Revenues, net and Accounts Receivable, net
Refer to Note 3 - Segment Information to the consolidated financial statements for revenues disaggregated by reportable segments, service type, geography and industry verticals.
Contract balances
The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers:
| | | | | | | | | | | | | | |
| | As of |
| December 31, 2025 | | December 31, 2024 |
| Accounts receivable, net | | $ | 343,105 | | | $ | 304,322 | |
| Contract assets | | $ | 31,901 | | | $ | 39,700 | |
| Contract liabilities: | | | | |
| Deferred revenue (consideration received in advance) | | $ | 9,216 | | | $ | 15,484 | |
| Consideration received for process transition activities | | $ | 32,247 | | | $ | 21,993 | |
Accounts receivable includes $141,653 and $121,817 as of December 31, 2025 and 2024, respectively, representing unbilled receivables. The Company has accrued the unbilled receivables for work performed in accordance with the terms of contracts with customers and considers no performance risk associated with its unbilled receivables. Contract assets as of December 31, 2025 and 2024, includes receivables of $24,849 and $33,472, respectively, from payment integrity services. There are no performance risks associated with these contract assets.
There were no significant cumulative catch-up impact or impairment related to contract assets as of December 31, 2025 and 2024.
Revenue recognized during the years ended December 31, 2025 and 2024, which was included in the contract liabilities balance at the beginning of the respective periods:
| | | | | | | | | | | |
| Year ended December 31, |
| 2025 | | 2024 |
Deferred revenue (consideration received in advance) | $ | 14,378 | | | $ | 9,321 | |
Consideration received for process transition activities | $ | 5,428 | | | $ | 2,657 | |
Contract acquisition and fulfillment costs
The following table provides details of the Company’s contract acquisition and fulfillment costs:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Contract Acquisition Costs | | Contract Fulfillment Costs |
| | Year ended December 31, | | Year ended December 31, |
| | 2025 | | 2024 | | 2025 | | 2024 |
| Opening balance | | $ | 2,287 | | | $ | 2,122 | | | $ | 36,022 | | | $ | 24,673 | |
| Additions | | 564 | | | 1,240 | | | 8,853 | | | 15,118 | |
| Amortization | | (904) | | | (1,075) | | | (5,652) | | | (3,769) | |
| Closing balance | | $ | 1,947 | | | $ | 2,287 | | | $ | 39,223 | | | $ | 36,022 | |
There was no significant impairment for contract acquisition and contract fulfillment costs as of December 31, 2025 and 2024.
Allowance for expected credit losses
The following table provides information about accounts receivable, net of allowance for expected credit losses:
| | | | | | | | | | | | | | |
| | As of |
| | December 31, 2025 | | December 31, 2024 |
| Accounts receivable, including unbilled receivables | | $ | 345,980 | | | $ | 307,850 | |
| Less: Allowance for expected credit losses | | (2,875) | | | (3,528) | |
| Accounts receivable, net | | $ | 343,105 | | | $ | 304,322 | |
The movement in “Allowance for expected credit losses” was as follows:
| | | | | | | | | | | | | | |
| | Year ended December 31, |
| | 2025 | | 2024 |
| Opening balance | | $ | 3,528 | | | $ | 3,703 | |
| Additions/(reductions) | | 556 | | | (39) | |
| Reductions due to write-off of accounts receivable | | (1,207) | | | (135) | |
| Currency translation adjustments | | (2) | | | (1) | |
| Closing balance | | $ | 2,875 | | | $ | 3,528 | |
Customer and credit risk concentration
No single customer accounted for more than 10% of the Company's revenues, net during the years ended December 31, 2025 and 2024. The Company’s management believes that the loss of any of its top ten clients could have a material adverse effect on its financial performance.
To reduce credit risk, the Company conducts ongoing credit evaluations of its customers. No customer accounted for more than 10% of accounts receivable, net, as of December 31, 2025 and 2024.