Quarterly report [Sections 13 or 15(d)]

Revenue

v3.26.3
Revenue
 9 Months Ended
Sep. 30, 2026
Revenue [Abstract]  
REVENUE

NOTE 3 – REVENUE

The following table presents our disaggregated revenues by type, timing and geographical region.

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

(dollars in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Type of Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

$

87,773

 

 

$

5,444

 

 

$

169,586

 

 

$

12,274

 

Service revenue

 

 

34,170

 

 

 

4,591

 

 

 

67,096

 

 

 

7,896

 

Development revenue

 

 

45,546

 

 

 

63

 

 

 

64,701

 

 

 

450

 

Total revenues, net

 

$

167,489

 

 

$

10,098

 

 

$

301,383

 

 

$

20,620

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Revenue recognized point in time

 

$

71,073

 

 

$

9,446

 

 

$

153,940

 

 

$

19,451

 

Revenue recognized over time

 

 

96,416

 

 

 

652

 

 

 

147,443

 

 

 

1,169

 

Total revenues, net

 

$

167,489

 

 

$

10,098

 

 

$

301,383

 

 

$

20,620

 

 

 

 

 

 

 

 

 

 

 

 

 

Geographical Region

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

91,233

 

 

$

173

 

 

$

109,686

 

 

$

528

 

Europe

 

 

36,826

 

 

 

3

 

 

 

68,281

 

 

 

3,114

 

Israel

 

 

27,924

 

 

 

9,358

 

 

 

86,980

 

 

 

13,105

 

Asia - Other

 

 

8,020

 

 

 

564

 

 

 

25,162

 

 

 

3,873

 

Africa

 

 

2,625

 

 

 

-

 

 

 

7,577

 

 

 

-

 

North America - Other

 

 

403

 

 

 

-

 

 

 

2,721

 

 

 

-

 

Other

 

 

458

 

 

 

-

 

 

 

976

 

 

 

-

 

Total revenues, net

 

$

167,489

 

 

$

10,098

 

 

$

301,383

 

 

$

20,620

 

 

Contract Assets and Liabilities

The Company recognizes a receivable or contract asset when we perform a service or transfer a good in advance of receiving consideration. A receivable is recorded when our right to consideration is unconditional and only the passage of time is required before payment of that consideration is due. A contract asset is recorded when we have recognized revenue over time in accordance with meeting our performance obligation but are unable to invoice the customer yet based on the contractual invoicing terms. The contract asset is reclassified to a receivable when the right to consideration becomes unconditional. Contract assets are included in other current assets on the condensed consolidated balance sheets. The table below details the activity in our contract assets during the nine months ended September 30, 2026 and the year ended December 31, 2025.

 

(dollars in thousands)

 

Nine Months Ended
September 30,
2026

 

 

Year Ended
December 31,
2025

 

Balance, beginning of period

 

$

3,171

 

 

$

206

 

Contract assets acquired in business combination

 

 

22,821

 

 

 

-

 

Contract assets recognized

 

 

73,894

 

 

 

8,476

 

Reclassification to accounts receivable, net

 

 

(27,216

)

 

 

(5,511

)

Balance, end of period

 

$

72,670

 

 

$

3,171

 

 

The Company recognizes a contract liability (deferred revenue) when we receive consideration from a customer, or if we have the unconditional right to consideration (i.e., a receivable), prior to satisfying the performance obligation. A contract liability is our obligation to transfer goods or services to a customer for which we have received consideration, or an amount of consideration is due from the customer. The table below details the activity in our contract liabilities during the nine months ended September 30, 2026 and the year ended December 31, 2025.

 

(dollars in thousands)

 

Nine Months Ended
September 30,
2026

 

 

Year Ended
December 31,
2025

 

Balance, beginning of period

 

$

8,501

 

 

$

329

 

Contract liabilities acquired in business combinations

 

 

34,292

 

 

 

7,374

 

Effect of deconsolidation of subsidiary

 

 

(337

)

 

 

-

 

Additions

 

 

29,565

 

 

 

9,542

 

Recognized as revenue

 

 

(30,880

)

 

 

(8,744

)

Balance, end of period

 

$

41,141

 

 

$

8,501

 

 

Revenue recognized during the nine months ended September 30, 2026 and 2025 that was included in the contract liability opening balance was $7.6 million and $21 thousand, respectively. As of September 30, 2026 and December 31, 2025, $3.3 million and $0.5 million of the contract liability balance represents long-term deferred revenue and is included in other liabilities on the condensed consolidated balance sheets, respectively.