Deferred Revenue

6 Months Ended

Jun. 30, 2026

10. Deferred Revenue

As of June 30, 2026 and December 31, 2025, deferred revenue includes club initiation fees of $47.5 million and $45.9 million, respectively, and other deferred revenue of $14.9 million and $12.8 million, respectively.

Club initiation fees are recognized as revenue over the estimated average duration of membership, which is evaluated periodically. The following table presents the changes in club initiation fees related to contracts with customers:


	June 30,		June 30,
	2026		2025
Balance at beginning of period	$	45,929	$	45,885
New club memberships		9,277		6,222
Revenue from amounts included in contract liability opening balance		(7,285)		(6,730)
Revenue from current period new memberships		(432)		(365)
Balance at end of period	$	47,489	$	45,012

Remaining performance obligations represent contracted revenue that has not been recognized related to club initiation fees. As of June 30, 2026, remaining performance obligations were $47.5 million, of which the Company expects to recognize as revenue $7.1 million in 2026, $24.2 million in 2027 through 2028, $13.1 million in 2029 through 2030 and $3.1 million thereafter.

Other deferred revenue as of both June 30, 2026 and December 31, 2025, includes $10.9 million related to a 2006 agreement pursuant to which the Company agreed to sell land to the Florida Department of Transportation. Revenue is recognized when title to a specific parcel is legally transferred.