Note 4 — Revenue from contracts with customers

Investor-grade disclosure pack operationalizing the modernized 12-question investor framework (cited to current FASB / SEC / PCAOB / IASB authority). Drafted by AI, reviewed by the controller.

Total revenue · Q3

$49.7M

+31.9% YoY

RPO · Sep 30 2026

$187.4M

38% <12mo · 35% 12-24 · 27% 24+

Contract liability roll

$84.2M

-$8.1M from opening · recognized as revenue

Significant judgments and methodology

Note 4 — Revenue from Contracts with Customers

The entity recognizes revenue under ASC 606. Each contract is decomposed into distinct performance obligations applying the two-prong test under ASC 606-10-25-19. The transaction price is allocated to performance obligations based on relative standalone selling price. Revenue is recognized either over time, where the customer simultaneously receives and consumes the benefits, or at a point in time, when control transfers.

Disaggregation of revenue (Q3 FY2027)

Stream	Q3 FY27	Q3 FY26	Δ
Subscription (over time)	$38.4M	$29.1M	+31.8%
Onboarding (point in time)	$2.2M	$1.6M	+32.9%
Support (over time)	$5.8M	$4.7M	+23.1%
Usage-based (allocated to series)	$3.3M	$2.2M	+50.9%
Total	$49.7M	$37.7M	+31.9%

Q1 · judgment screen · multi-deliverable check

Does the loaded contract bundle multiple promised goods or services that require distinctness analysis?

Yes — for our standard SaaS arrangement (subscription + onboarding + support), we identified three distinct performance obligations. The judgment most subject to challenge is whether onboarding services are separately identifiable from the subscription. Management's position is that they are: the integration is generic (configuration of the customer's own identity provider and data sources, not customization of our platform), the customer can practically engage third-party implementers, and standalone onboarding pricing is observable in the market.

"Material implementation services that are highly interrelated with the SaaS platform — for example, custom development of platform features for a specific customer — would change this assessment and likely combine the onboarding into a single PO with the subscription."

Q6 · disclosure quality · RPO conversion

What is the remaining performance obligation balance and when will it convert to revenue?

As of September 30, 2026, the aggregate remaining performance obligation balance is $187.4M. We expect approximately 38% to be recognized within the next 12 months, 35% within 12–24 months, and the remainder over 24+ months — consistent with our standard 3-year subscription term and the ratable recognition pattern.