Costs to Obtain and Fulfill a Contract
Deferred Commissions—Total deferred commissions as of January 31, 2026 and February 1, 2025 were $261.9 million and $209.3 million, respectively.
The following table provides the amounts capitalized and amortized for commission costs for the periods presented (in thousands):
| | | | | | | | | | | | | | | | | | | | | |
| | | Fiscal Year Ended |
| | | | | January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Capitalized commission costs | | | | | $ | 128,449 | | $ | 89,243 | | $ | 88,319 |
| Amortization expense | | | | | $ | 75,912 | | $ | 57,464 | | $ | 50,923 |
| | | | | | | | | |
Connected Devices—Total connected device costs, current and non-current, as of January 31, 2026 and February 1, 2025 were $440.1 million and $362.3 million, respectively.
The following table provides the amounts capitalized and amortized for connected device costs for the periods presented (in thousands):
| | | | | | | | | | | | | | | | | | | | | |
| | | Fiscal Year Ended |
| | | | | January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
Capitalized connected device costs (1) | | | | | $ | 217,219 | | $ | 144,273 | | $ | 154,671 |
Amortization expense (1) | | | | | $ | 139,321 | | $ | 116,812 | | $ | 96,779 |
| | | | | | | | | |
__________
(1)Includes $8.2 million of deployed long-lived device assets that transfer ownership to the customer at the end of the contract and $0.1 million of related amortization expense for the fiscal year ended January 31, 2026.
Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations
Revenue comprises the following (in thousands):
| | | | | | | | | | | | | | | | | | | | | |
| | | Fiscal Year Ended |
| | | | | January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Subscription revenue | | | | | $ | 1,588,386 | | $ | 1,225,777 | | $ | 919,362 |
| Other revenue | | | | | 30,249 | | 23,422 | | 18,023 |
| Total revenue | | | | | $ | 1,618,635 | | $ | 1,249,199 | | $ | 937,385 |
Accounts Receivable—An allowance for credit losses of $14.1 million and $9.1 million was recorded as of January 31, 2026 and February 1, 2025, respectively. During the fiscal years ended January 31, 2026, February 1, 2025, and February 3, 2024, the Company recorded a charge of $13.2 million, $3.3 million, and $7.5 million, respectively, to operations and wrote off $8.2 million, $2.0 million, and $7.2 million, respectively, against the allowance.
Deferred Revenue—The following table provides the deferred revenue balances and revenue recognized from beginning deferred revenue for the periods presented (in thousands):
| | | | | | | | | | | | | | | | | | | | | |
| | | Fiscal Year Ended |
| | | | | January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Deferred revenue, beginning of period | | | | | $ | 685,770 | | $ | 565,486 | | $ | 426,565 |
| Deferred revenue, end of period | | | | | $ | 809,042 | | $ | 685,770 | | $ | 565,486 |
| Revenue recognized in the period from beginning deferred revenue | | | | | $ | 563,254 | | $ | 426,369 | | $ | 300,113 |
Remaining Performance Obligations (“RPO”)—RPO represents the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods.
As of January 31, 2026, the RPO was $3,765.9 million, of which the Company expects to recognize revenue of approximately $1,641.2 million over the next 12 months, with the remaining balance to be recognized thereafter.
Concentrations of Significant Customers and Credit Risk—No customer accounted for greater than 10% of total revenue for the fiscal years ended January 31, 2026, February 1, 2025, and February 3, 2024.
There were no customers that individually represented greater than 10% of accounts receivable as of January 31, 2026 and February 1, 2025.