Revenue from Contracts with Customers |
6 Months Ended |
|---|---|
Jun. 27, 2026 | |
| Revenue from Contract with Customer [Abstract] | |
| Revenue from Contracts with Customers | Revenue from Contracts with Customers Contract Asset Contract assets include amounts recognized as revenue prior to our contractual right to bill the customer. Amounts are billed in accordance with the agreed-upon contractual terms. Contract assets were $4.9 million as of June 27, 2026 as compared to $4.8 million as of December 31, 2025, and are included in prepaid expenses and other current assets and long-term other assets on the Condensed Consolidated Balance Sheets. We expect to recognize 38% of the June 27, 2026 balance during 2026. Contract Liability Deferred revenue was $56.0 million, $50.5 million and $50.3 million as of June 27, 2026, March 28, 2026 and December 31, 2025, respectively. The increase in the deferred revenue balance for the three and six months ended June 27, 2026 was driven by cash payments received or due in advance of satisfying our performance obligations offset by $13.3 million and $18.2 million of revenue recognized that was included in the deferred revenue balance at the beginning of each respective period. Remaining performance obligations (“RPOs”) represent contractual commitments that have not yet been fulfilled, which include deferred revenue and amounts that will be invoiced and recognized as revenue in future periods but exclude variable consideration where the monthly invoicing is based on usage or where actual usage exceeds the minimum commitment. RPOs were $386.4 million as of June 27, 2026, and we expect to recognize as revenue 42% of this amount over the next 12 months and nearly all of the remainder over the two years thereafter. Contract Costs We capitalize certain sales commissions related primarily to multi-year subscriptions and extended warranty support for which the expected amortization period is greater than one year. As of June 27, 2026 and December 31, 2025, the unamortized balance of deferred commissions was $19.1 million and $20.7 million, respectively, and were included in prepaid expenses and other current assets, and other long-term assets on the Condensed Consolidated Balance Sheets. For the three and six months ended June 27, 2026 the amount of amortization was $3.2 million and $6.3 million, respectively, compared to $2.7 million and $5.3 million for the three and six months ended June 28, 2025, respectively. There was no impairment loss in relation to the costs capitalized for these periods. Concentration of Customer Risk One customer accounted for 12% of our revenue for the three months ended June 27, 2026. No customer accounted for more than 10% of our revenue for the six months ended June 27, 2026 and three and six months ended June 28, 2025. One customer represented 12% of our total receivables as of June 27, 2026 and another customer represented 12% of our total receivables as of December 31, 2025.
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