v3.26.1
Revenue Recognition and Accounts Receivable
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition and Accounts Receivable
Note 4: Revenue Recognition and Accounts Receivable
The Company’s disaggregated revenues are as follows:
 Three Months Ended
March 31,
 20262025
Temporary placement services$245,570,294 $101,826,339 
Brokerage services1,972,827 — 
Payrolling services938,988 — 
Permanent placement and other services1,404,784 982,468 
Total service revenues, net$249,886,893 $102,808,807 
When disaggregating revenue, the Company considered all of the economic factors that may affect its revenues. Because substantially all of its revenues are from placement services, there are no differences in the nature, timing and uncertainty of the Company’s revenues and cash flows from its revenue generating activities. For the three months ended March 31, 2026, no customers accounted for more than 10% of the Company’s consolidated revenues. For the three months ended March 31, 2025, one customer accounted for 13% of the Company’s consolidated revenues. No other
customers accounted for more than 10% of the Company’s consolidated revenues in either period. Economic factors specific to this customer could impact the nature, timing and uncertainty of the Company’s revenues and cash flows.
Contract assets consists of revenue recognized related to claims for which clients have received economic value but has not been through the clients’ standard approved procedures as of the balance sheet date. Approval is expected, and upon approval the amounts owed will become unbilled accounts receivable if they have not yet been invoiced or accounts receivable upon invoicing. The Company records contract liabilities (deferred revenue) when payments are made or due prior to the related performance obligations being satisfied. The current portion of contract liabilities is included in “accrued expenses and other current liabilities” on the accompanying condensed consolidated balance sheets. Refer to Note 9: Accrued Expenses and Other Current Liabilities for further information. The Company does not have any long-term contract liabilities. Contract assets were $101,757,781 and $0 as of March 31, 2026 and December 31, 2025, respectively
Unbilled accounts receivable were $6,679,154 and $4,242,245 as of March 31, 2026 and December 31, 2025, respectively. Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment upon receipt of invoice.
Accounts receivable is as follows:
 March 31,
2026		December 31,
2025
Accounts receivable$185,445,019 $68,973,316 
Allowance for doubtful accounts(2,343,732)(3,222,723)
Accounts receivable, net$183,101,287 $65,750,593 
The Company’s accounts receivable serves as collateral for the Revolver and the Term Note (see Note 8: Debt) has a second lien after the Revolver.
The Company recognized $1,233,099 and $0 bad debt expense during the periods ended March 31, 2026 and March 31, 2025, respectively.
None of the Company’s customers accounted for more than 10% of the Company’s accounts receivable as of March 31, 2026 and December 31, 2025.