v3.26.1
Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations
 6 Months Ended
Aug. 01, 2026
Revenue from Contract with Customer [Abstract]  
Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations Costs to Obtain and Fulfill a Contract
Deferred Commissions—Total deferred commissions as of August 1, 2026 and January 31, 2026 were $294.3 million and $261.9 million, respectively.
The following table provides the amounts capitalized and amortized for commission costs for the periods presented (in thousands):
Three Months EndedSix Months Ended
August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Capitalized commission costs$44,883 $28,816 $79,346$52,511
Amortization expense$24,075 $18,387 $46,970$35,637
Connected Devices—Total connected device costs, current and non-current, as of August 1, 2026 and January 31, 2026 were $489.5 million and $440.1 million, respectively. Amounts include deployed long-lived device assets that transfer ownership to the customer at the end of the contract, net of amortization, of $7.1 million and $8.1 million as of August 1, 2026 and January 31, 2026, respectively.
The following table provides the amounts capitalized and amortized for connected device costs for the periods presented (in thousands):
Three Months EndedSix Months Ended
August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Capitalized connected device costs$71,508 $40,482 $129,224$79,055
Amortization expense$40,355 $34,141 $79,825$66,723
Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations
Revenue Recognition—Subscription revenue is generated from subscriptions to access the Connected Operations Platform. Subscription agreements contain multiple service elements for one or more of the cloud-based Applications via mobile app(s) or a website that enable data collection and provide access to the cellular network, generally one or more wireless gateways, cameras, sensors and other devices (collectively, “connected devices” or “Internet of Things (“IoT”) devices”), support services that are delivered over the term of the arrangement, and warranty coverage. The Connected Operations Platform and the related connected device access points are highly interdependent and interrelated, and represent a combined performance obligation, which is recognized over the related subscription period.
Other revenue is generally recognized at a point in time and is earned through the sale of replacement gateways, sensors and cameras, as well as related shipping and handling fees, and professional services.
Revenue comprises the following (in thousands):
Three Months EndedSix Months Ended
August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Subscription revenue$499,764 $383,890 $970,741$743,494
Other revenue8,673 7,590 16,54014,870
Total revenue$508,437 $391,480 $987,281$758,364
Accounts Receivable—An allowance for credit losses of $14.0 million and $14.1 million was recorded as of August 1, 2026 and January 31, 2026, respectively. The Company recorded a charge of $3.7 million and $6.4 million, respectively, to general and administrative expenses during the three and six months ended August 1, 2026, compared to $1.7 million and $3.1 million, respectively, for the three and six months ended August 2, 2025. Additionally, write-offs against the allowance totaled $4.2 million and $6.5 million, respectively, during the three and six months ended August 1, 2026, compared to $2.4 million and $2.1 million, respectively, for the three and six months ended August 2, 2025.
Deferred Revenue—The following table provides the deferred revenue balances for the periods presented (in thousands):
Three Months EndedSix Months Ended
August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Deferred revenue, beginning of period$827,777 $706,112 $809,042$685,770
Deferred revenue, end of period$852,772 $740,512 $852,772$740,512
Revenue recognized during the three and six months ended August 1, 2026, from the deferred revenue balance at the beginning of the respective periods was $412.9 million and $529.0 million, respectively, compared to $344.8 million and $440.9 million, respectively, for the three and six months ended August 2, 2025.
Remaining Performance Obligations (“RPO”)—RPO represents the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods.
As of August 1, 2026, the RPO was $4,285.2 million, of which the Company expects to recognize revenue of approximately $1,838.9 million over the next 12 months, with the remaining balance to be recognized thereafter.
Concentrations of Significant Customers and Credit Risk—No customer accounted for greater than 10% of total revenue for the three and six months ended August 1, 2026 and August 2, 2025.
No customer accounted for greater than 10% of total accounts receivable as of August 1, 2026 and January 31, 2026.