MADRIGAL PHARMACEUTICALS, INC.MDGL

MADRIGAL PHARMACEUTICALS, INC. Segments Disclosure

10-KFiled Feb 19, 20262 min read
Segment Information
The Company operates as one reportable segment focused on delivering novel therapeutics for MASH. The Company’s Chief Executive Officer, as the chief operating decision maker ("CODM"), leads the Company in support of four core values—focus on the patient, having an owner mindset, the relentless pursuit of innovation and commitment to collaboration. To best align the Company with these values, the CODM reviews consolidated financials, along with qualitative information, to evaluate performance, manage and allocate resources, make operating decisions, and assess planning and forecasting on a total company basis. Assets, liabilities and equity are reviewed and presented on the same level as the Company’s consolidated balance sheet.
Management does not segment business operations for internal reporting or decision making purposes. As the Company has a single reporting segment, the segment accounting policies are the same as those at the Company level, as
described in Note 2 "Summary of Significant Accounting Policies." As of December 31, 2025, the Company did not have material revenue or assets outside of the United States.
The following table presents net income reported at the segment measure of profit and loss:
Year Ended December 31,
202520242023
Product revenue, net$958,403 $180,133 $— 
Cost of sales(56,148)(6,233)— 
Research and development - personnel and internal expense(73,283)(73,418)(56,824)
Research and development - external expense(315,242)(163,300)(215,526)
Selling, general and administrative(813,827)(435,057)(108,146)
Other segment income(1)
11,813 31,983 6,866 
Net loss$(288,284)$(465,892)$(373,630)
(1) Other segment income includes interest income, interest expense, loss on extinguishment of debt and other expense, net.

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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