v3.25.2
Revenue from Contracts with Customers
 3 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
2. Revenue from Contracts with Customers

Disaggregation of Revenue

The following tables summarize the Company's revenue from contracts with its customers disaggregated by segment and product type for the three months ended June 30, 2025 and 2024:

Three Months Ended June 30,
20252024
DigitalPrint (1)TotalDigitalPrint (1)Total
Revenue by Segment:
K-12$108,597 $162,334 $270,931 $99,618 $175,209 $274,827 
Higher Education168,826 13,553 182,379 153,955 5,891 159,846 
Global Professional25,272 9,887 35,159 25,093 10,194 35,287 
International22,353 29,111 51,464 24,559 33,752 58,311 
Other (2)— (4,223)(4,223)— (5,317)(5,317)
Total Revenue $325,048 $210,662 $535,710 $303,225 $219,729 $522,954 
___________________
(1)
Print revenue contains print and multi-year print products.
(2)
Includes in-transit product sales and intersegment revenue adjustments that are not included within segment revenues reviewed by the Company's CODM.

In addition, the Company has included a further disclosure of revenue from contracts with its customers disaggregated by segment and by Re-occurring Revenue and Transactional Revenue, for the three months ended June 30, 2025 and 2024.

Re-occurring Revenue represents revenue from offerings that are generally sold as digital subscriptions and multi-year print products. Revenue from digital subscriptions, is recognized ratably over the term of the subscription period as the performance obligation is satisfied and revenue from multi-year print products (e.g., workbooks) is recognized at a point in time, upon shipment of the print product to the customer, in each academic year within the contract term. Transactional Revenue includes revenue from both print and digital offerings that are recognized at a point in time upon shipment of the print product or delivery of the digital offerings. In addition, Transactional Revenue includes revenue for amounts billed to customers in a sales transaction for shipping and handling.

Three Months Ended June 30,
20252024

Re-occurring
Revenue		Transactional
Revenue		TotalRe-occurring
Revenue		Transactional
Revenue		Total
K-12
$183,641 $87,290 $270,931 $166,819 $108,008 $274,827 
Higher Education
159,552 22,827 182,379 149,454 10,392 159,846 
Global Professional
23,657 11,502 35,159 22,773 12,514 35,287 
International
20,764 30,700 51,464 22,752 35,559 58,311 
Other
— (4,223)(4,223)— (5,317)(5,317)
Total Revenue
$387,614 $148,096 $535,710 $361,798 $161,156 $522,954 
Deferred Commission Costs

    The Company's incremental direct costs of obtaining a contract, which consist of sales commissions, are deferred and amortized over the expected period of benefit or the related contractual renewal period, depending on whether the contract is an initial or renewal contract, respectively. The Company classifies deferred commission costs as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred commission costs are included in Prepaid and other current assets, and Other non-current assets, respectively, in the consolidated balance sheets. The Company expenses commission costs when incurred related to customer contracts that have a duration of less than one year. The Company recognizes these costs within Operating and administrative expenses in the consolidated statements of operations.

Deferred commission costs consisted of the following:

June 30, 2025March 31, 2025
Current$17,173 $22,449 
Non-current22,894 18,794 
Total Deferred Commission Costs $40,067 $41,243 

    Amortization expense related to deferred commission costs was $7,435 and $11,971 for the three months ended June 30, 2025 and 2024, respectively.

Deferred Royalties

The Company's direct costs of fulfilling a contract, which consist of royalties, are deferred and amortized over the expected period of benefit or the related contractual renewal period, depending on whether the contract is an initial or renewal contract, respectively. The Company classifies deferred royalties as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred royalties are included in Prepaid and other current assets, and Other non-current assets, respectively, in the Company's consolidated balance sheets. The Company recognizes these costs within Cost of sales (excluding depreciation and amortization) in the consolidated statements of operations.

Deferred royalties consisted of the following:

June 30, 2025March 31, 2025
Current$65,424 $76,186 
Non-current59,221 61,495 
Total Deferred Royalties $124,645 $137,681 

Amortization expense related to deferred royalties was $34,669 and $33,311 for the three months ended June 30, 2025 and 2024, respectively.

Contract Assets and Contract Liabilities

The Company's contract assets consist of unbilled receivables that are recorded for contracts with performance obligations that have been satisfied but have not yet been billed. Contract assets are included in Accounts receivable, net, on the consolidated balance sheets.
The Company's contract liabilities consist of revenues from its digital subscription products and multi-year print products that are deferred at the time of sale. The Company classifies contract liabilities as current or non-current deferred revenue on the consolidated balance sheets based on the timing of when the Company expects to recognize revenue.

Contract assets and contract liabilities consisted of the following:

June 30, 2025March 31, 2025
Contract assets$48,372 $29,032 
Contract liabilities (deferred revenue):
Current737,620 794,031 
Non-current912,559 882,156 
Total Contract Liabilities $1,650,179 $1,676,187 

Total contract liabilities by segment consisted of the following:

June 30, 2025March 31, 2025
Total Contract Liabilities by Segment:
K-12$1,327,044 $1,279,585 
Higher Education221,730 297,316 
Global Professional64,376 62,348 
International29,275 33,407 
Other (1)
7,754 3,531 
Total Contract Liabilities
$1,650,179 $1,676,187 
_______________
(1)Includes contract liabilities for in-transit product sales that are not included in segment contract liabilities.
Revenue recognized during the three months ended June 30, 2025 and 2024 from amounts included within deferred revenue as of March 31, 2025 and 2024 was $335,920 and $312,695, respectively.

Estimated revenue expected to be recognized in future fiscal years ended March 31, related to amounts included within deferred revenue as of June 30, 2025 was as follows:
June 30, 2025
2026 (remaining nine months)
$574,360 
2027425,460 
2028297,335 
2029185,013 
203094,014 
Thereafter73,997 
$1,650,179