Revenue Recognition

General

Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services that are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of sales taxes collected from customers, which are subsequently remitted to governmental authorities.

Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the individual performance obligations are separately accounted for if they are distinct. In an arrangement with multiple performance obligations, the transaction price is allocated among the separate performance obligations on a relative standalone selling price (“SSP”) basis. The determination of SSP considers market conditions, the size and scope of the contract, customer and geographic information, and other factors. When observable prices are not available, SSP for separate performance obligations is generally based on the cost-plus-margin approach, considering overall pricing objectives.

When variable consideration is in the form of a sales-based or usage-based royalty in exchange for a license of technology or when a license of technology is the predominant item to which the variable consideration relates, revenue is recognized at the later of when the subsequent sale or usage occurs or the performance obligation to which some or all of the sales-based or usage-based royalty has been satisfied or partially satisfied.

Description of Revenue-Generating Activities

The Company derives the majority of its revenue from licensing its technologies and solutions to customers within the Pay-TV, Consumer Electronics, Connected Car and Media Platform product categories. In addition, the Company generates advertising and related revenue within Media Platform.

Pay-TV

Customers within the Pay-TV category are primarily multi-channel video service providers, consumer electronics (“CE”) manufacturers, and end consumers. Revenue in this category is primarily derived from licensing the Company’s Pay-TV solutions, including Electronic Program Guides, TiVo video-over-broadband (“IPTV”) Solutions, Personalized Content Discovery and enriched video Metadata.

For these solutions, the Company generally provides licensed software or access to its platform, and may also provide ongoing activities such as media or data delivery. The Company generally receives fees based on the number of subscribers or devices on a monthly basis, or through fixed monthly fees, and revenue is generally recognized during the month in which the solutions are provided to the customer. In the case of certain minimum guarantee or fixed fee licensed software arrangements deployed in customer-controlled environments, revenue is recognized when the customer has the right to use the technology and begins to benefit from the license.

Consumer Electronics

The Company licenses its audio technologies to CE manufacturers or their supply chain partners.

The Company generally recognizes royalty revenue from licenses based on units shipped or manufactured. Revenue is recognized in the period in which the customer’s sales or production are estimated to have occurred. This may result in an adjustment to revenue when actual sales or production are subsequently reported by the customer, generally in the month or quarter following sales or production. Estimating customers’ quarterly royalties prior to receiving the royalty reports requires the Company to make significant assumptions and judgments related to forecasted trends and growth rates used to estimate quantities shipped or manufactured by customers, which could have a material impact on the amount of revenue it reports on a quarterly basis.

Certain customers enter into fixed fee or minimum guarantee agreements, whereby customers pay a fixed fee for the right to incorporate the Company’s technology in the customer’s products over the license term. In arrangements with a minimum guarantee, the fixed fee component generally represents a minimum amount the customer is obligated to pay, which generally corresponds to a specified number of units. The Company may also earn additional per-unit royalties for any units exceeding the specified number of units covered by the minimum guarantee. The Company generally recognizes the full fixed fee as revenue at the beginning of the license term when the customer has the right to use the technology and begins to benefit from the license. For minimum guarantee agreements where the customer exceeds the minimum, the Company recognizes revenue relating to any additional per-unit fees in the periods it estimates the customer will exceed the minimum and adjusts the revenue based on actual usage once that is reported by the customer.

Connected Car

The Company licenses its digital radio solutions, automotive infotainment and related offerings to automotive manufacturers or their supply chain partners.

The Company generally recognizes royalty revenue from these licenses based on units shipped or manufactured, similar to the revenue recognition described above in “Consumer Electronics”. Certain customers may enter into fixed fee or minimum guarantee agreements, also similar to the revenue recognition described above in “Consumer Electronics”. Automotive infotainment and related revenue is generally recognized over time as the customer obtains access to the solutions and underlying data.

Media Platform

The Company generates Media Platform revenue primarily from advertising and related revenue streams, including TV viewership data, metadata for program-tune and advertising measurement, and data from the AutoStage platform on connected cars.

Advertising revenue is primarily derived from the sale of home page video and display advertising, connected TV (“CTV”) advertising on streaming content, and managed media campaigns on targeted audiences. The advertising inventory is available on Smart TV home screens and in-video CTV streaming through the TiVo One platform as well as on third-party platforms. The Company sells advertising directly to advertisers and through advertising partners, agencies, and third-party demand and supply-side platforms. The Company recognizes advertising revenue on either a gross or net basis based on its assessment of whether the Company acts as the principal or agent in the transaction. Advertising revenue is generally recognized when the related impressions are delivered.

Within the advertising-related revenue streams, revenue generated from TV viewership data, metadata for program-tune and advertising measurement, and data from the AutoStage platform on connected cars is generally recognized over time as customers simultaneously receive and consume the benefits of the underlying data or scheduled data deliveries.

Media Platform revenue also includes licensing revenue that the Company recognizes through the licensing of its core middleware solutions, either on a per-unit royalty or a minimum guarantee or fixed fee basis, similar to “Consumer Electronics” described in the section above. This revenue is included within licensing and other revenue in the condensed consolidated statements of operations.

Services and Settlements/Recoveries

The Company also generates non-recurring engineering (“NRE”) revenue within all of its product categories. The Company recognizes NRE revenue as progress is made toward completion, generally using an input method based on the ratio of costs incurred to date to total estimated costs of the project.

Revenue from NRE services was less than 10% of total revenue for all periods presented.

The Company actively monitors and enforces its technology licenses, including seeking appropriate compensation for under-reported royalties, the use of its technologies without a license or beyond the scope of the license. As a result of these activities, the Company may, from time to time, recognize revenue from periodic compliance audits of licensees for underreporting royalties incurred in prior periods, or from settlement of license disputes. These settlements and recoveries may cause revenue to be higher than expected during a particular reporting period and such settlements and recoveries may not occur in subsequent periods. The Company recognizes revenue from settlements and recoveries when a binding agreement has been executed or a revised royalty report has been received and the Company concludes collection is probable.

The following table summarizes revenue by timing of recognition (in thousands):

(1) For the three months ended June 30, 2026 and 2025, the Company recognized $55.3 million and $55.8 million of revenue from the U.S., which represented 48% and 53% of total revenue for the respective periods. For the six months ended June 30, 2026 and 2025, revenue from the U.S. was $102.5 million and $101.2 million, or 45% and 46% of total revenue, for the respective periods.

The Asia Pacific region accounts for a significant amount of revenue. The following table summarizes revenue recognized from the countries within this region (in thousands):

The following table presents additional revenue disclosures (in thousands):

The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2026 and 2025 (in thousands):