Note 20. Segment Information

The Company views its operations and manages its business as one operating and reportable segment, which is the business of developing and delivering novel therapies for the management of CNS disorders. The Company’s focus centers around the CNS disorders market as its primary operating environment. Consistent with the operational structure, the Chief Executive Officer, as the chief operating decision maker (“CODM”), manages and allocates resources on a consolidated basis. This decision-making process reflects the way in which the financial information is regularly reviewed and used by the CODM to evaluate performance, set operational targets, forecast future financial results, and allocate resources.

The Company’s CODM assesses financial performance and allocates resources based on consolidated net loss that also is reported on the consolidated statements of operations. The measure of segment assets is reported on the balance sheet as total consolidated assets. The CODM utilizes consolidated net loss by comparing actual results against budgeted amounts on a quarterly basis. As part of this process, consolidated net loss is a critical performance measure used to evaluate the Company’s operating performance and guide strategic decisions and resource allocations, including additional investments in research and development and commercialization activities.

The following table provides information about the Company’s one reportable segment and includes the reconciliation to consolidated net loss.

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Total revenues

 

$

638,496

 

 

$

385,693

 

 

$

270,600

 

Less:

 

 

 

 

 

 

 

 

 

Cost of revenue (excluding amortization and depreciation)

 

 

47,478

 

 

 

33,303

 

 

 

26,065

 

Research and development expense (excluding stock-based compensation expense):

 

 

 

 

 

 

 

 

 

Solriamfetol

 

 

42,106

 

 

 

53,678

 

 

 

18,232

 

AXS-05

 

 

55,312

 

 

 

62,877

 

 

 

34,011

 

AXS-07

 

 

21,421

 

 

 

15,587

 

 

 

8,101

 

AXS-12

 

 

8,482

 

 

 

9,362

 

 

 

10,431

 

AXS-14

 

 

8,485

 

 

 

11,881

 

 

 

7,091

 

Other research and development(a)

 

 

20,645

 

 

 

12,274

 

 

 

5,998

 

General and administrative expense (excluding stock-based compensation expense)

 

 

63,273

 

 

 

54,204

 

 

 

37,355

 

Selling and marketing expense (excluding stock-based compensation expense)

 

 

440,402

 

 

 

293,355

 

 

 

237,228

 

Stock based compensation expense

 

 

93,752

 

 

 

85,218

 

 

 

62,620

 

Loss (Gain) in fair value of contingent consideration

 

 

(2,473

)

 

 

28,124

 

 

 

48,918

 

Interest expense, net(b)

 

 

6,557

 

 

 

6,569

 

 

 

6,453

 

Other segment items(c)

 

 

16,230

 

 

 

6,477

 

 

 

7,335

 

Segment net loss

 

$

(183,174

)

 

$

(287,216

)

 

$

(239,238

)

 

 

 

 

 

 

 

 

 

Reconciliation of net loss

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items

 

 

 

 

 

 

 

 

 

Consolidated net loss

 

$

(183,174

)

 

$

(287,216

)

 

$

(239,238

)

(a)
Other research and development expenses primarily consist of facilities charges, third party consultant costs, costs related to other product candidates, and other unallocated costs.
(b)
Interest expense, net of $6,557 for the year ended December 31, 2025 comprises (i) consolidated interest expense of $15,928 and (ii) consolidated interest income of $9,371. Interest expense, net of $6,569 for the year ended December 31, 2024 comprises (i) consolidated interest expense of $21,581 and (ii) consolidated interest income of $15,012. Interest expense, net of $6,453 for the year ended December 31, 2023 comprises (i) consolidated interest expense of $20,034 and (ii) consolidated interest income of $13,581.
(c)
Other segment items included in Segment net loss include intangible asset amortization, loss on debt extinguishment, costs related to asset acquisitions, and other miscellaneous items.

See Note 2. Summary of Significant Accounting Policies for further details on the products from which the Company derives its revenues.

See Note 14. Revenues for details of revenue from external customers by geography.

Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 18, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.