Revenue from Contracts with Customers
Capitalized Contract Acquisition Costs
The table below shows significant movements in capitalized contract acquisition costs (current and noncurrent) for the years ended September 30, 2025, 2024, and 2023 (in thousands):
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Balance, beginning of year | $ | 66,258 | | | $ | 66,468 | | | $ | 77,220 | |
| Additional capitalized contract acquisition costs | 48,532 | | | 35,173 | | | 26,960 | |
| Amortization of capitalized contract acquisition costs | (38,238) | | | (35,383) | | | (37,712) | |
| Balance, end of year | $ | 76,552 | | | $ | 66,258 | | | $ | 66,468 | |
Amortization of capitalized contract acquisition costs was $38.2 million, $35.4 million, and $37.7 million for the years ended September 30, 2025, 2024, and 2023, respectively, and is recorded in Sales and Marketing expense in the accompanying consolidated income statements. There was no impairment of any capitalized contract acquisition costs during any period presented.
Contract Balances
Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to the Company's contracts with customers. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations, or for contracts with customers that contain the Company's unconditional rights to consideration, for which the customer has not been billed. These liabilities are classified as current and non-current deferred revenue.
The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the years ended September 30, 2025, 2024, and 2023 (in thousands):
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Balance, beginning of year | $ | 1,797,959 | | | $ | 1,775,121 | | | $ | 1,691,580 | |
| Amounts added but not recognized as revenues | 1,344,094 | | | 1,179,350 | | | 1,162,698 | |
| Deferred revenue acquired through acquisition of businesses | 789 | | | — | | | 1,800 | |
| Revenues recognized related to the opening balance of deferred revenue | (1,143,605) | | | (1,156,512) | | | (1,080,957) | |
| Balance, end of year | $ | 1,999,237 | | | $ | 1,797,959 | | | $ | 1,775,121 | |
Remaining Performance Obligations
Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. The composition of unsatisfied performance obligations consists mainly of deferred service revenue, and to a lesser extent, deferred product revenue, for which the Company has an obligation to perform, and has not yet recognized as revenue in the consolidated financial statements. As of September 30, 2025, the total non-cancelable remaining performance obligations under the Company's contracts with customers was $2.0 billion and the Company expects to recognize revenues on 60.7% of these remaining performance obligations over the next 12 months, 24.1% in year two, and the remaining balance thereafter.
See Note 15 - Segment Information, for disaggregated revenue by significant customer and geographic region, as well as disaggregated product revenue by systems and software.