Heartflow, Inc. Revenue Disclosure
Disaggregation of Revenue
The following table summarizes total revenue from customers by geographic region (in thousands):
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| Year Ended December 31, | |||||||
| 2025 |
| 2024 |
| 2023 | |||
United States | $ | 162,733 |
| $ | 115,036 |
| $ | 77,725 |
Rest of World |
| 13,301 |
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| 10,772 |
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| 9,449 |
Total revenue | $ | 176,034 |
| $ | 125,808 |
| $ | 87,174 |
Revenues by geography are determined based on the region of the Company’s contracting entity, which may be different than the region of the customer.
Contract Balances
Unbilled receivables included within accounts receivable on the consolidated balance sheets as of December 31, 2025 and 2024 was $814,000 and $574,000, respectively.
The following table provides the breakdown of capitalized contract costs on the consolidated balance sheets (in thousands):
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| Year Ended December 31, | |||||||
| 2025 |
| 2024 |
| 2023 | |||
Balance at beginning of period | $ | 6,154 |
| $ | 2,941 |
| $ | 2,077 |
Contract costs capitalized |
| 10,795 |
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| 6,952 |
|
| 3,081 |
Contract costs amortized |
| (6,020) |
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| (3,739) |
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| (2,217) |
Balance at end of period | $ | 10,929 |
| $ | 6,154 |
| $ | 2,941 |
The following table provides the breakdown of contract liabilities included within accrued expenses and other current liabilities on the consolidated balance sheets (in thousands):
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| Year Ended December 31, | |||||||
| 2025 |
| 2024 |
| 2023 | |||
Balance at beginning of period | $ | 182 |
| $ | 498 |
| $ | 118 |
Contract liabilities added |
| 279 |
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| — |
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| 470 |
Contract liabilities recognized as revenue |
| (134) |
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| (316) |
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| (90) |
Balance at end of period | $ | 327 |
| $ | 182 |
| $ | 498 |
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.