REVENUE FROM CONTRACTS WITH CUSTOMERS
The following table provides information about disaggregated revenue by geographic location of the Company's players and type of platform (in millions):
| | | | | | | | | | | | | | | | | |
| Year ended December 31, |
| 2025 | | 2024 | | 2023 |
| Geographic location | | | | | |
| USA | $ | 1,741.9 | | | $ | 1,700.6 | | | $ | 1,777.5 | |
| EMEA | 647.0 | | | 495.9 | | | 431.9 | |
| APAC | 204.0 | | | 176.8 | | | 180.9 | |
| Other | 162.5 | | | 176.0 | | | 176.7 | |
| Total | $ | 2,755.4 | | | $ | 2,549.3 | | | $ | 2,567.0 | |
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Revenues through third-party platforms and through the Company’s own Direct-to-Consumer platforms were as follows (in millions):
| | | | | | | | | | | | | | | | | |
| Year ended December 31, |
| 2025 | | 2024 | | 2023 |
| Revenues | | | | | |
| Third-party platforms | $ | 1,940.9 | | | $ | 1,855.1 | | | $ | 1,927.6 | |
| Direct-to-Consumer platforms | 814.5 | | | 694.2 | | | 639.4 | |
| Total | $ | 2,755.4 | | | $ | 2,549.3 | | | $ | 2,567.0 | |
Contract balances
Payments from players for virtual items are collected by platform providers or payment processors and remitted to the Company (net of the platform or clearing fees) generally within 30 days after the player transaction. The Company’s right to receive the payments collected by the platform providers or payment processors is recorded as an accounts receivable as the right to receive payment is unconditional. Deferred revenues, which represent a contract liability, represent mostly unrecognized fees billed for virtual items which have not yet been consumed at the balance sheet date. Platform fees paid to platform providers or payment processors and associated with deferred revenues represent a contract asset.
Balances of the Company’s contract assets and liabilities are as follows (in millions):
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Accounts receivable | $ | 161.8 | | | $ | 187.6 | |
Contract assets (1) | 5.5 | | | 9.4 | |
Contract liabilities (2) | 28.8 | | | 36.4 | |
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(1) Contract assets are included within prepaid expenses and other current assets in the Company’s consolidated balance sheets.
(2) Contract liabilities are included within accrued expenses and other current liabilities as “deferred revenues” in the Company’s consolidated balance sheets.
During the year ended December 31, 2025, the Company recognized $34.7 million of its contract liabilities balance that were outstanding as of December 31, 2024.
Unsatisfied performance obligations
Substantially all of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of one year or less.
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.