Healthcare Triangle, Inc. Segments Disclosure
6) Segment Information
The management has chosen to organize the Company around differences in products and services and segregated the reporting segments as Software Services, Managed Services and Support, and Corporate & others.
Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and assessing performance. The Company defines the term CODM to be the and Chief Operating Officer of the Company. The CODM along with the management team reviews the financial information presented on a segment basis as well as consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, the Company has determined that it operates in three distinct reportable operating segments, and all required financial segments information can be found in the consolidated financial statements. Additionally, assets and liabilities for reportable segments are not disclosed as such information is not regularly reviewed by the Company’s CODM.
Expenses included in segment operating profit consist principally of direct selling, delivery costs and research and development expenses. Certain Sales and Marketing expenses, General and Administrative expenses, depreciation, and amortization are allocated to individual segments in the ratio of respective segment revenue.
| Year Ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| (In ‘000) | Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Software Services | $ | 8,255 | $ | 4,692 | $ | 3,563 | 76 | % | ||||||||
| Managed Services and Support | 5,358 | 6,716 | (1,358 | ) | (20 | )% | ||||||||||
| Corporate & Others | 278 | 288 | (10 | ) | (3 | )% | ||||||||||
| Net revenue | $ | 13,891 | $ | 11,696 | $ | 2,195 | 19 | % | ||||||||
Operating Profit by Operating Segments
| For the Year ended December 31, 2025 | ||||||||||||||||
| Software Services | Managed Services and Support | Corporate and Others | Total | |||||||||||||
| Net revenue | $ | 8,255 | $ | 5,358 | $ | 278 | $ | 13,891 | ||||||||
| Less: | ||||||||||||||||
| Cost of revenue | (6,893 | ) | (4,229 | ) | (879 | ) | (12,001 | ) | ||||||||
| Segment gross profit | 1,362 | 1,129 | (601 | ) | 1,890 | |||||||||||
| Sales and marketing | (833 | ) | (493 | ) | (1,758 | ) | (3,084 | ) | ||||||||
| General and administrative | (732 | ) | (304 | ) | (6,301 | ) | (7,337 | ) | ||||||||
| Bad debts | (17 | ) | (17 | ) | ||||||||||||
| Research and development | (222 | ) | (314 | ) | (536 | ) | ||||||||||
| Segment operating profit/(loss) | $ | (425 | ) | $ | 332 | $ | (8,991 | ) | $ | (9,084 | ) | |||||
| Interest expense | (567 | ) | (567 | ) | ||||||||||||
| Depreciation and amortization | (419 | ) | (272 | ) | (14 | ) | (705 | ) | ||||||||
| Other income | 857 | 857 | ||||||||||||||
Forex loss | (18 | ) | (18 | ) | ||||||||||||
| Changes in fair value | 41 | 41 | ||||||||||||||
| Income/(Loss) before income tax | (844 | ) | 60 | (8,692 | ) | (9,476 | ) | |||||||||
| Income tax | ||||||||||||||||
| Net income/(loss) | $ | (844 | ) | $ | 60 | $ | (8,692 | ) | $ | (9,476 | ) | |||||
For
the Year ended | ||||||||||||||||
| Particulars | Software Services(*) | Managed Services and Support(*) | Corporate & Others(*), (1) | Total | ||||||||||||
| Net Revenue | $ | 4,692 | $ | 6,716 | $ | 288 | $ | 11,696 | ||||||||
| Less: | ||||||||||||||||
| Cost of revenue | (3,962 | ) | (4,671 | ) | (173 | ) | (8,806 | ) | ||||||||
| Segment gross profit | 730 | 2,045 | 115 | 2,890 | ||||||||||||
| Sales and marketing | (505 | ) | (722 | ) | (976 | ) | (2,203 | ) | ||||||||
| General and administrative | (195 | ) | (279 | ) | (3,476 | ) | (3,950 | ) | ||||||||
| Bad debts | (170 | ) | (170 | ) | ||||||||||||
| Research and development | (429 | ) | (429 | ) | ||||||||||||
| Segment operating profit / (loss) | $ | 30 | $ | 1,044 | $ | (4,936 | ) | $ | (3,862 | ) | ||||||
| Interest expense | (1,213 | ) | (1,213 | ) | ||||||||||||
| Depreciation and amortization | (356 | ) | (511 | ) | (22 | ) | (889 | ) | ||||||||
| Other income | 7 | 7 | ||||||||||||||
| Income/(Loss) before income tax | (326 | ) | 533 | (6,164 | ) | (5,957 | ) | |||||||||
| Income tax | (12 | ) | (12 | ) | ||||||||||||
| Net income/(loss) | $ | (326 | ) | $ | 533 | $ | (6,176 | ) | $ | (5,969 | ) | |||||
| (1) | formerly classified under Platform Segment. |
| (*) | Prior year figures have been reclassified for the purpose of comparison. |
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.