Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2025

Revenue from Contract with Customer [Abstract]

Schedule of revenue from external customers by products and services

The following tables provide total revenue by segment, sales channel and product category. They also provide the amount of revenue that is not subject to ASC 606, "Revenue from Contracts with Customers" ("ASC 606"), but is instead governed by other accounting standards. The amounts in the tables below include revenue for the EMEA business prior to its sale on November 1, 2023:


	Year Ended December 31, 2025
	Total Revenue		Adjustments for Non-ASC 606 Revenue (1)	Total Revenue from Contracts with Customers
	(Dollars in millions)
Business Segment by Sales Channel and Product Category
Large Enterprise
Grow	$	1,769	(401)	1,368
Nurture	769		—	769
Harvest	298		—	298
Other	143		—	143
Total Large Enterprise Revenue	2,979		(401)	2,578
Mid-Market Enterprise
Grow	1,040		(26)	1,014


Nurture	603		—	603
Harvest	293		(4)	289
Other	37		—	37
Total Mid-Market Enterprise Revenue	1,973		(30)	1,943
Public Sector
Grow	588		(105)	483
Nurture	324		—	324
Harvest	453		(1)	452
Other	539		—	539
Total Public Sector Revenue	1,904		(106)	1,798
Wholesale
Grow	1,049		(290)	759
Nurture	667		(24)	643
Harvest	993		(137)	856
Other	5		—	5
Total Wholesale Revenue	2,714		(451)	2,263
International and Other
Grow	149		(3)	146
Nurture	138		—	138
Harvest	27		—	27
Other	11		—	11
Total International and Other	325		(3)	322
Business Segment by Product Category
Grow	4,595		(825)	3,770
Nurture	2,501		(24)	2,477
Harvest	2,064		(142)	1,922
Other	735		—	735
Total Business Segment Revenue	9,895		(991)	8,904
Mass Markets Segment by Product Category
Fiber Broadband	883		(13)	870
Other Broadband	950		(90)	860
Voice and Other	674		23	697
Total Mass Markets Revenue	2,507		(80)	2,427
Total Revenue	$	12,402	(1,071)	11,331
Timing of revenue
Goods and services transferred at a point in time				$	137
Services performed over time				11,194
Total revenue from contracts with customers				$	11,331


	Year Ended December 31, 2024
	Total Revenue		Adjustments for Non-ASC 606 Revenue (1)	Total Revenue from Contracts with Customers
	(Dollars in millions)
Business Segment by Sales Channel and Product Category
Large Enterprise
Grow	$	1,544	(256)	1,288
Nurture	927		—	927
Harvest	383		—	383
Other	185		(1)	184


Total Large Enterprise Revenue	3,039		(257)	2,782
Mid-Market Enterprise
Grow	1,031		(25)	1,006
Nurture	775		—	775
Harvest	366		(4)	362
Other	40		(5)	35
Total Mid-Market Enterprise Revenue	2,212		(34)	2,178
Public Sector
Grow	600		(85)	515
Nurture	357		—	357
Harvest	390		(4)	386
Other	509		—	509
Total Public Sector Revenue	1,856		(89)	1,767
Wholesale
Grow	1,047		(287)	760
Nurture	738		(19)	719
Harvest	1,093		(140)	953
Other	8		—	8
Total Wholesale Revenue	2,886		(446)	2,440
International and Other
Grow	154		(4)	150
Nurture	162		—	162
Harvest	43		—	43
Other	14		—	14
Total International and Other	373		(4)	369
Business Segment by Product Category
Grow	4,376		(657)	3,719
Nurture	2,959		(19)	2,940
Harvest	2,275		(148)	2,127
Other	756		(6)	750
Total Business Segment Revenue	10,366		(830)	9,536
Mass Markets Segment by Product Category
Fiber Broadband	735		(13)	722
Other Broadband	1,168		(105)	1,063
Voice and Other	839		(31)	808
Total Mass Markets Revenue	2,742		(149)	2,593
Total Revenue	$	13,108	(979)	12,129
Timing of revenue
Goods and services transferred at a point in time				$	136
Services performed over time				11,993
Total revenue from contracts with customers				$	12,129

Year Ended December 31, 2023

Total Revenue

Adjustments for Non-ASC 606 Revenue (1)

Total Revenue from Contracts with Customers

(Dollars in millions)

Business Segment by Sales Channel and Product Category

Large Enterprise

Grow

1,494

(179)

1,315


Nurture	1,034		—	1,034
Harvest	462		—	462
Other	181		(5)	176
Total Large Enterprise Revenue	3,171		(184)	2,987
Mid-Market Enterprise
Grow	1,021		(28)	993
Nurture	968		—	968
Harvest	448		(4)	444
Other	53		(4)	49
Total Mid-Market Enterprise Revenue	2,490		(36)	2,454
Public Sector
Grow	473		(81)	392
Nurture	393		—	393
Harvest	383		(1)	382
Other	542		—	542
Total Public Sector Revenue	1,791		(82)	1,709
Wholesale
Grow	1,050		(251)	799
Nurture	826		(25)	801
Harvest	1,264		(165)	1,099
Other	12		—	12
Total Wholesale Revenue	3,152		(441)	2,711
International and Other
Grow	453		(115)	338
Nurture	266		—	266
Harvest	126		—	126
Other	137		—	137
Total International and Other	982		(115)	867
Business Segment by Product Category
Grow	4,491		(654)	3,837
Nurture	3,487		(25)	3,462
Harvest	2,683		(170)	2,513
Other	925		(9)	916
Total Business Segment Revenue	11,586		(858)	10,728
Mass Markets Segment by Product Category
Fiber Broadband	637		(16)	621
Other Broadband	1,394		(126)	1,268
Voice and Other	940		(36)	904
Total Mass Markets Revenue	2,971		(178)	2,793
Total Revenue	$	14,557	(1,036)	13,521
Timing of revenue
Goods and services transferred at a point in time				$	178
Services performed over time				13,343
Total revenue from contracts with customers				$	13,521

______________________________________________________________________

(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.

Schedule of contract with customer, asset and liability

The following table provides balances of customer receivables, contract assets and contract liabilities, net of amounts classified as held for sale:


	December 31,
	2025		2024
	(Dollars in millions)
Customer receivables, less allowance of $57 and $50(1)	$	1,316	1,193
Contract assets	33		19
Contract liabilities(2)	647		733

______________________________________________________________________

(1) As of December 31, 2025, this amount excluded $13 million of customer receivables, net associated with the disposal group classified as held for sale.

(2) As of December 31, 2025, this amount excluded $32 million of contract liabilities associated with the disposal group classified as held for sale.

Schedule of capitalized contract cost

The following tables provide changes in our contract acquisition costs and fulfillment costs:


	Year Ended December 31, 2025			Year Ended December 31, 2024
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)			(Dollars in millions)
Beginning of period balance	$	203	222	182	184
Costs incurred	143		225	151	176
Amortization	(126)		(162)	(130)	(138)
Change in contract costs held for sale	(24)		(21)	—	—
End of period balance(1)	$	196	264	203	222

______________________________________________________________________

(1) The ending balance for the year ended December 31, 2025 excluded $24 million and $21 million of acquisition costs and fulfillment costs, respectively, associated with the disposal group classified as held for sale.

Lumen Technologies, Inc. 10-K