Revenue recognition

9 Months Ended

Sep. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue recognition

3. Revenue recognition

Disaggregation of Revenue—The following table presents revenue disaggregated by product offering for each segment (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Enterprise:
Subscription	$	132,284	$	125,522	$	387,977	$	362,658
Other	518		601		1,870		1,661
Enterprise revenue	$	132,802	$	126,123	$	389,847	$	364,319
Consumer:
Subscription	$	11,661	$	8,152	$	31,242	$	22,347
Transactional and other	51,217		61,142		174,770		199,957
Consumer revenue	$	62,878	$	69,294	$	206,012	$	222,304
Total revenue	$	195,680	$	195,417	$	595,859	$	586,623

Enterprise subscription revenue is recognized ratably over the respective contractual subscription term beginning on the date that the platform is made available to the customer. Other Enterprise revenue is primarily comprised of professional services arrangements, which are generally offered as fixed price contracts and recognized on a proportional performance basis.

Consumer subscription revenue is recognized ratably over the respective contractual subscription term beginning on the date that the platform is made available to the customer. Transactional and other revenue is primarily comprised of sales of single courses, which are recognized ratably over the estimated service period of four months, as well as other products sold on the consumer marketplace on a non-recurring basis, which were not material for the periods presented.

Deferred revenue—Revenue recognized for the three months ended September 30, 2025, from amounts included in deferred revenue as of June 30, 2025 was $153.4 million. Revenue recognized for the three months ended September 30, 2024, from amounts included in deferred revenue as of June 30, 2024 was $152.8 million.

Revenue recognized for the nine months ended September 30, 2025, from amounts included in deferred revenue as of December 31, 2024 was $266.9 million. Revenue recognized for the nine months ended September 30, 2024, from amounts included in deferred revenue as of December 31, 2023 was $252.9 million.

The below table presents a summary of deferred revenue balances by reportable segment (in thousands):

	September 30,		December 31,		December 31,
	2025		2024		2023
Deferred revenue:
Enterprise	$	245,717	$	233,466	$	220,127
Consumer	51,449		60,078		62,287
Total deferred revenue	$	297,166	$	293,544	$	282,414

Remaining performance obligations— Remaining performance obligations represent the aggregate amount of the transaction price in contracts for performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations primarily relate to deferred revenue and unbilled revenue related to multi-year Enterprise subscription contracts with future installment billings, as well as unearned revenue from consumer single course purchases and subscriptions at the end of any given period. As of September 30, 2025, the aggregate transaction price for remaining performance obligations was $535.9 million, of which 74% is expected to be recognized over the next twelve months and the remainder thereafter.

Deferred contract costs— The following table represents a roll forward of the Company’s deferred contract costs (in thousands):

	Balance at Beginning of Period		Additions		Amortization Expense		Balance at End of Period
Nine Months Ended September 30, 2025	$	73,053	$	49,542	$	(48,392)	$	74,203
Nine Months Ended September 30, 2024	$	74,374	$	46,626	$	(43,863)	$	77,137