Quarterly report [Sections 13 or 15(d)]

Note 6 - Revenue

v3.26.1
Note 6 - Revenue
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

6.         Revenue

 

The Company’s revenue is primarily generated through the sale of the EksoNR, Ekso Indego Therapy, and Ekso Indego Personal devices, along with the sale of support, maintenance, and subscription 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:

 

   

March 31, 2026

    

December 31, 2025

  

Deferred extended maintenance and support

   $ 2,647       2,907  

Deferred device and advances

     197       234  

Total deferred revenues

     2,844       3,141  

Less: current portion

     (1,583 )     (1,727 )

Deferred revenues, non-current

   $ 1,261     $ 1,414  

  

Deferred revenue transactions consisted of the following for the three months ended March 31, 2026:

 

Balance as of December 31, 2025

   $ 3,141  

Deferral of revenue

     315  

Recognition of deferred revenue

     (612 )

Balance as of March 31, 2026

   $ 2,844  

 

The Company expects to recognize approximately $1,321 of the deferred revenue during the remainder of 2026, $865 in 2027, and $658 thereafter.

 

In addition to deferred revenue, the Company has a non-cancellable backlog of $556 expected to be recognized across 2026, 2027, and 2028, which includes customer orders received but not fulfilled and other ancillary products and services of $244, and contracts for subscription units of $312.

 

Disaggregation of Revenue

 

The following table disaggregates the Company’s revenue by major source for the three months ended March 31, 2026:

 

   

Total

  

Device revenue

   $ 1,344  

Service and support

     594  

Subscriptions

     68  

Parts and other

     135  
    $ 2,141  

 

The following table disaggregates the Company’s revenue by major source for the three months ended March 31, 2025:

 

   

Total

  

Device revenue

   $ 2,487  

Service and support

     708  

Subscriptions

     87  

Parts and other

     93  
    $ 3,375  

  

The Company operates in the following regions: (1) Americas, (2) Europe, the Middle East, and Africa ("EMEA"), and (3) Asia Pacific ("APAC"). Individual countries with revenue greater than 10% of total revenue for the three months ended March 31, 2026 and 2025 are disclosed separately from the regional totals. Geographic information for revenue based on location of customers is as follows:

 

   

Three Months Ended March 31,

  
   

2026

    

2025

  

Americas

                

United States

   $ 1,533     $ 1,783  

Remaining countries combined

     21       17  

Americas revenue

     1,554       1,800  
                 

EMEA

                

France

     207       422  

Italy

     26       407  

Remaining countries combined

     314       255  

EMEA revenue

     547       1,084  
                 

APAC

                

Countries combined

     40       491  

APAC revenue

     40       491  
                 

Total Revenue

   $ 2,141     $ 3,375