EDAP TMS SA Segments Disclosure
29— DIVISION INFORMATION (SEGMENT REPORTING)
Our activity is organized into three reportable segments corresponding to our three divisions: HIFU, ESWL (including lithotripsy activities) and Distribution. Through these three divisions, we develop, produce, market and distribute non-invasive medical devices, mainly for urological diseases. HIFU division includes sales of Focal One, and related consumables and services, ESWL division includes revenues generated by the existing Sonolith range of lithotripters and, Distribution division includes the sale of complimentary products such as lasers, micro-ultrasound systems and other products from third parties.
The organization of our activities into three divisions better clarified our vision and enhanced our financial reporting of our three businesses HIFU, ESWL and Distribution. This new structure also allows for an improved measurement of our business progress.
The business in which the Company operates is the development, production and distribution of non-invasive medical devices, primarily for the treatment of urological diseases. The divisions s derive their revenues from this activity.
The following tables set forth the key Statement of loss figures, by division for fiscal years 2025 and 2024 and the key balance sheet figures, by division, for fiscal years 2025 and 2024. Division operating profit or loss and division assets are determined in accordance with the same policies as those described in the summary of significant accounting policies and they are reviewed by the CODM, who is the CEO. The CODM uses operating income (loss) as the measure of profit or loss to allocate resources, assess performance, and monitor budgets against actual results.
Interest income and expense, current and deferred income taxes are not allocated to individual divisions. A reconciliation of division operating profit or loss to consolidated net loss is as follows:
Year Ended December 31, | ||||
| 2025 | | 2024 | |
Division operating loss |
| (24,694) |
| (22,225) |
Financial (expense) income, net |
| (3,110) |
| 606 |
Foreign Currency exchange (losses) gains, net |
| (1,003) |
| 1,348 |
Income tax (expense) benefit |
| (438) |
| (313) |
Consolidated net loss |
| (29,246) |
| (20,584) |
A summary of the Company’s operations by division is presented below for years ended December 31, 2025 and 2024:
| HIFU | | ESWL | | DISTRIB | | Reconciling | | Total | |
2025 | Division | Division | Division | Items | consolidated | |||||
Sales of goods |
| 24,857 |
| 1,711 |
| 22,328 | — |
| 48,896 | |
Sales of RPPs & leases |
| 8,791 |
| 1,159 |
| 340 | — |
| 10,289 | |
Sales of spare parts and services |
| 3,703 |
| 4,593 |
| 3,045 | — |
| 11,342 | |
Total sales |
| 37,351 |
| 7,463 |
| 25,712 | — |
| 70,527 | |
External other revenues |
| — |
| — |
| — | — |
| — | |
Total revenues |
| 37,351 |
| 7,463 |
| 25,712 | — |
| 70,527 | |
Total COS |
| (19,373) |
| (4,017) |
| (17,135) | — |
| (40,526) | |
Gross profit |
| 17,978 |
| 3,446 |
| 8,577 | — |
| 30,001 | |
R&D expenses |
| (8,909) |
| (191) |
| (561) | — |
| (9,661) | |
Selling and marketing expenses |
| (20,153) |
| (647) |
| (6,514) | — |
| (27,315) | |
G&A expenses |
| (9,594) |
| (509) |
| (2,311) |
| (5,305) |
| (17,720) |
Total expenses |
| (38,657) |
| (1,347) |
| (9,386) |
| (5,305) |
| (54,695) |
Operating income (loss) from operations |
| (20,679) |
| 2,099 |
| (809) |
| (5,305) |
| (24,694) |
Total Assets |
| 36,908 | 8,935 | 22,701 | 10,453 |
| 78,997 | |||
Net cash generated by (used in) investing activities |
| 5,165 | 89 | 462 | — |
| 5,715 | |||
Non-current assets |
| 13,790 | 2,250 | 5,794 | — |
| 21,834 | |||
Goodwill |
| 757 | 583 | 1,493 | — |
| 2,834 |
| HIFU | | ESWL | | DISTRIB | | Reconciling | | Total | |
2024 | Division | Division | Division | Items | consolidated | |||||
Sales of goods |
| 16,046 |
| 3,768 |
| 27,850 |
| — |
| 47,664 |
Sales of RPPs & leases |
| 6,789 |
| 1,118 |
| 329 |
| — |
| 8,237 |
Sales of spare parts and services |
| 2,967 |
| 4,836 |
| 5,691 |
| — |
| 13,495 |
Total sales |
| 25,803 |
| 9,722 |
| 33,871 |
| — |
| 69,395 |
External other revenues |
| — |
| — |
| — |
| — |
| — |
Total revenues |
| 25,803 |
| 9,722 |
| 33,871 |
| — |
| 69,395 |
Total COS |
| (12,519) |
| (5,949) |
| (22,184) |
| — |
| (40,652) |
Gross profit |
| 13,283 |
| 3,773 |
| 11,687 |
| — |
| 28,744 |
R&D expenses |
| (7,245) |
| (395) |
| (723) |
| — |
| (8,363) |
Selling and marketing expenses |
| (16,827) |
| (1,412) |
| (9,124) |
| — |
| (27,363) |
G&A expenses |
| (8,109) |
| (656) |
| (2,458) |
| (4,020) |
| (15,243) |
Total expenses |
| (32,180) |
| (2,464) |
| (12,305) |
| (4,020) |
| (50,969) |
Operating income (loss) from operations |
| (18,897) |
| 1,310 |
| (618) |
| (4,020) |
| (22,225) |
Total Assets |
| 31,118 | 12,074 | 34,043 | 12,171 |
| 89,407 | |||
Net cash generated by (used in) investing activities |
| 3,351 | 331 | 777 | — |
| 4,459 | |||
Non-current assets |
| 10,214 | 1,524 | 5,078 | — |
| 16,816 | |||
Goodwill |
| 670 | 515 | 1,320 | — |
| 2,505 |
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.