Everpure, Inc.P

Everpure, Inc. Revenue Disclosure

10-KFiled Mar 25, 20262 min read
Deferred Revenue and Commissions
Deferred Commissions
Changes in total deferred commissions during the periods presented are as follows (in thousands):
Fiscal Year Ended
20252026
Beginning balance$304,332 $328,620 
Additions183,849 294,969 
Recognition of deferred commissions(159,561)(204,020)
Ending balance$328,620 $419,569 
During fiscal 2024, 2025 and 2026, we recognized sales commission expenses of $172.7 million, $179.7 million, and $230.2 million, respectively. Of the $419.6 million total deferred commissions balance at the end of fiscal 2026, we expect to recognize approximately 33% as sales commission expense over the next 12 months and the remainder thereafter.
There was no impairment related to capitalized commissions during fiscal 2024, 2025 or 2026.
Deferred Revenue
Changes in total deferred revenue during the periods presented are as follows (in thousands):
Fiscal Year Ended
20252026
Beginning balance$1,594,522 $1,795,303 
Additions1,616,920 2,101,138 
Recognition of deferred revenue(1,416,139)(1,668,944)
Ending balance
$1,795,303 $2,227,497 
During fiscal 2025 and 2026, we recognized approximately $852.2 million and $953.8 million, respectively, in revenue pertaining to deferred revenue as of the beginning of each period.
Remaining Performance Obligations
Total remaining performance obligations (RPO) which is contracted but not recognized revenue was $3.7 billion at the end of fiscal 2026. Total RPO includes $228.5 million in remaining non-cancelable product orders, of which $65.2 million relates to a lessor arrangement. RPO consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods. Product orders are generally cancelable until delivery has occurred, and as such, unfulfilled product orders that are cancelable are excluded from RPO. Of the $3.7 billion RPO at the end of fiscal 2026, we expect to recognize approximately 45% over the next 12 months, and the remainder thereafter.

Historical Timeline

Fiscal YearFiled
2026Mar 25, 2026Showing above
2025Mar 27, 2025

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.

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