Customer Contracts

9 Months Ended

Sep. 30, 2025

Revenue from Contract with Customer [Abstract]

Customer Contracts

Customer Contracts

The following table presents the balances related to customer contracts:

(In millions)	Condensed Consolidated Balance Sheets Account	December 31, 2024		September 30, 2025
Accounts receivable, net	Accounts receivable, net (1)	$	298.8	$	273.9
Current portion of contract assets	Other current assets	$	6.2	$	3.5
Non-current portion of contract assets	Other non-current assets	$	6.4	$	2.9
Current portion of deferred revenue	Deferred revenue	$	84.2	$	73.1
Non-current portion of deferred revenue	Other non-current liabilities	$	2.0	$	2.8

(1)    Allowance for credit losses and accrued customer credits was $27.0 million and $25.8 million as of December 31, 2024 and September 30, 2025, respectively.

Amounts recognized in revenue for the three months ended September 30, 2024, and 2025, which were included in deferred revenue as of the beginning of each period totaled $39.7 million and $42.8 million, respectively. Amounts recognized in revenue for the nine months ended September 30, 2024, and 2025, which were included in deferred revenue as of the beginning of each period totaled $73.0 million and $80.3 million, respectively.

Cost Incurred to Obtain and Fulfill a Contract

As of December 31, 2024 and September 30, 2025, the balances of capitalized costs to obtain a contract were $38.6 million and $31.6 million, respectively, and the balances of capitalized costs to fulfill a contract were $13.7 million and $15.7 million, respectively. These capitalized costs are included in "Other non-current assets" on the Condensed Consolidated Balance Sheets.

Amortization of capitalized sales commissions and implementation costs was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2024		2025		2024		2025
Amortization of capitalized sales commissions	$	7.1	$	6.2	$	22.6	$	19.5
Amortization of capitalized implementation costs	$	2.2	$	2.4	$	7.3	$	7.1

Remaining Performance Obligations    

As of September 30, 2025, the aggregate amount of transaction price allocated to remaining performance obligations was $539.5 million, of which approximately 17% is expected to be recognized as revenue during the remainder of 2025 and the remainder thereafter. These remaining performance obligations primarily relate to our fixed-term arrangements. The aggregate amount of transaction price excludes variable consideration related to our usage-based arrangements for which we recognize revenue based on the right to invoice for the services performed.

Convertible Promissory Note

On September 27, 2022, we entered into a convertible note purchase agreement with a private company that is also a customer and a vendor. Pursuant to the purchase agreement, we purchased an unsecured convertible promissory note (the "Note") in an aggregate principal amount of $15.0 million. The Note accrues simple interest at a rate of 6% per annum and matures on September 27, 2027, unless earlier converted per the terms of the agreement. Principal and accrued interest are due and payable on the maturity date. We have elected to apply the fair value option under ASC No. 825, Financial Instruments, to account for the Note. As of December 31, 2024 and September 30, 2025, the fair value of the Note was $15.0 million and $17.1 million, respectively, and is included in "Other non-current assets" on our Condensed Consolidated Balance Sheets. The increase in the fair value of the Note is included in “Other expense, net” in the Condensed Consolidated Statements of Comprehensive Loss.