v3.25.4
Revenue
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue

4. REVENUE

Disaggregation of Revenue—The Company provides disaggregation of revenue based on type of service as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

The following table summarizes revenue by type of service for the years ended December 31 (in thousands):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Software subscriptions

 

$

1,013,892

 

 

$

906,464

 

 

$

830,117

 

Other

 

 

43,109

 

 

 

38,336

 

 

 

36,261

 

Total revenues

 

$

1,057,001

 

 

$

944,800

 

 

$

866,378

 

Contract Assets and Liabilities—The balances of the Company’s receivables, contract assets and contract liabilities from contracts with customers are as follows (in thousands):

 

December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

Accounts receivables-Net of allowances

$

137,056

 

 

$

106,578

 

 

$

102,365

 

 

Deferred contract costs

 

24,923

 

 

 

22,373

 

 

 

17,900

 

 

Deferred contract costs-non-current

 

22,479

 

 

 

18,692

 

 

 

22,302

 

 

Other assets (accounts receivable, non-current)

 

25,532

 

 

 

16,946

 

 

 

15,198

 

 

Deferred revenues

 

72,793

 

 

 

44,915

 

 

 

43,567

 

 

Other liabilities (deferred revenues, non-current)

 

1,368

 

 

 

1,415

 

 

 

1,373

 

 

Deferred Contract Costs—A summary of the activity impacting the deferred contract costs during the years ended December 31, 2025, 2024 and 2023 is presented below (in thousands):

 

 

 

Year Ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

Balance at beginning of period

 

 

$

41,065

 

 

$

40,202

 

 

$

36,717

 

Costs amortized

 

 

 

(24,022

)

 

 

(22,085

)

 

 

(19,197

)

Additional amounts deferred

 

 

 

30,359

 

 

 

22,948

 

 

 

22,682

 

Balance at end of period

 

 

$

47,402

 

 

$

41,065

 

 

$

40,202

 

 

 

 

 

 

 

 

 

 

 

 

Classified as:

 

 

 

 

 

 

 

 

 

 

Current

 

 

$

24,923

 

 

$

22,373

 

 

$

17,900

 

Non-current

 

 

 

22,479

 

 

 

18,692

 

 

 

22,302

 

Total deferred contract costs

 

 

$

47,402

 

 

$

41,065

 

 

$

40,202

 

Deferred Revenue—A summary of the activity impacting deferred revenue balances during the years ended December 31, 2025, 2024 and 2023, is presented below (in thousands):

 

 

 

Year Ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

Balance at beginning of period

 

 

$

46,330

 

 

$

44,940

 

 

$

36,479

 

Revenue recognized1

 

 

 

(581,545

)

 

 

(494,598

)

 

 

(434,197

)

Additional amounts deferred1

 

 

 

609,376

 

 

 

495,988

 

 

 

442,658

 

Balance at end of period

 

 

$

74,161

 

 

$

46,330

 

 

$

44,940

 

 

 

 

 

 

 

 

 

 

 

 

Classified as:

 

 

 

 

 

 

 

 

 

 

Current

 

 

$

72,793

 

 

$

44,915

 

 

$

43,567

 

Non-current

 

 

 

1,368

 

 

 

1,415

 

 

 

1,373

 

Total deferred revenue

 

 

$

74,161

 

 

$

46,330

 

 

$

44,940

 

1 Amounts include total revenue deferred and recognized during each respective period.

The additional amount deferred during the year ended December 31, 2025 includes $21.5 million related to the deferred revenue recorded at the time of the acquisition of EvolutionIQ.

During the years ended December 31, 2025, 2024 and 2023, $44.8 million, $42.4 million and $35.1 million, respectively, that was included in the deferred revenue balance at the beginning of each period was recognized as revenue.

Transaction Price Allocated to the Remaining Performance Obligations—Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of December 31, 2025, approximately $1,891 million of revenue is expected to be recognized from remaining performance obligations with approximately $780 million impacting the next twelve months, and approximately $1,111 million thereafter. The estimated

revenues do not include unexercised contract renewals. The remaining performance obligations exclude future transaction revenue where revenue is recognized as the services are rendered and in the amount to which the Company has the right to invoice.