v3.26.1
Revenue Recognition (Tables)
3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Summary of Net Accounts Receivable, Including Unbilled Accounts Receivable

The majority of the Company’s customers are invoiced on a monthly basis following the month of the delivery of services and are required to make payments under standard credit terms. Net accounts receivable was $7.1 million, including unbilled accounts receivable of $1.7 million, at January 1, 2025. Net accounts receivable, including unbilled accounts receivable, consists of the following as of the periods below:

 

 

March 31,

 

 

December 31,

 

(In Thousands)

 

2026

 

 

2025

 

Accounts receivable:

 

 

 

 

 

 

Billed

 

$

5,386

 

 

$

5,330

 

Unbilled

 

 

1,519

 

 

 

1,395

 

Allowance for expected credit losses

 

 

(79

)

 

 

(55

)

Accounts receivable, net

 

$

6,826

 

 

$

6,670

 

Summary of Contract Liabilities

Customer payments received in advance of revenue recognition or the Company's unconditional right to invoice are considered contract liabilities and are recorded as deferred revenue. The beginning and ending deferred revenue balances and activity during the period consists of the following:

(In Thousands)

 

 

 

Balance at December 31, 2025

 

$

598

 

      Current year deferral of revenue

 

 

306

 

      Revenue earned from beginning deferred revenue

 

 

(206

)

Balance at March 31, 2026

 

$

698

 

Summary of Contract Assets, Net

The Company’s incremental direct costs of obtaining a contract, which consist primarily of sales incentive compensation including commissions, are generally deferred and amortized to sales and marketing expense over the estimated life of the relevant customer relationship. The Company’s net contract acquisition costs shown below consist of $0.8 million and $1.0 million in Prepaid expenses and other current assets on the March 31, 2026 and December 31, 2025 Consolidated Balance Sheets, respectively, and $0.2 million and $0.2 million in Other assets, net on the March 31, 2026 and December 31, 2025 Consolidated Balance Sheets, respectively. The gross and net amounts consist of the following:

 

 

March 31,

 

 

December 31,

 

(In Thousands)

 

2026

 

 

2025

 

Contract assets:

 

 

 

 

 

 

Gross balance

 

$

4,874

 

 

$

4,698

 

Accumulated amortization

 

 

(3,875

)

 

 

(3,482

)

Contract assets, net

 

$

999

 

 

$

1,216