v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Contract Balances
Our contract assets relate to our trademark licensing revenue stream, which arrangements are typically long-term and non-cancelable. Contract assets are reclassified to accounts receivable when the right to bill becomes unconditional. Our contract liabilities consist of billings or payments received in advance of revenue recognition and are recognized as revenue when transfer of control to customers has occurred. Contract assets and contract liabilities are netted on a contract-by-contract basis. Contract liabilities are classified as deferred revenue in our condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025.
The following table summarizes our contract assets and certain contract liabilities (in thousands):
June 30,
2026		December 31,
2025		December 31,
2024
Accounts receivable$6,514 $4,120 $7,271 
Contract Balances:
Contract assets, current portion$2,834 $1,733 $1,531 
Contract assets, net of current portion7,806 7,467 7,848 
Contract liabilities, current portion(9,462)(11,015)(9,693)
Contract liabilities, net of current portion(12,026)(14,252)(5,762)
Contract assets (liabilities), net$(10,848)$(16,067)$(6,076)
The following tables provide a roll-forward of our netted contract assets and contract liabilities (in thousands):
Contract (Liabilities) Assets, Net
Balance at December 31, 2025$(16,067)
Revenues recognized that were included in gross contract liabilities at December 31, 202523,826 
Contract assets reclassified to accounts receivable in the six months ended June 30, 2026(18,165)
Cash received in advance and remained in net contract liabilities at June 30, 2026(481)
Contract terminations in the six months ended June 30, 202639 
Balance at June 30, 2026$(10,848)
Contract (Liabilities) Assets, Net
Balance at December 31, 2024$(6,076)
Revenues recognized that were included in gross contract liabilities at December 31, 202415,082 
Contract assets reclassified to accounts receivable in the six months ended June 30, 2025(6,185)
Cash received in advance and remained in net contract liabilities at June 30, 2025(508)
Contract terminations in 2025143 
Balance at June 30, 2025$2,456 
Future Performance Obligations
As of June 30, 2026, unrecognized revenue attributable to unsatisfied and partially unsatisfied performance obligations under our long-term contracts was $324.5 million, of which $322.6 million related to trademark licensing, including minimum guaranteed royalties from licensed digital operations per the LMA, $1.7 million pertained to December 31, 2024 deferred revenue balances from our legacy digital subscriptions and products operations and $0.2 million related to direct-to-consumer products.
Unrecognized revenue of the trademark licensing revenue stream is expected to be recognized over the next 14 years, of which 47% is expected to be recognized in the first five years. Such unrecognized revenue does not include variable consideration determined based on the customer’s subsequent sale or usage. Unrecognized revenue of our prior digital subscriptions and products operations, which pertains to related deferred revenue balances as of December 31, 2024, will be recognized over the next four years, of which 59% is expected to be recognized in the first year.
Disaggregation of Revenue
The following table disaggregates revenue by type (in thousands):
Three Months Ended June 30, 2026Six Months Ended June 30, 2026
Direct-to-ConsumerLicensingCorporateAll OtherTotalDirect-to-ConsumerLicensingCorporateAll OtherTotal
Consumer products$19,487 $— $193 $— $19,680 $38,334 $— $244 $— $38,578 
Trademark licensing— 11,169 — — 11,169 — 22,101 — — 22,101 
Digital subscriptions and products— — 109 255 364 — — 190 574 764 
Events and sponsorships— — 5 — 5 — — 11 — 11 
Total revenues$19,487 $11,169 $307 $255 $31,218 $38,334 $22,101 $445 $574 $61,454 

Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Direct-to-ConsumerLicensingCorporateAll OtherTotalDirect-to-ConsumerLicensingCorporateAll OtherTotal
Consumer products$16,493 $— $10 $— $16,503 $32,824 $— $43 $— $32,867 
Trademark licensing— 10,932 — — 10,932 — 22,383 — — 22,383 
Digital subscriptions and products— — 56 588 644 — — 119 1,434 1,553 
Events and sponsorships— — 69 — 69 — — 220 — 220 
Total revenues$16,493 $10,932 $135 $588 $28,148 $32,824 $22,383 $382 $1,434 $57,023 
The following table disaggregates revenue by point in time versus over time (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Point in time$19,685 $16,572 $38,589 $33,149 
Over time11,533 11,576 22,865 23,874 
Total revenues$31,218 $28,148 $61,454 $57,023