v3.25.2
Revenues
 6 Months Ended
Jun. 30, 2025
Revenue Recognition [Abstract]  
Revenues Revenues
Revenue Recognition
The Company earns revenues from sales of its products and related services, which are sold in the healthcare industry, its principal market. The Company’s customer arrangements typically include one or more of the following revenue categories:
Connected devices, software licenses, and other. Software-enabled connected devices and software licenses that manage and regulate the storage and dispensing of pharmaceuticals, consumables blister cards, and packaging equipment and other supplies. This revenue category is often sold through long-term, sole-source agreements. Solutions in this category include, but are not limited to, XT Series automated dispensing systems and products related to the Central Pharmacy Dispensing Service and IV Compounding Service.
Consumables. Medication adherence packaging, labeling, and other one-time use packaging including multimed adherence packaging and single dose blister cards, which are used by retail, community, and outpatient pharmacies, as well as by institutional pharmacies serving long-term care and other sites outside the acute care hospital, and are designed to improve patient engagement and adherence to prescriptions.
Technical services. Post-installation technical support and other related services (support and maintenance), including phone support, on-site service, parts, and access to unspecified software updates and enhancements, if and when available. This revenue category is often supported by multi-year or annual contractual agreements.
Software as a Service (“SaaS”) and Expert Services. Emerging software and service solutions which are offered on a subscription basis with fees typically based either on transaction volume or a fee over a specified period of time. Solutions in this category include, but are not limited to, EnlivenHealth®, Specialty Pharmacy Services, 340B solutions, Inventory Optimization Service, other software solutions, and services related to the Central Pharmacy Dispensing Service and IV Compounding Service.
The following table summarizes revenue recognition for each revenue category:
Revenue Category
Timing of Revenue Recognition
Income Statement Classification
Connected devices, software licenses, and otherPoint in time, as transfer of control occurs, generally upon installation and acceptance by the customerProduct
ConsumablesPoint in time, as transfer of control occurs, generally upon shipment to, or receipt by, customerProduct
Technical servicesOver time, as services are provided, typically ratably over the service termService
SaaS and Expert Services
Over time, as services are providedService
A portion of the Company’s sales are made to customers who are members of Group Purchasing Organizations (“GPOs”) and Federal agencies that purchase under a Federal Supply Schedule Contract with the Department of Veterans Affairs (the “GSA Contract”). GPOs are often fully or partially owned by the Company’s customers, and the Company pays fees to the GPO on completed contracts. The Company also pays the Industrial Funding Fee (“IFF”) to the Department of Veterans Affairs under the GSA Contract. The Company considers these fees consideration paid to customers and records them as reductions to revenue. Fees to GPOs and the IFF were $1.6 million and $2.4 million for the three months ended June 30, 2025 and 2024, respectively, and $3.8 million and $4.4 million for the six months ended June 30, 2025 and 2024, respectively.
Disaggregation of Revenues
The following table summarizes the Company’s revenues disaggregated by revenue type:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Connected devices, software licenses, and other$138,620 $134,539 $258,697 $245,608 
Consumables24,552 22,041 49,643 44,267 
Technical services63,766 59,321 125,145 117,836 
SaaS and Expert Services
63,624 60,887 126,745 115,228 
Total revenues$290,562 $276,788 $560,230 $522,939 
The following table summarizes the Company’s revenues disaggregated by geographic region, which is determined based on customer location:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
United States$263,446 $255,317 $512,710 $473,493 
Rest of world
27,116 21,471 47,520 49,446 
Total revenues$290,562 $276,788 $560,230 $522,939 
Contract Assets and Contract Liabilities
The following table reflects the Company’s contract assets and contract liabilities:
June 30,
2025		December 31,
2024
(In thousands)
Short-term unbilled receivables, net (1)
$37,137 $32,917 
Long-term unbilled receivables, net (2)
5,747 7,873 
Total contract assets$42,884 $40,790 
Short-term deferred revenues$153,597 $141,370 
Long-term deferred revenues80,447 76,123 
Total contract liabilities$234,044 $217,493 
_________________________________________________
(1)    Included in accounts receivable and unbilled receivables in the Condensed Consolidated Balance Sheets.
(2)    Included in other long-term assets in the Condensed Consolidated Balance Sheets.
The portion of the transaction price allocated to the Company’s unsatisfied performance obligations for which invoicing has occurred is recorded as deferred revenues.
During the three and six months ended June 30, 2025, the Company recognized revenues of $38.6 million and $92.8 million, respectively, that were included in the corresponding gross short-term deferred revenues balance of $141.4 million as of December 31, 2024.
Deferred revenues from product sales primarily relate to delivered and invoiced products, pending installation and acceptance. Deferred revenues from service contracts primarily relate to services that have been invoiced, but services have not yet been provided. Short-term deferred revenues are expected to be recognized within the next twelve months. Long-term deferred revenues substantially consist of deferred revenues on long-term technical and SaaS and Expert Services contracts which have been invoiced and are expected to be recognized as revenue beyond twelve months, generally not more than ten years. The Company generally invoices customers for products upon shipment. Invoicing associated with the service portion of agreements is generally periodic and is billed on a monthly, quarterly, or annual basis, and in certain circumstances, multiple years are billed at one time. SaaS and Expert Services agreements are generally invoiced periodically on a monthly, quarterly or annual basis over the life of the agreement. In certain circumstances, portions of these agreements may be invoiced lump sum.
In addition, the Company has remaining performance obligations associated with contracts for which the associated products have been accepted or associated services have started, but where invoicing has not yet occurred and therefore are not reflected in deferred revenue. These remaining performance obligations are comprised of the non-variable portions of technical services and SaaS and Expert Services provided under non-cancellable contracts with minimum commitments. Remaining performance obligations which are not included in deferred revenues were $384.1 million as of June 30, 2025. Remaining performance obligations are expected to be recognized ratably over the remaining terms of the associated contracts, which terms vary but are generally not more than ten years. Remaining performance obligations do not include product obligations, services where the associated product has not been accepted, services which have not yet started, variable portions of services, and certain other obligations.
Significant Customers
There were no customers that accounted for more than 10% of the Company’s total revenues for the three and six months ended June 30, 2025 and 2024. Also, there were no customers that accounted for more than 10% of the Company’s accounts receivable and unbilled receivables balance as of June 30, 2025 and December 31, 2024.