REVENUE FROM CONTRACTS WITH CUSTOMERS

3 Months Ended

Dec. 31, 2025

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

2.    REVENUE FROM CONTRACTS WITH CLIENTS

DSA

The DSA segment generates service revenue through drug discovery and development services. The DSA segment generates product revenue through internally-manufactured scientific instruments for life sciences research and the related software for use by pharmaceutical companies, universities, government research centers and medical research institutions under the Company’s BASi product line. Refer to Note 1 – Description of the Business and Basis of Presentation for further discussion of the types of services and products offered within the DSA segment.

RMS

The RMS segment generates product revenue through the commercial production and sale of research models, diets, bedding, enrichment and bioproducts. The RMS segment generates service revenue through Genetically Engineered Models and Services (“GEMS”), client-owned animal colony care (colony management services), and health monitoring and diagnostics services related to research models. Refer to Note 1 – Description of the Business and Basis of Presentation for further discussion of the types of services and products offered within the RMS segment.

Contract Assets and Liabilities from Contracts with Clients

The timing of revenue recognition, billings and cash collections results in billed receivables (trade receivables), contract assets (unbilled revenue), and contract liabilities (client deposits and deferred revenue) on the condensed consolidated balance sheets. The following table provides information about contract assets (trade receivables and unbilled revenue, excluding allowances for credit losses), and fees invoiced in advance (client deposits and deferred revenue):

	Balance at December 31, 2025		Balance at September 30, 2025
Contract assets: Trade receivables	$	58,650	$	74,156
Contract assets: Unbilled revenue	11,011		10,463
Contract liabilities: Client deposits	17,288		33,152
Contract liabilities: Deferred revenue	19,740		18,360

When the Company does not have the unconditional right to advanced billings, both advanced client payments and unpaid advanced client billings are excluded from deferred revenue, with the advanced billings also being excluded from client receivables. The Company excluded approximately $12,944 and $12,167 of unpaid advanced client billings from both trade receivables and deferred revenue as of December 31, 2025 and September 30, 2025, respectively.

The Company expects approximately 77% of deferred revenue as of December 31, 2025 to be recognized as revenue within the next twelve months and the remainder to be recognized thereafter during the remaining contract term.

Changes in the contract asset and the contract liability balances during the three months ended December 31, 2025 include the following:

•Changes in the time frame for a right for consideration to become unconditional – approximately 61% of unbilled revenue as of September 30, 2025, was billed during the three months ended December 31, 2025; and

•Changes in the time frame for a performance obligation to be satisfied – approximately 52% of deferred revenue as of September 30, 2025, was recognized as revenue during the three months ended December 31, 2025.