Fortress Biotech, Inc. Segments Disclosure
18. Segment Information
The Company’s reportable segments for operating income (loss) for the years ending December 31, 2025 and 2024 consist of the following:
Year Ended December 31, 2025 | | Journey | Avenue | Checkpoint1 | Mustang | Fortress2 | Consolidated | |||||||||||
Product revenue, net | $ | 61,239 | $ | — | $ | — | $ | — | $ | — | $ | 61,239 | ||||||
Other revenue | 619 | 1,404 | — | — | — | 2,023 | ||||||||||||
Net revenue | 61,858 | 1,404 | — | — | — | 63,262 | ||||||||||||
Cost of goods - (excluding amortization of acquired intangible assets) |
| 20,924 | — | — | — | — |
| 20,924 | ||||||||||
Amortization of acquired intangible assets |
| 4,258 | — | — | — | — |
| 4,258 | ||||||||||
Research and development | 480 | 1,037 | 10,775 | (1,516) | 1,125 | 11,901 | ||||||||||||
Selling, general and administrative | 44,368 | 3,450 | 27,263 | 3,948 | 17,371 | 96,400 | ||||||||||||
Total operating expenses | 70,030 | 4,487 | 38,038 | 2,432 | 18,496 | 133,483 | ||||||||||||
Loss from operations | (8,172) | (3,083) | (38,038) | (2,432) | (18,496) | (70,221) | ||||||||||||
Interest income | 589 | 121 | 90 | 511 | 1,174 | 2,485 | ||||||||||||
Interest expense and financing fee | (3,698) | — | — | — | (6,408) | (10,106) | ||||||||||||
Gain (loss) on common stock warrant liabilities | — | 15 | (108) | — | (305) | (398) | ||||||||||||
Gain from deconsolidation of subsidiary | — | — | — | — | 27,127 | 27,127 | ||||||||||||
Other expense | (90) | — | (3) | — | 17,671 | 17,578 | ||||||||||||
Total other income (expense) | (3,199) | 136 | (21) | 511 | 39,259 | 36,686 | ||||||||||||
Income (loss) before income tax expense | (11,371) | (2,947) | (38,059) | (1,921) | 20,763 | (33,535) | ||||||||||||
Income tax expense (benefit) | 60 | — | — | — | (680) | (620) | ||||||||||||
Segment net income (loss) | $ | (11,431) | $ | (2,947) | $ | (38,059) | $ | (1,921) | $ | 21,443 | $ | (32,915) | ||||||
Attributable to non-controlling interests | 39,730 | |||||||||||||||||
Net income attributable to Fortress | $ | 6,815 | ||||||||||||||||
Intersegment activity3: | ||||||||||||||||||
Research and development | $ | — | $ | 326 | $ | — | $ | 523 | $ | (849) | $ | — | ||||||
Selling, general and administrative | $ | — | $ | 304 | $ | 261 | $ | 644 | $ | (1,209) | $ | — | ||||||
Other Significant Items: | ||||||||||||||||||
Change in fair value of equity method investment accounted for at fair value within other income | $ | — | $ | — | $ | — | $ | — | $ | 15,075 | $ | 15,075 | ||||||
Segment assets | $ | 94,589 | $ | 2,931 | $ | — | $ | 17,593 | $ | 70,435 | $ | 185,548 | ||||||
Stock-based compensation - Research & development | $ | — | $ | 124 | $ | 4,782 | $ | (10) | $ | 1,371 | $ | 6,267 | ||||||
Stock-based compensation - Selling, general and administrative | $ | 6,288 | $ | 541 | $ | 9,315 | $ | 139 | $ | 6,189 | $ | 22,472 | ||||||
Note 1: Checkpoint results through May 2025 due to deconsolidation as a result of acquisition by Sun Pharma (see Note 3).
Note 2: Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, Oncogenuity and Urica; and intercompany eliminations.
Note 3: | Intersegment activity consists of PIK Dividends and MSA and equity fees paid by the subsidiaries to Fortress, see Note 16. |
Year Ended December 31, 2024 | | Journey | Avenue | Checkpoint | Mustang | Fortress1 | Consolidated | |||||||||||
Product revenue, net | $ | 55,134 | $ | — | $ | — | $ | — | $ | — | $ | 55,134 | ||||||
Collaboration revenue | — | — | — | — | 1,500 | 1,500 | ||||||||||||
Revenue - related party | — | — | 41 | — | — | 41 | ||||||||||||
Other revenue | 1,000 | — | — | — | — | 1,000 | ||||||||||||
Net revenue | 56,134 | — | 41 | — | 1,500 | 57,675 | ||||||||||||
Cost of goods - (excluding amortization of acquired intangible assets) |
| 20,879 | — | — | — | — |
| 20,879 | ||||||||||
Amortization of acquired intangible assets |
| 3,424 | — | — | — | — |
| 3,424 | ||||||||||
Research and development | 9,857 | 6,645 | 36,152 | 8,418 | (4,443) | 56,629 | ||||||||||||
Research and development - licenses acquired | — | — | — | — | 252 | 252 | ||||||||||||
Selling, general and administrative | 40,204 | 4,638 | 20,063 | 4,135 | 18,691 | 87,731 | ||||||||||||
Loss recovery | (4,553) | — | — | — | — | (4,553) | ||||||||||||
Asset impairment | — | — | — | 3,692 | — | 3,692 | ||||||||||||
Total operating expenses | 69,811 | 11,283 | 56,215 | 16,245 | 14,500 | 168,054 | ||||||||||||
Loss from operations | (13,677) | (11,283) | (56,174) | (16,245) | (13,000) | (110,379) | ||||||||||||
Interest income | 757 | 176 | 11 | 184 | 1,555 | 2,683 | ||||||||||||
Interest expense and financing fee | (2,700) | — | — | (5) | (10,822) | (13,527) | ||||||||||||
Gain (loss) on common stock warrant liabilities | 1,125 | (589) | (73) | — | (1,101) | (638) | ||||||||||||
Other income (expense) | (116) | — | (4) | 314 | 1,124 | 1,318 | ||||||||||||
Total other income (expense) | (934) | (413) | (66) | 493 | (9,244) | (10,164) | ||||||||||||
Loss before income tax expense | (14,611) | (11,696) | (56,240) | (15,752) | (22,244) | (120,543) | ||||||||||||
Income tax expense | 61 | — | — | — | 251 | 312 | ||||||||||||
Segment net loss | $ | (14,672) | $ | (11,696) | $ | (56,240) | $ | (15,752) | $ | (22,495) | $ | (120,855) | ||||||
Attributable to non-controlling interests | 74,858 | |||||||||||||||||
Net loss attributable to Fortress | $ | (45,997) | ||||||||||||||||
Intersegment activity2: | ||||||||||||||||||
Research and development | $ | — | $ | 329 | $ | 7,638 | $ | 861 | $ | (8,828) | $ | — | ||||||
Selling, general and administrative | $ | — | $ | 331 | $ | 1,495 | $ | 579 | $ | (2,405) | $ | — | ||||||
Other Significant Items: | ||||||||||||||||||
Depreciation expense | $ | — | $ | — | $ | — | $ | 671 | $ | 369 | $ | 1,040 | ||||||
Additions to intangible assets | $ | 15,000 | $ | — | $ | — | $ | — | $ | — | $ | 15,000 | ||||||
Segment assets | $ | 80,241 | $ | 2,672 | $ | 7,471 | $ | 9,308 | $ | 44,531 | $ | 144,223 | ||||||
Stock-based compensation - Research & development | $ | 508 | $ | 269 | $ | 5,248 | $ | (650) | $ | 1,746 | $ | 7,121 | ||||||
Stock-based compensation - Selling, general and administrative | $ | 5,590 | $ | 967 | $ | 10,004 | $ | 200 | $ | 8,737 | $ | 25,498 | ||||||
Note 1: Includes Fortress and private subsidiaries primarily funded by Fortress: Cellvation, Cyprium, Helocyte, Oncogenuity and Urica; and intercompany eliminations.
Note 2: | Intersegment activity consists of PIK Dividends and MSA and equity fees paid by the subsidiaries to Fortress, see Note 16. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 28, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 16, 2017 | |
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.