2. Revenue

Total revenue recognized under ASC 606 was approximately $110.9 million and $109.8 million for the six months ended June 30, 2026 and 2025, respectively, while specialty rental income was approximately $47.3 million and $21.7 million subject to the guidance of ASC 842 for the six months ended June 30, 2026 and 2025, respectively. Total revenue recognized under contracts recognized under ASC 606 was approximately $54.7 million and $54.9 million for the three months ended June 30, 2026 and 2025, respectively, while specialty rental income was approximately $30.8 million and $6.7 million subject to the guidance of ASC 842 for the three months ended June 30, 2026 and 2025, respectively.

The following table disaggregates our services and construction fee income by our three reportable segments as well as the All Other category: Hospitality and Facility Services – South (“HFS – South”), Workforce Hospitality Solutions (“WHS”), Government, and All Other for the dates indicated below:

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For the six months ended June 30, 2026 and 2025, the Company incurred and expensed approximately $6.9 million and $14.8 million, respectively, of construction costs associated with construction fee income, which are included within the services and construction costs financial statement line item within the accompanying consolidated statements of comprehensive loss. For the three months ended June 30, 2026 and 2025, the Company incurred and expensed approximately $0.4 million and $11.0 million, respectively, of construction costs associated with construction fee income, which are included within the services and construction costs financial statement line item within the accompanying consolidated statements of comprehensive loss.

Allowance for Credit Losses

The Company maintains allowances for credit losses. These allowances reflect our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectability. Our estimate could require a change based on changing circumstances, including changes in the economy or in the circumstances of individual customers.

Contract Assets and Liabilities

We do not have any contract assets.

Contract liabilities primarily consist of deferred revenue that represent advance payments for rental of assets that are being recognized over the related contract period, a security deposit, advanced payments for community builds that are being

recognized over the related contract period, and billings in excess of cost for community construction projects. Activity in the deferred revenue accounts as of the dates indicated below was as follows:

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As of June 30, 2026, the following table discloses the estimated revenues under ASC 606 related to performance obligations that are unsatisfied (or partially unsatisfied) and when we expect to recognize the revenue, and only represents revenue expected to be recognized from contracts where the price and quantity of the product or service are fixed:

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The Company applied some of the practical expedients in ASC 606, including the “right to invoice” practical expedient, and does not disclose consideration for remaining performance obligations for contracts without minimum revenue commitments or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations. Due to the application of these practical expedients as well as excluding specialty rental income subject to the guidance included in ASC 842, the table above represents only a portion of the Company’s expected future consolidated revenues and it is not necessarily indicative of the expected trend in total revenues.