28. SEGMENT INFORMATION AND INFORMATION ABOUT GEOGRAPHIC AREAS

The Company organizes its segments around its operations by geographic region and operates in one reportable segment (the “Domestic Segment”). The Domestic Segment provides SAAS platforms for the insurance economy and derives revenues from providing customers with software subscriptions to the platforms in addition to providing professional services and non-software services. The accounting policies of the Domestic Segment are the same as those described in Note 2.

The Company does not have intra-entity sales or transfers.

The chief operating decision maker (“CODM”) of the Domestic Segment is the Company’s Chief Executive Officer. The CODM assesses performance for the Domestic Segment at the segment level and uses the segment’s performance when making strategic decisions on how to allocate resources and capital. In addition, the segment’s performance is used when reviewing actual financial performance against internal budgets and for establishing incentive compensation targets.

The CODM uses net income (loss) to evaluate income (loss) generated from operations in deciding whether to reinvest profits into the Domestic Segment or use for acquisitions, to pay dividends or repurchase outstanding shares of common stock. The CODM reviews financial information, including significant expenses, of the Domestic Segment on an adjusted basis, excluding certain items that may not be indicative of the Company’s recurring core business operations. This financial information reviewed by the CODM is accompanied by information about revenue by type of service and geographic region, for purposes of allocating resources and evaluating financial performance.

The Company’s financial information and performance measures used by the CODM do not include a metric or measure including segment assets and thus, no asset information is provided to the CODM for the purpose of making strategic decisions or allocating resources.

The following table presents the Company’s financial information about reported segment revenue, significant segment expenses, and the Company’s reconciliation of segment profit (loss) to consolidated net income (loss) (in thousands):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenue—Domestic Segment

 

$

1,050,161

 

 

$

938,031

 

 

$

859,548

 

Revenue—Other (1)

 

 

6,840

 

 

 

6,769

 

 

 

6,830

 

Total Revenue

 

 

1,057,001

 

 

 

944,800

 

 

 

866,378

 

 

 

 

 

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

 

 

 

Data licenses and royalties—adjusted (2)

 

 

45,104

 

 

 

43,698

 

 

 

40,957

 

Customer services—adjusted (3)

 

 

110,634

 

 

 

98,589

 

 

 

90,801

 

Products and technology—adjusted (4)

 

 

295,158

 

 

 

255,814

 

 

 

241,324

 

Revenue enablement—adjusted (5)

 

 

136,331

 

 

 

120,088

 

 

 

113,508

 

General corporate and administrative—adjusted (6)

 

 

82,183

 

 

 

69,641

 

 

 

62,985

 

Other segment items (7)

 

 

141,402

 

 

 

145,819

 

 

 

198,358

 

Amortization expense

 

 

91,520

 

 

 

80,768

 

 

 

98,035

 

Depreciation expense

 

 

58,629

 

 

 

42,809

 

 

 

36,793

 

Interest expense

 

 

71,007

 

 

 

64,608

 

 

 

63,577

 

Interest income

 

 

(4,882

)

 

 

(12,203

)

 

 

(16,252

)

Significant non-cash items (8)

 

 

8,386

 

 

 

(9,145

)

 

 

20,839

 

Income tax provision

 

 

19,841

 

 

 

13,074

 

 

 

5,524

 

Total segment expenses

 

 

1,055,313

 

 

 

913,560

 

 

 

956,449

 

Net income (loss) including non-controlling interest

 

$

1,688

 

 

$

31,240

 

 

$

(90,071

)

1 Represents revenue from an insignificant segment that does not meet the quantitative thresholds for determining reportable segments.

2 Data licenses and royalties – adjusted expenses include third party costs for data licensing and royalty fees.

3 Customer services – adjusted expenses include the costs to deliver services to customers, including software configuration, integration and implementation services and customer support activities. Customer services – adjusted excludes stock-based compensation expense and related employer payroll tax.

4 Products and technology – adjusted expenses include costs related to the engineering, product management design and development of the Company’s solutions, and costs related to the Company’s hosting environments, support of production infrastructure, support of internal systems and infrastructure and IT security. Products and technology – adjusted excludes stock-based compensation expense and related employer payroll tax.

5 Revenue enablement – adjusted expenses include costs for sales and marketing functions, including sales incentives, advertising costs, and event costs. Revenue enablement – adjusted excludes stock-based compensation expense and related employer payroll tax.

6 General corporate and administrative – adjusted expenses include costs for our executive management and administrative employees, including finance and accounting, human resources, facilities and legal functions. Additional expenses include professional service fees, insurance premiums and other corporate expenses that are not allocated to the other adjusted expense categories. General corporate and administrative – adjusted excludes stock-based compensation expense and related employer payroll tax, litigation proceeds and litigation costs in which the Company is the plaintiff and related antitrust matters, costs associated with the acquisition and integration of completed and potential mergers and acquisitions, costs related to equity transactions, including secondary offerings and debt refinancing costs.

7 Other segment items include those items excluded from the significant segment expense categories and identified in the above descriptions, adjustments for capitalized labor costs incurred on internal development projects, and expenses of an insignificant segment that does not meet the quantitative thresholds for determining reporting segments.

8 Significant non-cash items include changes in fair value of derivative instruments and changes in fair value of warrant liabilities.

Revenues by geographic area presented based upon the location of the customer are as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

United States

 

$

1,050,161

 

 

$

938,031

 

 

$

859,548

 

China

 

 

6,840

 

 

 

6,769

 

 

 

6,830

 

Total revenues

 

$

1,057,001

 

 

$

944,800

 

 

$

866,378

 

 

Software, equipment and property, Net by geographic area are as follows (in thousands):

 

 

December 31,

 

 

 

2025

 

 

2024

 

United States

 

$

166,644

 

 

$

171,864

 

China

 

 

152

 

 

 

215

 

Total software, equipment and property-net

 

$

166,796

 

 

$

172,079

 

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 28, 2024
2022Mar 1, 2023
2021Mar 1, 2022

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.