v3.26.1
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers REVENUE FROM CONTRACTS WITH CUSTOMERS
The Company generated 80% and 79% of its revenue from U.S. domestic sales for the three and six months ended June 30, 2026, respectively. The remaining 20% and 21% of revenue was generated from non-U.S. sales for the three and six months ended June 30, 2026, respectively. For the three and six months ended June 30, 2025, 78% of revenue was from U.S. domestic sales and the remaining 22% of revenue was generated from non-U.S. sales.
For the three and six months ended June 30, 2026, the Company recognized 51% and 52%, respectively, of its revenue over time as control of the services and goods transferred to the customer, and the remaining 49% and 48% at a point in time, when the customer obtained control of the promised goods. For the three and six months ended June 30, 2025, the Company recognized 54% of its revenue over time, and the remaining 46% at a point in time.
Contract Assets. As of June 30, 2026, the Company recognized a contract asset of $33.2 million related to a contract at a Kaplan International business, of which $5.9 million is included in Other current assets and $27.3 million is included in Deferred Charges and Other Assets. The Company expects to recognize an additional $199.8 million related to the remaining performance obligation in the contract over the next three years. As of December 31, 2025, the contract asset was $36.5 million, of which $4.4 million was included in Other current assets and $32.1 million was included in Deferred Charges and Other Assets. Additional contract assets of $2.8 million and $3.0 million are included in Other current assets on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, respectively.
Deferred Revenue. The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance which includes some payments that are refundable due to the contractual right of the customer to cancel the agreement. As of June 30, 2026 and December 31, 2025, 23% and 22%, respectively, of the Company’s deferred revenue consisted of prepaid amounts which are refundable. The following table presents the change in the Company’s deferred revenue balance:
As of
June 30,
2026		December 31,
2025		%
(in thousands)Change
Deferred revenue$297,288 $418,090 (29)
The majority of the change in the deferred revenue balance is related to the cyclical nature of services in the Kaplan International division and the derecognition of deferred revenue associated with the sale of the KLG businesses in May 2026 (see Note 2). During the six months ended June 30, 2026, the Company recognized $319.0 million related to the Company’s deferred revenue balance as of December 31, 2025, including $59.1 million of prepaid amounts which were refundable at the prior year-end.
Revenue allocated to remaining performance obligations represents deferred revenue amounts that will be recognized as revenue in future periods. As of June 30, 2026, the deferred revenue balance related to certain medical and nursing qualifications with an original contract length greater than twelve months at Kaplan Supplemental Education was $4.1 million. Kaplan Supplemental Education expects to recognize 68% of this revenue over the next twelve months and the remainder thereafter.
Costs to Obtain a Contract. The following table presents changes in the Company’s costs to obtain a contract asset:
(in thousands)Balance at
Beginning
of Period		Costs associated with new contractsLess: Costs amortized during the periodOtherBalance
at
End of
Period
2026$42,404 $29,742 $(48,917)$(1,575)$21,654 
The majority of other activity was related to the derecognition of costs to obtain contract assets associated with the sale of the KLG business in May 2026 (see Note 2) and currency translation adjustments for the six months ended June 30, 2026.