Emergent BioSolutions Inc.EBS
Emergent BioSolutions Inc. Revenue Disclosure
Revenue recognition
We maintain an allowance for expected credit losses, which represents the estimated aggregate amount of credit risk arising from the inability or unwillingness of specific customers to pay our fees or disputes that may affect our ability to fully collect our billed accounts receivable. We estimate the current-period provision for expected credit losses on a specific identification basis and we consider factors such as the age of the receivables balance, knowledge of the specific customers' circumstances and historical collection experience for similar customers. Accounts receivable, net of the allowance for expected credit losses, represents the amount we expect to collect. Our actual experience may vary from our estimates. At each reporting date, we adjust the allowance for expected credit losses to reflect our current estimate. The Company's provisions for expected credit losses for the year ended December 31, 2025 were immaterial, and for the years ended December 31, 2024 and 2023 were $5.3 million and $2.1 million, respectively.
The Company's revenues disaggregated by the major sources were as follows:
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
USG | Non-USG | Total | USG | Non-USG | Total | USG | Non-USG | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial Product sales | $ | 2.8 | $ | 223.3 | $ | 226.1 | $ | 0.8 | $ | 398.1 | $ | 398.9 | $ | 0.8 | $ | 496.5 | $ | 497.3 | |||||||||||||||||||||||||||||||||||
| MCM Product sales | 300.2 | 156.5 | 456.7 | 381.3 | 128.5 | 509.8 | 373.5 | 73.7 | 447.2 | ||||||||||||||||||||||||||||||||||||||||||||
All other revenues (1) (2) | 36.7 | 23.4 | 60.1 | 28.4 | 106.5 | 134.9 | 20.4 | 84.4 | 104.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 339.7 | $ | 403.2 | $ | 742.9 | $ | 410.5 | $ | 633.1 | $ | 1,043.6 | $ | 394.7 | $ | 654.6 | $ | 1,049.3 | |||||||||||||||||||||||||||||||||||
(1) “All other revenues” includes Services and Contract and grants revenue. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) “All other revenues” for the year ended December 31, 2024 include $50.0 million of Services revenues attributable to the Settlement Agreement. The revenue is related to raw materials purchased for the Janssen Agreement which Janssen had not reimbursed. See Note 20, “Litigation” for additional information related to the accounting treatment and settlement of the arbitration with Janssen. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, 2025, 2024 and 2023, the Company's product sales from Naloxone products, Other Commercial products, Anthrax MCM, Smallpox MCM and Other products as a percentage of total product sales were as follows:
Year Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
| % of product sales: | |||||||||||||||||
| Commercial Products: | |||||||||||||||||
| Naloxone products | 33 | % | 44 | % | 51 | % | |||||||||||
Other Commercial products (1) | — | % | — | % | 1 | % | |||||||||||
| MCM Products: | |||||||||||||||||
| Anthrax MCM | 17 | % | 15 | % | 20 | % | |||||||||||
| Smallpox MCM | 39 | % | 31 | % | 18 | % | |||||||||||
| Other Products | 11 | % | 10 | % | 10 | % | |||||||||||
(1) “Other Commercial products” refers to the travel health business that was sold to Bavarian Nordic in 2023. See Note 4, “Divestitures” for additional information related to the sale of the travel health business. | |||||||||||||||||
For the years ended December 31, 2025, 2024, and 2023, aside from sales to the USG, there were no sales to an individual customer in excess of 10% of total revenues. For the years ended December 31, 2025, 2024, and 2023, the Company’s revenues from customers within the United States comprised 71%, 79% and 58%, respectively, of total revenues.
Transaction price allocated to remaining performance obligations
As of December 31, 2025, the Company has future contract value on unsatisfied performance obligations of approximately $244.4 million associated with all arrangements entered into by the Company. The Company expects to recognize $203.8 million of unsatisfied performance obligations within the next 24 months. The amount and timing of revenue recognition for unsatisfied performance obligations can change. The future revenues associated with unsatisfied performance obligations exclude the value of unexercised option periods in the Company’s revenue arrangements. Often the timing of manufacturing activities changes based on customer needs and resource availability. Government funding appropriations can impact the timing of product deliveries. The success of the Company's development activities that receive development funding support from the USG under development contracts can also impact the timing of revenue recognition.
Contract assets
The Company considers accounts receivable and deferred costs associated with revenue generating contracts, which are not included in inventory or property, plant and equipment and the Company does not currently have a contractual right to bill, to be contract assets. As of December 31, 2025 and December 31, 2024, the Company had $6.4 million and $9.7 million, respectively, of contract assets recorded within “Accounts receivable, net” on the Consolidated Balance Sheets.
Contract liabilities
When performance obligations are not transferred to a customer at the end of a reporting period, cash received associated with amounts allocated to those performance obligations is reflected as contract liabilities on the Consolidated Balance Sheets and is deferred until control of these performance obligations is transferred to the customer. The following table presents the roll forward of the contract liabilities:
Contract Liabilities | |||||
| Balance at December 31, 2024 | $ | 9.3 | |||
| Balance at December 31, 2025 | $ | 14.4 | |||
| Revenue recognized in the period from amounts included in contract liability at the beginning of the period: | $ | 3.2 | |||
As of December 31, 2025 and 2024, the current portion of contract liabilities was $5.0 million and $4.8 million, respectively, and was included in “Other current liabilities” on the Consolidated Balance Sheet.
Accounts receivable and allowance for expected credit losses
Accounts receivable, including unbilled accounts receivable contract assets, consist of the following:
December 31, | |||||||||||
2025 | 2024 | ||||||||||
| Accounts receivable: | |||||||||||
| Billed | $ | 66.8 | $ | 135.4 | |||||||
| Unbilled | 18.2 | 19.6 | |||||||||
| Allowance for expected credit losses | (0.8) | (0.5) | |||||||||
| Accounts receivable, net | $ | 84.2 | $ | 154.5 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 19, 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.