ATN International, Inc. Revenue Disclosure
3. REVENUE AND RECEIVABLES
Revenue Accounted for in Accordance with Other Guidance
The Company records revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“ASC 606”) from contracts with customers and ASC Topic 842, “Leases” (“ASC 842”) from lease agreements, as well as government grants. Lease revenue recognized under ASC 842 is disclosed in Note 4 and government grant revenue is disclosed in Note 8.
Timing of Revenue Recognition
Revenue accounted for in accordance with ASC 606 consisted of the following for the periods presented below.
| Year Ended December 31, 2025 | ||||||||
International | US | ||||||||
Telecom | | Telecom | | Total | |||||
Services transferred over time | $ | 360,108 | $ | 280,272 | $ | 640,380 | |||
Goods and services transferred at a point in time | 15,581 | 11,181 | 26,762 | ||||||
Total revenue accounted for under ASC 606 | $ | 375,689 | $ | 291,453 | $ | 667,142 | |||
Operating lease income | 782 | 7,926 | 8,708 | ||||||
Government support revenue (1) | 5,410 | 46,715 | 52,125 | ||||||
Total revenue | $ | 381,881 | $ | 346,094 | $ | 727,975 | |||
| Year Ended December 31, 2024 | ||||||||
International | US | ||||||||
Telecom | | Telecom | | Total | |||||
Services transferred over time | $ | 356,564 | $ | 290,335 | $ | 646,899 | |||
Goods and services transferred at a point in time | 14,944 | 12,154 | 27,098 | ||||||
Total revenue accounted for under ASC 606 | $ | 371,508 | $ | 302,489 | $ | 673,997 | |||
Operating lease income | 381 | 7,991 | 8,372 | ||||||
Government support revenue (1) | 5,574 | 41,132 | 46,706 | ||||||
Total revenue | $ | 377,463 | $ | 351,612 | $ | 729,075 | |||
Year Ended December 31, 2023 | |||||||||
International | US | ||||||||
Telecom | Telecom | Total | |||||||
Services transferred over time | $ | 347,769 | $ | 326,966 | $ | 674,735 | |||
Goods and services transferred at a point in time | 17,086 | 18,059 | 35,145 | ||||||
Total revenue accounted for under ASC 606 | $ | 364,855 | $ | 345,025 | $ | 709,880 | |||
Operating lease income | 289 | 7,488 | 7,777 | ||||||
Government support revenue (1) | 5,589 | 38,970 | 44,559 | ||||||
Total revenue | $ | 370,733 | $ | 391,483 | $ | 762,216 | |||
| (1) | Revenue recognized from government funded programs. Refer to Note 8. |
Contract Assets and Liabilities
Contract assets and liabilities consisted of the following (amounts in thousands):
December 31, 2025 | December 31, 2024 | $ Change | % Change | ||||||||||
Contract asset – current | $ | 3,748 | $ | 3,920 | $ | (172) | (4.4) | % | |||||
Contract asset – noncurrent | 5,887 | 5,368 | 519 | 9.7 | % | ||||||||
Contract liability – current | (27,758) | (28,932) | 1,174 | (4.1) | % | ||||||||
Contract liability – noncurrent | (48,084) | (55,116) | 7,032 | (12.8) | % | ||||||||
Net contract liability | $ | (66,207) | $ | (74,760) | $ | 8,553 | (11.4) | % | |||||
The contract asset-current is included in prepayments and other current assets, the contract asset-noncurrent is included in other assets, the contract liability-current is included in advance payments and deposits, and the contract liability-noncurrent is included in deferred revenue, long-term and other liabilities on the Company’s balance sheet. The decrease in the Company’s net contract liability was due to the recognition of contract liabilities as revenue during the year ended December 31, 2025. During the year ended December 31, 2025, the Company recognized revenue of $28.9 million related to its December 31, 2024 contract liability and amortized $4.0 million of the December 31, 2024 contract asset into revenue. During the year ended December 31, 2024, the Company recognized revenue of $30.5 million related to its December 31, 2023 contract liability and amortized $3.5 million of the December 31, 2023 contract asset into revenue.
Contract Acquisition Costs
The December 31, 2025 balance sheet includes contract acquisition costs of $11.2 million in other assets. The December 31, 2024 balance sheet includes contract acquisition costs of $10.7 million. During the years ended December 31, 2025, 2024 and 2023 the Company amortized $7.0 million, $6.6 million and $5.6 million, respectively, of contract acquisition cost.
Remaining Performance Obligations
Remaining performance obligations represent the transaction price allocated to unsatisfied performance obligations of certain multiyear Mobility and Fixed communication services contracts, Managed Services contracts, and the Company’s Carrier Services construction and service contracts. The transaction price allocated to unsatisfied performance obligations was $563 million and $598 million at December 31, 2025 and December 31, 2024, respectively. The Company expects to satisfy approximately 47% of the remaining performance obligations and recognize the transaction price within 24 months and a $60 million annually from 2027 through 2032. The Company omits performance obligations with a duration of one year or less and variable consideration under the right to invoice or wholly unsatisfied performance obligation practical expedients from this disclosure.
Disaggregation
The Company's revenue is presented on a disaggregated basis in Note 13 based on an evaluation of disclosures outside the financial statements, information regularly reviewed by the chief operating decision maker for evaluating the financial performance of operating segments and other information that is used for performance evaluation and resource allocations. This includes revenue from Communication Services revenue, Construction revenue and Other revenue. Communication Services is further disaggregated into Mobility, Fixed, Carrier Services, and Other revenue. Construction revenue represents revenue generated within the Company’s US Telecom segment for the construction of network cell sites related to the FirstNet Agreement. Other revenue consists of Managed Services revenue. Each of the revenue streams is presented for the Company’s International Telecom and US Telecom segments. This disaggregation of revenue depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Receivables
The Company had gross receivables of $96.2 million and $98.8 million as of December 31, 2025 and 2024, respectively. The Company also recorded allowances for credit losses of $15.5 million and $15.1 million as of December 31, 2025 and 2024, respectively.
In addition, the Company also recorded a receivable under the FirstNet Agreement totaling $43.9 million, of which $8.8 million was current and $35.1 million was long-term, and had a receivable under that same agreement of $49.0 million as of December 31, 2024, of which $8.0 million was current and $41.0 million was long-term. As of December 31, 2025, the Company had recorded $45.1 million of receivables under certain government support agreements, which included $31.9 million under the Replace and Remove Program and $13.3 million related to the Company’s participation in other government support programs. At December 31, 2024, the Company had recorded $50.5 million of receivables under certain government support agreements, which included $37.7 million under the Replace and Remove Program and $12.8 million related to the Company’s participation in other government support programs.
The Company monitors receivables through the use of historical operating data adjusted for expectation of future performance as appropriate. Activity in the allowance for credit losses is below:
Year Ended December 31, | ||||||
| 2025 | | 2024 | |||
Balance at beginning of period |
| $ | 15,132 | $ | 16,362 | |
Current period provision for expected losses |
| 8,809 | 5,946 | |||
Write-offs charged against the allowance |
| (9,273) | (7,494) | |||
Recoveries collected | 840 | 318 | ||||
Balance at end of period | $ | 15,508 | $ | 15,132 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 15, 2023 | |
| 2021 | Mar 16, 2022 | |
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.