Foghorn Therapeutics Inc.FHTX

Foghorn Therapeutics Inc. Segments Disclosure

10-KFiled Mar 11, 20262 min read
Segment Reporting
Operating segments are defined as components of an entity for which separate discrete financial information is made available and that is regularly evaluated by the chief operating decision maker (“CODM”) in making decisions regarding resource allocation and assessing performance. The Company manages its operations as a single segment (the “Segment”) for the purposes of assessing performance and making operating decisions. The CODM of the Segment is the Company’s chief executive officer. The Segment is focused on pioneering the discovery and development of a new class of medicines targeting genetically determined dependencies within the chromatin regulatory system. The Segment’s revenue is derived entirely from the recognition of deferred revenue related to our collaboration agreement with Lilly and funds received under the Lilly SPA
(see Note 8). The accounting policies for the Segment are the same as those described in Note 2, Summary of Significant Accounting Policies.
The CODM assesses the performance of the Segment and decides how to allocate resources based on net loss that is reported on the consolidated statements of operations and comprehensive loss. Further, the following represents information about segment revenue, segment loss and significant segment expenses (in thousands):
Year Ended December 31,
20252024
Collaboration revenue$30,909 $22,602 
Less:
Research and development:
Personnel expenses22,734 22,472 
FHD-286916 11,136 
Lilly partnered programs22,509 17,325 
Proprietary programs16,658 18,416 
Research and development operating and administrative costs5,866 6,252 
General and administrative:
Personnel expenses11,010 9,848 
External expenses7,929 8,586 
Facilities and IT related expenses, net of sublease income
8,223 9,667 
Other expenses, net(1)
18,092 17,420 
Plus:
Interest income8,745 11,900 
Net loss$(74,283)$(86,620)
(1) Inclusive of $10.4 million and $11.9 million of stock compensation expense for the years ended December 31, 2025 and 2024, respectively; $3.3 million and $3.1 million of depreciation and amortization expense for the years ended December 31, 2025 and 2024, respectively; non-cash impairment charges of $5.9 million and $2.4 million for the years ended December 31, 2025 and 2024, respectively; and a gain on lease modification of $1.6 million for the year ended December 31, 2025.

Historical Timeline

Fiscal YearFiled
2025Mar 11, 2026Showing above
2024Mar 6, 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.

Other Available Disclosures

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