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
Disaggregation of Revenues
The Company’s revenues consist of the following:
Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
Subscriptions:
Enterprise subscriptions (1)
$169,202 $151,659 $341,602 $302,137 
SELECT subscriptions66,280 67,284 133,303 129,444 
Term license subscriptions143,153 114,509 296,214 244,189 
Subscriptions378,635 333,452 771,119 675,770 
Perpetual licenses9,707 10,193 18,764 20,985 
Subscriptions and licenses388,342 343,645 789,883 696,755 
Services:
Recurring3,854 4,468 6,916 7,623 
Other18,531 15,993 38,109 30,270 
Services22,385 20,461 45,025 37,893 
Total revenues$410,727 $364,106 $834,908 $734,648 
(1)Enterprise subscriptions are primarily revenues attributable to Enterprise 365 (“E365”) subscriptions of $168,730 and $150,166 for the three months ended June 30, 2026 and 2025, respectively, and $337,869 and $297,070 for the six months ended June 30, 2026 and 2025, respectively.
The Company recognizes perpetual licenses and the term license component of subscriptions as revenue when either the licenses are delivered or at the start of the subscription term. For the three months ended June 30, 2026 and 2025, the Company recognized $215,494 and $184,341 of license related revenues, respectively, of which $205,787 and $174,148, respectively, were attributable to the term license component of the Company’s subscription‑based commercial offerings recorded in Subscriptions in the consolidated statements of operations. For the six months ended June 30, 2026 and 2025, the Company recognized $445,800 and $385,379 of license related revenues, respectively, of which $427,036 and $364,394, respectively, were attributable to the term license component of the Company’s subscription‑based commercial offerings recorded in Subscriptions in the consolidated statements of operations.
Revenue from external customers is attributed to individual countries based upon the location of the customer. Revenues by geographic region are as follows:
Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
Americas (1)
$219,367 $194,059 $445,001 $393,034 
Europe, the Middle East, and Africa (“EMEA”)
122,782 105,414 249,023 212,419 
Asia-Pacific (“APAC”)
68,578 64,633 140,884 129,195 
Total revenues$410,727 $364,106 $834,908 $734,648 
(1)Americas includes the U.S., Canada, and Latin America (including the Caribbean). Revenue attributable to the U.S. totaled $168,637 and $155,358 for the three months ended June 30, 2026 and 2025, respectively, and $339,929 and $308,387 for the six months ended June 30, 2026 and 2025, respectively.
The Company derived 6% of its total revenues through channel partners during each of the three and six months ended June 30, 2026 and 2025.
Unbilled Accounts Receivable
Unbilled accounts receivable represent amounts that are unbilled due to agreed-upon contractual terms in which billing occurs subsequent to revenue recognition, and are included in Accounts receivable in the consolidated balance sheets. As of June 30, 2026 and December 31, 2025, unbilled accounts receivable were $199,958 and $182,315, respectively.
Contract Balances
As of June 30, 2026 and December 31, 2025, the Company’s contract assets relate to performance obligations completed in advance of the right to invoice and are included in Prepaid and other current assets in the consolidated balance sheets. Contract assets were not material as of June 30, 2026 or December 31, 2025.
Deferred revenues consist of billings made or payments received in advance of revenue recognition from subscriptions and services. The primary changes in deferred revenues are due to the Company’s performance under the contracts and new billings made or payments received in advance of revenue recognition from subscriptions and services. The satisfaction of performance obligations typically lags behind payments received under revenue from contracts with customers.
For the six months ended June 30, 2026, $191,560 of revenues that were included in the December 31, 2025 deferred revenues balance were recognized. There were additional deferrals of $182,639 for the six months ended June 30, 2026, which were primarily related to new billings. For the six months ended June 30, 2025, $175,935 of revenues that were included in the December 31, 2024 deferred revenues balance were recognized. There were additional deferrals of $163,049 for the six months ended June 30, 2025, which were primarily related to new billings.
As of June 30, 2026 and December 31, 2025, the Company deferred $19,473 and $19,822, respectively, related to portfolio balancing exchange rights which is included in Deferred revenues in the consolidated balance sheets.
Remaining Performance Obligations
The Company’s contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. As of June 30, 2026, amounts allocated to these remaining performance obligations are $280,641, of which the Company expects to recognize approximately 94% over the next 12 months with the remaining amount thereafter.