Elauwit Connection, Inc. Revenue Disclosure
Note 3. Revenue and Deferred Revenue
The following table provides the Company’s revenue disaggregated by revenue stream (in thousands):
For the years ended December 31, | ||||||
| 2025 | | 2024 | |||
Revenue: | ||||||
Network design and installation | $ | 18,796 | $ | 7,370 | ||
Internet network services and hardware and internet service |
| 2,822 |
| 1,125 | ||
Total | $ | 21,618 | $ | 8,495 | ||
Remaining performance obligations represent the transaction price of Company orders for which work has not been performed as of the end of a fiscal period and for contracts with substantive termination penalties. As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $34.0 million (which represents the amount of the Company’s backlog). $8.2 million of the backlog relates to the network design and installation performance obligations and $25.8 million relates to internet network services and hardware and internet services performance obligations. Additionally, $3.6 million of the Company’s backlog relates to jobs that are contracted but not yet started as of December 31, 2025. The Company estimates that approximately $13.4 million of the remaining performance obligations as of will be completed and recognized as revenue during 2026, with the recognized .
Changes in the Company’s deferred revenue balance for the years ended December 31, 2025 and 2024, respectively, were as follows (in thousands):
Balance as of January 1, 2024 | $ | 1,880 | |
Additions included in deferred revenue as of end of period |
| 6,182 | |
Revenue recognized from opening balance |
| (1,847) | |
Balance as of December 31, 2024 | $ | 6,215 | |
Additions included in deferred revenue as of end of period |
| 2,457 | |
Revenue recognized from opening balance |
| (5,478) | |
Balance as of December 31, 2025 | $ | 3,194 |
Deferred revenue balances primarily consist of customer deposits and billings in excess of revenue related to the Company’s network design and installation performance obligations. As of December 31, 2025, the Company’s deferred revenue balance of $3.2 million was classified as $2.9 million in current liabilities and $0.3 million in non-current liabilities in the accompanying consolidated balance sheets. The non-current portion represents the value of operating expense buydown commitments with remaining performance periods extending beyond twelve months. As of December 31, 2024, all of the Company’s deferred revenue balances were reported as current liabilities.
Changes in the Company’s network financing receivable balance for the years ended December 31, 2025 and 2024 were as follows (in thousands):
Balance as of January 1, 2024 | $ | — | |
Additional unbilled revenue recognized |
| 550 | |
Amounts billed during the period |
| (37) | |
Balance as of December 31, 2024 | $ | 513 | |
Additional unbilled revenue recognized |
| 887 | |
Amounts billed during the period |
| (109) | |
Balance as of December 31, 2025 | $ | 1,291 |
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.