4.           Product Revenue, Net

ARCALYST

The Company derives substantially all of its product revenue, net from sales of ARCALYST in the United States, which was as follows:

Years Ended

December 31, 

2025

2024

2023

Product Revenue, net

$

677,564

$

417,029

$

233,176

The following tables summarizes balances and activity in each of the product revenue allowance and reserve categories for the years ended December 31, 2025 and 2024:

Contractual

Government

Adjustments

Rebates

Returns

Total

Balance at December 31, 2024

$

3,495

$

8,640

$

2,294

$

14,429

Current provisions relating to sales in the current year

36,209

26,882

1,704

64,795

Adjustments relating to prior years

(2,306)

(718)

(3,024)

Payments/returns relating to sales in the current year

(31,650)

(15,995)

(47,645)

Payments/returns relating to sales in the prior years

(3,495)

(5,338)

(156)

(8,989)

Balance at December 31, 2025

$

4,559

$

11,883

$

3,124

$

19,566

Contractual

Government

Adjustments

Rebates

Returns

Total

Balance at December 31, 2023

$

2,022

$

3,775

$

341

$

6,138

Current provisions relating to sales in the current year

24,738

18,436

1,296

44,470

Adjustments relating to prior years

(31)

(155)

836

650

Payments/returns relating to sales in the current year

(21,277)

(9,796)

(31,073)

Payments/returns relating to sales in the prior years

(1,957)

(3,620)

(179)

(5,756)

Balance at December 31, 2024

$

3,495

$

8,640

$

2,294

$

14,429

Total revenue-related reserves as of December 31, 2025 and 2024, included in the Company’s consolidated balance sheets, are summarized as follows:

December 31, 

December 31, 

2025

2024

Reduction of accounts receivable

$

(831)

$

(444)

Components of other current liabilities

20,397

14,873

Total revenue-related reserves

$

19,566

$

14,429

pl

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 28, 2024
2022Mar 2, 2023
2021Feb 24, 2022

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.