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REVENUE RECOGNITION
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
We account for revenue in accordance with ASC Topic 606, "Revenue from Contracts with Customers." The unit of account in ASC 606 is a performance obligation, which is a promise in a contract with a customer to transfer a good or service to the customer.
The majority of our revenue is recognized over time, as control is periodically transferred to our customers, who receive and consume benefits as we perform. Revenue from transfers to customers over time accounted for 77% and 74% of our revenue for the three and nine months ended September 30, 2025, respectively, and 78% and 81% of our revenue for the three and nine months ended September 30, 2024, respectively. All of our business groups earn services revenue under a variety of contract types, including time and materials, firm-fixed price, firm-fixed price level of effort, and cost-plus fixed fee contract types, which may include variable consideration. For performance obligations in which control does not periodically transfer to the customer, we recognize revenue at the point in time when each performance obligation is fully satisfied. This coincides with the point in time the customer obtains control of the product or service, which typically occurs upon customer acceptance or receipt of the product or service, given that we maintain control of the product or service until that point. Revenue from transfers to customers at a point in time accounted for 23% and 26% of our revenue for the three and nine months ended September 30, 2025, respectively, and 22% and 19% of our revenue for the three and nine months ended September 30, 2024, respectively. The change in revenue mix for the nine months ended September 30, 2025, as compared to the prior periods, was primarily driven by an increase in product sales volume from a successful ramp-up of a significant program.
Orders for the sale of software licenses may contain multiple performance obligations, such as maintenance, training, or consulting services, which are typically delivered over time, consistent with the transfer of control disclosed above for the provision of services. When an order contains multiple performance obligations, we allocate the transaction price to the performance obligations based on the standalone selling price of the product or service underlying each performance obligation. The standalone selling price represents the amount we would sell the product or service to a customer on a standalone basis.
For certain performance obligations where we are not primarily responsible for fulfilling the promise to provide goods or services to the customer, do not have inventory risk and have limited discretion in establishing the price for the goods or services, we recognize revenue on a net basis.
Our contracts may include various types of variable consideration and may include estimated amounts in the transaction price, based on all of the information available to us, and to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when any uncertainty associated with the variable consideration is resolved. We evaluate and include these estimated amounts of variable consideration in the transaction price, and as performance on these contracts is complete, we adjust our revenue when deemed necessary. No revenue adjustments were recorded during the three and nine months ended September 30, 2025, and 2024.
We provide for anticipated losses on contracts during the period when the loss is determined by recording an expense for the total expected costs that exceed the total estimated revenue for a performance obligation. No contract loss was recorded during the three months ended September 30, 2025, and 2024. We recorded an immaterial contract loss during the nine months ended September 30, 2025, and 2024.
Disaggregated Revenues
In addition to our segment reporting, as further discussed in Note 15 – Segment Information, we disaggregate our revenues by customer and contract types. We treat sales to U.S. customers as sales within the United States, regardless of where the services are performed. Substantially most of our revenues are generated from U.S. customers, while international customers are de minimis; as such, the financial information by geographic location is not presented.
Table 3.1: Revenue by Customer Type
For the Three Months EndedFor the Nine Months Ended
September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Amount%Amount%Amount%Amount%
(dollars in thousands)
Federal$47,296 92 %$20,607 87 %$107,268 91%$72,046 88%
State, local, and commercial4,148 8 %3,176 13 %10,760 9%9,854 12%
Total revenue$51,444 100 %$23,783 100 %$118,028 100 %$81,900 100 %
Table 3.2: Revenue by Contract Type
For the Three Months EndedFor the Nine Months Ended
September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Amount%Amount%Amount%Amount%
(dollars in thousands)
Firm fixed-price$39,409 77 %$18,293 77 %$84,560 71%$63,308 77%
Time-and-materials9,499 18 %3,045 13 %26,789 23%9,204 11%
Cost plus fixed fee2,536 5 %2,445 10 %6,679 6%9,388 12%
Total revenue$51,444 100 %$23,783 100 %$118,028 100%$81,900 100 %
A majority of the Company's revenue was derived under prime contracts and subcontracts with agencies and departments of the U.S. federal government. No other customer accounted for 10% or more of the Company's revenue during the three and nine months ended September 30, 2025, and 2024.
Table 3.3: Revenue Concentration Greater than 10% of Total Revenue
For the Three Months EndedFor the Nine Months Ended
September 30, 2025September 30, 2024September 30, 2025September 30, 2024
(in thousands)
Federal government:
Security Solutions$42,333 $15,168 $94,017 $45,040 
Secure Networks4,963 5,439 13,251 27,006 
Total$47,296 $20,607 $107,268 $72,046 
Table 3.4: Contract Balances
Balance Sheet PresentationSeptember 30, 2025December 31, 2024
(in thousands)
Billed accounts receivable (1)
Accounts receivable, net$13,739 $10,014 
Unbilled accounts receivableAccounts receivable, net6,326 5,412 
Contract assetsAccounts receivable, net358 3,746 
Contract liabilitiesContract liabilities13,732 6,838 
(1) Net of allowance for credit losses.
The changes in the Company's contract assets and contract liabilities during the current period were primarily the result of the timing differences between the Company's performance, invoicing, and customer payments. Revenue recognized for the three and nine months ended September 30, 2025, which was included in the contract liabilities balance at December 31, 2024, was $1.2 million and $5.3 million, respectively. Revenue recognized for the three and nine months ended September 30, 2024, which was included in the contract liabilities balance at December 31, 2023, was $1.2 million and $5.7 million, respectively.
As of September 30, 2025, we had approximately $65.5 million of remaining performance obligations, which we also refer to as funded backlog. We expect to recognize approximately 97% of our remaining performance obligations over the next 12 months, and the balance thereafter.