v3.26.1
Revenue Recognition
 9 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
We primarily derive revenue from the following sources: (1) royalty-based software or intellectual property “IP” license arrangements, (2) connected services, and (3) professional services. Revenue is reported net of applicable sales and use tax, value-added tax and other transaction taxes imposed on the related transaction including mandatory government charges that are passed through to our customers. We account for a contract when both parties have approved and committed to the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.
The timing and amount of revenue recognized from IP or patent licensing relating to technology developed and commercialized in the ordinary course of our business depends upon a variety of factors, including the specific terms of each agreement and the nature of the deliverables and obligations. These agreements could include, without limitation, performance obligations related to consideration for past patent royalties, patent licensing royalties on covered products sold by licensees, access to a portfolio of technology as it exists at a point in time, and access to a portfolio of technology at a point in time along with promises to provide any technology updates to the portfolio during the term on a when-and-if basis. Such licenses could be fixed and non-refundable in nature and/or variable over time. Certain components of revenue recognized with respect to IP license agreements may require the use of estimates, which may be significant. Related revenue is recognized at the point in time when the software and technology is made available to the customer and control is transferred and, if applicable, according to usage. Revenues relating to IP licensing accounted for $49.5 million, or 19.9% of total revenues, for the nine months ended June 30, 2026. As a component of License revenues, IP licensing revenues represented 29.7% of License revenues for the nine months ended June 30, 2026. There were no revenues relating to IP licensing during the three months ended June 30, 2026. Additionally, there were no revenues relating to IP licensing during the three and nine months ended June 30, 2025.
(a)Disaggregated Revenue
Revenues, classified by the major geographic region in which our customers are located, for the three and nine months ended June 30, 2026 and 2025 (dollars in thousands):
Three Months Ended June 30,Nine Months Ended June 30,
2026202520262025
Revenues:
United States$9,403 $10,905 $27,213 $29,701 
Other Americas414 245 1,014 892 
Germany14,251 21,470 58,101 60,577 
Other Europe, Middle East and Africa7,328 5,956 22,553 17,109 
Japan18,957 6,353 37,434 30,811 
Other Asia-Pacific19,234 17,307 102,540 52,052 
Total revenues$69,587 $62,236 $248,855 $191,142 
For the three and nine months ended June 30, 2026, revenues within Korea were $8.4 million and $74.7 million, respectively, which were more than 10% of total revenues. For the three months ended June 30, 2026, revenues within China were $8.1 million, which were more than 10% of total revenues. For the nine months ended June 30, 2026, revenues within China were $20.1 million, which were less than 10% of total revenues.
Revenues relating to one customer accounted for $12.4 million, or 17.8%, of revenues for the three months ended June 30, 2026. Revenues relating to one customer accounted for $49.5 million, or 19.9%, of revenues for the nine months ended June 30, 2026.
Revenues relating to three customers accounted for $9.4 million, or 15.1%, $7.1 million, or 11.4%, and $6.9 million, or 11.1% of revenues for the three months ended June 30, 2025. Revenues relating to one customer accounted for $23.9 million, or 12.5%, of revenues for the nine months ended June 30, 2025.
(b)Contract Acquisition Costs
We are required to capitalize certain contract acquisition costs. The capitalized costs primarily relate to paid commissions. The current and noncurrent portions of contract acquisition costs are included in Prepaid expenses and other current assets and in Other assets, respectively. As of June 30, 2026 and September 30, 2025, we had $4.1 million and $5.3 million of contract acquisition costs, respectively. We had amortization expense of $0.4 million and $0.6 million related to these costs during the three months ended June 30, 2026 and 2025, respectively, and amortization expense of $1.4 million and $1.8 million related to these costs during the nine months ended June 30, 2026 and 2025, respectively. There was no impairment related to contract acquisition costs.
(c)Capitalized Contract Costs
We capitalize incremental costs incurred to fulfill our contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligation under the contract, and (iii) are expected to be recovered through revenue generated under the contract. The current and noncurrent portions of capitalized contract fulfillment costs are presented as Deferred costs.
We had amortization expense of $0.7 million and $1.5 million related to these costs during the three months ended June 30, 2026 and 2025, respectively, and $2.6 million and $5.0 million related to these costs during the nine months ended June 30, 2026 and 2025, respectively. There was no impairment related to contract costs capitalized.
(d)Trade Accounts Receivable and Contract Balances
We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e., only the passage of time is required before payment is due). We present such receivables in Accounts receivable, net at their net estimated realizable value. Accounts receivable, net as of June 30, 2026 and September 30, 2025 was $45.9 million and $58.9 million, respectively. We maintain an allowance for credit losses to provide for the estimated amount of receivables and contract assets that may not be collected.
Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period.
Contract assets include unbilled amounts from long-term contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not solely subject to the passage of time. The current and noncurrent portions of contract assets are included in Prepaid expenses and other current assets and Other assets, respectively. The table below shows significant changes in contract assets (dollars in thousands):
Contract assets
Balance as of September 30, 2025$13,978 
Revenues recognized but not billed24,376 
Amounts reclassified to Accounts receivable, net(28,099)
Effect of foreign currency translation(524)
Balance as of June 30, 2026$9,731 
Our contract liabilities, which we present as deferred revenue, consist of advance payments and billings in excess of revenues recognized. We classify deferred revenue as current or noncurrent based on when we expect to recognize the revenues. The table below shows significant changes in deferred revenue (dollars in thousands):
Deferred revenue
Balance as of September 30, 2025$191,886 
Amounts billed but not recognized61,329 
Revenue recognized(50,976)
Effect of foreign currency translation(4,032)
Balance as of June 30, 2026$198,207 
(e) Remaining Performance Obligations
The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at June 30, 2026 (dollars in thousands):
Within One
Year
Two to Five
Years
Greater
than
Five Years
Total
Total revenue$86,338 $117,410 $30,533 $234,281 
The table above includes fixed remaining performance obligations and does not include contingent usage-based activities, such as royalties and usage-based connected services.