v3.26.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2026
Revenues [Abstract]  
Revenue Recognition
5.
Revenue Recognition

Geographic Net Revenue

The Company sells its products in the Americas (North and South America), EMEA (Europe, Middle East, and Africa), and APAC (Asia-Pacific) regions.

The following table summarizes net revenue by major geographic region:

 

 

 

Three Months Ended March 31,

 

 (in thousands)

 

2026

 

 

2025

 

EMEA(1)

 

$

17,522

 

 

$

11,552

 

Americas(2)

 

 

5,274

 

 

 

4,719

 

APAC

 

 

2,401

 

 

 

2,568

 

Total net revenue

 

$

25,197

 

 

$

18,839

 
(1)
Our net revenues generated from Italy, Czech Republic and Germany represented 18.9%, 16.4% and 10.0% of our total net revenue for the three months ended March 31, 2026, respectively. Our net revenues generated from Germany, the United Kingdom, Italy and Czech Republic represented 15.0%, 14.4%, 10.9% and 10.6% of our total net revenue for the three months ended March 31, 2025, respectively.
(2)
Our net revenues generated from the United States represented 19.8% and 22.2% of our total net revenues for the three months ended March 31, 2026, and 2025, respectively.

Deferred Revenue

Deferred revenue or contract liabilities consists of payments received from customers in advance of revenue recognition for the Company’s products and service. The current portion of deferred revenue represents the unearned revenue that will be earned within 12 months of the balance sheet date. Correspondingly, noncurrent deferred revenue represents the unearned revenue that will be earned after 12 months from the balance sheet date.

The following table summarizes the changes in deferred revenue:

 

 

 

Three Months Ended March 31,

 

 (in thousands)

 

2026

 

 

2025

 

Balance at the beginning of the period

 

$

1,821

 

 

$

1,169

 

Deferral of revenue

 

 

2,057

 

 

 

3,801

 

Recognition of unearned revenue

 

 

(2,534

)

 

 

(3,592

)

Balance at the end of the period

 

$

1,344

 

 

$

1,378

 

 

As of March 31, 2026, the Company expects to recognize $1.3 million from remaining performance obligations over a weighted average term of 3.7 years. The Company recognized approximately $0.6 million and $0.3 million in revenue that was included in the beginning contract liabilities balance during the three months ended March 31, 2026, and 2025, respectively.

Product Warranty

The Company estimates the cost of its warranty obligations based on several key estimates: the warranty period (which vary from 5 to 25 years depending on the product), its historical experience of known product failure rates, use of materials to repair or replace defective products and parts, and service delivery costs incurred in correcting product failures. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. Should the actual experience relative to these factors differ from the estimates, the Company may be required to record additional warranty reserves. Product warranty costs are recorded as expense to cost of revenue based on customer history, historical information and current trends.

The following table summarizes the changes in product warranty liability:

 

 

 

Three Months Ended March 31,

 

 (in thousands)

 

2026

 

 

2025

 

Balance at the beginning of the period

 

$

9,344

 

 

$

5,798

 

Provision for warranty issued during period

 

 

399

 

 

 

363

 

Changes in estimate

 

 

(53

)

 

 

1,280

 

Settlements

 

 

(111

)

 

 

(117

)

Balance at the end of the period

 

$

9,579

 

 

$

7,324