v3.26.1
ACCOUNTS RECEIVABLE, NET AND CONTRACT BALANCES
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
ACCOUNTS RECEIVABLE, NET AND CONTRACT BALANCES ACCOUNTS RECEIVABLE, NET AND CONTRACT BALANCES
The Company classifies its right to consideration in exchange for deliverables as either a receivable or a contract asset.
Accounts Receivable, Net
The opening and closing balances of accounts receivable, net is as follows:
March 31, 2026December 31, 2025
Balance at beginning of the year$7,960 $9,864 
Ending balance5,903 7,960 
Change$(2,057)$(1,904)
The Company recognizes an accounts receivable allowance based on estimates of expected credit losses. The following table represents a roll-forward of the Company’s allowance for expected credit losses:
Three Months Ended March 31,
20262025
Balance as of beginning of period$117 $96 
Provision for expected credit losses(22)65 
Recoveries— (23)
Write-offs charged against the allowance(23)(19)
Balance as of end of period$72 $119 
Contract Balances
The opening and closing balances of contract assets (unbilled receivables) are as follows:
March 31, 2026December 31, 2025
Balance at beginning of the year$2,009 $4,074 
Ending balance2,385 2,009 
Change$376 $(2,065)
The difference between the opening and closing balances of the Company’s contract assets (unbilled receivables) primarily results from timing differences between the Company’s performance and the customer’s payment as well as the number of active installation projects.
The opening and closing balances of contract liabilities (deferred revenue) were as follows:
March 31, 2026December 31, 2025
Balance at beginning of the year$26,375 $33,182 
Ending balance24,867 26,375 
Change$(1,508)$(6,807)
The difference between the opening and closing balances of the Company’s contract liabilities (deferred revenue) primarily related to a shift from multi-year contracts billed upfront to contracts billed on an annual basis, resulting in less deferred revenue being added upon invoice date. The ending contract liabilities balance represents advance consideration, net of discount, to be recognized as revenue over time, with the associated financing component recognized as interest expense.
The Company recognized $4.7 million and $4.4 million of prior year deferred software revenue during the three months ended March 31, 2026 and 2025, respectively.
The contract liabilities (deferred revenue) consisted of the following amounts that will be recorded as revenue, net of the discount:
March 31, 2026December 31, 2025
Revenue$12,386 $12,879 
Interest expense(1,474)(1,642)
Total current deferred revenue$10,912 $11,237 
Revenue$16,690 $18,183 
Interest expense(2,735)(3,045)
Total non-current deferred revenue$13,955 $15,138