CARLSMED, INC. Segments Disclosure
10. Segment Reporting
The Company has one business activity and operates as a single operating and reportable segment: the designing, manufacturing, and marketing of aprevo, a comprehensive technology platform for spine fusion surgical procedures. The Company typically derives its current revenues from selling aprevo to its hospital and ambulatory surgical center customers.
The Company’s “Chief Operating Decision Maker” (the “CODM”) is its . The CODM uses net loss reported on the Statements of Operations and Comprehensive Loss to assess performance and allocate resources for the reportable segment. This metric helps assess the effectiveness of the Company's product offering and monitor budget versus actual results.
The following table provides the operating financial results of the Company’s single reportable segment. It includes the significant expense categories regularly provided to the CODM, computed under GAAP and reconciled to the Company’s total “net loss” as presented in the Statements of Operations and Comprehensive Loss:
|
|
Year Ended December 31, |
|
|||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
Revenue |
|
$ |
50,511 |
|
|
$ |
27,165 |
|
Less: |
|
|
|
|
|
|
||
Cost of sales |
|
|
12,471 |
|
|
|
7,117 |
|
Selling expenses |
|
|
26,426 |
|
|
|
15,550 |
|
Marketing expenses |
|
|
4,666 |
|
|
|
4,649 |
|
Product and software development costs |
|
|
8,722 |
|
|
|
6,640 |
|
Clinical, medical, and regulatory expenses |
|
|
4,486 |
|
|
|
4,247 |
|
Other segment expenses* |
|
|
24,314 |
|
|
|
13,084 |
|
Interest expense |
|
|
1,430 |
|
|
|
1,321 |
|
Interest income |
|
|
(2,698 |
) |
|
|
(1,330 |
) |
Change in fair value of warrant liabilities |
|
|
328 |
|
|
|
144 |
|
Net loss |
|
$ |
(29,634 |
) |
|
$ |
(24,257 |
) |
* Other segment expenses primarily include corporate, compliance, and research and development support expenses.
Assets provided to the CODM are consistent with those reported on the accompanying Balance Sheets. All long-lived assets are held in the United States, and net losses are solely attributable to U.S. operations.
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.