REVENUE

9 Months Ended

Dec. 31, 2025

NOTE 3 - REVENUE

The Company generates revenue primarily from performance obligations completed under contracts with customers in two main market sectors: defense and precision industrial. The period over which the Company performs its obligations can be between three and thirty-six months. The Company invoices and receives related payments based upon performance progress not less frequently than monthly.

Revenue is recognized over-time or at a point-in-time given the terms and conditions of the related contracts. The Company utilizes an input methodology based on estimated labor hours to measure performance progress. This model best depicts the transfer of control to the customer. The Company’s contract portfolio is comprised of fixed-price contracts and provide for product type revenue only.

The following table presents revenue on a disaggregated basis by market and contract type:


Revenue by market	Defense		Industrial		Totals
Three months ended December 31, 2025	$	6,684	$	410	$	7,094
Three months ended December 31, 2024	$	7,440	$	182	$	7,622
Nine months ended December 31, 2025	$	23,138	$	421	$	23,559
Nine months ended December 31, 2024	$	24,324	$	230	$	24,554


Revenue by contract type		Over-time			Point-in-time			Totals
Three months ended December 31, 2025		$	6,422		$	672		$	7,094
Three months ended December 31, 2024		$	7,297		$	325		$	7,622
Nine months ended December 31, 2025		$	21,766		$	1,793		$	23,559
Nine months ended December 31, 2024		$	23,158		$	1,396		$	24,554

As of December 31, 2025, the Company had $45,962 of remaining performance obligations, of which $41,747 was less than 50% complete. The Company expects to recognize all its remaining performance obligations as revenue within the next thirty-six months.

We are dependent each year on a small number of customers who generate a significant portion of our business, and these customers change from year to year. The following table sets forth revenues from customers who accounted for more than 10% of our revenue for the periods ended:


	Three months ended				Three months ended				Nine months ended				Nine months ended
	December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Customer	Amount		Percent		Amount		Percent		Amount		Percent		Amount			Percent
A	$	*	*	%	$	1,109	15	%	$	2,319	10	%	$	4,465		18	%
B	$	993	14	%	$	794	10	%	$	*	*	%	$	2,684		11	%
C	$	796	11	%	$	1,107	15	%	$	3,574	15	%	$	3,388		14	%
D	$	830	12	%	$	*	*	%	$	2,500	11	%	$	*		*	%
E	$	915	13	%	$	1,611	21	%	$	4,065	17	%	$	4,849		20	%
F	$	*	*	%	$	1,673	22	%	$	*	*	%	$	4,665		19	%
G	$	1,064	15	%	$	*	*	%	$	*	*	%	$	*		*	%

*Less than 10% of total

The following table displays total revenue generated by the individual customers in the above table by segment that accounted for 10% or more of our revenue for the periods indicated:


		Three months ended					Three months ended					Nine months ended					Nine months ended
		December 31, 2025					December 31, 2024					December 31, 2025					December 31, 2024
Segment		Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent
Ranor		$	2,853		40	%	$	3,857		51	%	$	5,933		25	%	$	12,138		50	%
Stadco		$	1,745		25	%	$	2,437		32	%	$	6,525		28	%	$	7,913		32	%

In our condensed consolidated balance sheet, contract assets and contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets consist of the following as of:


				Progress
Contract assets		Unbilled		Payments		Total
December 31, 2025		$	25,779	$	(14,359)	$	11,420
March 31, 2025		$	26,059	$	(16,472)	$	9,587

For the nine months ended December 31, 2025 and 2024, we recognized revenue of $1,040 and $2,103 related to our contract liabilities as of the opening balances on April 1, 2025 and 2024. Contract liabilities consist of the following as of:


		Opening					Obligations		Closing
Contract liabilities		Balance			Billed		Satisfied		Balance
December 31, 2025		$	1,040		$	19,552	$	(17,446)	$	3,146
March 31, 2025		$	2,104		$	18,720	$	(19,784)	$	1,040

- 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
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-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
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-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
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-Name Accounting Standards Codification
-Section 50
-Paragraph 12
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 12
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
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-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

TECHPRECISION CORP 10-Q