4.
REVENUE RECOGNITION

Revenue recognized for each revenue stream was as follows:

 

 

Year Ended December 31,

 

(in thousands)

 

2025

 

 

2024

 

Pellet procedures

 

$

137,038

 

 

$

150,329

 

Dietary supplements

 

 

42,884

 

 

 

36,018

 

Disposable trocars

 

 

4,852

 

 

 

4,345

 

Shipping fees and other

 

 

2,150

 

 

 

1,548

 

Product revenue

 

 

186,924

 

 

 

192,240

 

 

 

 

 

 

 

 

Training

 

 

1,076

 

 

 

1,456

 

Contract-term services

 

 

1,362

 

 

 

1,226

 

Other

 

 

2,857

 

 

 

2,269

 

Service revenue

 

 

5,295

 

 

 

4,951

 

Total revenue

 

$

192,219

 

 

$

197,191

 

Revenue recognized by geographic region was as follows:

 

 

Year Ended December 31,

 

(in thousands)

 

2025

 

 

2024

 

United States

 

$

185,924

 

 

$

191,221

 

All other

 

 

1,000

 

 

 

1,019

 

Product revenue

 

 

186,924

 

 

 

192,240

 

 

 

 

 

 

 

 

United States

 

 

5,295

 

 

 

4,950

 

All other

 

 

 

 

 

1

 

Total revenue

 

$

192,219

 

 

$

197,191

 

 

Significant changes in contract liability balances were as follows:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Description of change
(in thousands)

 

Deferred Revenue

 

 

Deferred Revenue,
Long-term

 

 

Deferred Revenue

 

 

Deferred Revenue,
Long-term

 

Revenue recognized that was included in the contract liability balance at the beginning of the period

 

$

(2,772

)

 

$

 

 

$

(1,933

)

 

$

 

Increases due to cash received, excluding amounts recognized as revenue during the period

 

 

1,773

 

 

 

801

 

 

 

1,934

 

 

 

947

 

Transfers between current and non-current liabilities due to the expected revenue recognition period

 

 

1,280

 

 

 

(1,280

)

 

 

1,051

 

 

 

(1,051

)

Total increase (decrease) in contract liabilities

 

$

281

 

 

$

(479

)

 

$

1,052

 

 

$

(104

)

Consideration allocated to initial training due to deposits paid upfront is presented within deferred revenue in the consolidated balance sheets and is expected to be recognized as revenue within one year as the training is performed. Consideration allocated to contract-term services is presented within deferred revenue and deferred revenue, net of current portion for the amounts expected to be recognized within one year and longer than one year, respectively.

Consideration allocated to the premiums within the management fee for pellet procedures is presented within deferred revenue current and deferred revenue, net of current portion for amounts expected to be recognized within one year and longer than one year, respectively.

Consideration allocated to performance obligations were as follows:

 

 

December 31,

 

 

December 31,

 

(in thousands)

 

2025

 

 

2024

 

Unsatisfied training obligations – Current

 

$

158

 

 

$

16

 

Unsatisfied contract-term services – Current

 

 

1,471

 

 

 

1,704

 

Unsatisfied contract-term services – Long-term

 

 

745

 

 

 

1,054

 

Total allocated to unsatisfied contract-term services

 

 

2,216

 

 

 

2,758

 

Unsatisfied pellet procedures – Current

 

 

1,388

 

 

 

1,241

 

Unsatisfied pellet procedures – Long-term

 

 

352

 

 

 

499

 

Total allocated to unsatisfied pellet procedures

 

 

1,740

 

 

 

1,740

 

Total deferred revenue – Current

 

$

3,017

 

 

$

2,961

 

Total deferred revenue – Long-term

 

$

1,097

 

 

$

1,553

 

Historical Timeline

Fiscal YearFiled
2025Mar 13, 2026Showing above
2024Mar 14, 2025
2023Mar 15, 2024
2022Mar 29, 2023

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.