Revenue
The following table summarizes the Company’s services revenue:
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | 2025 | | 2024 | | 2023 |
| | | (In thousands) |
| | | | | | |
| Commercial services: | | | | | | |
| Voice and data | | $ | 232,237 | | | $ | 226,197 | | | $ | 219,242 | |
| IoT data | | 181,380 | | | 166,166 | | | 141,036 | |
| Broadband | | 50,720 | | | 56,095 | | | 57,878 | |
Hosted payload and other data(1) | | 61,586 | | | 60,160 | | | 60,298 | |
| Total commercial services | | 525,923 | | | 508,618 | | | 478,454 | |
| Government services | | 108,035 | | | 106,296 | | | 106,000 | |
| Total services | | $ | 633,958 | | | $ | 614,914 | | | $ | 584,454 | |
(1) Includes immaterial revenue related to the Company’s operating leases in which it is a lessor (see Note 10 for additional information).
The following table summarizes the Company’s engineering and support services revenue:
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | 2025 | | 2024 | | 2023 |
| | | (In thousands) |
| | | | | | |
| Commercial | | $ | 7,597 | | | $ | 7,307 | | | $ | 11,050 | |
| Government | | 148,995 | | | 117,045 | | | 90,083 | |
| Total | | $ | 156,592 | | | $ | 124,352 | | | $ | 101,133 | |
The Company’s contracts with customers generally do not contain performance obligations with terms in excess of one year. As such, the Company does not disclose details related to the value of performance obligations that are unsatisfied as of the end of the reporting period. The total value of any performance obligations that extend beyond a year is immaterial to the financial statements.
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the consolidated balance sheets. The Company bills amounts under its agreed-upon contractual terms at periodic intervals (for services), upon shipment (for equipment), or upon achievement of contractual milestones or as work progresses (for engineering and support services). Billing may occur subsequent to revenue recognition, resulting in unbilled accounts receivable (contract assets). The Company may also receive payments from customers before revenue is recognized, resulting in deferred revenue (contract liabilities). The Company recognized revenue that was previously recorded as deferred revenue in the amounts of $52.1 million, $36.9 million and $31.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company has also recorded costs of obtaining contracts expected to be recovered in prepaid expenses and other current assets (contract assets or commissions), that are not separately disclosed on the consolidated balance sheets. The commissions are recognized over the estimated usage period. The following table presents contract assets not separately disclosed:
| | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 |
| | (In thousands) |
| Contract Assets: | | | | |
| Commissions | | $ | 1,603 | | | $ | 1,058 | |
| Other contract costs | | $ | 1,626 | | | $ | 1,798 | |
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.