Personalis, Inc. Revenue Disclosure
Note 3. Revenue
The Company disaggregates revenue by the following five customer types:
The following table presents the Company's revenue disaggregated by customer type (in thousands):
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2025 |
|
|
2024 |
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Pharma testing services (1) |
|
$ |
48,661 |
|
|
$ |
50,939 |
|
Enterprise sales |
|
|
5,885 |
|
|
|
25,364 |
|
Population sequencing |
|
|
11,766 |
|
|
|
7,430 |
|
Clinical diagnostic |
|
|
2,018 |
|
|
|
759 |
|
Other |
|
|
1,318 |
|
|
|
122 |
|
Total revenue |
|
$ |
69,648 |
|
|
$ |
84,614 |
|
(1) Includes related party revenue of $5.4 million and $2.0 million for the years ended December 31, 2025 and December 31, 2024, respectively.
Contract Assets and Liabilities
The opening and closing balances of receivables and contract liabilities from contracts with customers are shown below (in thousands). Contract assets were immaterial for all periods presented.
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|
December 31, |
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|
|
2025 |
|
|
2024 |
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||
Opening balances: |
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|
|
|
|
|
||
Accounts receivable, net |
|
$ |
8,140 |
|
|
$ |
17,730 |
|
|
|
|
|
|
|
|
||
Short-term contract liabilities |
|
|
3,100 |
|
|
|
3,288 |
|
Long-term contract liabilities (included in other long-term liabilities) |
|
|
- |
|
|
|
3,928 |
|
Total contract liabilities |
|
|
3,100 |
|
|
|
7,216 |
|
|
|
|
|
|
|
|
||
Closing balances: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
16,203 |
|
|
|
8,140 |
|
|
|
|
|
|
|
|
||
Short-term contract liabilities |
|
|
1,562 |
|
|
|
3,100 |
|
Total contract liabilities |
|
$ |
1,562 |
|
|
$ |
3,100 |
|
Remaining Performance Obligations
Amounts collected in advance of services being provided are deferred as contract liabilities in the consolidated balance sheets. The associated revenue is recognized, and the contract liability is reduced, as the services are subsequently performed. Remaining performance obligations are comprised mainly of contract liabilities, and to a lesser extent, non-cancellable contracts for which the Company has not invoiced and has an obligation to perform, and for which revenue has not yet been recognized in the financial statements. As of December 31, 2025, amounts related to unfulfilled services under contracts with an original expected duration of more than one year were immaterial. Revenue recognized that was included in the contract liability balance at the beginning of each reporting period was $1.9 million and $4.7 million for the years ended 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.