Quarterly report [Sections 13 or 15(d)]

REVENUE

v3.25.4
REVENUE
 6 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
The following table represents the opening and closing balances of accounts receivable, net, contract assets and contract liabilities as of the indicated dates.
As of As of
(Dollar amounts in thousands) December 31, 2025 June 30, 2025 $ Change % Change
Accounts receivable, net $ 2,073,581  $ 2,263,915  $ (190,334) (8) %
Contract assets $ 93,117  $ 105,081  $ (11,964) (11) %
Contract liabilities $ 1,727,891  $ 1,713,689  $ 14,202  1  %
Our payment terms and conditions vary by contract type, although terms generally include a requirement of payment of 70% to 90% of total contract consideration within 30 to 60 days of shipment, with the remainder payable within 30 days of acceptance.
The change in contract assets during the six months ended December 31, 2025 was mainly due to $84.5 million of contract assets reclassified to accounts receivable, net, as our right to consideration for these contract assets became unconditional, partially offset by $72.7 million of revenue recognized for which the payment is subject to conditions other than passage of time. Contract assets are included in other current assets on our Condensed Consolidated Balance Sheets.
The change in contract liabilities during the six months ended December 31, 2025 was mainly due an increase in the value of products and services billed to customers for which control of the products and services has not transferred to the customers, largely offset by the recognition as revenue of $1.04 billion that was included in contract liabilities as of June 30, 2025. Contract liabilities are included in current liabilities and non-current liabilities, classified as deferred system revenue or deferred service revenue, on our Condensed Consolidated Balance Sheets.
The following table represents the transaction price for contracts that have not yet been recognized as revenue as of December 31, 2025, which equals our contract liabilities, and when the Company expects to recognize the amounts as revenue:
(Dollar amounts in thousands) Less than 12 months 12 to 24 months 24 months or greater Total
Contract liabilities $ 1,457,342  $ 183,822  $ 86,727  $1,727,891