Company: CALX
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0001406666-25-000016
Chunk: 45

Company: CALIX, INC
Filing Date: 2025-04-22
Form: 10-Q
Item: Part I, Item 8
Chunk 45
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 in accordance with the agreed-upon contractual terms. Contract assets were $3.2 million as of March 29, 2025 as compared to $2.8 million as of December 31, 2024, and are included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. The Company expects to bill 36% of the March 29, 2025 balance during 2025.Contract LiabilityDeferred revenue was $50.8 million and $47.6 million as of March 29, 2025 and December 31, 2024, respectively. The increase in the deferred revenue balance for the three months ended March 29, 2025 was driven by cash payments received or due in advance of satisfying the Company’s performance obligations offset by $11.0 million of revenue recognized that was included in the deferred revenue balance at the beginning of the period.Revenue allocated to remaining performance obligations (“RPOs”) represents contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods but excludes variable consideration where the monthly invoicing is based on usage or where actual usage exceeds the minimum commitment. RPOs were $340.4 million as of March 29, 2025, and the Company expects to recognize as revenue 38% of this amount over the next 12 months and nearly all of the remainder over the two years thereafter.

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Contract CostsThe Company capitalizes certain sales commissions related primarily to multi-year subscriptions and extended warranty support for which the expected amortization period is greater than one year. As of March 29, 2025 and December 31, 2024, the unamortized balance of deferred commissions was $17.6 million and $17.9 million, respectively. For the three months ended March 29, 2025 and March 30, 2024, the amount of amortization was $2.7 million and $2.0 million, respectively. There was no impairment loss in relation to the costs capitalized for these periods.Concentration of Customer RiskNo customer accounted for more than 10% of the Company’s revenue for the three months ended March 29, 2025 and March 30, 2024. Two customers represented 13% and 12% of the Company’s total receivables as of March 29, 2025 and one customer represented