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BUSINESS SEGMENT AND REVENUE
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
BUSINESS SEGMENT AND REVENUE BUSINESS SEGMENT AND REVENUE
Reportable Segments
Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by the chief operating decision maker (“CODM”). The Company has one reportable and one operating segment, its global ambulatory cardiac monitoring business. The Company’s Chief Executive Officer, who is the Company’s CODM, reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and assessing financial performance.
The key measure of the Company's segment profit or loss is consolidated net loss, which is reported on the Company's unaudited condensed consolidated statements of operations. Consolidated net loss is used to measure actual results versus expectations. The measure of segment assets is reported on the unaudited condensed consolidated balance sheets as total assets.
Significant segment expenses within loss from operations, as well as within net loss, include cost of revenue, research and development, acquired in-process research and development ("IPR&D"), selling, general and administrative expenses, litigation settlements, and impairment charges which are each separately presented on the Company’s unaudited condensed consolidated statements of operations. Other segment items within net loss include interest and other income, net, and income tax provision.
Disaggregation of Revenue
The Company disaggregates revenue from contracts with customers by payor type. The Company believes these categories aggregate the payor types by nature, amount, timing and uncertainty of its revenue streams. Disaggregated revenue by payor type and major service line for the three and six months ended June 30, 2026, and 2025 were as follows (in thousands, except percentages):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Amount% of RevenueAmount% of RevenueAmount% of RevenueAmount% of Revenue
Contracted third-party payors $113,783 51%$97,719 52%$220,588 52%$181,522 52%
Centers for Medicare & Medicaid Services
58,550 26%44,481 24%109,938 26%82,593 24%
Healthcare institutions37,782 17%31,830 17%67,936 16%58,503 17%
Non-contracted third-party payors14,057 6%12,657 7%25,100 6%22,746 7%
Total$224,172 $186,687 $423,562 $345,364 
Revenue generated from the United States comprised substantially all of the Company's revenue. No other country or customer, with the exception of CMS, comprised 10% or greater of the Company's revenue during the three and six months ended June 30, 2026 and 2025.
Accounts Receivable, Provision for Credit Losses and Contractual Allowances
Accounts receivable includes amounts due to the Company from healthcare institutions, third-party payors, and government payors and their related patients, as a result of the Company's normal business activities. Accounts receivable is reported on the unaudited condensed consolidated balance sheets net of an estimated provision for credit losses and contractual allowances.
The Company establishes a provision for credit losses for estimated uncollectible receivables based on its assessment of the collectability of customer accounts and recognizes the provision as a component of selling, general and administrative expenses. The Company records a provision for contractual allowances, as a reduction of revenue, based on the estimated differences between contracted amounts and expected collection rates for services performed. Such provisions are based on the Company's historical experience and expected future claims denials. The Company updates the estimate for this provision each reporting period.
The Company regularly reviews the allowances by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, reasonable and supportable forecasts, and current economic conditions that may affect a customer’s ability to pay.
The following table presents the changes in the allowance for credit losses (in thousands):
Six Months Ended
June 30, 2026		Year Ended
December 31, 2025		Six Months Ended
June 30, 2025
Balance, beginning of period$14,635 $16,248 $16,248 
Add: Provision for credit losses
19,551 30,835 16,779 
Less: Write-offs
(14,090)(32,448)(19,328)
Balance, end of period$20,096 $14,635 $13,699 
The following table presents the changes in the contractual allowance (in thousands):
Six Months Ended
June 30, 2026		Year Ended
December 31, 2025		Six Months Ended
June 30, 2025
Balance, beginning of period$48,926 $50,961 $50,961 
Add: Provision for contractual adjustments
37,869 68,831 37,925 
Less: Contractual adjustments
(37,620)(70,866)(33,888)
Balance, end of period$49,175 $48,926 $54,998 
Contract Liabilities
ASC 606, Revenue from Contracts with Customers, requires an entity to present a revenue contract as a contract liability when the Company has an obligation to transfer goods or services to a customer for which the Company has received consideration from the customer, or an amount of consideration from the customer is due and unconditional (whichever is earlier).
Certain of the Company’s customers pay the Company directly for the Zio LTCM Service upon patient registration or shipment of devices. Such advance payments are recognized as deferred revenue and are recorded as revenue when Zio reports are delivered to the healthcare provider. During the six months ended June 30, 2026 and 2025, $4.1 million and $2.9 million related to the contract liability balance at the beginning of 2026 and 2025 was recognized as revenue, respectively. The deferred revenue liability was $4.2 million as of June 30, 2026 and December 31, 2025.
Contract Costs
Under ASC 340, Other Assets and Deferred Costs (“ASC 340”), the incremental costs of obtaining a contract with a customer are recognized as an asset. Incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained.
The Company maintains short-term sales incentive compensation programs. As a practical expedient, ASC 340 permits the Company to immediately expense contract acquisition costs, because the asset that would have resulted from capitalizing these costs will be amortized in one year or less.