v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

3. Revenue Recognition

Remaining performance obligations

As of June 30, 2026, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations (“RPO”) was approximately $471 million and excludes consideration from contracts that have an original duration of one year or less. Approximately $463 million of the RPO primarily represents connectivity and entertainment service revenues which are recognized as services are provided, which is expected to occur through the remaining term of the contracts. Our contracts vary in length and generally have terms of two to ten years. We expect to recognize approximately 39% of our connectivity and entertainment service RPO within the next year, approximately 47% in one to five years and the remaining 14% in five to ten years. The remaining $8 million of the RPO represents future equipment revenue that is expected to be recognized primarily within the next three years as equipment is shipped.

Disaggregation of revenue

The following table presents our revenue disaggregated by category (in thousands):

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Service revenue by type

 

 

 

 

 

 

 

 

 

 

 

 

Satellite broadband

 

$

84,317

 

 

$

76,706

 

 

$

164,419

 

 

$

154,385

 

ATG broadband

 

 

60,020

 

 

 

74,214

 

 

 

124,822

 

 

 

150,184

 

Narrowband and other

 

 

46,935

 

 

 

43,045

 

 

 

89,763

 

 

 

88,008

 

Total service revenue by type

 

$

191,272

 

 

$

193,965

 

 

$

379,004

 

 

$

392,577

 

Service revenue by market

 

 

 

 

 

 

 

 

 

 

 

 

Business aviation

 

$

151,330

 

 

$

165,366

 

 

$

305,685

 

 

$

334,647

 

Military / Government

 

 

39,942

 

 

 

28,599

 

 

 

73,319

 

 

 

57,930

 

Total service revenue by market

 

$

191,272

 

 

$

193,965

 

 

$

379,004

 

 

$

392,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment revenue

 

 

 

 

 

 

 

 

 

 

 

 

Satellite broadband

 

$

13,090

 

 

$

4,563

 

 

$

25,503

 

 

$

10,938

 

ATG broadband

 

 

12,173

 

 

 

21,786

 

 

 

31,827

 

 

 

40,458

 

Narrowband and other

 

 

6,276

 

 

 

5,724

 

 

 

12,796

 

 

 

12,372

 

Total equipment revenue

 

$

31,539

 

 

$

32,073

 

 

$

70,126

 

 

$

63,768

 

Contract balances

Our current and non-current contract asset balances totaled $49.7 million and $39.6 million as of June 30, 2026 and December 31, 2025, respectively. Contract assets represent the aggregate amount of revenue recognized in excess of billings and recoverable contract costs primarily for certain sales programs.

Our current and non-current deferred revenue balances totaled $36.9 million and $36.0 million as of June 30, 2026 and December 31, 2025, respectively. Deferred revenue includes, among other things, prepayments for equipment and subscription connectivity products. For the three- and six-month periods ended June 30, 2026, we recognized revenue of $10.4 million and $23.9 million, respectively, that was previously included in the deferred revenue balance as of December 31, 2025. For the three- and six-month periods ended June 30, 2025, we recognized revenue of $13.9 million and $30.7 million, respectively, that was previously included in the deferred revenue balance as of December 31, 2024.