Revenue Recognition
The following tables disaggregate the Company’s revenue by major product type and geography (in millions):
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Year Ended December 31, 2025 |
| Off Road | | On Road | | Marine | | Total |
| Revenue by product type | | | | | | | |
| Wholegoods | $ | 4,033.6 | | | $ | 734.9 | | | $ | 511.9 | | | $ | 5,280.4 | |
| PG&A | 1,679.5 | | | 191.6 | | | 0.5 | | | 1,871.6 | |
| Total revenue | $ | 5,713.1 | | | $ | 926.5 | | | $ | 512.4 | | | $ | 7,152.0 | |
| | | | | | | |
| Revenue by geography | | | | | | | |
| United States | $ | 4,733.0 | | | $ | 429.3 | | | $ | 500.0 | | | $ | 5,662.3 | |
| Canada | 381.1 | | | 28.5 | | | 10.3 | | | 419.9 | |
| EMEA | 367.7 | | | 422.1 | | | 0.2 | | | 790.0 | |
| APLA | 231.3 | | | 46.6 | | | 1.9 | | | 279.8 | |
| Total revenue | $ | 5,713.1 | | | $ | 926.5 | | | $ | 512.4 | | | $ | 7,152.0 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Year Ended December 31, 2024 |
| Off Road | | On Road | | Marine | | Total |
| Revenue by product type | | | | | | | |
| Wholegoods | $ | 4,183.8 | | | $ | 804.7 | | | $ | 480.5 | | | $ | 5,469.0 | |
| PG&A | 1,522.9 | | | 183.1 | | | 0.4 | | | 1,706.4 | |
| Total revenue | $ | 5,706.7 | | | $ | 987.8 | | | $ | 480.9 | | | $ | 7,175.4 | |
| | | | | | | |
| Revenue by geography | | | | | | | |
| United States | $ | 4,709.8 | | | $ | 452.5 | | | $ | 466.7 | | | $ | 5,629.0 | |
| Canada | 396.2 | | | 38.9 | | | 11.1 | | | 446.2 | |
| EMEA | 355.2 | | | 447.4 | | | 0.3 | | | 802.9 | |
| APLA | 245.5 | | | 49.0 | | | 2.8 | | | 297.3 | |
| Total revenue | $ | 5,706.7 | | | $ | 987.8 | | | $ | 480.9 | | | $ | 7,175.4 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Year Ended December 31, 2023 |
| Off Road | | On Road | | Marine | | Total |
| Revenue by product type | | | | | | | |
| Wholegoods | $ | 5,374.9 | | | $ | 981.8 | | | $ | 765.4 | | | $ | 7,122.1 | |
| PG&A | 1,609.5 | | | 202.8 | | | — | | | 1,812.3 | |
| Total revenue | $ | 6,984.4 | | | $ | 1,184.6 | | | $ | 765.4 | | | $ | 8,934.4 | |
| | | | | | | |
| Revenue by geography | | | | | | | |
| United States | $ | 5,787.3 | |
| $ | 591.4 | |
| $ | 743.5 | | | $ | 7,122.2 | |
| Canada | 522.7 | | | 43.1 | | | 18.2 | | | 584.0 | |
| EMEA | 405.3 | | | 480.2 | | | 0.7 | | | 886.2 | |
| APLA | 269.1 | | | 69.9 | | | 3.0 | | | 342.0 | |
| Total revenue | $ | 6,984.4 | | | $ | 1,184.6 | | | $ | 765.4 | | | $ | 8,934.4 | |
Contract Liabilities. Contract liabilities relate to deferred revenue recognized for cash consideration received at contract inception in advance of the Company's performance under the respective contract and generally relate to the sale of separately-priced ESCs. The Company finances its self-insured risks related to ESCs. The premiums for ESCs are
primarily recognized in income over the term of the agreement in proportion to the costs expected to be incurred in satisfying the obligations under the contract. Warranty costs are recognized as incurred.
The activity in the deferred revenue reserve for ESCs during the periods presented was as follows (in millions):
| | | | | | | | | | | | | | | | | |
| For the Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Balance at beginning of year | $ | 111.3 | | | $ | 110.3 | | | $ | 111.1 | |
| New contracts sold | 51.8 | | | 50.0 | | | 49.1 | |
| Revenue recognized on existing contracts | (47.7) | | | (49.0) | | | (49.9) | |
| Balance at end of year | $ | 115.4 | | | $ | 111.3 | | | $ | 110.3 | |
The Company expects to recognize approximately $36.9 million of the unearned amount over the 12 months following December 31, 2025, compared to $35.6 million as of December 31, 2024. These amounts were recorded in accrued expenses in the consolidated balance sheets. The amount recorded in other long-term liabilities totaled $78.5 million and $75.7 million as of December 31, 2025 and 2024, respectively.
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.