PERMA FIX ENVIRONMENTAL SERVICES INC Revenue Disclosure
NOTE 3
REVENUE
Disaggregation of Revenue
In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of our services and provides meaningful disaggregation of each business segment’s results of operations. The following tables present further disaggregation of our revenues by different categories for our Services and Treatment Segments:
| Revenue by Contract Type | ||||||||||||||||||||||||
| (In thousands) | Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||
| Treatment | Services | Total | Treatment | Services | Total | |||||||||||||||||||
| Fixed price | $ | 45,097 | $ | 4,491 | $ | 49,588 | $ | 34,953 | $ | 18,750 | $ | 53,703 | ||||||||||||
| Time and materials | 12,086 | 12,086 | 5,414 | 5,414 | ||||||||||||||||||||
| Total | $ | 45,097 | $ | 16,577 | $ | 61,674 | $ | 34,953 | $ | 24,164 | $ | 59,117 | ||||||||||||
| Revenue by generator | ||||||||||||||||||||||||
| (In thousands) | Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||
| Treatment | Services | Total | Treatment | Services | Total | |||||||||||||||||||
| Domestic government | $ | 29,093 | $ | 14,247 | $ | 43,340 | $ | 24,487 | $ | 22,389 | $ | 46,876 | ||||||||||||
| Domestic commercial | 10,272 | 1,622 | 11,894 | 8,566 | 1,223 | 9,789 | ||||||||||||||||||
| Foreign government | 4,686 | 489 | 5,175 | 509 | 463 | 972 | ||||||||||||||||||
| Foreign commercial | 1,046 | 219 | 1,265 | 1,391 | 89 | 1,480 | ||||||||||||||||||
| Total | $ | 45,097 | $ | 16,577 | $ | 61,674 | $ | 34,953 | $ | 24,164 | $ | 59,117 | ||||||||||||
Contract Balances
The timing of revenue recognition and billings can result in unbilled receivables (contract assets). The Company’s contract liabilities consist of deferred revenues which represent advance payment from customers in advance of the completion of the Company’s performance obligation. The following table represents changes in our contract asset and contract liabilities balances for the periods noted:
| Year-to-date | Year-to-date | |||||||||||||||
| (In thousands) | December 31, 2025 | December 31, 2024 | Change ($) | Change (%) | ||||||||||||
| Contract assets | ||||||||||||||||
| Unbilled receivables - current | $ | 8,781 | $ | 4,990 | $ | 3,791 | 76.0 | % | ||||||||
| Contract liabilities | ||||||||||||||||
| Deferred revenue | $ | 7,007 | $ | 6,711 | $ | 296 | 4.4 | % | ||||||||
The increase in unbilled receivables from 2024 to 2025 was primarily due to timing difference between completion of revenue recognition and agreed upon invoicing terms at one of our Treatment facilities.
| Year-to-date | Year-to-date | |||||||||||||||
| (In thousands) | December 31, 2024 | December 31, 2023 | Change ($) | Change (%) | ||||||||||||
| Contract assets | ||||||||||||||||
| Unbilled receivables - current | $ | 4,990 | $ | 8,432 | $ | (3,442 | ) | (40.8 | )% | |||||||
| Contract liabilities | ||||||||||||||||
| Deferred revenue | $ | 6,711 | $ | 6,815 | $ | (104 | ) | (1.5 | )% | |||||||
The reduction in unbilled receivables from 2023 to 2024 was primarily due to invoicing in 2024 of two large Services Segment projects that were primarily completed by the end of 2023.
During the twelve months ended December 31, 2025, and 2024, the Company recognized revenue of $5,365,000 and $5,887,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of each respective year. Revenue recognized in each period relates to performance obligations satisfied within the respective period.
Accounts Receivable
The following table represents changes in accounts receivable, net of credit losses, for the periods noted:
| Year-to-date | Year-to-date | |||||||||||||||
| (In thousands) | December 31, 2025 | December 31, 2024 | Change ($) | Change (%) | ||||||||||||
| Accounts Receivable (net) | $ | 11,228 | $ | 11,579 | $ | (351 | ) | (3.0 | )% | |||||||
| Year-to-date | Year-to-date | |||||||||||||||
| December 31, 2024 | December 31, 2023 | Change ($) | Change (%) | |||||||||||||
| Accounts Receivable (net) | $ | 11,579 | $ | 9,722 | $ | 1,857 | 19.1 | % | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 24, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Apr 6, 2022 | |
| 2020 | Mar 29, 2021 | |
| 2019 | Mar 20, 2020 | |
| 2018 | Apr 1, 2019 | |
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.