Annual report [Section 13 and 15(d), not S-K Item 405]

Note 5 - Revenue

v3.25.4
Note 5 - Revenue
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

5. Revenue

 

The Company’s revenue is primarily generated through the sale and subscription of the EksoNR, Ekso Indego Therapy, and Ekso Indego Personal devices, along with the sale of support and maintenance contracts. Revenue from device product sales is recognized at the point in time when control of the product transfers to the customer. Transfer of control generally occurs upon shipment from the Company’s facility for sales of these devices. Support and maintenance contracts extend coverage beyond the Company’s standard warranty agreements ranging from 12 to 48 months. Revenue is recognized evenly over the term of the contracts. Revenue from medical device subscriptions is recognized evenly over the contract term, typically over 24 months.

 

Deferred Revenue

 

Deferred revenue is comprised mainly of unearned revenue related to extended support and maintenance contracts, but also includes other offerings for which the Company has been paid in advance and earns revenue when the Company transfers control of the product or service.

 

Deferred revenue consisted of the following:

 

   

December 31, 2025

   

December 31, 2024

 

Deferred extended maintenance and support

  $ 2,907     $ 3,669  

Deferred device and advances

    234       207  

Total deferred revenues

    3,141       3,876  

Less current portion

    (1,727 )     (1,956 )

Deferred revenues, non-current

  $ 1,414     $ 1,920  

 

Deferred revenue activity consisted of the following for the years ended  December 31, 2025 and December 31, 2024:

 

   

Year Ended December 31, 2025

   

Year Ended December 31, 2024

 

Beginning balance

  $ 3,876     $ 4,162  

Deferral of revenue

    1,746       3,331  

Recognition of deferred revenue

    (2,481 )     (3,617 )

Ending balance

  $ 3,141     $ 3,876  

 

The Company expects to recognize approximately $1,727 of the deferred revenue during 2026, $833 in 2027, and $581 thereafter.

 

In addition to deferred revenue, the Company has a non-cancellable backlog of $554 expected to be recognized across 2026 and 2027, which includes customer orders received but not fulfilled and other ancillary products and services of $322, and contracts for subscription units of $232.

 

Disaggregation of Revenue

 

The following table disaggregates the Company’s revenue by major source for the year ended December 31, 2025:

 

   

Total

 

Device revenue

  $ 9,241  

Service and support

    2,918  

Subscriptions

    358  

Parts and other

    282  
    $ 12,799  

 

The following table disaggregates the Company’s revenue by major source for the year ended December 31, 2024:

 

   

Total

 

Device revenue

  $ 13,323  

Service and support

    3,121  

Subscriptions

    527  

Parts and other

    954  
    $ 17,925  

 

The Company operates in the following regions: (1) Americas, (2) Europe, the Middle East, and Africa region ("EMEA"), and (3) Asia Pacific region ("APAC"). Individual countries with revenue greater than 10% of total revenue for the year ended December 31, 2025 and 2024 are disclosed separately from the regional totals. Geographic information for revenue based on location of customers is as follows:

 

   

Years ended December 31,

 
   

2025

   

2024

 

United States

  $ 7,430     $ 9,712  

Other

    72       421  

Americas

    7,502       10,133  

France

    1,430       3,006  

Other

    2,362       2,936  

EMEA

    3,792       5,942  

APAC

    1,505       1,850  
    $ 12,799     $ 17,925