NCS Multistage Holdings, Inc. Revenue Disclosure

Note 5. Revenues

 

Disaggregation of Revenue

 

We sell our products and services primarily in North America and in selected international markets. See above “Note 4. Segment and Geographic Information” for our disaggregated revenue by geographic area.

 

Contract Balances

 

If the timing of the delivery of products and provision of services is different from the timing of the customer payments, we recognize either a contract asset (performance precedes contractual due date in connection with estimates of variable consideration) or a contract liability (customer payment precedes performance) on our consolidated balance sheet.

 

The following table presents the current contract liabilities for the periods indicated (in thousands): 

 

Balance at December 31, 2023		$	460
Additions			278
Revenue recognized			(515	)
Balance at December 31, 2024		$	223
Additions			940
Revenue recognized			(1,103	)
Balance at December 31, 2025		$	60

 

We currently do not have any contract assets or non-current contract liabilities. Our contract liability as of December 31, 2025 and 2024 is included in other current liabilities on the applicable accompanying consolidated balance sheets. Our performance obligations for our product sales and services revenue are typically satisfied before the customer’s payment; however, prepayments may occasionally be required.

 

Contracts with Multiple Performance Obligations

 

Substantially all of our product sales and services revenue are considered a single performance obligation. Our tracer self-service product line, which constitutes a small percentage of our total revenue for the years ended December 31, 2025 and 2024, is comprised of two performance obligations: (i) the delivery of tracer materials to a customer well site and (ii) the creation of diagnostic reports ordered by customers when we do not perform an integrated service. For these contracts, we do not allocate the transaction price as the individual performance obligations are sold at standalone prices in the customer order. The transaction prices for our self-service product line are determined as (i) the price per unit times the quantity of tracer materials and (ii) prices charged for diagnostic reports ordered by and delivered to the customer.

 

Practical Expedients

 

We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within SG&A expenses on the consolidated statements of operations.

 

We do not disclose the value of unsatisfied performance obligations when the related contract has a duration of one year or less. We recognize revenue equal to what we have the right to invoice when that amount corresponds directly with the value to the customer of our performance to date.