NOTE 4. ACCOUNTS RECEIVABLE, NET

Accounts receivable, less allowance for doubtful accounts, reflects the net realizable value of receivables and approximates fair value. Unbilled revenue is recorded at estimated net realizable value. Assessing the collectability of the receivables (billed and unbilled) requires management judgment based on a combination of factors, including but not limited to, an evaluation of our historical incurred loss experience, credit-worthiness of our clients, age of the trade receivable balance, current economic conditions that may affect a client’s ability to pay, and other pertinent factors that may impact the collectivity of the receivables. Receivables are charged-off against the allowance when the balance is deemed uncollectible.

Accounts receivable, net, at September 30, 2026 and December 31, 2025 was as follows (in thousands):

 

		September 30, 2026				December 31, 2025
Trade accounts receivable		$	554,320			$	469,209
Unbilled revenue, at net realizable value			286,545				136,701
Total accounts receivable			840,865				605,910
Allowance for doubtful accounts			(58,473	)			(49,915	)
Accounts receivable, net		$	782,392			$	555,995

Changes to the allowance for doubtful accounts for the nine months ended September 30, 2026 and year ended December 31, 2025 were as follows (in thousands):