v3.26.1
REVENUE
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregated Revenue
The following table shows revenue by product and services groups (in thousands):
Three Months Ended
March 31,
20262025
Licensing, support and maintenance$19,272 $15,335 
Variable royalties2,503 1,167 
Professional services and other1,161 30 
Total$22,936 $16,532 
Contract Balances
The following table provides information about accounts receivable, net, contract assets and deferred revenue (in thousands):
As of
March 31,
2026		December 31,
2025
Accounts receivable, net$14,694 $19,183 
Contract assets, current$930 $— 
Deferred revenue$94,331 $95,341 
The Company recognized revenue of $18.6 million and $13.5 million for the three months ended March 31, 2026 and 2025, respectively, that was included in the deferred revenue balance at the beginning of the respective periods. Contract assets, current are included in prepaid expenses and other current assets on the condensed consolidated balance sheets.
As of March 31, 2026, non-cancelable contracted but unsatisfied or partially satisfied performance obligations that have not yet been recognized were $114.9 million which include deferred revenue, amounts that will be invoiced and recognized as revenues in future periods and Flexible Spending Accounts (FSA) commitments, from customers where actual product selection and quantities of specific products are to be determined by customers at a future period. The Company expects to recognize $62.4 million of this balance over the next 12 months and the remainder thereafter. FSA commitments amounted to $3.5 million and $3.8 million as of March 31, 2026 and December 31, 2025, respectively. The Company has elected to exclude the potential future royalty receipts from these amounts.
Costs of Obtaining a Contract with a Customer
Total capitalized direct commission costs were as follows (in thousands):
As of
March 31,
2026		December 31,
2025
Short-term commission capitalized in prepaid expenses and other current assets$3,196 $3,124 
Long-term commission capitalized in other assets2,319 2,417 
Total$5,515 $5,541 
Amortization of capitalized sales commissions was $1.1 million and $0.8 million for the three months ended March 31, 2026 and 2025, respectively, and are included in sales and marketing expense in the unaudited condensed consolidated statements of operations.