Accounts Receivable, Contract Assets, and Contract Liabilities

9 Months Ended

Oct. 25, 2025

Accounts Receivable, Contract Assets, and Contract Liabilities

The following provides further details on the balance sheet accounts of accounts receivable, net; contract assets; and contract liabilities.

Accounts Receivable

Accounts receivable, net, classified as current, consisted of the following (dollars in thousands):


	October 25, 2025		January 25, 2025
Trade accounts receivable	$	560,382	$	538,475
Unbilled accounts receivable	998,954		801,423
Retainage	30,081		34,934
Total	1,589,417		1,374,832
Less: allowance for credit losses	(2,533)		(1,094)
Accounts receivable, net	$	1,586,884	$	1,373,738

We maintain an allowance for credit losses for estimated losses on uncollected balances. The allowance for credit losses changed as follows (dollars in thousands):


	For the Three Months Ended				For the Nine Months Ended
	October 25, 2025		October 26, 2024		October 25, 2025		October 26, 2024
Allowance for credit losses at beginning of period	$	2,595	$	1,671	$	1,094	$	2,776
(Recovery of) provision for bad debt	(62)		84		1,536		(1,006)
Amounts charged against the allowance	—		(478)		(97)		(493)
Allowance for credit losses at end of period	$	2,533	$	1,277	$	2,533	$	1,277

Contract Assets and Contract Liabilities

Net contract assets (liabilities) consisted of the following (dollars in thousands):


	October 25, 2025		January 25, 2025
Contract assets	$	147,576	$	63,375
Contract liabilities	54,766		73,548
Contract assets (liabilities), net	$	92,810	$	(10,173)

The change in contract assets (liabilities), net, primarily resulted from increased services performed under contracts consisting of multiple tasks. During the three and nine months ended October 25, 2025, we performed services and recognized $5.9 million and $39.3 million of contract revenues related to contract liabilities that existed at January 25, 2025.

Customer Credit Concentration

Customers whose combined amounts of accounts receivable and contract assets, net, exceeded 10% of total combined accounts receivable and contract assets, net as of October 25, 2025 or January 25, 2025 were as follows (dollars in millions):


	October 25, 2025			January 25, 2025
	Amount		% of Total	Amount		% of Total
AT&T Inc.	$	173.5	10.3%	$	127.7	9.4%
Charter Communications	$	254.6	15.2%	$	158.9	11.7%
Lumen Technologies	$	281.0	16.7%	$	287.1	21.1%

We believe that none of our significant customers were experiencing financial difficulties that would materially impact the collectability of our total accounts receivable and contract assets, net, as of October 25, 2025 or January 25, 2025.

DYCOM INDUSTRIES INC 10-Q