver-based metallic paste and lithium-ion components relative to the selling prices of our solar modules and battery energy storage products. We produce solar modules, which comprise interconnected solar cells encased in a weatherproof frame. Solar cells are the most important component of solar modules. Our solar cells are primarily made from mono-crystalline silicon wafers through multiple manufacturing steps, including the application of N-type and TOPCon technologies. The solar cell manufacturing processes involve the formation of electrical contacts on the front and rear surfaces of the solar cells, which are typically produced using silver-based metallic pastes. As a result, silver is a critical input material in solar cell metallization and contributes to the overall cost of solar cell production. Solar wafers are the primary material used to make solar cells. Solar ingots are the key material for making solar wafers. If we are unable to procure silicon raw materials, solar ingots, wafers and cells at input costs that aligns with the declines in selling price of our solar modules, our revenues and margins could be adversely impacted, either due to higher manufacturing costs than our competitors or write-downs of inventory, or both. We may lose market share if our competitors are able to offer better pricing than we do. We manufacture our battery energy storage products. The costs of lithium iron phosphate (“LFP”) cells, battery modules, and associated electronics are a significant portion of our total cost structure for energy storage products. If we are unable to procure lithium­ ion battery components input costs that aligns with the decline in line with the pricing of our battery energy storage products, or if supply chain disruptions result in cost inflation or delays, our margins may be compressed, and our competitiveness in the energy storage market could be adversely impacted. Our revenues from the sale of solar power and battery energy storage projects are affected by the timing of project completion and our monetization strategy, which includes balancing the long-term ownership and operation of certain assets with selective project sales. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Company and Our Industry—Our sale of solar power and battery energy storage projects depends heavily on our ability to find third-party buyers for our projects in a timely manner and on favorable terms and conditions” and “Item 4. Information on the Company—B. Business Overview—Sales, Marketing and Customers—Recurrent Energy” for a description of our solar power and battery energy storage pipelines. Rising interest rates, tightening credit conditions, and changing investor return expectations could place downward pressure on asset valuations across the renewable infrastructure sector, including our projects. Certain classes of investors benchmark solar power and battery energy storage project returns against bond yields, and increases in those yields can lead to higher required internal rates of return (“IRRs”) on infrastructure investments. As a result, we may face reduced sale prices for our projects, extended sales cycles, or the need to hold completed projects on our balance sheet for longer periods, potentially reducing liquidity and delaying revenue recognition. Project sales may also be adversely affected by construction delays, changes in government policy or permitting requirements, counterparty credit deterioration, grid curtailment, equipment failures, and extreme weather events. These factors may lead to project cancellations, impairments, or reclassification of assets from held-for-sale to held-for-use. In such cases, we may be required to expense prior capitalized development costs or impair our project investments, which could materially affect our operating results for the relevant period. 52 Table of Contents While the cost of solar and battery energy storage technologies have generally declined, continued government support remains important to sustain industry growth and investment returns. Our business performance and market demand are influenced significantly by the availability, size, and stability of government incentives, regulatory frameworks, and trade regimes in the countries where we operate. Governments in many of our key markets, including the United States and a number of the states of the European Union (including, Italy, France, Germany and Spain) continue to provide incentives that support solar power and battery energy storage deployment. In the United States, the IRA significantly enhanced and extended tax-based incentives for renewable energy. These include expanded ITC and PTC eligibility, additional bonus credits for projects located in energy communities or meeting domestic content thresholds, and advanced manufacturing production tax credits under Section 45X of the Internal Revenue Code. The IRA also introduced mechanisms for credit transferability and direct pay, which were clarified through temporary and proposed IRS regulations issued in June 2023 and finalized in May 2024. These incentives, however, remain subject to regulatory and compliance requirements, including those arising under the OBBBA. In the European Union, several member states continue to implement incentive schemes, including national auctions and tax benefits to support renewable development. Additionally, the revised Renewable Energy Directive, which entered into force on November 20, 2023, aims to further streamline permitting processes and reinforce regulatory support for solar and battery energy storage deployment. However, some member states have enacted land-use limitations and zoning restrictions, particularly in agricultural zones, which may limit project development opportunities. As part of the revised directive, EU member states are required to implement permitting reforms by mid-2024 and to designate renewables acceleration areas by February 2026 to streamline project approvals and facilitate faster deployment. Despite overall government support, many of these incentive programs are subject to change, reduction, or phase-out over time. Revisions, reductions, or eliminations of subsidies and favorable regulations could materially and adversely affect demand for our products and services, particularly in developing or price-sensitive markets. In addition, unfavorable changes in energy laws or policies could deter customer investment, increase competition, or reduce expected returns on our projects. For a detailed discussion of the impact of government subsidies and incentives, possible changes in government policy and associated risks to our business, see “Item 3. Key Information—D. Risk Factors—Risks Related to Our Company and Our Industry—Governments may revise, reduce or eliminate incentives and policy support schemes for solar power and battery energy storage” and “Item 3. Key Information—D. Risk Factors—Risks Related to Our Company and Our Industry—Our global operations are subject to complex and evolving laws, regulations, policies, trade restrictions and geopolitical risks, which could increase compliance costs, disrupt operations, delay project execution and adversely affect our business, financial condition and results of operations.” We have been in the past, and may be in the future, subject to international trade policies, including the imposition or expansion antidumping and countervailing duty rulings, tariffs, and other trade remedies. In particular, we have been subject to antidumping and countervailing duty rulings in the U.S., the EU, and Canada and have, as a result, been party to lengthy proceedings related thereto. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Company and Our Industry—Antidumping and countervailing duty determinations in the United States could adversely affect us,” “—Other trade measures such as Section 232 and Section 301 tariffs could adversely affect us,” and “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Legal and Administrative Proceedings.” The U.S., the EU, the U.K. and Canada are important markets for us. Ongoing proceedings relating to, and the imposition of any new, antidumping and countervailing duty rulings and orders or safeguard measures in these markets may result in additional costs to us and/or our customers or limit our access to important markets. Pending investigations, safeguard measures, and retroactive rulings could also result in supply chain disruptions or unanticipated liabilities. The COVID-19 pandemic previously posed significant challenges to many aspects of our business, including our operations, customers, suppliers and projects. On May 5, 2023, the World Health Organization announced that COVID-19 was no longer a public health emergency. Pandemic-related impacts have since largely subsided. Overview of Financial Results We evaluate our business using a variety of key financial measures. 53 Table of Contents Net Revenues Our business is organized into two segments: (i) Manufacturing, comprising CS PowerTech, which focuses on manufacturing and sales of solar products and battery energy storage products, and other power technology products for the U.S. market, and CSI Solar, which serves all other global markets; and (ii) Recurrent Energy, which focuses on solar power and battery energy storage project development, asset sales, power services, and electricity revenue from its operating portfolio. The following table sets forth, for the periods indicated, the components of our revenues by amounts and percentages of our total revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the years ended December 31, ​ ​ 2024 ​ 2025 ​ ​ ​ (in thousands of $, except percentages) ​ Net revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Manufacturing: ​ ​ ​ ​ ​ ​ ​ ​ Solar modules 4,281,178 71.4 % 3,377,706 60.4 % Battery energy storage solutions 814,604 13.6 % 1,370,590 24.5 % Solar system kits 398,173 6.7 % 224,621 4.0 % EPC and others 181,422 3.0 % 227,855 4.1 % Recurrent Energy: ​ ​ ​ ​ ​ ​ ​ ​ ​ Solar power and battery energy storage asset sales ​ 156,686 ​ 2.6 % 175,987 ​ 3.1 % Power services ​ 69,972 ​ 1.2 % 75,486 ​ 1.3 % Revenue from electricity, battery energy storage operations and others ​ 91,374 ​ 1.5 % 142,862 ​ 2.6 % Total ​ 5,993,409 ​ 100.0 % 5,595,107 ​ 100.0 % ​ Our revenues from Manufacturing are primarily affected by average selling prices per watt and unit volumes shipped of solar power products, as well as the average selling price per watt-hour and unit volumes shipped of battery energy storage solutions products. Revenues from sales to customers are recorded net of sales taxes, goods and services taxes, value added taxes, and estimated returns. Our revenues from our Recurrent Energy are primarily affected by the timing of the completion and the timing and strategy of monetization of solar power and battery energy storage projects. Our revenue recognition policies for sales of battery energy storage products and solar power and battery energy storage asset sales are described in “—Critical Accounting Estimates—Revenue.” Cost of Revenues The cost of revenues for Manufacturing includes direct and indirect costs associated with the manufacture and delivery of solar modules, and battery energy storage products. These costs primarily consist of key materials and components, including high purity polysilicon, ingots, wafers, cells, silver-based metallic pastes, glass, metal frames, ethylene vinyl acetate, junction boxes, polymer back sheets, lithium iron phosphate battery cells and inverters. Additional costs include production labor (salaries and benefits for manufacturing staff), warranty expenses, and overhead related to utilities, equipment maintenance, and factory support. Depreciation and amortization of manufacturing equipment and facilities are also included and have increased in line with the expansion of our manufacturing footprint. Furthermore, our cost structure reflects exposure to global trade regulations and compliance-related expenses, including antidumping, countervailing and other duty costs, as well as inventory impairment charges. The cost of revenues for Recurrent Energy primarily reflects solar power and battery energy storage project expenditures associated with development, construction and key equipment. These include the cost of acquiring project rights and sites, interconnection and permitting fees, procurement for equipment, including trackers, mounting hardware, and grid interconnection equipment, and construction services. Interest capitalized during construction also forms a portion of the costs. Additionally, this segment may recognize impairments on project assets due to adverse changes in market conditions, regulatory uncertainty, or project-specific performance. Gross Profit Gross profit is affected by a number of factors, including but not limited to, the performance and contribution of both of our segments, the average selling prices and unit volumes of our solar power and battery energy storage products, our product mix, our ability to cost­ effectively manage our vertical integration, manufacturing capacity and supply chain, inventory write-downs, tariffs, antidumping and countervailing duties, the timing and pricing of project sales and the impairment of project assets. As a result of these various factors, our gross margin varies from period to period. 54 Table of Contents Operating Expenses Selling and Distribution Expenses Selling and distribution expenses consist primarily of transportation and shipping costs for delivery of our products, salaries and benefits, sales commissions for our sales agents, advertising, promotional and trade show expenses, and other sales and marketing expenses. We have implemented cost management initiatives across our logistics, sales and marketing functions. We expect to continue managing these expenses through improved logistics management, disciplined hiring and targeted marketing programs to strengthen our position as a leading global brand. General and Administrative Expenses General and administrative expenses consist of salaries and benefits for our corporate, finance, legal, IT and other administrative functions, as well as expenses for consulting, professional service fees, government and administrative fees and insurance fees. We have reduced headcount related costs through disciplined workforce management and tighter control over discretionary spending, while continuing to support the operations of our two segments. From time to time, general and administrative expenses may also include one-time costs and non-cash impairment changes related to manufacturing equipment and held-for-use energy assets. For a description of the stock options, restricted share units and restricted shares granted, including the exercise prices and vesting periods, see “Item 6. Directors, Senior Management and Employees—B. Compensation of Directors and Executive Officers—Share Incentive Plans.” We recognize share-based compensation expense based on the fair value of equity awards at the grant date. Expense for time-based awards is recognized over the requisite service period, while performance-based awards are recognized upon occurrence of certain contingent conditions. We estimate expected forfeitures based on historical and anticipated employee retention and adjust these estimates prospectively. Research and Development Expenses Research and development expenses consist primarily of costs of raw materials used in our research and development activities, salaries and benefits for research and development personnel and prototype and equipment costs related to the design, development, testing and enhancement of our products. Refer to “—C. Research and Development” for further details of our research and development activities. We expect to continue managing research and development expenditures in line with project timelines and technological priorities. Other Operating Income, Net Other operating income, net, primarily reflects non-core operating items that are not directly attributable to our primary revenue­ generating activities. This includes government grants received and gains or losses from disposal of held-for-use energy assets and manufacturing equipment. The amount and timing of other operating income can vary depending on the receipt of government incentives, asset management strategies, and external environmental factors. Interest Expense Interest expense relates to interest incurred on our short and long-term borrowings from banks and other financial institutions, green bonds, and convertible notes. The level of interest expense is influenced by prevailing interest rates, total outstanding debt balances, and the currency composition of our financing sources. Loss on Change in Fair Value of Derivatives We utilize derivative instruments as part of our risk management strategy to mitigate exposures to fluctuations in foreign currency exchange rates, raw material prices, and interest rates. These instruments include foreign exchange forward contracts, commodity hedges, and interest rate swaps. Changes in the fair value of these derivatives that are not designated as accounting hedges are recognized in earnings and may result in gains or losses depending on market movements. These fair value adjustments can introduce volatility to our financial results. 55 Table of Contents Income Tax Benefit (Expense) We recognize income tax expense or benefit based on taxable income for the period, as well as deferred tax assets and liabilities arising from temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are subject to valuation allowances when management cannot conclude that it is more likely than not that they will be realized. The effective tax rate may fluctuate from period to period due to changes in the geographic mix of income, tax holidays or incentives, changes in valuation allowances, or other non­recurring tax adjustments. Results of Operations The following table sets forth, for the periods indicated, certain of our consolidated results of operations and each item expressed as a percentage of our total net revenues. Our historical results presented below are not necessarily indicative of the results that may be expected for any future period. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the years ended December 31, ​ ​ ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ (in thousands of $, except percentages) ​ Net revenues ​ ​ 5,993,409 ​ ​ ​ 100.0 % 5,595,107 ​ ​ ​ 100.0 % Manufacturing segment ​ ​ 6,460,003 107.8 % 5,612,124 100.3 % Recurrent Energy segment ​ ​ 323,469 5.4 % 403,620 7.2 % Elimination ​ ​ (790,063) (13.2) % (420,637) (7.5) % Cost of revenues ​ ​ 4,994,090 83.3 % 4,568,881 81.7 % Manufacturing segment ​ ​ 5,272,722 88.0 % 4,669,608 83.5 % Recurrent Energy segment ​ ​ 257,976 4.3 % 320,166 5.7 % Elimination ​ ​ (536,608) (9.0) % (420,893) (7.5) % Gross profit ​ ​ 999,319 16.7 % 1,026,226 18.3 % Manufacturing segment ​ ​ 1,187,281 19.8 % 942,516 16.8 % Recurrent Energy segment ​ ​ 65,493 1.1 % 83,454 1.5 % Elimination ​ ​ (253,454) (4.2) % 256 0.0 % Operating expenses: ​ ​ ​ ​ ​ ​ ​ Selling and distribution expenses ​ ​ 487,947 8.1 % 382,591 6.8 % General and administrative expenses ​ ​ 515,204 8.6 % 581,807 10.4 % Research and development expenses ​ ​ 120,792 2.0 % 90,685 1.6 % Other operating income, net ​ ​ (94,543) (1.6) % (72,013) (1.3) % Total operating expenses ​ ​ 1,029,400 17.2 % 983,070 17.6 % Income (loss) from operations ​ ​ (30,081) (0.5) % 43,156 0.8 % Other income (expenses) ​ ​ ​ ​ ​ ​ ​ Interest expense ​ ​ (137,468) (2.3) % (178,166) (3.2) % Interest income ​ ​ 88,470 1.5 % 46,054 0.8 % Loss on change in fair value of derivatives, net ​ ​ (51,400) (0.9) % (42,422) (0.8) % Foreign exchange gain (loss), net ​ ​ 46,750 0.8 % (16,751) (0.3) % Investment income, net ​ ​ 1,427 0.0 % 7,390 0.1 % Total other expenses ​ ​ (52,221) (0.9) % (183,895) (3.3) % Loss before income taxes and equity in losses of affiliates ​ ​ (82,302) (1.4) % (140,739) (2.5) % Income tax benefit (expense) ​ ​ 16,576 0.3 % (14,149) (0.3) % Equity in losses of affiliates ​ ​ (12,136) (0.2) % (28,875) (0.5) % Net loss ​ ​ (77,862) (1.3) % (183,763) (3.3) % Less: Net loss attributable to non‑controlling interests and redeemable non-controlling interests ​ ​ (113,913) (1.9) % (79,637) (1.4) % Net income (loss) attributable to Canadian Solar Inc. ​ ​ 36,051 0.6 % (104,126) (1.9) % ​ 56 Table of Contents Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Net Revenues. Our net revenues decreased by $398.3 million, or 6.6%, from $5,993.4 million in 2024 to $5,595.1 million in 2025. The decline was primarily attributable to lower sales volume of solar modules as we continued to prioritize margin over volume. This impact was partially offset by higher sales of battery energy storage systems, which increased their contribution to total revenue during the year. Total module shipments decreased to 24.3 GW in 2025 from 31.1 GW in 2024, while battery energy storage solutions continued to grow significantly, reaching 7.8 GWh in shipped volume in 2025, which represents an increase of over 18.6% compared to 2024. Of total shipments in 2025, approximately 1,122 MW were delivered to our own utility-scale solar, compared to approximately 803 MW in 2024. Our net revenues related to Recurrent Energy increased by $76.3 million, or 24.0%, from $318.0 million in 2024 to $394.3 million in 2025, mainly attributable to an increase in revenue generated from project sales, reflecting a higher volume of project monetization completed during 2025. Project sales contributed 3.1% of total revenue in 2025, compared to 2.6% in 2024. In 2025, revenue contributions from power services and electricity, battery energy storage operations and others were 1.3% and 2.6%, respectively, up from 1.2% and 1.5% in 2024. Cost of Revenues. Our cost of revenues decreased by $425.2 million, or 8.5%, from $4,994.1 million in 2024 to $4,568.9 million in 2025. The decrease was primarily attributable to lower manufacturing costs and lower inventory write-downs. These decreases were partially offset by higher costs associated with battery energy storage deployment, which carry different cost dynamics. Additionally, higher volume of solar power and battery storage asset sales, partially offset by lower impairments related to solar assets held for use in Recurrent Energy impacted the segment’s cost contribution for 2025. Gross Profit. Our gross profit increased by $26.9 million, or 2.7%, from $999.3 million in 2024 to $1,026.2 million in 2025. Gross margin improved year-over-year from 16.7% to 18.3%, driven primarily by a higher mix of battery energy storage systems, which generally provide higher margins than solar modules, and the benefit from a U.S. anti-dumping and countervailing duty true-up adjustment based on final affirmative determinations made by the ITC. Despite pressure from declining solar modules ASPs and trade related duties, we mitigated some margin compression through continued reductions in manufacturing costs and improved operational efficiencies, including workforce reduction. Our diversification into battery energy storage has also enhanced the resilience of our gross profit. Operating Expenses. Our operating expenses decreased by $46.3 million, or 4.5%, from $1,029.4 million in 2024 to $983.1 million in 2025. Operating expenses represented 17.6% of net revenues in 2025, compared to 17.2% in 2024. Selling and Distribution Expenses. Our selling and distribution expenses decreased by $105.4 million, or 21.6%, from $487.9 million in 2024 to $382.6 million in 2025, primarily due to lower shipping and handling costs. Selling and distribution expenses represented 6.8% of net revenues in 2025, compared to 8.1% in 2024. General and Administrative Expenses. Our general and administrative expenses increased by $66.6 million, or 12.9%, from $515.2 million in 2024 to $581.8 million in 2025. The increase was mainly attributable to a $48.5 million day-one loss resulting from the non-cash classification of a battery energy storage project as a sales-type lease, $54.0 million impairment charge on manufacturing equipment and $19.7 million in personnel and severance expenses. General and administrative expenses represented 10.4% of net revenues in 2025, compared to 8.6% in 2024. Research and Development Expenses. Our R&D expenses decreased by $30.1 million, or 24.9%, from $120.8 million in 2024 to $90.7 million in 2025, reflecting cost optimization initiatives. R&D expenses represented 1.6% of net revenues in 2025, compared to 2.0% in 2024. See “—C. Research and Development” for additional detail on our R&D activities. Other Operating Income, Net. Our other operating income, net, decreased by $22.5 million, or 23.8%, from $94.5 million in 2024 to $72.0 million in 2025, mainly reflecting lower government grants received. Interest Expense, Net. Our interest expense, net, increased by $83.1 million, or 169.6%, from $49.0 million in 2024 to $132.1 million in 2025. Our interest expense increased by $40.7 million, or 29.6%, from $137.5 million in 2024 to $178.2 million in 2025. The increase was primarily attributable to a higher average level of outstanding debt during the year, which mainly related to non-recourse borrowings. In 2025 and 2024, we capitalized interest costs related to the construction of qualifying assets totaling approximately $107.0 million and $108.9 million, respectively. The remaining interest expense was recognized in current period operations. 57 Table of Contents Our interest income decreased by $42.4 million, or 47.9%, from $88.5 million in 2024 to $46.1 million in 2025, reflecting a reduction in our average balance of cash, cash equivalents, and restricted cash during 2025 compared to 2024. In 2025 and 2024, we earned nil and $18.9 million of interest benefits, respectively, from anti-dumping and countervailing duty deposit refunds and supplier settlements. Loss on Change in Fair Value of Derivatives, Net. We recorded a loss of $42.4 million in 2025 from changes in the fair value of derivative instruments, compared to $51.4 million in 2024. The loss was primarily due to unfavorable movements in the RMB, Euro, JPY and BRL exchange rates. Foreign Exchange Gain (Loss), Net. We recognized a loss of $16.8 million in 2025, compared to a gain of $46.8 million in 2024, primarily due to the unfavorable movements in the RMB, Euro and JPY exchange rates. Investment Income, Net. We recorded net investment income of $7.4 million in 2025, as compared net investment income of $1.4 million in 2024, primarily due to increase in fair value of our investments in China. Income Tax Benefit (Expense). We recognized an income tax expense of $14.1 million in 2025, compared to an income tax benefit of $16.6 million in 2024. The change primarily reflected differences in pre-tax earnings, jurisdictional income mix, valuation allowances, and other permanent tax items. Equity in Losses of Affiliates. Our share of the earnings of affiliates resulted in a net loss of $28.9 million in 2025, compared to a net loss of $12.1 million in 2024. The year-over-year decline was primarily due to weaker performance from certain investees in Latin America. Net Loss Attributable to Non-Controlling Interests and Redeemable Non-Controlling Interests. Our net loss attributable to non-controlling interests and redeemable non-controlling interests decreased to $79.6 million in 2025 from $113.9 million in 2024. The decrease was primarily driven by the recognition in income attributable to our consolidated tax equity partnerships under the hypothetical liquidation at book value (“HLBV”) method of $90.8 million in 2025 and $164.3 million in 2024. This was partially offset by lower net income attributable to non­controlling shareholders of CSI Solar. Recently Issued Accounting Pronouncements See “Item 17. Consolidated Financial Statements—Note 2—Recently Issued Accounting Pronouncements.” B Liquidity and Capital Resources As of December 31, 2025, we had $1,370.4 million in cash and cash equivalents and $570.0 million in restricted cash. Restricted cash represents amounts held by banks as security for short-term notes payable, letters of guarantee, letters of credit or bank borrowings. These amounts are unavailable for general use until the related obligations mature or are repaid, at which point the funds become unrestricted. We intend to fund our existing and future material cash requirements for at least the next 12 months, including working capital, capital expenditures, investment requirements, subsidiary share repurchases, and debt repayments, through available cash and cash equivalents, monetization of project assets, anticipated cash flow from operations, and drawdowns under our credit note facilities. From time to time, we may also seek additional financing, refinancing, or equity transactions, including open market purchases and privately negotiated transactions, and acquisitions or investments in other companies and businesses that we believe could expand our operations, augment our market coverage, enhance our technical capabilities, or otherwise offer growth opportunities. The timing and amount of any such transaction will depend on prevailing market conditions, our liquidity requirements, contractual restrictions, and other factors, and the amounts involved may be significant. Our future cash flows and working capital needs will depend on many factors. We intend to expand and upgrade our solar modules and battery energy storage production capacities and to remain competitive in production technology. See “Item 4. Information on the Company—B. Business Overview—Manufacturing—CS PowerTech and CSI Solar.” 58 Table of Contents In June 2023, CSI Solar completed its STAR Listing on the Shanghai Stock Exchange, raising gross proceeds of RMB 6.01 billion ($842.6 million). In July 2023, the full over-allotment option was exercised, raising an additional gross proceeds of RMB 0.9 billion ($124.3 million). All U.S. dollar equivalents are based on the exchange rate on the respective transaction dates. CSI Solar issued 622,217,324, representing approximately 17% of the its outstanding shares post-IPO. As of the date of this annual report, we own approximately 63% equity interest in CSI Solar. In January 2024, Canadian Solar Energy Group B.V. and Recurrent Energy B.V., our subsidiaries, entered into a purchase and sale agreement with GRP IV UK Holdco Limited (“GRP IV”), which is managed by BlackRock, Inc.’s climate infrastructure business (“BlackRock”) to issue Series A preferred shares of Recurrent Energy B.V. (“Series A Preferred Shares”) to GRP IV. GRP IV subsequently assigned its rights, liabilities and obligations under the agreement to GRP IV Rose Bidco Ltd. (“Investor”), an affiliated entity that is also managed by BlackRock. Following initial and subsequent closings in May and September 2024, respectively, BlackRock’s total investment reached $500.0 million, representing 20% of Recurrent Energy B.V.’s fully diluted shares on an as-converted basis as determined immediately upon closing. See “Item 4. Information on the Company—B. Business Overview—Recurrent Energy Key Development.” Cash Flows and Working Capital As of December 31, 2025, we had approximately $8,772.0 million in contractual credit facilities, with $5,158.4 million drawn as borrowings, $811.5 million utilized through bank guarantees, letters of credit and short-term notes payable. Of the total contractual credit facilities, approximately $2,356.5 million was available for drawdown to support our manufacturing operations and working capital requirements, and approximately $430.0 million was available in connection with our projects business. In addition, we had uncommitted credit facilities totaling approximately $1,988.4 million, with $568.6 million drawn as borrowings and $639.3 million utilized under similar banking arrangements as of December 31, 2025. As of December 31, 2024 and 2025, $997.4 million and $2,168.5 million of borrowings under Recurrent Energy were non-recourse. These borrowings are typically long-term, asset- or portfolio-specific, and denominated in the domestic currency of the respective project subsidiary. These are secured by the assets and equity of each project, and lenders have no recourse to Canadian Solar Inc. in the event of a default. Our short-term borrowings mature between the first and fourth quarters of 2026 and bore a weighted average interest rate of 3.3% as of December 31, 2025. Although these facilities do not include automatic renewal provisions, we have historically been able to repay or refinance these short-term borrowings on similar terms prior to or upon maturity. As of December 31, 2025, borrowings of $3,925.2 million were secured by property, plant and equipment with a carrying amount of $285.9 million, land use rights of $63.5 million, restricted cash of $437.2 million, equity interests of $573.1 million, project assets of $888.9 million, and solar power and battery energy storage systems of $1,181.0 million. These borrowings were classified as short-term borrowings of $793.2 million, long-term borrowings of $473.9 million under Manufacturing, and short-term borrowings of $71.1 million, non-recourse borrowings - current of $600.1 million, long-term borrowings of $491.0 million and non-recourse borrowings of $1,495.9 million under Recurrent Energy. Our long-term borrowings mature between the first quarter of 2026 and the third quarter of 2047. A portion of these borrowings, relating to solar power and battery energy storage project assets expected to be sold within one year, are classified as current liabilities and have maturities ranging from the first quarter of 2026 to the third quarter of 2029. Our long-term borrowings carried a weighted average interest rate of 5.2 % as of December 31, 2025. In 2024, we entered an investment agreement with a subsidiary of Pacific Alliance Group, or PAG, for the issuance of $200.0 million of convertible senior secured notes due 2029. We issued the $200.0 million convertible senior secured notes in 2025. In April 2025, Recurrent Energy B.V. completed a refinancing of its credit facilities with Banco Santander, S.A., Intesa Sanpaolo S.p.A New York Branch, Rabobank, New York Branch, and Morgan Stanley Senior Funding, Inc. The refinanced $415.0 million credit facility consists of term loan facilities of €83.8 million ($90.5 million) and $59.5 million, and a $265.0 million revolver, maturing in April 2028 and extendable by one year subject to lender consent. We provided guarantee of up to $325.0 million in connection with the facility. In 2025, the term loan was increased by $82.5 million and €10.8 million ($12.7 million), and revolver was increased by $45.0 million, with MUFG, Norddeutsche Landesbank and Nomura Corporate Funding Americas, LLC. As of December 31, 2025, $552.4 million was outstanding. 59 Table of Contents In January 2026, we issued $230.0 million of convertible senior notes due 2031 to qualified institutional buyers in a private placement transaction pursuant to Rule 144A under the Securities Act. The convertible notes are senior unsecured obligations of our company and accrue interest at a rate of 3.25% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2026. The convertible notes will mature on January 15, 2031, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date. Holders of the convertible notes may convert all or part of their notes at their option at any time prior to the close of business on the third business day immediately preceding the maturity date. Upon conversion, we will deliver to such converting holders, a number of our common shares equal to the applicable conversion rate as of the relevant conversion date, together with a cash payment in lieu of any fractional share. The initial conversion rate is 36.1916 common shares per US$1,000 principal amount of such notes, which represents an initial conversion price of approximately US$27.63 per common share. The conversion rate and conversion price for the notes will be subject to adjustments upon the occurrence of certain events. On or after January 22, 2029, we may redeem for cash all or part of the notes, at our option, if the last reported sale price of our common shares has been at least 130% of the conversion price then in effect on each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately prior to the date we provide notice of redemption. In addition, the notes will be redeemable, in whole and not in part, at our option at any time following the occurrence of certain tax related events. The redemption price in the case of a tax redemption or an optional redemption will be equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the related redemption date. Most of our long-term borrowings and credit facilities contain financial covenants, including interest and debt coverage ratios, loan to equity value of designated project ratios, debt to asset ratios, and minimum equity requirements. We were in compliance with these covenants as of December 31, 2025. The following table sets forth a summary of our cash flows for the periods indicated: ​ ​ ​ ​ ​ ​ ​ For the years ended December 31, ​ ​ ​ ​ 2024 ​ ​ ​ 2025 ​ (in thousands of $) Net cash used in operating activities (885,324) (252,741) Net cash used in investing activities (1,962,257) (1,503,490) Net cash provided by financing activities 2,319,771 1,347,505 ​ Operating Activities Net cash used in operating activities was $252.7 million in 2025, compared to net cash used in operating activities of $885.3 million in 2024. The improvement was mainly due to significantly lower working capital outflows, including improved accounts receivable, lower expansion of inventories reflecting reduced raw material costs, and lower expansion of project asset investments, partially offset by the losses recorded in 2025. To manage working capital, we require certain customers to make partial prepayments, which totaled $246.2 million and $181.2 million as of December 31, 2024 and 2025, respectively. Advances to suppliers totaled $242.6 million and $322.4 million as of December 31, 2024 and 2025, respectively. Investing Activities Net cash used in investing activities was $1,503.5 million in 2025 compared to $1,962.3 million in 2024. The decrease was mainly due to lower purchases of property, plant and equipment and intangible assets, as certain phases of global capacity expansion outside the United States were executed in the prior period. Purchases of solar power and battery energy storage systems also decreased to $429.2 million in 2025 from $757.6 million in 2024, attributable to timing of construction, which is subject to various project development factors. These reductions were partially offset by higher investments in bank time deposits and structured deposits in 2025. Financing Activities Net cash provided by financing activities was $1,347.5 million in 2025, compared to $2,319.8 million in 2024. The decline was mainly due to higher net repayments of short-term borrowings and repayment of convertible notes in 2025, and the absence of preferred share issuance proceeds recorded in 2024. These impacts were partially offset by higher long-term borrowings and the issuance of new convertible notes in 2025. 60 Table of Contents For disclosures related to interest rates, refer to “Item 5. Operating and Financial Review and Prospects—A. Operating Results.” Material Cash Requirements Our material cash requirements as of December 31, 2025 and any subsequent period primarily include obligations related to borrowings, green bonds, convertible notes, construction, lease liabilities, purchase commitments, financing liabilities, and associated interest payments. Our purchase obligations arise in the normal course of business and include binding purchase orders for inventories and capital expenditures. As of December 31, 2025, we had inventory purchase commitments, primarily for silicon raw materials, totaling $1,226.4 million, of which $636.0 million is expected to be paid in 2026. Capital expenditures were focused on expanding our manufacturing capacity, totaling $1,106.2 million and $962.3 million in 2024 and 2025, respectively. As of December 31, 2025, our commitments for property, plant and equipment purchases were $315.8 million, of which $251.7 million is expected to be paid in 2026. As of December 31, 2025, our commitments for the construction and development for solar power, and battery energy storage systems and project assets were $174.2 million, of which $141.2 million is expected to be paid in 2026. As of December 31, 2025, we had $3,621.2 million in long-term borrowings and $2,389.0 million in short-term borrowings. Scheduled principal payments on long-term borrowings are $1,685.2 million in 2027, $997.5 million in 2028, $229.3 million in 2029, $347.4 million in 2030, and $361.8 million in 2031 and thereafter. Long-term borrowing may have fixed or variable interest rates. For borrowings with variable-rate interest, interest payments are estimated based on projected market interest rates for various floating-rate benchmarks received from third parties. Expected interest payments on long-term borrowing are $186.6 million in 2026, $37.0 million in 2027, $23.6 million in 2028, $4.6 million in 2029, $3.7 million in 2030, and $31.9 million in 2031 and thereafter. Interest on short-term borrowings in 2026 is expected to be $79.1 million. Future changes in interest rate environment may materially affect our estimate of interest payments in the future. As of December 31, 2025, we had outstanding convertible notes with principal amount of $200.0 million, bearing an annual interest rate of 6.0%, which will mature on December 31, 2029. Assuming no conversion, regular interest obligations on convertible notes as of December 31, 2025 are $12.0 million in 2026, $12.0 million in 2027, $12.0 million in 2028 and $12.0 million in 2029. As of December 31, 2025, financing liability totaled $99.5 million, with scheduled repayments expected through 2030. Operating lease liabilities were $381.3 million, of which $34.7 million matures in 2026 and finance lease liabilities totaled $141.5 million, with $36.8 million maturing in 2026. In the normal course of business, our subsidiaries provide letters of credit through their banks for purposes including, but not limited to, guarantees for accounts payable, debt service reserves, capital reserves, construction completion and performance. Letters of credit provided by our subsidiaries totaled $733.1 million as of December 31, 2025. We have contingent contractual obligations in the ordinary course of developing solar power and battery energy storage projects. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Company and Our Industry—Our project construction activities may not complete on time, and our development and construction costs could increase to levels that cause the return on our investment in the projects to be lower than expected” and “—We face a number of risks involving offtake contracts, including failure or delay in entering into contracts, defaults by counterparties and contingent contractual terms such as price adjustment, termination, liquidated damages, buy-out, acceleration and other clauses.” These obligations are designed to cover specific risks and are only triggered upon the occurrence of certain events, such as construction delays, cost overruns, change of control, subsidiary defaults, political or tax risks, sale indemnities, energy delivery shortfalls, sponsor support and liquidated damages. While we do not expect to make material payments under these contingent contractual obligations, many of the triggering events are outside our control, and we can provide no assurance that we will be able to fund these obligations if we are required to make substantial payments thereunder. C Research and Development We conduct research and development activities in the following areas: i) ingot growth and wafering, ii) solar cells, iii) modules, iv) battery energy storage, v) energy solutions, vi) power electronics, vii) system performance analysis, and viii) reliability testing. ● Ingot growth and wafering research is focused on developing advanced crystallization and sawing technologies to produce high quality mono wafers and reduce energy and material use. 61 Table of Contents ● Solar cell research is focused on developing new N-type based high efficiency solar cells, including TOPCon, HJT and BC, and advanced solar cell processing technologies. ● Module research is focused on developing new module designs and technologies for improving wattage, reliability, efficiency and system-level performance. ● Battery energy storage, energy solutions and power electronic research is primarily focused on developing high quality battery energy storage systems and inverters for utility, commercial and residential applications. ● System performance analysis provides module- and system-level performance evaluation and LCOE benchmarking for new products and innovations. ● Product reliability research is engaged in research collaboration with leading research institutes to accelerate market penetration of incremental and rupture solar technologies, by allowing state-of-the-art reliability evaluation and performance characterization. Our ISO17025-accredited Canadian Solar Photovoltaic Testing Laboratory (“CPTL”) conducts certification per IEC61215/IEC61730/UL61730/IEC62804 standards and collaborates with leading research institutes to develop extensive reliability research on solar modules and components. The laboratory has been approved by VDE, CSA, TÜV, SÜD and DEKRA certification bodies under their data approval programs. Using data science, extensive characterization platforms and data-driven proprietary tool, the research focuses on enabling products with longer service life and lower degradation rates, supporting improved module warranties. As of December 31, 2025, we had 1,318 employees engaged in research, product development and engineering. Our research and development activities include: ● developing Czochralski (“CZ”) mono pulling technologies compatible with 182 mm x 182 mm, 182 mm x 210 mm and 210 mm x 210 mm ingot size with a competitive cost structure; ● developing novel diamond wire sawing technology compatible with 182 mm x 182 mm, 182 mm x 210 mm and 210 mm x 210 mm mono ingots with thickness range from 110 μm to 140 μm; ● continuously improving the conversion efficiency of existing solar cells and reducing costs through process and material improvements and innovation; ● developing new N-type based cell structures and technologies for higher efficiencies and performance; ● continuously improving the wattage of existing solar modules and reducing costs through process and material improvements and innovation; ● developing new modules with improved design and assembly methods to achieve higher power output, module-level efficiency, reliability and system-level performance; ● designing and developing customized solar modules and products to meet specific customer requirements; ● designing and developing power electronics such as inverters; ● designing and developing battery energy storage systems; ● conducting testing, data tracking and analysis to assess system-level performance and reliability of various products and innovations; ● developing data-based, accurate reliability models to guide future materials and design innovations, and commercialize long-lifetime and low-degradation solar modules; and 62 Table of Contents ● establishing highly accelerated reliability testing and innovative characterization methods to expedite the large-scale commercialization of product innovations. In the future, we expect to focus on the following research and development initiatives that we believe will enhance our competitiveness. ● Ingot and wafer. Since cell efficiency heavily depends on wafer quality, we focus on continuously improving quality performance of mono wafers, including decreasing the oxygen content and reducing the axial-direction resistivity difference of N-type ingot to support the further improvement of cell efficiency. Additional R&D efforts focus on consuming less energy and materials in CZ pulling and diamond wire sawing, such as increasing pulling speed, lowering power consumption during crystal growth, improving the success rate of seeding and neck growth in CZ pulling, and reducing diamond wire diameter while improving the yield of diamond wire sawing. ● High efficiency cells. Our research and development is focused on new products, such as N-type HJT cells, TOPCon cells, and other technologies. CSI HJT technology has advanced to version 4.0, incorporating developments in several key industry technologies, including high crystallization rate double-sided microcrystalline, super multi-busbar (“SMBB”) Ultra, fine line metallization, and ultra-thin silicon wafers. The R&D cell efficiency has exceeded 27.6%, mass production cell efficiency has surpassed 27.3%, and the yield rate has reached 99.2%. We have partnered with research institutes to jointly develop high-efficiency perovskite/HJT tandem cells, achieving a power conversion efficiency of 33.1%. We are continuing research on commercial-grade silicon (182 mm x 105 mm) mass-producible tandem technology while exploring ultra-thin perovskite/p-HJT tandem technical technologies. We expanded our TOPCon module product offering in 2024, achieving cell efficiency of 26.5%, and began full-scale production from ingot to module in February 2024. In 2025, the second generation of high-efficiency TOPCon cell and module technology was developed, achieving cell efficiency of 27.4%. ● Competitive solar module products. Higher efficiency, improved reliability, cost competitiveness and differentiated functional features have been the key objectives of PV module R&D. Based on the current mainstream design, improving current collection performance, increasing the effective power generation area within the module size range, and improving optical utilization are the main directions for module R&D in the near future. ● Utility-scale battery energy storage products. SolBank refers to the 20-foot containerized energy storage product line designed for utility-scale applications. The product utilizes LFP cells and features high energy density, active balancing, and an intelligent Thermal Management System, while supporting back-to-back installation. In 2025, according to NFPA 855 testing standards, SolBank 3.0 successfully passed a large-scale fire test, demonstrating its safety and reliability under extreme conditions. In 2025, the long-cycle-life SolBank 3.0 Plus product was deployed. We also launched the modular FlexBank product line, and released the first generation product FlexBank 1.0, designed to facilitate transportation and deployment. KuBank is a battery energy storage product designed for C&I applications with a standardized modular design that enables parallel expansion of the energy storage system. Certification and commercial launch globally were achieved by 2024. In 2025, KuBank 3.0 was developed with a capacity of up to 940 kWh to meet U.S. market requirements. ● Residential battery energy storage products. Our EP Cube offerings comprise a flexible whole-home battery energy storage solution that includes a smart gateway, hybrid inverter and battery module in the U.S. market. The solution is available in configurations ranging from 5 kWh to 40kWh in 5 kWh increments and is scalable up to 120 kWh with 3 parallel units. EP Cube provides reliable power backup, integrates a self-designed hybrid inverter and supports up to 6 maximum power point tracking (“MPPT”) connections with current rating of up to 16 ampere to store electricity generated by a solar system. The system can also store electricity from the grid during off-peak periods through authorized settings. With continuous monitoring capabilities, EP Cube can detect outages and respond when the power supply is disrupted. ● Energy solution products. We have developed single-phase solar, three-phase solar and hybrid storage inverters, as well as battery energy storage systems for utility-scale, commercial and residential applications, across front-of-meter and behind-the-meter applications. Our string inverters are progressing through certifications to expand market availability. We also continue to develop ready-to-install solar system kits that integrates solar modules, inverters, racking systems, battery energy storage and accessories for deployment in multiple markets. 63 Table of Contents ● Power electronic products. Our power electronics cover a full solar inverter portfolio, including residential 5-6 kW and 7-9 kW inverters, C&I 15-25 kW, 40-60 kW and 75-125 kW inverters, utility-scale 225kW/320kW/333kW/350kW inverters, and 200kW/215kW PCS for energy storage system. We began R&D of residential inverters in 2017, with products delivered to the market in 2019. We maintain local and international certifications to enter the relevant markets. The 200 kW and 215 kW PCS products have obtained the UL 1741 certification for the North American energy storage system market. D Trend Information Other than as disclosed elsewhere in this annual report on Form 20-F, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material adverse effect on our net revenues, income, profitability, liquidity or capital resources, or that would render reported financial information to be not necessarily indicative of future operating results or financial conditions. E Critical Accounting Estimates Our significant accounting policies are described in “Note 2. Summary of Principal Accounting Policies” to our consolidated financial statements included elsewhere in this annual report on Form 20-F. The preparation of these financial statements in accordance with U.S. GAAP requires us to make estimates and judgments that affect the reported amount of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. Critical accounting estimates are those that involve significant judgment or uncertainty and could materially impact our financial condition or results of operations if different assumptions or conditions were to occur. The following represent our most critical accounting estimates. We are not aware of any specific events or circumstances that would require updates to our estimates and judgments or require us to revise the carrying value of our assets or liabilities from what had been assumed when the financial statements were prepared. These estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. Revenue We recognize revenue from sales of battery energy storage products at a point in time when the customers obtain control of the products, typically upon shipment or delivery depending on contract terms. Revenue from turnkey battery storage solutions and EPC services is recognized over time using the percentage-of-completion method, based on actual costs incurred relative to total estimated costs to determine progress towards contract completion. Revenue recognition involves significant estimates and assumptions, including the effects of performance incentives, liquidated damages and other contractual adjustments. These estimates and assumptions are reassessed periodically. Changes in estimated costs or revenues result in a cumulative effect recorded in the period of change. If estimated total project costs indicate a loss, the total amount of such loss, excluding general and administrative expense, is recognized immediately. We recognize revenue from sales of solar power and battery energy storage projects at a point in time when customers obtain control of the projects. These projects are typically held in special purpose legal entities, partnerships or trusts, which we refer to as project companies. Significant judgment is involved in assessing whether deconsolidation of the project companies is appropriate upon transfer of equity interest to customers, identifying performance obligations, and estimating variable considerations as part of the transaction price. Impairment of Long-lived Assets, Project Assets and Solar Power and Battery Energy Storage Systems We evaluate our property, plant and equipment, and solar power and battery energy storage systems for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. These require significant judgment in determining whether such events or changes have occurred. We consider factors such as asset group utilization, process and equipment technologies, temporary idling of capacity and the expected timing of placing this capacity back into production to evaluate impairment on our property, plant and equipment. We examine factors such as changes in energy curtailment, environmental, permitting, grid interconnection, capital cost, electricity merchant pricing and regulatory conditions that may cause the costs of the project to increase or the selling price of the project to decrease. 64 Table of Contents In 2025, we recorded impairment losses of $54.0 million for property, plant and equipment, $60.2 million for project assets and $11.1 million for solar power systems. Inventories We value our inventories at the lower of cost and net realizable value, based upon assumptions about future demand, market prices and production costs. We assess product-specific facts and circumstances for inventory impairment, particularly when market conditions turn unfavorable, and production costs and estimated costs to sell exceed expected selling price, including trends in polysilicon pricing. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Company and Our Industry—Oversupply of polysilicon, solar wafers, cells and modules may cause substantial downward pressure on the prices of our products and reduce our revenues and earnings.” In 2025, we recorded an inventory impairment of $74.0 million to reflect the lower of cost and net realizable value. Redeemable Non-controlling Interests in Subsidiaries, including Tax Equity Partnerships We finance a portion of the costs of our recently constructed U.S. solar energy and battery energy storage projects through tax equity partnerships. We account for our contractual relationships with tax equity investors using the Hypothetical Liquidation at Book Value (“HLBV”) method. These tax equity partnerships are typically consolidated as variable interest entities (“VIEs”) in which we hold a variable interest and are deemed the primary beneficiary. Under the terms of these arrangements, tax equity investors are generally entitled to substantially all of the accelerated depreciation tax deductions and investment tax credits associated with the projects, together with a portion of the distributable cash. Their entitlement to these benefits typically declines to a residual interest after a predefined flip point is reached, typically the expiration of a time period or the achievement of a target yield. Because the allocation of tax attributes and cash flows is not proportionate to initial capital contributions or ownership percentages, these arrangements represent substantive profit-sharing arrangements. In order to reflect the substantive profit-sharing arrangements under the HLBV method, the income or loss attributable to redeemable noncontrolling interests reflects the changes in the amounts that tax equity investors would hypothetically receive upon liquidation of the applicable partnerships at the beginning and end of each reporting period, after considering any capital transactions, such as contributions or distributions, between our subsidiaries and tax equity investors. The hypothetical liquidation assumptions are periodically reviewed to reflect significant events or changes in circumstances that could affect the distribution or liquidation priorities, including changes in expected flip dates, anticipated tax equity partnership period, or other events that may alter the expected duration and future cash flows of the partnership and its underlying assets. Attributing income or loss to the tax equity investors under the HLBV method requires significant assumptions and estimates to calculate the amounts that tax equity investors would receive in a hypothetical liquidation over the expected partnership duration. Changes in these assumptions and estimates can materially affect the income or loss allocated to the tax equity investors. In 2025, we recorded a HLBV adjustment of $90.8 million to reflect the changes in the tax equity investors’ interest in the net assets of the relevant tax equity partnerships. In 2024, we classified Recurrent Energy B.V.’s preferred shares as redeemable non-controlling interests. The carrying value of the redeemable non-controlling interest is not accreted or adjusted to redemption value unless the redemption of such preferred shares by our subsidiary becomes probable, which involves significant judgment. Warranties We provide warranties on solar products and battery storage systems covering performance, manufacturing defects, and degradation. We have established procedures to monitor trends in warranty support, replacement and repair costs, historical claims experience, expected failure rates based on quality reviews and other relevant assumptions. These estimates are revised as necessary to reflect new information. We also assess expected future product performance through quality and reliability testing, and actual field operating information. In 2025, we accrued warranty provisions of $70.1 million. As of December 31, 2025, our accrued warranty liability was $138.4 million. ​ 65 Table of Contents