Veralto CorpVLTO
Veralto Corp Revenue Disclosure
REVENUE
The following table presents the Company’s revenues disaggregated by geographical region and revenue type. Sales taxes and other usage-based taxes collected from customers are excluded from revenues.
($ in millions) | Water Quality | Product Quality & Innovation | Total | ||||||||||||||
| Year ended December 31, 2025: | |||||||||||||||||
| Geographical region: | |||||||||||||||||
North America(a) | $ | 1,895 | $ | 744 | $ | 2,639 | |||||||||||
| Western Europe | 598 | 643 | 1,241 | ||||||||||||||
| Other developed markets | 65 | 53 | 118 | ||||||||||||||
High-growth markets(b) | 763 | 742 | 1,505 | ||||||||||||||
| Total | $ | 3,321 | $ | 2,182 | $ | 5,503 | |||||||||||
| Revenue type: | |||||||||||||||||
| Recurring | $ | 1,966 | $ | 1,393 | $ | 3,359 | |||||||||||
| Nonrecurring | 1,355 | 789 | 2,144 | ||||||||||||||
| Total | $ | 3,321 | $ | 2,182 | $ | 5,503 | |||||||||||
| Year ended December 31, 2024: | |||||||||||||||||
| Geographical region: | |||||||||||||||||
North America(a) | $ | 1,804 | $ | 689 | $ | 2,493 | |||||||||||
| Western Europe | 546 | 603 | 1,149 | ||||||||||||||
| Other developed markets | 65 | 50 | 115 | ||||||||||||||
High-growth markets(b) | 723 | 713 | 1,436 | ||||||||||||||
| Total | $ | 3,138 | $ | 2,055 | $ | 5,193 | |||||||||||
| Revenue type: | |||||||||||||||||
| Recurring | $ | 1,846 | $ | 1,303 | $ | 3,149 | |||||||||||
| Nonrecurring | 1,292 | 752 | 2,044 | ||||||||||||||
| Total | $ | 3,138 | $ | 2,055 | $ | 5,193 | |||||||||||
| Year ended December 31, 2023: | |||||||||||||||||
| Geographical region: | |||||||||||||||||
North America (a) | $ | 1,694 | $ | 659 | $ | 2,353 | |||||||||||
| Western Europe | 536 | 584 | 1,120 | ||||||||||||||
| Other developed markets | 65 | 53 | 118 | ||||||||||||||
High-growth markets (b) | 744 | 686 | 1,430 | ||||||||||||||
| Total | $ | 3,039 | $ | 1,982 | $ | 5,021 | |||||||||||
| Revenue type: | |||||||||||||||||
| Recurring | $ | 1,727 | $ | 1,227 | $ | 2,954 | |||||||||||
| Nonrecurring | 1,312 | 755 | 2,067 | ||||||||||||||
| Total | $ | 3,039 | $ | 1,982 | $ | 5,021 | |||||||||||
(a) The Company defines North America as the United States and Canada.
(b) The Company defines high-growth markets as developing markets of the world which include Asia (with the exception of Japan, Australia and New Zealand), Latin America (including Mexico), the Middle East, Eastern Europe and Africa. The Company defines developed markets as all markets of the world that are not high-growth markets.
The Company sells equipment to customers as well as consumables and services, some of which customers purchase on a recurring basis. Consumables sold for use with the equipment sold by the Company are typically critical to the use of the equipment and are typically used on a one-time or limited basis, requiring frequent replacement in the customer’s operating cycle. Examples of these consumables include chemistries for water testing instruments and cartridges for marking and coding equipment. Additionally, some of the Company’s consumables are used on a standalone basis, such as water treatment solutions. The Company separates its goods and services between those typically sold to a customer on a recurring basis and those typically sold to a customer on a nonrecurring basis. Recurring revenue includes revenue from consumables, services, spare parts and OTLs. Nonrecurring revenue includes revenue from equipment and STLs. OTLs and STLs are included in the above revenue amounts. For the years ended December 31, 2025, 2024 and 2023, lease revenue was $98 million, $82 million and $86 million, respectively. Service and software revenue was immaterial for all periods presented. Software revenues for point-in-time licenses are nonrecurring while revenues for Software-as-a-Service and over time licenses are recurring.
Remaining Performance Obligations
Remaining performance obligations represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. Remaining performance obligations include noncancelable purchase orders, the non-lease portion of minimum purchase commitments under long-term consumable supply arrangements, extended warranty and service and other long-term contracts. These remaining performance obligations do not include revenue from contracts with customers with an original term of one year or less, revenue from long-term consumable supply arrangements with no minimum purchase requirements or revenue expected from purchases made in excess of the minimum purchase requirements or revenue from equipment leased to customers. While the remaining performance obligation disclosure is similar in concept to backlog, the definition of remaining performance obligations excludes leases and contracts that provide the customer with the right to cancel or terminate for convenience with no substantial penalty, even if historical experience indicates the likelihood of cancellation or termination is remote. Additionally, the Company has elected to exclude contracts with customers with an original term of one year or less from remaining performance obligations while these contracts are included within backlog.
As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $325 million. The Company expects to recognize revenue on approximately 42% of the remaining performance obligations over the next 12 months, 32% over the subsequent 12 months, and the remainder recognized thereafter.
Contract Liabilities
The Company often receives cash payments from customers in advance of the Company’s performance resulting in contract liabilities that are classified as either current or long-term in the Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue. As of December 31, 2025 and 2024, contract liabilities were approximately $287 million and $254 million, respectively, and are included within accrued expenses and other liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheets. Revenue recognized during the years ended December 31, 2025 and 2024 that was included in the opening contract liability balance was approximately $230 million and $196 million, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
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.