Sotera Health CoSHC

Sotera Health Co Revenue Disclosure

10-KFiled Feb 24, 20261 min read
Revenue Recognition
The following table shows disaggregated net revenues from contracts with external customers by timing of revenue and by segment for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31, 2025
 
Sterigenics
Nordion
Nelson Labs
Consolidated
Point in time
$755,780 $182,822 $— $938,602 
Over time
— 4,796 220,219 225,015 
Total
$755,780 $187,618 $220,219 $1,163,617 
Year Ended December 31, 2024
 SterigenicsNordionNelson LabsConsolidated
Point in time
$697,853 $171,285 $— $869,138 
Over time
— 2,070 229,233 231,303 
Total
$697,853 $173,355 $229,233 $1,100,441 
Year Ended December 31, 2023
 SterigenicsNordionNelson LabsConsolidated
Point in time
$667,130 $153,747 $— $820,877 
Over time
— 6,712 221,699 228,411 
Total
$667,130 $160,459 $221,699 $1,049,288 
When we receive consideration from a customer prior to transferring goods or services under the terms of a sales contract, we record deferred revenue, which represents a contract liability. Deferred revenue totaled $18.0 million and $15.1 million at December 31, 2025 and 2024, respectively. We recognize deferred revenue after we have transferred control of the goods or services to the customer and all revenue recognition criteria are met.

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.

Other Available Disclosures

Income TaxesEarnings Per SharePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew Standards