5.
Revenue

The following table presents the Company’s revenue disaggregated by revenue source:

 

Successor

 

 

 

Predecessor

 

 

Period from

 

 

 

Period from

 

 

 

 

 

 

 

 

June 25, 2025

 

 

 

December 29, 2024

 

 

Fiscal Year Ended

 

 

Fiscal Year Ended

 

 

through December 31, 2025

 

 

 

through June 24, 2025

 

 

December 28, 2024

 

 

December 30, 2023

 

Behavioral Subscription Revenue

$

289,938

 

 

 

$

302,636

 

 

$

698,992

 

 

$

792,213

 

Clinical Subscription Revenue

 

54,523

 

 

 

 

58,317

 

 

 

78,001

 

 

 

30,542

 

Subscription Revenue, net

$

344,461

 

 

 

$

360,953

 

 

$

776,993

 

 

$

822,755

 

Other Revenue, net

 

2,609

 

 

 

 

2,615

 

 

 

8,928

 

 

 

66,796

 

Revenue, net

$

347,070

 

 

 

$

363,568

 

 

$

785,921

 

 

$

889,551

 

 

Information about Contract Balances

For Subscription Revenue, the Company can collect payment in advance of providing services. Any amounts collected in advance of services being provided are recorded in deferred revenue. In the case where amounts are not collected, but the service has been provided and the revenue has been recognized, the amounts are recorded in accounts receivable. The opening and ending balances of the Company’s deferred revenue were as follows:

 

 

Deferred Revenue

 

 

Deferred Revenue

 

 

 

Current

 

 

Long-Term

 

Balance at December 30, 2023 (Predecessor)

 

$

33,966

 

 

$

165

 

Net decrease during the period

 

 

(2,311

)

 

 

(72

)

Balance at December 28, 2024 (Predecessor)

 

$

31,655

 

 

$

93

 

Net decrease during the period

 

 

(1,873

)

 

 

(8

)

Balance at June 24, 2025 (Predecessor)

 

$

29,782

 

 

$

85

 

 

 

Balance at June 25, 2025 (Successor)

 

$

29,782

 

 

$

85

 

Net decrease during the period

 

 

(1,217

)

 

 

(30

)

Balance at December 31, 2025 (Successor)

 

$

28,565

 

 

$

55

 

 

Revenue recognized from amounts included in current deferred revenue at December 30, 2023 (Predecessor) was $33,753 for the fiscal year ended December 28, 2024 (Predecessor). Revenue recognized from amounts included in current deferred revenue at December 28, 2024 (Predecessor) was $26,934 for the period from December 29, 2024 through June 24, 2025 (Predecessor) and $4,721 for the period from June 25, 2025 through December 31, 2025 (Successor). The Company’s long-term deferred revenue, which is included in other noncurrent liabilities on its consolidated balance sheets, represents revenue that will not be recognized during the next 12 months and is generally related to upfront payments received as an inducement for entering into certain sales-based royalty agreements with third-party licensees. This revenue is amortized on a straight-line basis over the term of the applicable agreement.

Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Feb 28, 2025
2023Feb 28, 2024
2022Mar 1, 2022
2021Feb 25, 2021
2019Feb 25, 2020
2018Feb 26, 2019

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.