16. Segment Information

The accounting policies for the segment are the same as those described in Note 2, “Summary of Significant Accounting Policies.” The CODM evaluates the performance of the operating segment and allocates resources based on net loss that also is reported on the consolidated statements of operations and comprehensive loss. The CODM uses net loss to monitor budget versus actual results and to analyze cash flows in assessing performance of the segment and allocating resources. The measure of the operating segment assets is reported on the consolidated balance sheets as total assets.

The following table summarizes the reportable segment’s financial information:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

 

2023

 

Collaboration revenue

 

$

67,671

 

 

$

57,877

 

 

 

$

36,275

 

Less:

 

 

 

 

 

 

 

 

 

 

Research and development:

 

 

 

 

 

 

 

 

 

 

   External development expenses - nex-z

 

 

90,458

 

 

 

69,793

 

 

 

 

54,454

 

   External development expenses - lonvo-z

 

 

47,748

 

 

 

42,173

 

 

 

 

24,560

 

   Other research and development (1) (2)

 

 

250,655

 

 

 

354,345

 

 

 

 

356,055

 

       Total research and development

 

 

388,861

 

 

 

466,311

 

 

 

 

435,069

 

General and administrative (3)

 

 

119,800

 

 

 

125,829

 

 

 

 

116,497

 

Interest income

 

 

(29,195

)

 

 

(47,807

)

 

 

 

(49,832

)

Loss from equity method investment

 

 

-

 

 

 

-

 

 

 

 

15,633

 

Other segment information (4)

 

 

899

 

 

 

32,565

 

 

 

 

100

 

Segment and consolidated net loss

 

$

(412,694

)

 

$

(519,021

)

 

 

$

(481,192

)

(1)
Includes unallocated research and development expenses, including stock-based compensation of $49.4 million, $94.2 million and $82.2 million for the years ended December 31, 2025, 2024 and 2023, respectively, as disclosed within Note 12, “Stock-Based Compensation.”
(2)
Includes external costs pertaining to NTLA-3001 of $2.1 million, $8.7 million, and $17.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. As part of its strategic restructuring in 2025, the Company discontinued the NTLA-3001 program and as such, this expense data is no longer significant.
(3)
Includes stock-based compensation of $30.8 million, $60.0 million and $51.8 million for the years ended December 31, 2025, 2024 and 2023, respectively, as disclosed within Note 12, “Stock-Based Compensation.”
(4)
Includes change in fair value of investments and contingent consideration as disclosed in the Company’s consolidated statements of operations and comprehensive loss.

Depreciation and amortization expense totaled $9.8 million, $10.3 million and $9.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.

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.