Quarterly report [Sections 13 or 15(d)]

Revenue, Contract Assets, Contract Liabilities and Remaining Performance Obligations

v3.26.1
Revenue, Contract Assets, Contract Liabilities and Remaining Performance Obligations
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue, Contract Assets, Contract Liabilities and Remaining Performance Obligations
3.
Revenue, Contract Assets, Contract Liabilities and Remaining Performance Obligations

The Company recognizes revenue for certain long-term contracts using the percentage-of-completion method, measured on a cost-to-cost basis. From time to time, the Company revises its estimates of total costs for these contracts. Changes in estimated total costs for contracts using the percentage-of-completion method resulted in a reduction in revenue of $0.3 million for the three months ended March 31, 2026.

Disaggregation of Revenue

Subscription revenue consists of recurring fees earned under customer contracts that provide ongoing access to the Company’s data products, software platforms, and the operational phase of Space Services contracts. Revenue is generally recognized ratably over the contractual service period. Non-subscription revenue consists of non-recurring services and deliverable-based arrangements, including funded research and development projects, project-based services, historical data sales, and professional services. Revenue is recognized either over time or at a point in time, depending on the nature of the performance obligation.

The following shows revenue from subscription and non-subscription contracts (dollars in thousands):

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Subscription revenue

 

$

13,221

 

 

 

83

%

 

$

19,510

 

 

 

82

%

Non-subscription revenue

 

 

2,613

 

 

 

17

%

 

 

4,366

 

 

 

18

%

 

 

$

15,834

 

 

 

100

%

 

$

23,876

 

 

 

100

%

The following revenue disaggregated by geography was recognized (dollars in thousands):

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Americas

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

8,638

 

 

 

55

%

 

$

11,985

 

 

 

50

%

Canada

 

 

1,596

 

 

 

10

%

 

 

—

 

 

 

0

%

Other(1)

 

 

49

 

 

 

0

%

 

 

1,595

 

 

 

7

%

Total Americas

 

 

10,283

 

 

 

65

%

 

 

13,580

 

 

 

57

%

EMEA

 

 

 

 

 

 

 

 

 

 

 

 

United Kingdom

 

 

923

 

 

 

5

%

 

 

3,273

 

 

 

14

%

Belgium

 

 

1,690

 

 

 

11

%

 

 

16

 

 

 

0

%

Germany

 

 

1,582

 

 

 

10

%

 

 

1,289

 

 

 

5

%

Other(1)

 

 

937

 

 

 

6

%

 

 

3,639

 

 

 

15

%

Total EMEA

 

 

5,132

 

 

 

32

%

 

 

8,217

 

 

 

34

%

Asia Pacific

 

 

 

 

 

 

 

 

 

 

 

 

Other(1)

 

 

419

 

 

 

3

%

 

 

2,079

 

 

 

9

%

 

 

419

 

 

 

3

%

 

 

2,079

 

 

 

9

%

Total

 

$

15,834

 

 

 

100

%

 

$

23,876

 

 

 

100

%

(1) Revenue from individual geographic regions that represent less than 10% of total revenue for the periods presented are not separately disclosed.

Contract Assets

Contract assets reported on the Company's condensed consolidated balance sheets were $1.9 million and $1.8 million as of March 31, 2026 and December 31, 2025, respectively.

Changes in contract assets were as follows (in thousands):

 

2026

 

 

2025

 

Balance as of January 1,

 

$

1,778

 

 

$

785

 

Contract assets recorded during the period

 

 

1,235

 

 

 

2,126

 

Reclassified to accounts receivable

 

 

(1,062

)

 

 

(710

)

Other

 

 

(22

)

 

 

20

 

Balance as of March 31,

 

$

1,929

 

 

$

2,221

 

 

Contract Liabilities

Contract liabilities were reported on the Company's condensed consolidated balance sheets as follows (in thousands):

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Contract liabilities, current portion

 

$

35,992

 

 

$

35,160

 

Contract liabilities, non-current

 

 

12,435

 

 

 

14,207

 

Contract liabilities

 

$

48,427

 

 

$

49,367

 

Changes in contract liabilities were as follows (in thousands):

 

2026

 

 

2025

 

Balance as of January 1,

 

$

49,367

 

 

$

45,526

 

Contract liabilities recorded during the period

 

 

10,218

 

 

 

11,635

 

Revenue recognized during the period

 

 

(10,828

)

 

 

(9,908

)

Other

 

 

(330

)

 

 

433

 

Balance as of March 31,

 

$

48,427

 

 

$

47,686

 

Remaining Performance Obligations

The Company has performance obligations associated with commitments in customer contracts for future services that have not yet been recognized as revenue. Revenue from subscription-based services is recognized over time, generally on a straight-line basis over the subscription period, while revenue from milestone-based services is recognized at the point in time when control of the deliverable transfers to the customer. Management believes this method provides a faithful depiction of the pattern in which services are delivered to customers. Management applies judgment in determining the timing of recognition. For contracts with multiple performance obligations, management allocates the transaction price to each obligation based on its relative standalone selling price. These commitments for future services exclude cancellable contracts. As of March 31, 2026, the amount not yet recognized as revenue from these commitments was $184.8 million. There were no significant changes in these judgments during the three months ended March 31, 2026.

The Company expects to recognize its remaining performance obligations as of March 31, 2026, over the following periods (dollars in thousands):

 

 

March 31, 2026

 

1 to 12 months(1)

 

$

62,315

 

 

 

34

%

13 to 24 months(1)

 

 

58,547

 

 

 

32

%

25 to 36 months(1)

 

 

46,754

 

 

 

25

%

37 to 48 months

 

 

11,681

 

 

 

6

%

Remaining

 

 

5,513

 

 

 

3

%

Total

 

$

184,810

 

 

 

100

%

(1) On April 23, 2026, a customer provided the Company with written notice of a contract termination, effective immediately. See Note 14 for further information. As of March 31, 2026, contracted future revenue related to this contract is included in the remaining performance obligations, as disclosed above. Approximately $8.1 million, $19.7 million, and $14.5 million of revenue previously expected to be recognized within the next 12 months, 13 to 24 months, and 25 to 36 months, respectively, will not be recognized as a result of this termination.