v3.26.1
Balance Sheet Accounts
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Accounts BALANCE SHEET ACCOUNTS
Commissions Receivable
Commissions receivable activity is summarized as follows:
Dec. 31,
(in thousands)20252024
Beginning balance$1,053,560 $911,697 
Commission revenue(1)
277,083 515,724 
Cash receipts(405,530)(464,364)
Allowance for credit losses58 (22)
Acquisition of business
— 90,525 
Ending balance925,171 1,053,560 
Less: Commissions receivable - current239,644 320,399 
Commissions receivable - non-current$685,527 $733,161 

(1)Commission revenue includes commissions generated through the Company’s Non-Encompass BPO Services, the sale of individual and family plan insurance products and certain other fees collected with commissions.
The Company’s contracts with health plan partners expose it to credit risk because a financial loss could be incurred if the counterparty does not fulfill its financial obligation. While the Company is exposed to credit losses due to the potential non-performance of its counterparties, the Company considers this risk to be remote. The Company estimates the allowance for credit losses using available information from internal and external sources related to historical experiences, current conditions and forecasts. Estimates of loss are determined by using historical collections data as well as historical information obtained through research and review of other peer companies. The estimated exposure of default is determined by applying these internal and external factors to the commission receivable balances. The Company estimates the maximum credit risk in determining the commissions receivable amount recorded on the Consolidated Balance Sheets.
Property, Equipment and Capitalized Software, Net
Property, equipment, and capitalized software, net, consist of the following:
Dec. 31,
(in thousands)20252024
Computer equipment$4,686 $7,251 
Leasehold improvements10,323 10,323 
Office equipment and furniture1,134 1,134 
Property and equipment16,143 18,708 
Capitalized software47,066 38,821 
Less: Accumulated depreciation and amortization(58,062)(28,209)
Property, equipment and capitalized software, net$5,147 $29,320 
Depreciation expense related to property and equipment was $2.6 million, $3.7 million and $3.9 million, for the twelve months ended December 31, 2025, 2024 and 2023 respectively.
Amortization expense related to capitalized software was $7.0 million, $8.1 million and $7.8 million for the twelve months ended December 31, 2025, 2024 and 2023, respectively.
Accrued Liabilities
Accrued liabilities consist of the following:
Dec. 31,
(in thousands)20252024
Bonuses and commissions$1,895 $27,104 
Payroll5,289 16,100 
Marketing costs2,811 26,185 
Interest expense4,101 9,498 
Accrued payments for revenue share
13,309 29,807 
Other accrued expenses7,242 12,652 
Accrued liabilities$34,647 $121,346