MultiSensor AI Holdings, Inc. Revenue Disclosure
Note 4 — Revenue
The following table summarizes the Company’s revenue disaggregated by type of product and service:
Year Ended December 31, | ||||||
| 2025 | | 2024 | |||
Hardware | $ | 3,214 | $ | 5,694 | ||
Software |
| 1,884 |
| 1,003 | ||
Services |
| 453 |
| 705 | ||
Total revenue, net | $ | 5,551 | $ | 7,402 | ||
The Company’s sales policy is not to accept returns of hardware once sold after a day return window. However, in the first quarter of 2024, the Company recorded a sales return of $2,880, which was a reduction against revenue. This sales return was related to a transaction with a long-standing customer who also was a launch customer for the Company’s MSAI Connect platform. There is no sales return reserve as of December 31, 2025 and December 31, 2024.
Customer Concentration
For the year ended December 31, 2025, one customer accounted for 36%, or $2,008 of total net revenue, which is recorded under the entity’s one operating segment. For the year ended December 31, 2024, three customers accounted for 25%, 11% and 11% or $1,840, $817 and $799 of total net revenue, which is recorded under the entity’s one operating segment.
Contract Liabilities
Contract liabilities consist of sales of software subscriptions, where in most cases, the Company receives up-front payment and recognizes revenue over the subscription term. The Company classifies these contract liabilities as either current or non-current liabilities based on the expected timing of recognition of related revenue. Current contract liabilities were $1,255 and $483 and non-current contract liabilities were $751 and $83 as of December 31, 2025 and December 31, 2024, respectively. The change in contract liabilities is primarily related to additional subscription sales, offset by revenue recognition over the subscription term, which is generally 12 to 48 months.
Accounts Receivables Allowance
The following table summarizes the change in the accounts receivables allowance:
December 31, | December 31, | |||||
2025 | 2024 | |||||
Beginning balance | | $ | 35 | | $ | 180 |
Write-off of accounts receivable |
| (33) |
| (186) | ||
Bad debt expense |
| 15 |
| 41 | ||
Ending balance | $ | 17 | $ | 35 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 29, 2024 | |
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.