4. REVENUE

Disaggregation of Revenue—The Company provides disaggregation of revenue based on type of service as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

The following table summarizes revenue by type of service for the years ended December 31 (in thousands):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Software subscriptions

 

$

1,013,892

 

 

$

906,464

 

 

$

830,117

 

Other

 

 

43,109

 

 

 

38,336

 

 

 

36,261

 

Total revenues

 

$

1,057,001

 

 

$

944,800

 

 

$

866,378

 

Contract Assets and LiabilitiesThe balances of the Company’s receivables, contract assets and contract liabilities from contracts with customers are as follows (in thousands):

 

December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

Accounts receivables-Net of allowances

$

137,056

 

 

$

106,578

 

 

$

102,365

 

 

Deferred contract costs

 

24,923

 

 

 

22,373

 

 

 

17,900

 

 

Deferred contract costs-non-current

 

22,479

 

 

 

18,692

 

 

 

22,302

 

 

Other assets (accounts receivable, non-current)

 

25,532

 

 

 

16,946

 

 

 

15,198

 

 

Deferred revenues

 

72,793

 

 

 

44,915

 

 

 

43,567

 

 

Other liabilities (deferred revenues, non-current)

 

1,368

 

 

 

1,415

 

 

 

1,373

 

 

Deferred Contract CostsA summary of the activity impacting the deferred contract costs during the years ended December 31, 2025, 2024 and 2023 is presented below (in thousands):

 

 

 

Year Ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

Balance at beginning of period

 

 

$

41,065

 

 

$

40,202

 

 

$

36,717

 

Costs amortized

 

 

 

(24,022

)

 

 

(22,085

)

 

 

(19,197

)

Additional amounts deferred

 

 

 

30,359

 

 

 

22,948

 

 

 

22,682

 

Balance at end of period

 

 

$

47,402

 

 

$

41,065

 

 

$

40,202

 

 

 

 

 

 

 

 

 

 

 

 

Classified as:

 

 

 

 

 

 

 

 

 

 

Current

 

 

$

24,923

 

 

$

22,373

 

 

$

17,900

 

Non-current

 

 

 

22,479

 

 

 

18,692

 

 

 

22,302

 

Total deferred contract costs

 

 

$

47,402

 

 

$

41,065

 

 

$

40,202

 

Deferred RevenueA summary of the activity impacting deferred revenue balances during the years ended December 31, 2025, 2024 and 2023, is presented below (in thousands):

 

 

 

Year Ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

Balance at beginning of period

 

 

$

46,330

 

 

$

44,940

 

 

$

36,479

 

Revenue recognized1

 

 

 

(581,545

)

 

 

(494,598

)

 

 

(434,197

)

Additional amounts deferred1

 

 

 

609,376

 

 

 

495,988

 

 

 

442,658

 

Balance at end of period

 

 

$

74,161

 

 

$

46,330

 

 

$

44,940

 

 

 

 

 

 

 

 

 

 

 

 

Classified as:

 

 

 

 

 

 

 

 

 

 

Current

 

 

$

72,793

 

 

$

44,915

 

 

$

43,567

 

Non-current

 

 

 

1,368

 

 

 

1,415

 

 

 

1,373

 

Total deferred revenue

 

 

$

74,161

 

 

$

46,330

 

 

$

44,940

 

1 Amounts include total revenue deferred and recognized during each respective period.

The additional amount deferred during the year ended December 31, 2025 includes $21.5 million related to the deferred revenue recorded at the time of the acquisition of EvolutionIQ.

During the years ended December 31, 2025, 2024 and 2023, $44.8 million, $42.4 million and $35.1 million, respectively, that was included in the deferred revenue balance at the beginning of each period was recognized as revenue.

Transaction Price Allocated to the Remaining Performance Obligations—Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of December 31, 2025, approximately $1,891 million of revenue is expected to be recognized from remaining performance obligations with approximately $780 million impacting the next twelve months, and approximately $1,111 million thereafter. The estimated

revenues do not include unexercised contract renewals. The remaining performance obligations exclude future transaction revenue where revenue is recognized as the services are rendered and in the amount to which the Company has the right to invoice.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 28, 2024
2022Mar 1, 2023
2021Mar 1, 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.