CHARLES RIVER LABORATORIES INTERNATIONAL, INC.CRL
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. Revenue Disclosure
REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
The following table disaggregates the Company’s revenue by reportable segment and timing of transfer of products or services:
| Timing of Revenue Recognition: | 2025 | 2024 | 2023 | ||||||||||||||
| (in thousands) | |||||||||||||||||
| RMS | |||||||||||||||||
| Services and products transferred over time | $ | 389,091 | $ | 380,899 | $ | 377,947 | |||||||||||
| Services and products transferred at a point in time | 456,991 | 448,478 | 414,396 | ||||||||||||||
| Total RMS revenue | 846,082 | 829,377 | 792,343 | ||||||||||||||
| DSA | |||||||||||||||||
| Services and products transferred over time | 2,400,414 | 2,446,751 | 2,611,564 | ||||||||||||||
| Services and products transferred at a point in time | 2,477 | 4,529 | 4,059 | ||||||||||||||
| Total DSA revenue | 2,402,891 | 2,451,280 | 2,615,623 | ||||||||||||||
| Manufacturing | |||||||||||||||||
| Services and products transferred over time | 383,682 | 407,474 | 381,942 | ||||||||||||||
| Services and products transferred at a point in time | 382,727 | 361,858 | 339,501 | ||||||||||||||
| Total Manufacturing revenue | 766,409 | 769,332 | 721,443 | ||||||||||||||
| Total revenue | $ | 4,015,382 | $ | 4,049,989 | $ | 4,129,409 | |||||||||||
Contract Balances from Contracts with Customers
The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
| December 27, 2025 | December 28, 2024 | ||||||||||
| (in thousands) | |||||||||||
Assets from contracts with customers | |||||||||||
| Client receivables | $ | 518,728 | $ | 527,705 | |||||||
| Unbilled revenue | 200,591 | 211,511 | |||||||||
| Total | 719,319 | 739,216 | |||||||||
| Less: Allowance for credit losses | (10,463) | (18,301) | |||||||||
| Trade receivables and contract assets, net | $ | 708,856 | $ | 720,915 | |||||||
| Liabilities from contracts with customers | |||||||||||
| Current deferred revenue | $ | 210,418 | $ | 248,322 | |||||||
| Long term deferred revenue (included in Other long-term liabilities) | 45,632 | 34,291 | |||||||||
Customer contract deposits (included in Other current liabilities) | 106,599 | 89,446 | |||||||||
Approximately 90% of unbilled revenue as of December 28, 2024, which was $212 million, was billed during fiscal year 2025. Approximately 90% of unbilled revenue as of December 30, 2023, which was $228 million, was billed during fiscal year 2024.
Approximately 80% of contract liabilities as of December 28, 2024, which was $283 million were recognized as revenue during fiscal year 2025. Approximately 80% of contract liabilities as of December 30, 2023, which was $273 million, were recognized as revenue during fiscal year 2024.
When the Company does not have the unconditional right to advanced billings, both advanced client payments and unpaid advanced client billings are excluded from deferred revenue, with the advanced billings also being excluded from client receivables. The Company excluded approximately $43 million and $38 million of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying consolidated balance sheets as of December 27, 2025 and December 28, 2024, respectively.
Allowance for Credit Losses
The following is a summary of the activity of the Company’s allowance for credit losses:
| Fiscal Year | |||||||||||||||||
| December 27, 2025 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Beginning balance | $ | 18,301 | $ | 25,722 | $ | 11,278 | |||||||||||
| Provisions | 6,062 | 14,774 | 18,225 | ||||||||||||||
| Reductions | (13,900) | (22,195) | (3,781) | ||||||||||||||
| Ending balance | $ | 10,463 | $ | 18,301 | $ | 25,722 | |||||||||||
Net provision expenses were $3.7 million, $12.9 million, and $18.2 million in fiscal years 2025, 2024, and 2023, respectively and include recoveries of balances previously written off, which are excluded from the table above.
Transaction Price Allocated to Future Performance Obligations
The Company discloses the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of December 27, 2025. Excluded from the disclosure is the value of unsatisfied performance obligations for contracts with an original expected length of one year or less, contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed and service revenue recognized in accordance with ASC 842, “Leases”. The aggregate amount of transaction price allocated to the remaining performance obligations for all open customer contracts as of December 27, 2025 was $667.1 million. The Company will recognize revenues for these performance obligations as they are satisfied, approximately 50% of which is expected to occur within the next twelve months and the remainder recognized thereafter during the remaining contract term.
Other Performance Obligations
As part of the Company’s service offerings, the Company has identified performance obligations related to leasing Company owned assets. In certain arrangements, customers obtain substantially all of the economic benefits of the identified assets, which may include manufacturing suites and related equipment, and have the right to direct the assets’ use over the term of the contract. The associated revenue is recognized on a straight-line basis over the term of the lease, which is generally less than one year, and recorded within service revenue. The Company recognized $48.9 million, $69.0 million, and $93.1 million in lease revenue in fiscal years 2025, 2024, and 2023, respectively. Due to the nature of these arrangements and timing of the contractual lease term, the remaining revenue to be recognized related to these lease performance obligations is not material to the consolidated financial statements.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 11, 2020 | |
| 2018 | Feb 13, 2019 | |
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.