9. DEFERRED REVENUE

 

The Company records deferred revenue when cash payments are received or billings are due in advance of the Company’s satisfaction of performance obligations under its contracts with customers. The Company’s deferred revenue primarily relates to prepaid network fees and extended warranty. The Company expects to recognize the $17,282 deferred revenue balance as of December 31, 2025 as follows: approximately $12,100 during the year ending December 31, 2026; approximately $3,800 during the year ending December 31, 2027; approximately $1,300 during the year ending December 31, 2028; and the remaining balance thereafter through 2029. The expected timing of recognition is based on the contractual service periods of the underlying arrangements. Actual recognition may differ from these estimates as a result of changes in customer contracts or early termination of service arrangements.

 

During the year ended December 31, 2025, the Company recognized $8,790 of revenues related to network fees and warranty contracts that were included in deferred revenues as of December 31, 2024. During the year ended December 31, 2024, the Company recognized $10,595 of revenues related to network fees and warranty contracts that were included in deferred revenues as of December 31, 2023. During the year ended December 31, 2023, the Company recognized $2,794 of revenues related to network fees and warranty contracts that were included in deferred revenues as of December 31, 2022.

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Apr 9, 2025
2023Mar 18, 2024
2022Mar 14, 2023
2021Mar 16, 2022
2020Mar 31, 2021
2019Apr 2, 2020
2018Apr 1, 2019
2017Apr 17, 2018
2016Apr 14, 2017
2015Jul 29, 2016
2014Dec 8, 2015

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.