v3.26.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Contract Balances
Our contract assets relate to our trademark licensing revenue stream, which arrangements are typically long-term and non-cancelable. Contract assets are reclassified to accounts receivable when the right to bill becomes unconditional. Our contract liabilities consist of billings or payments received in advance of revenue recognition and are recognized as revenue when transfer of control to customers has occurred. Contract assets and contract liabilities are netted on a contract-by-contract basis. Contract liabilities are classified as deferred revenue in our condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025.
The following table summarizes our contract assets and certain contract liabilities (in thousands):
March 31,
2026		December 31,
2025		December 31,
2024
Accounts receivable$3,678 $4,120 $7,271 
Contract Balances:
Contract assets, current portion$2,787 $1,733 $1,531 
Contract assets, net of current portion7,767 7,467 7,848 
Contract liabilities, current portion(8,027)(11,015)(9,693)
Contract liabilities, net of current portion(12,532)(14,252)(5,762)
Contract liabilities, net$(10,005)$(16,067)$(6,076)
The following tables provide a roll-forward of our netted contract assets and contract liabilities (in thousands):
Contract Liabilities, Net
Balance at December 31, 2025$(16,067)
Revenues recognized that were included in gross contract liabilities at December 31, 202513,297 
Contract assets reclassified to accounts receivable in the three months ended March 31, 2026
(6,755)
Cash received in advance and remained in net contract liabilities at March 31, 2026(319)
Contract terminations in the three months ended March 31, 202690 
Other
(251)
Balance at March 31, 2026$(10,005)
Contract Liabilities, Net
Balance at December 31, 2024$(6,076)
Revenues recognized that were included in gross contract liabilities at December 31, 20248,683 
Contract assets reclassified to accounts receivable in the three months ended March 31, 2025
(2,242)
Cash received in advance and remained in net contract liabilities at March 31, 2025(557)
Contract modifications and terminations in the three months ended March 31, 202550 
Balance at March 31, 2025$(142)
Future Performance Obligations
As of March 31, 2026, unrecognized revenue attributable to unsatisfied and partially unsatisfied performance obligations under our long-term contracts was $335.0 million, of which $332.6 million related to trademark licensing, including minimum guaranteed royalties from licensed digital operations pursuant to the LMA, $2.1 million pertained to December 31, 2024 deferred revenue balances from our legacy digital subscriptions and products operations and $0.3 million related to direct-to-consumer products.
Unrecognized revenue of the trademark licensing revenue stream is expected to be recognized over the next 14 years, of which 47% is expected to be recognized in the first five years. Such unrecognized revenue does not include variable consideration determined based on the customer’s subsequent sale or usage. Unrecognized revenue of our prior digital subscriptions and products operations, which pertains to related deferred revenue balances as of December 31, 2024, will be recognized over the next four years, of which 52% is expected to be recognized in the first year.
Disaggregation of Revenue
The following table disaggregates revenue by type (in thousands):
Three Months Ended March 31, 2026
Direct-to-ConsumerLicensingCorporateAll OtherTotal
Consumer products$18,847 $— $51 $— $18,898 
Trademark licensing— 10,932 — — 10,932 
Digital subscriptions and products— — 81 319 400 
Events and sponsorships
— — 6 — 6 
Total revenues$18,847 $10,932 $138 $319 $30,236 
Three Months Ended March 31, 2025
Direct-to-ConsumerLicensingCorporateAll OtherTotal
Consumer products$16,331 $— $33 $— $16,364 
Trademark licensing— 11,451 — — 11,451 
Digital subscriptions and products
— — 63 846 909 
Events and sponsorships — — 151 — 151 
Total revenues$16,331 $11,451 $247 $846 $28,875 
The following table disaggregates revenue by point in time versus over time (in thousands):
Three Months Ended March 31,
20262025
Point in time$18,904 $16,577 
Over time11,332 12,298 
Total revenues$30,236 $28,875