v3.25.4
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
2. Revenue from Contracts with Customers
The following table summarizes revenue by region based on the billing country of users (in thousands, except percentages):
Year Ended December 31,
202520242023
AmountPercentage of RevenueAmountPercentage of RevenueAmountPercentage of Revenue
United States and Canada (1)
$2,969,150 61%$2,281,319 63%$1,803,812 64%
Europe
944,226 19659,593 18505,633 18
Asia-Pacific, including Australia and New Zealand
541,532 11379,027 11286,930 10
Rest of world
435,643 9282,040 8202,899 7
Total
$4,890,551 100%$3,601,979 100%$2,799,274 100%
(1)The Company’s revenues in the United States were 57%, 59%, and 60% of consolidated revenue for each of the years ended December 31, 2025, 2024, and 2023, respectively.
No individual country, other than the United States, exceeded 10% of the Company’s consolidated revenue for any period presented.
As a percentage of total virtual item-related revenue, durable revenue and consumable revenues were as follows:
Year Ended December 31,
202520242023
Durable virtual item revenue
85 %91 %91 %
Consumable virtual item revenue
15 %9 %9 %
Deferred Revenue
The Company receives payments from its users based on the payment terms established in its contracts. Such payments are initially recorded to deferred revenue and are recognized into revenue as the Company satisfies its performance obligations. The aggregate amount of revenue allocated to unsatisfied performance obligations is included in the Company’s deferred revenue balances.
The increase in deferred revenue for the year ended December 31, 2025 was driven by sales during the period exceeding revenue recognized from the satisfaction of the Company’s performance obligations, which includes the revenue recognized during the period that was included in the current portion of deferred revenue at the beginning of the period. During the year ended December 31, 2025, the Company recognized all of the revenue that was included in the $3,005.0 million current deferred revenue balance as of December 31, 2024.