Accounts receivable and contract assets are recorded net of allowances for credit losses. Accounts receivable represent invoiced and accrued revenue while contract assets represent accrued revenue that has yet to be invoiced to the customer. The Company’s accounts receivable, contract assets and allowance for credit losses consisted of the following as of the below dates:


	Successor
	December 31, 2025		December 31, 2024
Accounts receivables	$	369,669	$	216,613
Contract assets	154,510		24,171
Allowance for credit losses	(3,447)		(4,264)
Total accounts receivables, net	$	520,732	$	236,520

The Company records an allowance for credit losses for accounts receivable based on management’s expected credit losses. Management’s estimate of expected credit losses is based on its assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging and customer disputes.

Changes to the allowance for credit losses are adjusted through credit loss expense, which is included within “Selling, general and administrative expenses” in the consolidated statements of operations and comprehensive income (loss). The following table presents the allowance for credit losses activity:


	Successor				Predecessor
	December 31, 2025		December 31, 2024		December 31, 2023
Beginning balance	$	4,264	$	—	$	1,098
Initial allowance for credit losses	—		1,867		—
Provision	1,152		2,703		1,353
Accounts written off	(1,969)		(306)		(226)
Foreign currency translation	—		—		16
Ending balance	$	3,447	$	4,264	$	2,241