Segment ReportingThe Company has one operating and reportable segment, air transportation and related services (“Services”). The Services segment includes research and development and related activities to research, develop, test, and manufacture the Company’s eVTOL aircraft and supporting systems, which are managed and evaluated on a consolidated basis. The Services revenue primarily includes consideration received for (i) facilitation of passenger transportation via helicopter or fixed wing aircraft primarily in the Northeast United States and Southern Europe, (ii) performance of customer-directed flights and on-base operations for various DOD agencies, and (iii) other services related to the Company’s core operations. The accounting policies of the services segment are the same as those described in the summary of significant accounting policies.
As the Company has a single reportable segment and is managed on a consolidated basis, the measure of segment profit or loss is consolidated net loss as reported in the consolidated statement of operations. The measure of segment assets is the total assets as reported in the consolidated balance sheet. The Company does not have intra-entity sales or transfers.
The following table presents the segment disclosures required under U.S. GAAP (in thousands):
| | | | | | | | | | | |
| Services segment |
| Year Ended December 31, 2025 | | Year Ended December 31, 2024 |
| Revenue: | $ | 53,425 | | | $ | 136 | |
| Operating expenses: | | | |
| People related costs, excluding stock based compensation expense | (371,130) | | | (316,485) | |
| Loss from change in fair value of warrants, earnout shares, and contingent consideration | (211,850) | | | (53,973) | |
| Stock-based compensation expense | (127,887) | | | (104,446) | |
Other segment items (1) | (272,400) | | | (133,266) | |
| Net loss | $ | (929,842) | | | $ | (608,034) | |
(1) Other segment items comprise primarily of depreciation and amortization, materials used in research & development activities, government grants (presented as a reduction of research and development expenses), professional services, other overhead expenses, and interest and other income, net.
Geographic Information
Revenue by geography is based on the location where the underlying services are provided. Long-lived assets, net includes property and equipment, net and operating right-of-use assets.
Summary financial data attributable to various geographic regions for the periods indicated is as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Revenue | | | | | | |
| United States | | $ | 35,751 | | | $ | 136 | | | $ | 1,032 | |
| Japan | | 8,134 | | | — | | | — | |
| Europe | | 6,768 | | | — | | | — | |
| Other | | 2,772 | | | — | | | — | |
| | $ | 53,425 | | | $ | 136 | | | $ | 1,032 | |
| | | | | | | | | | | | | | |
| | December 31, |
| | 2025 | | 2024 |
| Long-lived assets | | | | |
| United States | | $ | 160,299 | | | $ | 135,597 | |
| Other | | 18,109 | | | 14,046 | |
| | $ | 178,408 | | | $ | 149,643 | |
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.