v3.26.3
Revenue Recognition
 9 Months Ended
Sep. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

3. Revenue Recognition

Disaggregation of Revenue

The following table presents revenue by category:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

 

(in thousands, except percentages)

 

Self-managed subscription

 

$

77,690

 

 

 

43

%

 

$

73,532

 

 

 

54

%

 

$

229,055

 

 

 

46

%

 

$

213,447

 

 

 

55

%

Subscription

 

 

70,123

 

 

 

39

 

 

 

65,517

 

 

 

48

 

 

 

205,566

 

 

 

41

 

 

 

193,301

 

 

 

50

 

License

 

 

7,567

 

 

 

4

 

 

 

8,015

 

 

 

6

 

 

 

23,489

 

 

 

5

 

 

 

20,146

 

 

 

5

 

SaaS

 

 

101,480

 

 

 

57

 

 

 

63,375

 

 

 

46

 

 

 

267,864

 

 

 

54

 

 

 

173,087

 

 

 

45

 

Total subscription revenue

 

$

179,170

 

 

 

100

%

 

$

136,907

 

 

 

100

%

 

$

496,919

 

 

 

100

%

 

$

386,534

 

 

 

100

%

The following table summarizes revenue by region based on the shipping address of customers:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

 

(in thousands, except percentages)

 

United States

 

$

106,923

 

 

 

60

%

 

$

82,088

 

 

 

60

%

 

$

295,230

 

 

 

59

%

 

$

231,188

 

 

 

60

%

Israel

 

 

5,339

 

 

 

3

 

 

 

4,268

 

 

 

3

 

 

 

14,843

 

 

 

3

 

 

 

11,957

 

 

 

3

 

Rest of world

 

 

66,908

 

 

 

37

 

 

 

50,551

 

 

 

37

 

 

 

186,846

 

 

 

38

 

 

 

143,389

 

 

 

37

 

Total subscription revenue

 

$

179,170

 

 

 

100

%

 

$

136,907

 

 

 

100

%

 

$

496,919

 

 

 

100

%

 

$

386,534

 

 

 

100

%

Contract Balances

Of the $385.8 million and $281.9 million of deferred revenue recorded as of June 30, 2026 and 2025, respectively, the Company recognized $145.6 million and $110.1 million as revenue during the three months ended September 30, 2026 and 2025, respectively. Of the $342.0 million and $274.2 million of deferred revenue recorded as of December 31, 2025 and 2024, respectively, the Company recognized $283.8 million and $226.1 million as revenue during the nine months ended September 30, 2026 and 2025, respectively.

Remaining Performance Obligation

The Company’s remaining performance obligations represent contracted revenue that has not yet been recognized. It includes deferred revenue and non-cancelable amounts that will be invoiced and recognized in future periods, and excludes usage-based fees from SaaS subscriptions in excess of minimum usage commitments from the remaining performance obligations. As of September 30, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $812.4 million, which consists of billed considerations of $422.6 million and unbilled considerations of $389.8 million, that the Company expects to recognize as revenue. As of September 30, 2026, the Company expects to recognize 60% of its remaining performance obligations as revenue over the next 12 months, and the remainder thereafter.

Cost to Obtain a Contract

Amortization of deferred contract acquisition costs was $7.5 million and $5.1 million for the three months ended September 30, 2026 and 2025, respectively, and $20.0 million and $14.2 million for the nine months ended September 30, 2026 and 2025, respectively.