Revenue and Contract Acquisition Costs
The following table summarizes the Company’s disaggregated revenue:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| (in millions) | 2025 | | 2024 | | 2023 |
| U.S. | $ | 1,919.8 | | | $ | 1,509.3 | | | $ | 1,251.0 | |
| International | 754.3 | | | 523.4 | | | 410.1 | |
Total Omnipod products | 2,674.0 | | | 2,032.7 | | | 1,661.1 | |
| Drug Delivery | 34.1 | | | 38.9 | | | 36.0 | |
| Total revenue | $ | 2,708.1 | | | $ | 2,071.6 | | | $ | 1,697.1 | |
The percentages of total revenue for customers that represent 10% or more of total revenue was as follows:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Distributor A | 27% | | 28% | | 28% |
| Distributor B | 26% | | 26% | | 24% |
| Distributor C | 25% | | 21% | | 19% |
Deferred revenue related to unsatisfied performance obligations was included in the following consolidated balance sheet accounts in the amounts shown:
| | | | | | | | | | | | | | | | | |
| As of December 31, |
| (in millions) | 2025 | | 2024 | | 2023 |
| Accrued expenses and other current liabilities | $ | 14.0 | | | $ | 12.0 | | | $ | 15.4 | |
| Other liabilities | 1.5 | | | 2.0 | | | 1.9 | |
| Total deferred revenue | $ | 15.5 | | | $ | 14.0 | | | $ | 17.4 | |
Revenue recognized from amounts included in deferred revenue at the beginning of each respective period was as follows:
| | | | | | | | | | | | | | | | | |
| As of December 31, |
| (in millions) | 2025 | | 2024 | | 2023 |
| Deferred revenue recognized | $ | 8.2 | | | $ | 15.4 | | | $ | 16.0 | |
Capitalized contract acquisition costs, representing capitalized commission costs related to new customers, net of amortization, were included in the following consolidated balance sheet captions in the amounts shown:
| | | | | | | | | | | |
| As of December 31, |
| (in millions) | 2025 | | 2024 |
| Prepaid expenses and other current assets | $ | 25.3 | | | $ | 20.1 | |
| Other assets | 53.0 | | | 40.8 | |
| Total capitalized contract acquisition costs, net | $ | 78.4 | | | $ | 60.9 | |
The Company recognized $22.7 million, $18.2 million, and $16.3 million of amortization of capitalized contract acquisition costs for the years ended December 31, 2025, 2024, and 2023, 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.