NOTE 23 – SEGMENT AND GEOGRAPHIC INFORMATION
The Company operates as a single operating segment. Our revenues are primarily derived from aerial wildfire management, relief and suppression and the delivery of specialty aviation services. The Company’s Chief Executive Officer is the Company’s Chief Operating Decision Maker (“CODM”), who reviews the financial performance of the Company on a consolidated basis. The CODM uses consolidated revenues, income (loss) before income taxes and Adjusted EBITDA to assess financial performance and allocate resources. Additionally, significant expenses, such as cost of revenues and selling, general & administrative expenses, are closely monitored as part of the performance evaluation and resource allocation process. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow revenues and operating margin and the allocation of budget between cost of revenues and selling, general & administrative expenses.
The following table presents selected financial information with respect to the Company’s single operating segment for the years ended December 31, 2025 and 2024:
| | | | | | | | | | | | | | |
| | For the years ended December 31, |
dollars in thousands | | 2025 | | 2024 |
Revenues | | $ | 122,830 | | | $ | 98,613 | |
| Cost of revenues: | | | | |
| Flight operations | | 31,933 | | | 31,016 | |
| Maintenance | | 39,214 | | | 26,459 | |
| Total cost of revenues | | 71,147 | | | 57,475 | |
| Gross income | | 51,683 | | | 41,138 | |
Selling, general and administrative expense | | 36,283 | | | 35,820 | |
| | | | |
Interest expense | | 23,263 | | | 23,714 | |
| Other income | | 11,788 | | | 2,067 | |
| Income (loss) before income taxes | | 3,925 | | | (16,329) | |
| Income tax benefit | | 215 | | | 762 | |
| Net income (loss) | | $ | 4,140 | | | $ | (15,567) | |
See the Consolidated Financial Statements for other financial information regarding the Company’s operating segment.
Total United States revenues were $108.8 million and $88.5 million for the years ended December 31, 2025 and 2024, respectively. Refer to “Note 2 – Summary of Significant Accounting Policies” included in this Annual Report on Form 10-K for additional information about revenue by geographic location. The Company had three customers who individually accounted for 66%, 11%, and 10% of total revenues for the year ended December 31, 2025, and two customers who individually accounted for 61% and 12% of total revenues for the year ended December 31, 2024.
The Company’s long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the Consolidated Balance Sheets were located as follows:
| | | | | | | | | | | | | | |
| | As of December 31, |
| dollars in thousands | | 2025 | | 2024 |
| United States | | $ | 198,301 | | | $ | 190,560 | |
| Spain | | 51,928 | | | 2,017 | |
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.