v3.26.1
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS
NOTE. 12 REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS
The Company derives revenue by providing quantum computing products and solutions. Revenue—net is recognized at a point in time or over time depending on the manner in which the business transfers control of services to customers and revenue is measured as the amount of consideration the Company expects to be entitled in exchange for services rendered.
The following table depicts the disaggregation of revenue by products or services (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Specialized quantum computing hardware$— $— $— $16,526 
Cloud platform, research and support services7,966 2,119 13,268 4,970 
Prioritization incentive payment— $(11)(65)$(303)
Lease income32 — 32 — 
Total revenue—net$7,998 $2,108 $13,235 $21,193 
For the six months ended June 30, 2025, specialized quantum computing hardware corresponds to sales-type lease income, as discussed in Note 8 — Leases. For the three and six months ended June 30, 2026, lease income relates to a sublease, as discussed in Note 8 — Leases.
The following table depicts the disaggregation of revenue by timing of transfer of goods or services (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenue recognized at a point in time$135 $— $135 $16,526 
Revenue recognized over time7,863 2,108 13,100 4,667 
$7,998 $2,108 $13,235 $21,193 
Sales and use taxes collected on behalf of governmental authorities are excluded from revenues. Payment is generally due and received within 30 days or in some instances, payment is made up front. There is no significant financing component included in the Company's contracts with customers.
PERFORMANCE OBLIGATIONS
A performance obligation is a promise in a contract to transfer a distinct service to the customer and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.
As of June 30, 2026, the remaining performance obligations to which enforceable rights exist are $74.2 million, of which approximately 39.6% is expected to be recognized as revenue over the next 12 months, 64.8% is expected to be recognized as revenue in the next two years, 85.3% is expected to be recognized as revenue in the next three years, and 97.5% is expected to be recognized as revenue in the next four years. The estimated timing of this revenue is based, in part, on management’s estimates and assumptions regarding when performance obligations will be completed. As a result, the actual timing of revenue recognition in future periods may vary.
Our disclosure of the timing for satisfying the performance obligation is based on the requirements of contracts with customers. However, from time to time, these contracts may be subject to modifications, impacting the timing of satisfying the performance obligations.
CONTRACT BALANCES
The following table summarizes the Company’s contract liability balances (in thousands):
June 30,
20262025
Contract liabilities—January 1$6,608 $1,401 
  Additions4,294 390 
  Revenue recognized(5,323)(771)
Contract liabilities—June 30$5,579 $1,020 
The contract liability as of June 30, 2026 will be recognized as revenue as the quantum computing services are provided to the customer, of which $5.3 million is expected to occur over the next year, and $0.3 million is expected to be recognized beyond one year. The contract liability balances are reflected in the Condensed Consolidated Balance Sheets as components of Accrued liabilities and Other liabilities.
The following table summarizes the Company's accounts receivable and contract asset balances (in thousands):
June 30,December 31,December 31,
202620252024
Trade receivables
2,531 3,303 1,758 
Contract assets
817 1,765 2,964 
Accounts receivable$3,348 $5,068 $4,722