3.
Revenue, Contract Assets, Contract Liabilities and Remaining Performance Obligations

The Company recognizes revenue for certain long-term contracts using the percentage-of-completion method, measured on a cost-to-cost basis. From time to time, the Company revises its estimates of total costs for these contracts. Changes in estimated total costs for contracts using the percentage-of-completion method resulted in revenue reductions of $1.6 million for the year ended December 31, 2025.

Disaggregation of Revenue

Subscription revenue consists of recurring fees earned under customer contracts that provide ongoing access to the Company’s data products, software platforms, and the operational phase of Space Services contracts. Revenue is generally recognized ratably over the contractual service period. Non-subscription revenue consists of non-recurring services and deliverable-based arrangements, including funded research and development projects, project-based services, historical data sales, and professional services. Revenue is recognized either over time or at a point in time, depending on the nature of the performance obligation.

The following shows revenue from subscription and non-subscription contracts (dollars in thousands):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Subscription revenue

 

$

55,433

 

 

 

77

%

 

$

77,170

 

 

 

70

%

Non-subscription revenue

 

 

16,120

 

 

 

23

%

 

 

33,281

 

 

 

30

%

 

 

$

71,553

 

 

 

100

%

 

$

110,451

 

 

 

100

%

The following revenue disaggregated by geography was recognized (dollars in thousands):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Americas

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

37,682

 

 

 

53

%

 

$

47,378

 

 

 

43

%

Canada

 

 

 

 

 

0

%

 

 

15,070

 

 

 

14

%

Other(1)

 

 

6,656

 

 

 

9

%

 

 

263

 

 

 

0

%

Total Americas

 

 

44,338

 

 

 

62

%

 

 

62,711

 

 

 

57

%

EMEA

 

 

 

 

 

 

 

 

 

 

 

 

United Kingdom

 

 

6,881

 

 

 

10

%

 

 

13,213

 

 

 

12

%

Other(1)

 

 

15,938

 

 

 

22

%

 

 

26,493

 

 

 

24

%

Total EMEA

 

 

22,819

 

 

 

32

%

 

 

39,706

 

 

 

36

%

Asia Pacific

 

 

 

 

 

 

 

 

 

 

 

 

Other(1)

 

 

4,396

 

 

 

6

%

 

 

8,034

 

 

 

7

%

 

 

4,396

 

 

 

6

%

 

 

8,034

 

 

 

7

%

Total

 

$

71,553

 

 

 

100

%

 

$

110,451

 

 

 

100

%

(1) Revenue from individual geographic regions that represent less than 10% of total revenue for the years presented are not separately disclosed.

 

Contract Assets

Contract assets of $1.8 million and $0.8 million were reported in contract assets on the Company's consolidated balance sheets as of December 31, 2025 and 2024, respectively.

Changes in contract assets were as follows (in thousands):

 

2025

 

 

2024

 

Balance as of January 1,

 

$

785

 

 

$

4,917

 

Contract assets recorded during the year

 

 

2,542

 

 

 

659

 

Reclassified to accounts receivable

 

 

(1,628

)

 

 

(4,696

)

Other

 

 

79

 

 

 

(95

)

Balance as of December 31,

 

$

1,778

 

 

$

785

 

Contract Liabilities

Contract liabilities were reported on the Company's consolidated balance sheets as follows (in thousands):

 

 

December 31,

 

 

 

2025

 

 

2024

 

Contract liability, current

 

$

35,160

 

 

$

22,037

 

Other long-term liabilities

 

 

14,207

 

 

 

23,489

 

Contract Liabilities

 

$

49,367

 

 

$

45,526

 

Changes in contract liabilities were as follows (in thousands):

 

2025

 

 

2024

 

Balance as of January 1,

 

$

45,526

 

 

$

49,101

 

Contract liabilities recorded during the year

 

 

27,852

 

 

 

32,757

 

Revenue recognized during the year

 

 

(24,185

)

 

 

(35,569

)

Other

 

 

174

 

 

 

(763

)

Balance as of December 31,

 

$

49,367

 

 

$

45,526

 

Remaining Performance Obligations

The Company has performance obligations associated with commitments to customer contracts for future services that have not yet been recognized as revenue. Revenue from subscription-based services is recognized over time, generally on a straight-line basis over the subscription period, while revenue from milestone-based services is recognized at the point in time when control of the deliverable transfers to the customer. Management believes this method provides a faithful depiction of the pattern in which services are delivered to customers. Management applies judgment in determining the timing of recognition. For contracts with multiple performance obligations, management allocates the transaction price to each obligation based on its relative standalone selling price. These commitments for future services exclude cancellable contracts. As of December 31, 2025, the amount not yet recognized as revenue from these commitments was $201.8 million. There were no significant changes in these judgments during the year ended December 31, 2025.

The Company expects to recognize its remaining performance obligations as of December 31, 2025, over the following periods (dollars in thousands):

 

 

December 31, 2025

 

1 to 12 months(1)

 

$

75,573

 

 

 

37

%

13 to 24 months

 

 

60,219

 

 

 

30

%

25 to 36 months

 

 

43,792

 

 

 

22

%

37 to 48 months

 

 

13,908

 

 

 

7

%

Remaining

 

 

8,267

 

 

 

4

%

Total

 

$

201,759

 

 

 

100

%

(1) In March 2026, the Company received notice from a customer to temporarily suspend work under a contract. The contract has not been terminated, and the customer has until August 29, 2026 to either cancel the suspension or terminate the contract. Contracted future revenue related to this contract is included in the remaining performance obligations disclosed above. As a result, approximately $15.3 million of revenue previously expected to be recognized within the next 12 months may be delayed to future periods or may not be recognized.

Historical Timeline

Fiscal YearFiled
2025Mar 19, 2026Showing above
2024Mar 31, 2025
2023Mar 6, 2024
2022Mar 15, 2023
2021Mar 30, 2022

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.