v3.26.1
Revenue from Contracts with Customers
 3 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
2. Revenue from Contracts with Customers

Disaggregation of Revenue

The following tables summarize the Company's revenue from contracts with its customers disaggregated by segment and product type for the three months ended June 30, 2026 and 2025:

Three Months Ended June 30,
20262025
DigitalPrint (1)TotalDigitalPrint (1)Total
Revenue by Segment:
K-12$113,919 $160,485 $274,404 $108,597 $162,334 $270,931 
Higher Education190,146 9,690 199,836 168,826 13,553 182,379 
Global Professional26,713 8,102 34,815 25,272 9,887 35,159 
International22,755 22,475 45,230 22,353 29,111 51,464 
Other (2)— (4,382)(4,382)— (4,223)(4,223)
Total Revenue $353,533 $196,370 $549,903 $325,048 $210,662 $535,710 
___________________
(1)
Print revenue contains print and multi-year print products.
(2)
Includes in-transit product sales and intersegment revenue adjustments that are not included within segment revenues reviewed by the Company's CODM.

In addition, the Company has included a further disclosure of revenue from contracts with its customers disaggregated by segment and by Re-occurring Revenue and Transactional Revenue, for the three months ended June 30, 2026 and 2025.

Re-occurring Revenue represents revenue from offerings that are generally sold as digital subscriptions and multi-year print products. Revenue from digital subscriptions is recognized ratably over the term of the subscription period as the performance obligation is satisfied and revenue from multi-year print products (e.g., workbooks) is recognized at a point in time, upon shipment of the print product to the customer, in each academic year within the contract term. Transactional Revenue includes revenue from both print and digital offerings that are recognized at a point in time upon shipment of the print product or delivery of the digital offerings. In addition, Transactional Revenue includes revenue for amounts billed to customers in a sales transaction for shipping and handling.

Three Months Ended June 30,
20262025

Re-occurring
Revenue		Transactional
Revenue		TotalRe-occurring
Revenue		Transactional
Revenue		Total
K-12
$196,595 $77,809 $274,404 $183,641 $87,290 $270,931 
Higher Education
182,102 17,734 199,836 159,552 22,827 182,379 
Global Professional
25,140 9,675 34,815 23,657 11,502 35,159 
International
21,727 23,503 45,230 20,764 30,700 51,464 
Other
— (4,382)(4,382)— (4,223)(4,223)
Total Revenue
$425,564 $124,339 $549,903 $387,614 $148,096 $535,710 
Deferred Commission Costs

The Company's incremental direct costs of obtaining a contract, which consist of sales commissions, are deferred and amortized over the expected period of benefit or the related contractual renewal period, depending on whether the contract is an initial or renewal contract, respectively. The Company classifies deferred commission costs as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred commission costs are included in Prepaid and other current assets, and Other non-current assets, respectively, in the consolidated balance sheets. The Company expenses commission costs when incurred related to customer contracts that have a duration of less than one year. The Company recognizes these costs within Operating and administrative expenses in the consolidated statements of operations.

Deferred commission costs consisted of the following:

June 30, 2026March 31, 2026
Current$16,427 $19,325 
Non-current19,675 19,765 
Total Deferred Commission Costs $36,102 $39,090 

Amortization expense related to deferred commission costs was $7,655 and $7,435 for the three months ended June 30, 2026 and 2025, respectively.

Deferred Royalties

The Company's direct costs of fulfilling a contract, which consist of royalties, are deferred and amortized over the expected period of benefit or the related contractual renewal period, depending on whether the contract is an initial or renewal contract, respectively. The Company classifies deferred royalties as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred royalties are included in Prepaid and other current assets, and Other non-current assets, respectively, in the Company's consolidated balance sheets. The Company recognizes these costs within Cost of sales (excluding depreciation and amortization) in the consolidated statements of operations.

Deferred royalties consisted of the following:

June 30, 2026March 31, 2026
Current$61,331 $75,696 
Non-current49,617 51,774 
Total Deferred Royalties $110,948 $127,470 

Amortization expense related to deferred royalties was $38,039 and $34,669 for the three months ended June 30, 2026 and 2025, respectively.

Contract Assets and Contract Liabilities

The Company's contract assets consist of unbilled receivables that are recorded for contracts with performance obligations that have been satisfied but have not yet been billed. Contract assets are included in Accounts receivable, net, on the consolidated balance sheets.
The Company's contract liabilities consist of revenues from its digital subscription products and multi-year print products that are deferred at the time of sale. The Company classifies contract liabilities as current or non-current deferred revenue on the consolidated balance sheets based on the timing of when the Company expects to recognize revenue.

Contract assets and contract liabilities consisted of the following:

June 30, 2026March 31, 2026
Contract assets$39,454 $23,570 
Contract liabilities (deferred revenue):
Current732,926 835,357 
Non-current789,230 836,001 
Total Contract Liabilities $1,522,156 $1,671,358 

Total contract liabilities by segment consisted of the following:

June 30, 2026March 31, 2026
Total Contract Liabilities by Segment:
K-12$1,210,646 $1,249,373 
Higher Education216,935 321,999 
Global Professional68,677 65,977 
International22,892 33,064 
Other (1)
3,006 945 
Total Contract Liabilities
$1,522,156 $1,671,358 
_______________
(1)Includes contract liabilities for in-transit product sales that are not included in segment contract liabilities.
Revenue recognized during the three months ended June 30, 2026 and 2025 from amounts included within deferred revenue as of March 31, 2026 and 2025 was $381,398 and $335,920, respectively.

Estimated revenue expected to be recognized in future fiscal years ended March 31, related to amounts included within deferred revenue as of June 30, 2026 was as follows:
2027 (remaining nine months)
$565,691 
2028416,238 
2029256,331 
2030147,325 
203179,605 
Thereafter56,966 
$1,522,156