v3.25.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue Recognition Revenue Recognition
Remaining Performance Obligations
The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) as of December 31, 2025.
Less than 1 year1 - 2 yearsMore than 2 yearsTotal
Product revenue$9,852 $— $— $9,852 
Subscription revenue84,729 64,482 57,239 206,450 
Service revenue32,130 21,695 22,635 76,460 
License fee and other revenue418 138 271 827 
Total revenue*$127,129 $86,315 $80,145 $293,589 
*The Company identified an immaterial error in its 2024 RPO disclosure of $7.6 million. The Company has updated the RPO disclosure as of December 31, 2025 to appropriately exclude this amount.
Contract Balances from Contracts with Customers
Contract assets arise from unbilled amounts in customer arrangements when revenue recognized exceeds the amount billed to the customer and the Company’s right to payment is unconditional and only subject to the passage of time. As of December 31, 2025 and December 31, 2024, the Company had $0.9 million and $0.8 million in current portion of contract assets and less than $0.1 million and $0.7 million in contract assets, noncurrent on the consolidated balance sheets, respectively.
Contract liabilities represent the Company’s obligation to transfer goods or services to a customer for which it has received consideration (or the amount is due) from the customer. The Company has a contract liability related to service revenue, which consists of amounts that have been invoiced but that have not been recognized as revenue. Amounts expected to be recognized as revenue within 12 months of the balance sheet date are classified as current deferred revenue and amounts expected to be recognized as revenue beyond 12 months of the balance sheet date are classified as deferred revenue, noncurrent. The Company recognized revenue of $64.5 million during the year ended December 31, 2025 that was included in the December 31, 2024 deferred revenue balance. The Company recognized revenue of $46.4 million during the year ended December 31, 2024 that was included in the December 31, 2023 deferred revenue balance.
The following table provides a rollforward of deferred revenue (in thousands):
Balance at December 31, 2023$71,957 
Revenue recognized in relation to the beginning of the year contract liability balance(46,431)
Revenue deferred59,246 
Balance at December 31, 2024$84,772 
Revenue recognized in relation to the beginning of the year contract liability balance(64,490)
Revenue deferred71,358 
Balance at December 31, 2025$91,640 
The following table presents the Company’s components of lease revenue (in thousands):
Twelve Months Ended
December 31,
20252024
Interest income on lease receivables97 154 
Lease income - operating leases83,839 65,046 
Total lease revenue$83,936 $65,200 
The interest income on lease receivables is classified under interest income in the consolidated statements of operations and comprehensive loss. Lease income from operating leases is related to the leased equipment under subscription arrangements and is classified as subscription revenue in the consolidated statements of operations and
comprehensive loss. Revenue related to leases entered into with related parties was $1.1 million during the year ended December 31, 2024. There was no revenue related to leases entered into with related parties during the year ended December 31, 2025
Disaggregated Revenue
The following table presents the Company’s revenue by revenue stream (in thousands). Certain prior period amounts have been reclassified to conform to current period presentation:

Twelve Months Ended
December 31,
20252024
Product revenue$21,637 $6,464 
Subscription revenue83,839 65,046 
Service revenue29,375 23,467 
License fees8,075 7,181 
Professional services and other revenue2,979 1,707 
Total revenue$145,905 $103,865 

The following table presents the Company's revenue by geographical region based on customer location (in thousands):

Twelve Months Ended
December 31,
20252024
United States$140,652 $99,995 
Foreign5,253 3,870 
Total revenue$145,905 $103,865 
Partner Rebate Program
As discussed in Note 2, Summary of Significant Accounting Policies, the Company implemented a new Rebate Program for eligible resellers. As of December 31, 2025, the Company has accrued $1.2 million related to the Rebate Program, which is included in accrued expenses and other current liabilities in our consolidated balance sheets. As a substantial amount of the Company's revenue with eligible resellers is recognized over-time, the Company recognized $0.2 million and $0.6 million of current portion of contract asset and contract asset, noncurrent in our consolidated balance sheets, respectively, as of December 31, 2025 and recognized $0.4 million as a reduction of revenue for these payments to our customers for the year ended December 31, 2025.
Commissions
The Company incurs and pays commissions on sales of its products and services. The Company applies the practical expedient for contracts less than one year in duration to expense the commission costs in the period in which they were incurred. Commissions on product sales and services are expensed in the period in which the related revenue is recognized. Commissions on subscription arrangements and maintenance are expensed ratably over the life of the contract. The Company had total deferred assets related to commissions of $13.1 million and $13.0 million as of December 31, 2025 and December 31, 2024, respectively. During the years ended December 31, 2025 and 2024, the Company recognized commission expense of $7.4 million and $5.7 million, respectively.
Leases
The amount of minimum future leases is based on expected income recognition. As of December 31, 2025, future minimum payments on noncancelable leases are as follows (in thousands):

Year Ending December 31:
2026$84,729 
202764,482 
202838,735 
202917,633 
Thereafter871 
$206,450