Harmony Biosciences Holdings, Inc. Segments Disclosure
16. SEGMENT INFORMATION
The Company has one reportable segment: rare neurological diseases. The rare neurological diseases segment consists of the Company’s commercial product, WAKIX, and its potential product candidates, that focus on patients living with rare neurological diseases who have unmet needs. The Company currently derives all of its revenue from sales of WAKIX, which is used in the treatment of EDS and cataplexy in adult patients with narcolepsy and the treatment of EDS in pediatric patients six years and older with narcolepsy and manages its business activities on a consolidated basis.
The accounting policies of the rare neurological diseases segment are consistent with those described in Note 3, Summary of Significant Accounting Policies, and the measure of segment assets is reported on the consolidated balance sheets as total assets. The Company’s CODM is the chief executive officer. The CODM assesses performance of the rare neurological diseases segment using net income as reported in the consolidated statements of operations and comprehensive income. Net income is assessed by the CODM to make decisions on how to allocate resources, such as reinvesting profits into the rare neurological diseases segment or pursuing potential investing activities.
The following table summarizes segment revenue and significant segment expenses for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31, | ||||||||
2025 | 2024 | 2023 | ||||||
Net product revenue | $ | 868,453 | $ | 714,734 | $ | 582,022 | ||
Less: | ||||||||
Cost of product sold (a) | 198,315 | 156,788 | 121,232 | |||||
Research and development (b) | 144,923 | 95,548 | 69,091 | |||||
Sales and marketing (c) | 112,136 | 103,481 | 92,256 | |||||
General and administrative (d) | 100,065 | 57,683 | 48,838 | |||||
Depreciation and amortization | 25,335 | 24,112 | 24,359 | |||||
Stock-based compensation | 44,960 | 42,701 | 31,206 | |||||
Interest expense | 14,649 | 17,496 | 23,757 | |||||
Interest income | (21,924) | (18,542) | (14,730) | |||||
Income tax expense | 56,377 | 46,311 | 44,543 | |||||
Other segment items (e) |
| 34,930 |
| 43,663 |
| 12,617 | ||
Consolidated net income | $ | 158,687 | $ | 145,493 | $ | 128,853 | ||
(a) Cost of product sold excluding depreciation.
(b) Research and development excluding stock-based compensation, IPR&D and impairment of long-lived assets.
(c) Sales and marketing excluding stock-based compensation.
(d) General and administrative excluding stock-based compensation and amortization.
(e) Other segment items include other expense (income), net, IPR&D charges and charges related to the extinguishment of debt.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 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.