v3.25.1
Revenue
 3 Months Ended
Mar. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregated Revenue
The Company recognizes ATS development, tools, and Wafer Services revenues pursuant to its revenue recognition policies as described in Note 3 – Summary of Significant Accounting Policies to the annual consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2024. The following tables disclose revenue by product type and the timing of recognition of revenue for transfer of goods and services to customers:
Three-Month Period Ended March 30, 2025
Topic 606 Revenue
Point-in-TimeOver Time
Lease Revenue Per Topic 842
Total Revenue
ATS development
Time-and-materials and cost-plus-fixed-fee contracts$1,204 $35,875 $— $37,079 
Fixed price contracts4,832 9,457 — 14,289 
Other— — 1,167 1,167 
Total ATS development6,036 45,332 1,167 52,535 
Wafer Services84 7,443 — 7,527 
Combined ATS development and Wafer Services6,120 52,775 1,167 60,062 
Tools1,234 — — 1,234 
Total$7,354 $52,775 $1,167 $61,296 

Three-Month Period Ended March 31, 2024
Topic 606 Revenue
Point-in-TimeOver Time
Lease Revenue Per Topic 842
Total Revenue
ATS development
Time-and-materials and cost-plus-fixed-fee contracts$— $42,496 $— $42,496 
Fixed price contracts— 17,522 — 17,522 
Other— 1,167 1,167 
Total ATS development— 60,018 1,167 61,185 
Wafer Services1,145 8,847 — 9,992 
Combined ATS development and Wafer Services1,145 68,865 1,167 71,177 
Tools8,459 — — 8,459 
Total$9,604 $68,865 $1,167 $79,636 
Deferred Contract Costs
The Company recognizes an asset for the incremental cost of obtaining a contract with a customer (i.e., deferred contract costs) when costs are considered recoverable and the duration of the contract is in excess of one year. Deferred contract costs are amortized as the related revenue is recognized. The Company recognized amortization of deferred contract costs totaling $0 and $746 for the three-month periods ended March 30, 2025 and March 31, 2024, respectively. There were no deferred contract costs capitalized as of March 30, 2025 and December 29, 2024.
Contract Assets
Contract assets represent SkyWater’s rights to payments for services it has transferred to its customers, but has not yet billed to its customers. Contract assets were $20,466 and $20,890 at March 30, 2025 and December 29, 2024, respectively, and are presented net of allowances for expected credit losses of $16 and $42, respectively.
Contract Liabilities
The Company’s contract liabilities principally consist of deferred revenue which represents payments from customers for which performance obligations have not yet been satisfied and deferred lease revenue which represents prepayments on a leasing arrangement in which the Company serves as lessor. In some instances, cash may be received, or payment may be contractually due by a customer before the related revenue is recognized. The contract liabilities and other significant components of contract liabilities at March 30, 2025 and December 29, 2024 are as follows:
 March 30, 2025December 29, 2024
Contract
Deferred Revenue (1)		Lease Deferred
Revenue		Total
Contract Liabilities		Contract
Deferred Revenue (1)		Lease Deferred
Revenue		Total
Contract Liabilities
Current contract liabilities$60,437 $778 $61,215 $53,222 $1,944 $55,166 
Long-term contract liabilities97,264 — 97,264 51,901 — 51,901 
Total contract liabilities$157,701 $778 $158,479 $105,123 $1,944 $107,067 
__________________
(1)Contract deferred revenue includes $45,419 and $48,200 at March 30, 2025 and December 29, 2024, respectively, related to material rights provided to a significant customer in exchange for funding additional manufacturing capacity. Of these amounts, $11,123 and $11,123 were classified as current in the interim condensed consolidated balance sheets as of March 30, 2025 and December 29, 2024, respectively.
The change in contract liabilities during the three-month periods ended March 30, 2025 and March 31, 2024 are as follows:
Three-Month Period Ended
March 30, 2025March 31, 2024
Balance at beginning of period$107,067 $115,305 
Revenue recognized included in the balance at the beginning of the period(9,495)(12,686)
Increase due to payments received, excluding amounts recognized as revenue60,907 12,095 
Balance at end of period$158,479 $114,714 
Remaining Performance Obligations
At March 30, 2025, the Company had $257,230 of remaining performance obligations that had not been fully satisfied on contracts with original expected durations of one year or more, which were primarily related to ATS development and tools revenue contracts. The Company expects to recognize those revenues as it satisfies its performance obligations, which is not expected to exceed 4.3 years.
The Company does not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less. Further, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between when it transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.