AerSale Corp Revenue Disclosure
NOTE D - REVENUE
The timing of revenue recognition, customer billings, and cash collections results in a contract asset or contract liability at the end of each reporting period. Contract assets consist of unbilled receivables or costs incurred where revenue recognized over time exceeds the amounts billed to customers. We record a receivable when revenue is recognized prior to invoicing and we have an unconditional right to consideration (only the passage of time is required before payment of that consideration is due) and a contract asset when the right to payment is conditional upon our future performance. Contract liabilities include advance payments and billings in excess of revenue recognized. Certain customers make advance payments prior to our satisfaction of our performance obligations on the contract. These amounts are recorded as contract liabilities until such performance obligations are satisfied. Contract assets and contract liabilities are determined on a contract by contract basis.
Contract assets are as follows (in thousands):
| December 31, 2025 | | December 31, 2024 | | Change | ||||
Contract assets | $ | 4,076 | $ | 6,166 | $ | (2,090) | |||
Contract assets are reported within deposits, prepaid expenses, and other current assets on our Consolidated Balance Sheets. Changes in contract assets primarily result from the timing difference between the performance of
services. Contract liabilities are reported as deferred revenue on our Consolidated Balance Sheets and amounted to $1.8 million as of December 31, 2024, of which $0.7 million was related to contract liabilities for services to be performed. For the year ended December 31, 2025, the Company recognized as revenue the entire opening balance of our contract liabilities included in the deferred revenue beginning balance for services performed as the timing between customer payments and our performance of the services is generally no longer than six months.
Disaggregation of Revenue
The Company reports revenue by segment. The following tables present revenue by segment, as well as a reconciliation to total revenue (in thousands):
| Year Ended December 31, | ||||||||
| 2025 | ||||||||
Asset Management | | | |||||||
| Solutions | | TechOps | | Total Revenue | ||||
USM | $ | 120,078 | $ | 17,570 | $ | 137,648 | |||
Whole asset sales |
| 56,434 |
| - |
| 56,434 | |||
Engineered solutions |
| - |
| 12,390 |
| 12,390 | |||
Total products |
| 176,512 |
| 29,960 |
| 206,472 | |||
Leasing |
| 35,071 |
| - |
| 35,071 | |||
Services |
| - |
| 93,743 |
| 93,743 | |||
Total revenue | $ | 211,583 | $ | 123,703 | $ | 335,286 | |||
| | Year Ended December 31, | |||||||
| | 2024 | |||||||
Asset Management | |||||||||
| Solutions | | TechOps | | Total Revenue | ||||
USM | $ | 83,174 | $ | 16,454 | $ | 99,628 | |||
Whole asset sales | 110,147 |
| - |
| 110,147 | ||||
Engineered solutions |
| - |
| 5,175 |
| 5,175 | |||
Total products |
| 193,321 |
| 21,629 |
| 214,950 | |||
Leasing |
| 22,146 |
| - |
| 22,146 | |||
Services |
| - |
| 107,970 |
| 107,970 | |||
Total revenue | $ | 215,467 | $ | 129,599 | $ | 345,066 | |||
| | Year Ended December 31, | |||||||
| | 2023 | |||||||
Asset Management | |||||||||
| Solutions | | TechOps | | Total Revenue | ||||
USM | $ | 63,418 | $ | 15,278 | $ | 78,696 | |||
Whole asset sales | 137,236 |
| 218 | 137,454 | |||||
Engineered solutions |
| - |
| 1,305 |
| 1,305 | |||
Total products |
| 200,654 |
| 16,801 |
| 217,455 | |||
Leasing |
| 14,513 |
| - |
| 14,513 | |||
Services |
| - |
| 102,535 |
| 102,535 | |||
Total revenue | $ | 215,167 | $ | 119,336 | $ | 334,503 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2020 | Mar 16, 2021 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.