FRACTYL HEALTH, INC. Segments Disclosure
15. Segment Information
For the year ended December 31, 2025, the Company has identified one operating and reportable segment. The Company defines its operating segments based on internally reported financial information that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) to analyze financial performance, make decisions, and allocate resources. The Company’s is the CODM.
The Company’s CODM views specific categories within research and development expenses and selling, general and administrative expenses in total as significant given the direct correlation between cash burn and profitability as a pre-commercial company. The following table reconciles reported revenues to net loss under the significant expense principle for the years ended December 31, 2025 and 2024:
|
|
Year Ended |
|
|||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
Revenue |
|
$ |
— |
|
|
$ |
93 |
|
Less: |
|
|
|
|
|
|
||
Cost of goods sold |
|
|
— |
|
|
|
50 |
|
Research and development: |
|
|
|
|
|
|
||
Revita direct program expenses |
|
|
28,892 |
|
|
|
25,873 |
|
Rejuva direct program expenses |
|
|
11,685 |
|
|
|
7,220 |
|
Indirect expenses |
|
|
7,965 |
|
|
|
9,038 |
|
Personnel-related expenses |
|
|
25,994 |
|
|
|
28,340 |
|
Total research and development expenses |
|
|
74,536 |
|
|
|
70,471 |
|
Selling, general and administrative |
|
|
22,280 |
|
|
|
23,103 |
|
Other income (expense), net |
|
|
(44,138 |
) |
|
|
24,837 |
|
Segment net loss |
|
$ |
(140,954 |
) |
|
$ |
(68,694 |
) |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 24, 2026 | Showing above |
| 2024 | Mar 3, 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.