TopBuild Corp Revenue Disclosure
3. REVENUE RECOGNITION
Revenue is disaggregated between our Installation Services and Specialty Distribution segments and further based on market and product, as we believe this best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following tables present our revenues disaggregated by market (in thousands):
Year Ended December 31, 2025 | ||||||||||||
Installation Services | Specialty Distribution | Eliminations | Total | |||||||||
Residential | $ | 2,469,956 | $ | 902,134 | $ | (245,390) | $ | 3,126,700 | ||||
Commercial/Industrial | 712,897 | 1,621,189 | (51,700) | 2,282,386 | ||||||||
Net sales | $ | 3,182,853 | $ | 2,523,323 | $ | (297,090) | $ | 5,409,086 | ||||
Year Ended December 31, 2024 | ||||||||||||
Installation Services | Specialty Distribution | Eliminations | Total | |||||||||
Residential | $ | 2,762,703 | $ | 945,916 | $ | (260,279) | $ | 3,448,340 | ||||
Commercial/Industrial | 531,927 | 1,394,921 | (45,385) | 1,881,463 | ||||||||
Net sales | $ | 3,294,630 | $ | 2,340,837 | $ | (305,664) | $ | 5,329,803 | ||||
Year Ended December 31, 2023 | ||||||||||||
Installation Services | Specialty Distribution | Eliminations | Total | |||||||||
Residential | $ | 2,672,152 | $ | 897,783 | $ | (219,932) | $ | 3,350,003 | ||||
Commercial/Industrial | 516,080 | 1,370,556 | (41,945) | 1,844,691 | ||||||||
Net sales | $ | 3,188,232 | $ | 2,268,339 | $ | (261,877) | $ | 5,194,694 | ||||
The following tables present our revenues disaggregated by product (in thousands):
Year Ended December 31, 2025 | ||||||||||||
Installation Services | Specialty Distribution | Eliminations | Total | |||||||||
Insulation and accessories | $ | 2,364,505 | $ | 2,227,560 | $ | (256,651) | $ | 4,335,414 | ||||
Gutters | 111,115 | 220,632 | (35,991) | 295,756 | ||||||||
Glass and windows | 231,060 | 5,368 | - | 236,428 | ||||||||
Roofing | 215,816 | - | - | 215,816 | ||||||||
All other | 260,357 | 69,763 | (4,448) | 325,672 | ||||||||
Net sales | $ | 3,182,853 | $ | 2,523,323 | $ | (297,090) | $ | 5,409,086 | ||||
Year Ended December 31, 2024 | ||||||||||||
Installation Services | Specialty Distribution | Eliminations | Total | |||||||||
Insulation and accessories | $ | 2,644,819 | $ | 2,077,253 | $ | (268,916) | $ | 4,453,156 | ||||
Gutters | 118,908 | 193,353 | (32,000) | 280,261 | ||||||||
Glass and windows | 246,929 | - | - | 246,929 | ||||||||
All other | 283,974 | 70,231 | (4,748) | 349,457 | ||||||||
Net sales | $ | 3,294,630 | $ | 2,340,837 | $ | (305,664) | $ | 5,329,803 | ||||
Year Ended December 31, 2023 | ||||||||||||
Installation Services | Specialty Distribution | Eliminations | Total | |||||||||
Insulation and accessories | $ | 2,529,186 | $ | 2,028,467 | $ | (228,100) | $ | 4,329,553 | ||||
Gutters | 114,293 | 175,765 | (29,806) | 260,252 | ||||||||
Glass and windows | 251,001 | - | - | 251,001 | ||||||||
All other | 293,752 | 64,107 | (3,971) | 353,888 | ||||||||
Net sales | $ | 3,188,232 | $ | 2,268,339 | $ | (261,877) | $ | 5,194,694 | ||||
The following table represents our contract assets and contract liabilities with customers, in thousands:
Included in Line Item on | As of December 31, | ||||||
Balance Sheets | 2025 | 2024 | |||||
Contract Assets: | |||||||
Receivables, unbilled | Receivables, net | $ | 73,968 | $ | 61,366 | ||
Contract Liabilities: | |||||||
Deferred revenue | Accrued liabilities | $ | 38,307 | $ | 18,651 | ||
Our acquisition of Progressive included $23.0 million of contract assets and $23.8 million of contract liabilities as of December 31, 2025.
The aggregate amount remaining on uncompleted performance obligations was $579.6 million as of December 31, 2025, with $289.7 million resulting from our acquisition of Progressive in the third quarter of 2025 (see Note 15 – Business Combinations for further details). We expect to satisfy the performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 18 months.
On certain of our long-term contracts, a percentage of the total project cost is withheld and not invoiced to the customer and collected until satisfactory completion of the customer’s project, typically within a year. This amount is referred to as retainage and is common practice in the construction industry. Retainage receivables are classified as a component of Receivables, net on our Consolidated Balance Sheets and were $81.6 million and $74.9 million as of December 31, 2025 and 2024, respectively. Our acquisition of Progressive included $14.9 million of retainage receivables as of December 31, 2025. See Note 15 – Business Combinations for further information on the preliminary purchase price allocation.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 25, 2020 | |
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.