NRC HEALTH Revenue Disclosure
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(3) |
Contracts with Customers |
The following table disaggregates revenue for the years ended December 31, 2025, 2024, and 2023 based on timing of revenue recognition (in thousands):
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2025 |
2024 |
2023 |
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Subscription services recognized ratably over time |
$ | 125,622 | $ | 134,208 | $ | 140,172 | ||||||
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Fixed, non-subscription recognized over time |
5,374 | 3,447 | 3,503 | |||||||||
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Services recognized at a point in time |
5,721 | 4,805 | 4,071 | |||||||||
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Unit price services recognized over time |
673 | 600 | 834 | |||||||||
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Total revenue |
$ | 137,390 | $ | 143,060 | $ | 148,580 | ||||||
The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers (in thousands):
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December 31, 2025 |
December 31, 2024 |
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Accounts receivables |
$ | 11,108 | $ | 11,054 | ||||
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Contract assets included in other current assets |
$ | 132 | $ | 186 | ||||
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Deferred revenue, current portion |
$ | 16,201 | $ | 15,786 | ||||
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Noncurrent Deferred Revenue included in other long-term liabilities |
$ | 74 | $ | 216 | ||||
Significant changes in contract assets and contract liabilities during the years ended December 31, 2025, and 2024, are as follows (in thousands):
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2025 |
2024 |
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Contract Asset |
Deferred Revenue |
Contract Asset |
Deferred Revenue |
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Increase (Decrease) |
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Revenue recognized that was included in deferred revenue at beginning of year due to completion of services |
$ | - | $ | (15,776 | ) | $ | - | $ | (15,341 | ) | ||||||
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Increases due to invoicing of customer, net of amounts recognized as revenue |
- | 16,051 | - | 15,608 | ||||||||||||
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Increases due to acquisition |
- | - | - | 948 | ||||||||||||
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Decreases due to completion of services (or portion of services) and transferred to accounts receivable |
(186 | ) | - | (84 | ) | - | ||||||||||
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Change due to cumulative catch-up adjustments arising from changes in expected contract consideration |
- | (2 | ) | - | (47 | ) | ||||||||||
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Increases due to revenue recognized in the period with additional performance obligations before invoicing |
132 | - | 186 | - | ||||||||||||
We have elected to apply the practical expedient to not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Total remaining contract revenue for contracts with original duration of greater than one year expected to be recognized in the future related to performance obligations that are unsatisfied at December 31, 2025, approximated $168.2 million, of which $73.5 million, $59.1 million, $27.5 million, $6.0 million, and $2.1 million is expected to be recognized during , , , , and , respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2021 | Mar 4, 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.