15. Segment Information

The Company operates and manages its business as one reportable segment and one operating segment, which is the business of discovering, developing and commercializing therapies derived from or incorporating genome-editing technology. The determination of a single business segment is consistent with the consolidated financial information regularly provided to the Company’s chief operating decision maker, or CODM. The Company’s chief executive officer, as the CODM, uses consolidated, single-segment financial information for purposes of evaluating performance, making operating decisions, allocating resources and planning and forecasting for future periods.

The CODM assesses performance and decides how to allocate resources based on consolidated net loss. The measure is used to monitor budget versus actual results to evaluate the performance of the segment.

 

The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. All material long-lived assets are located in the United States. Long-lived assets consist of property and equipment, net, and operating lease right-of-use assets. The accounting policies of the segment are the same as those described in Note 2 of the notes to the consolidated financial statements included in this Annual Report on Form 10-K.

The following table summarizes information about segment revenue, significant segment expenses and segment operating loss for the periods presented (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Revenue1:

 

 

 

 

 

 

 

 

 

Collaboration revenue

 

 

 

 

$

35,000

 

 

$

370,000

 

Grant revenue

 

 

3,510

 

 

 

2,314

 

 

 

1,206

 

Less2:

 

 

 

 

 

 

 

 

 

Research and development expense3

 

 

239,872

 

 

 

252,010

 

 

 

330,121

 

Acquired in-process research and development4

 

 

96,253

 

 

 

 

 

 

 

General and administrative expense5

 

 

26,570

 

 

 

25,453

 

 

 

32,589

 

Collaboration expense, net

 

 

213,480

 

 

 

120,667

 

 

 

130,250

 

Stock-based compensation expense

 

 

72,499

 

 

 

86,567

 

 

 

81,028

 

Depreciation expense

 

 

19,407

 

 

 

19,183

 

 

 

19,756

 

Other segment items6

 

 

(82,972

)

 

 

(100,314

)

 

 

(68,928

)

Segment net loss

 

 

(581,599

)

 

 

(366,252

)

 

 

(153,610

)

Reconciliation of profit or loss:

 

 

 

 

 

 

 

 

 

Adjustments or reconciling items

 

 

 

 

 

 

 

 

 

Consolidated net loss

 

 

(581,599

)

 

 

(366,252

)

 

 

(153,610

)

 

(1) Collaboration revenue for the years ended December 31, 2025, 2024 and 2023 is related to our license agreements and collaborations with Vertex, as further described in Note 8 of the notes to the consolidated financial statements included in this Annual Report on Form 10-K. Collaboration revenue is attributed to the CRISPR Therapeutics AG entity, which is domiciled in Switzerland.

(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(3) Research and development expense for the years ended December 31, 2025, 2024 and 2023 is net of $34.4 million, $47.9 million, and $46.4 million of stock-based compensation expense, respectively, and $10.6 million, $10.3 million, and $10.9 million of depreciation expense, respectively. For the year ended December 31, 2024, the Company recorded a non-cash adjustment of $4.8 million related to an option expiration which was recognized as a benefit to research and development expense.

(4) Acquired in-process research and development expense for the year ended December 31, 2025 relates to expense of $25.0 million related to the upfront cash payment to Sirius in the second quarter of 2025, as well as expense of $71.3 million related to the issuance of the Company’s common shares issued to Sirius as part of the Sirius Agreement in the second quarter of 2025, as described further in Note 8 of the notes to the consolidated financial statements included in this Annual Report on Form 10-K.

(5) General and administrative expense for the years ended December 31, 2025, 2024 and 2023 is net of $38.1 million, $38.6 million, and $34.7 million of stock-based compensation expense, respectively, and $8.8 million, $8.9 million, and $8.9 million of depreciation expense, respectively.

(6) Other segment items include interest income, net, the change in fair value of corporate equity securities and income tax expense.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 11, 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.