Revenue, Deferred Revenue, and Deferred Device and Contract Costs
The Company generates access fees from Clients, as well as individual paying users, accessing the THMG Association professional provider network, the Uplift Association professional provider network, and the Company's therapy and other wellness platforms, hosted virtual care platform, and chronic care management platforms. Visit fee revenue is generated for general medical, expert medical service, virtual therapy, and other specialty visits and is reported
as a component of other revenue. Revenue associated with virtual care device equipment sales included with the Company’s hosted virtual care platform is also reported in other revenue.
The following table presents the Company’s revenues disaggregated by revenue source and geography (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended
December 31, |
| 2025 | | 2024 | | 2023 |
| Revenue by Type | | | | | |
| Access Fees | $ | 2,091,941 | | | $ | 2,215,220 | | | $ | 2,282,521 | |
| Other | 438,036 | | | 354,354 | | | 319,894 | |
| Total Revenue | $ | 2,529,977 | | | $ | 2,569,574 | | | $ | 2,602,415 | |
| | | | | |
| Revenue by Geography | | | | | |
| U.S. Revenue | $ | 2,071,739 | | | $ | 2,159,959 | | | $ | 2,237,533 | |
| International Revenue | 458,238 | | | 409,615 | | | 364,882 | |
| Total Revenue | $ | 2,529,977 | | | $ | 2,569,574 | | | $ | 2,602,415 | |
Deferred Revenue
For certain services, payment is required for future periods before the service is delivered to the member. The Company records deferred revenue when cash payments are received in advance of the Company’s performance obligation to provide services.
The following table summarizes deferred revenue activities for the periods presented (in thousands):
| | | | | | | | | | | |
| Year Ended
December 31, |
| 2025 | | 2024 |
| Beginning balance | $ | 89,082 | | | $ | 109,282 | |
| Balances assumed as part of business acquisitions | 890 | | | — | |
| Cash collected | 59,846 | | | 66,262 | |
| Revenue recognized | (78,374) | | | (86,462) | |
| Ending balance | $ | 71,444 | | | $ | 89,082 | |
The Company expects to recognize revenue of $62.3 million in 2026, $7.0 million in 2027, and $2.1 million in 2028 and thereafter related to future performance obligations that are unsatisfied or partially unsatisfied as of December 31, 2025.
Deferred Device and Contract Costs
Deferred device and contract costs are classified as a component of prepaid expenses and other current assets or other assets, depending on term, and consisted of the following (in thousands):
| | | | | | | | | | | |
| As of |
| December 31, | | December 31, |
| 2025 | | 2024 |
| Deferred device and contract costs, current | $ | 31,820 | | | $ | 33,188 | |
| Deferred device and contract costs, non-current | 14,129 | | | 17,057 | |
| Total deferred device and contract costs | $ | 45,949 | | | $ | 50,245 | |
Deferred device and contract costs were as follows (in thousands):
| | | | | |
| Deferred Device and Contract Costs |
| Beginning balance as of December 31, 2024 | $ | 50,245 | |
| Additions | 39,484 | |
| Cost of revenue recognized | (43,780) | |
| Ending balance as of December 31, 2025 | $ | 45,949 | |
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.