Quarterly report [Sections 13 or 15(d)]

Contract Assets and Liabilities

v3.25.1
Contract Assets and Liabilities
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Contract Assets and Liabilities
6. Contract Assets and Liabilities
The components of contract assets and contract liabilities consisted of the following:
March 31, December 31,
2025 2024
(in thousands)
Contract assets - current:
Unbilled revenue $ 32,431  $ 27,852 
Total contract assets - current $ 32,431  $ 27,852 
Contract assets - long-term:
Unbilled revenue - long-term $ 6,755  $ 173 
Other contract assets - long-term 825  937 
Total contract assets - long-term(1)
$ 7,580  $ 1,110 
Contract liabilities - current:
Deferred revenue - current $ 12,573  $ 2,160 
Other contract liabilities - current —  23 
Total contract liabilities - current $ 12,573  $ 2,183 
Contract liabilities - long-term:
Deferred revenue - long-term $ 24,000  $ — 
Other contract liabilities - long-term(2)
544  678 
Total contract liabilities - long-term
 $ 24,544  $ 678 
(1) Total contract assets - long term is included in other assets in the unaudited condensed consolidated balance sheets.
(2) Other contract liabilities - long term is included in other liabilities in the unaudited condensed consolidated balance sheets.
Contract liabilities include payments received and billings made in advance of the satisfaction of performance obligations under the contract and are realized when the associated revenue is recognized under the contract. Contract assets include (i) unbilled revenue, which is the amount of revenue recognized in excess of the amount billed to customers, where the rights to payment are not just subject to the passage of time; and (ii) costs incurred incremental to the contract and to fulfill contract obligations. Other contract assets and other contract liabilities primarily relate to contract commissions on customer contracts.
Changes in short-term and long-term contract assets and contract liabilities for the three months ended March 31, 2025 were as follows:
Contract Assets Contract Liabilities
(in thousands)
Balance as of January 1, 2025 $ 28,962  $ 2,861 
Billings or revenue recognized that was included in the beginning balance (1,143) (1,237)
Changes in contract assets or contract liabilities, net of reclassification to receivables 12,505  35,645 
Cumulative catch-up adjustment arising from changes in estimates to complete during the year (201) 5 
Changes in costs to fulfill and amortization of commission costs (112) — 
Changes in contract commission costs —  (157)
Balance as of March 31, 2025 $ 40,011  $ 37,117