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Revenue from Contracts with Customers | 3 Months Ended
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Jun. 30, 2025
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers Disaggregation of Revenue The following tables summarize the Company's revenue from contracts with its customers disaggregated by segment and product type for the three months ended June 30, 2025 and 2024:
| Three Months Ended June 30,
| 2025 |  | 2024
| Digital |  | Print (1) |  | Total |  | Digital |  | Print (1) |  | Total
Revenue by Segment: |  |  |  |  |  |  |  |  |  |  |
K-12 | $ | 108,597 |  |  | $ | 162,334 |  |  | $ | 270,931 |  |  | $ | 99,618 |  |  | $ | 175,209 |  |  | $ | 274,827 |
Higher Education | 168,826 |  |  | 13,553 |  |  | 182,379 |  |  | 153,955 |  |  | 5,891 |  |  | 159,846 |
Global Professional | 25,272 |  |  | 9,887 |  |  | 35,159 |  |  | 25,093 |  |  | 10,194 |  |  | 35,287 |
International | 22,353 |  |  | 29,111 |  |  | 51,464 |  |  | 24,559 |  |  | 33,752 |  |  | 58,311 |
Other (2) | — |  |  | (4,223) |  |  | (4,223) |  |  | — |  |  | (5,317) |  |  | (5,317) |
Total Revenue | $ | 325,048 |  |  | $ | 210,662 |  |  | $ | 535,710 |  |  | $ | 303,225 |  |  | $ | 219,729 |  |  | $ | 522,954 |
___________________
(1) | Print revenue contains print and multi-year print products.
(2) | Includes in-transit product sales and intersegment revenue adjustments that are not included within segment revenues reviewed by the Company's CODM.
In addition, the Company has included a further disclosure of revenue from contracts with its customers disaggregated by segment and by Re-occurring Revenue and Transactional Revenue, for the three months ended June 30, 2025 and 2024. Re-occurring Revenue represents revenue from offerings that are generally sold as digital subscriptions and multi-year print products. Revenue from digital subscriptions, is recognized ratably over the term of the subscription period as the performance obligation is satisfied and revenue from multi-year print products (e.g., workbooks) is recognized at a point in time, upon shipment of the print product to the customer, in each academic year within the contract term. Transactional Revenue includes revenue from both print and digital offerings that are recognized at a point in time upon shipment of the print product or delivery of the digital offerings. In addition, Transactional Revenue includes revenue for amounts billed to customers in a sales transaction for shipping and handling.
| Three Months Ended June 30,
| 2025 |  | 2024
| Re-occurring Revenue |  | Transactional Revenue |  | Total |  | Re-occurring Revenue |  | Transactional Revenue |  | Total
K-12 | $ | 183,641 |  |  | $ | 87,290 |  |  | $ | 270,931 |  |  | $ | 166,819 |  |  | $ | 108,008 |  |  | $ | 274,827 |
Higher Education | 159,552 |  |  | 22,827 |  |  | 182,379 |  |  | 149,454 |  |  | 10,392 |  |  | 159,846 |
Global Professional | 23,657 |  |  | 11,502 |  |  | 35,159 |  |  | 22,773 |  |  | 12,514 |  |  | 35,287 |
International | 20,764 |  |  | 30,700 |  |  | 51,464 |  |  | 22,752 |  |  | 35,559 |  |  | 58,311 |
Other | — |  |  | (4,223) |  |  | (4,223) |  |  | — |  |  | (5,317) |  |  | (5,317) |
Total Revenue | $ | 387,614 |  |  | $ | 148,096 |  |  | $ | 535,710 |  |  | $ | 361,798 |  |  | $ | 161,156 |  |  | $ | 522,954 |
Deferred Commission Costs The Company's incremental direct costs of obtaining a contract, which consist of sales commissions, are deferred and amortized over the expected period of benefit or the related contractual renewal period, depending on whether the contract is an initial or renewal contract, respectively. The Company classifies deferred commission costs as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred commission costs are included in Prepaid and other current assets, and Other non-current assets, respectively, in the consolidated balance sheets. The Company expenses commission costs when incurred related to customer contracts that have a duration of less than one year. The Company recognizes these costs within Operating and administrative expenses in the consolidated statements of operations. Deferred commission costs consisted of the following:
| June 30, 2025 |  | March 31, 2025
Current | $ | 17,173 |  |  | $ | 22,449 |
Non-current | 22,894 |  |  | 18,794 |
Total Deferred Commission Costs | $ | 40,067 |  |  | $ | 41,243 |
Amortization expense related to deferred commission costs was $7,435 and $11,971 for the three months ended June 30, 2025 and 2024, respectively. Deferred Royalties The Company's direct costs of fulfilling a contract, which consist of royalties, are deferred and amortized over the expected period of benefit or the related contractual renewal period, depending on whether the contract is an initial or renewal contract, respectively. The Company classifies deferred royalties as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred royalties are included in Prepaid and other current assets, and Other non-current assets, respectively, in the Company's consolidated balance sheets. The Company recognizes these costs within Cost of sales (excluding depreciation and amortization) in the consolidated statements of operations. Deferred royalties consisted of the following:
| June 30, 2025 |  | March 31, 2025
Current | $ | 65,424 |  |  | $ | 76,186 |
Non-current | 59,221 |  |  | 61,495 |
Total Deferred Royalties | $ | 124,645 |  |  | $ | 137,681 |
Amortization expense related to deferred royalties was $34,669 and $33,311 for the three months ended June 30, 2025 and 2024, respectively. Contract Assets and Contract Liabilities The Company's contract assets consist of unbilled receivables that are recorded for contracts with performance obligations that have been satisfied but have not yet been billed. Contract assets are included in Accounts receivable, net, on the consolidated balance sheets. The Company's contract liabilities consist of revenues from its digital subscription products and multi-year print products that are deferred at the time of sale. The Company classifies contract liabilities as current or non-current deferred revenue on the consolidated balance sheets based on the timing of when the Company expects to recognize revenue. Contract assets and contract liabilities consisted of the following:
| June 30, 2025 |  | March 31, 2025
Contract assets | $ | 48,372 |  |  | $ | 29,032 |
Contract liabilities (deferred revenue): |  |  |
Current | 737,620 |  |  | 794,031 |
Non-current | 912,559 |  |  | 882,156 |
Total Contract Liabilities | $ | 1,650,179 |  |  | $ | 1,676,187 |
Total contract liabilities by segment consisted of the following:
| June 30, 2025 |  | March 31, 2025
Total Contract Liabilities by Segment: |  |  |
K-12 | $ | 1,327,044 |  |  | $ | 1,279,585 |
Higher Education | 221,730 |  |  | 297,316 |
Global Professional | 64,376 |  |  | 62,348 |
International | 29,275 |  |  | 33,407 |
Other (1) | 7,754 |  |  | 3,531 |
Total Contract Liabilities | $ | 1,650,179 |  |  | $ | 1,676,187 |
_______________ (1)Includes contract liabilities for in-transit product sales that are not included in segment contract liabilities. Revenue recognized during the three months ended June 30, 2025 and 2024 from amounts included within deferred revenue as of March 31, 2025 and 2024 was $335,920 and $312,695, respectively. Estimated revenue expected to be recognized in future fiscal years ended March 31, related to amounts included within deferred revenue as of June 30, 2025 was as follows:
| June 30, 2025
2026 (remaining nine months) | $ | 574,360 |
2027 | 425,460 |
2028 | 297,335 |
2029 | 185,013 |
2030 | 94,014 |
Thereafter | 73,997 |
| $ | 1,650,179 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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