Perimeter Solutions, Inc.PRM
Perimeter Solutions, Inc. Segments Disclosure
SEGMENT INFORMATION
The Company’s products and operations are managed and reported in two operating segments: Fire Safety and Specialty Products. The Fire Safety Segment provides fire retardants and fire suppressants, as well as specialized equipment and services typically offered in conjunction with its products. The Specialty Products Segment includes operations that develop, produce and market products for non-fire safety markets. See Note 1, “Description of Business and Basis of Presentation” for discussion of the Company’s operating segments.
The chief operating decision-maker (“CODM”) is the Company's CEO. The CODM uses Segment Adjusted EBITDA for each segment predominantly in the annual budget and the forecasting process. The CODM considers budget/forecast-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment.
Segment Adjusted EBITDA is defined as income (loss) before income taxes plus net interest and other financing expenses, and depreciation and amortization, adjusted on a consistent basis for certain non-recurring, unusual or non-operational items. These items include (i) restructuring, (ii) acquisition related costs (iii) founder advisory fee expenses, (iv) stock-based compensation expense and (v) foreign currency loss (gain). Interest income, interest expense, other income (expense) and certain corporate operating expenses are not included in the measures of segment performance reviewed by the CODM. The corporate category is not considered to be a segment.
Information related to net sales, Segment Adjusted EBITDA, depreciation and amortization, purchases of property and equipment, purchases of intangible assets, and segment assets are summarized below (in thousands):
Year Ended December 31, 2025 | |||||||||||||||||
| Fire Safety | Specialty Products | Total | |||||||||||||||
| Net sales: | |||||||||||||||||
| Product | $ | 380,840 | $ | 163,609 | $ | 544,449 | |||||||||||
| Services and others | 108,101 | 312 | 108,413 | ||||||||||||||
| Total net sales | 488,941 | 163,921 | 652,862 | ||||||||||||||
| Less: | |||||||||||||||||
| Adjusted cost of goods sold | 160,177 | 103,920 | 264,097 | ||||||||||||||
| Adjusted selling, general and administrative expense | 38,277 | 18,798 | 57,075 | ||||||||||||||
| Segment Adjusted EBITDA | $ | 290,487 | $ | 41,203 | $ | 331,690 | |||||||||||
| Less: | |||||||||||||||||
| Depreciation and amortization | 74,032 | ||||||||||||||||
| Interest and financing expense | 39,135 | ||||||||||||||||
| Founders advisory fees - related party | 435,163 | ||||||||||||||||
| Non-recurring expenses | 2,420 | ||||||||||||||||
| Acquisition costs | 3,578 | ||||||||||||||||
| Stock-based compensation expense | 16,647 | ||||||||||||||||
| Foreign currency gain | (3,038) | ||||||||||||||||
| Loss before income taxes | $ | (236,247) | |||||||||||||||
| Depreciation and amortization | $ | 55,397 | $ | 18,635 | $ | 74,032 | |||||||||||
| Purchases of property and equipment | $ | 18,412 | $ | 11,179 | $ | 29,591 | |||||||||||
| Purchase of intangible assets | $ | 15,226 | $ | — | $ | 15,226 | |||||||||||
| Segment assets | $ | 191,016 | $ | 148,192 | $ | 339,208 | |||||||||||
Year Ended December 31, 2024 | |||||||||||||||||
| Fire Safety | Specialty Products | Total | |||||||||||||||
| Net sales: | |||||||||||||||||
| Product | $ | 340,112 | $ | 124,694 | $ | 464,806 | |||||||||||
| Services and others | 96,162 | — | 96,162 | ||||||||||||||
| Total net sales | 436,274 | 124,694 | 560,968 | ||||||||||||||
| Less: | |||||||||||||||||
| Adjusted cost of goods sold | 160,157 | 72,705 | 232,862 | ||||||||||||||
| Adjusted selling, general and administrative expense | 35,996 | 11,816 | 47,812 | ||||||||||||||
| Segment Adjusted EBITDA | $ | 240,121 | $ | 40,173 | $ | 280,294 | |||||||||||
| Less: | |||||||||||||||||
| Depreciation and amortization | 65,718 | ||||||||||||||||
| Interest and financing expense | 40,461 | ||||||||||||||||
| Founders advisory fees - related party | 198,308 | ||||||||||||||||
| Non-recurring expenses | 6,766 | ||||||||||||||||
| Acquisition costs | 612 | ||||||||||||||||
| Stock-based compensation expense | 12,849 | ||||||||||||||||
| Foreign currency loss | 2,443 | ||||||||||||||||
| Loss before income taxes | $ | (46,863) | |||||||||||||||
| Depreciation and amortization | $ | 51,365 | $ | 14,353 | $ | 65,718 | |||||||||||
| Purchases of property and equipment | $ | 9,449 | $ | 6,082 | $ | 15,531 | |||||||||||
| Segment assets | $ | 83,677 | $ | 189,912 | $ | 273,589 | |||||||||||
Year Ended December 31, 2023 | |||||||||||||||||
| Fire Safety | Specialty Products | Total | |||||||||||||||
| Net sales: | |||||||||||||||||
| Product | $ | 194,166 | $ | 96,554 | $ | 290,720 | |||||||||||
| Services and others | 31,388 | — | 31,388 | ||||||||||||||
| Total net sales | 225,554 | 96,554 | 322,108 | ||||||||||||||
| Less: | |||||||||||||||||
| Adjusted cost of goods sold | 117,242 | 66,711 | 183,953 | ||||||||||||||
| Adjusted selling, general and administrative expense | 32,098 | 9,270 | 41,368 | ||||||||||||||
| Segment Adjusted EBITDA | $ | 76,214 | $ | 20,573 | $ | 96,787 | |||||||||||
| Less: | |||||||||||||||||
| Depreciation and amortization | 64,855 | ||||||||||||||||
| Interest and financing expense | 41,378 | ||||||||||||||||
| Founders advisory fees - related party | (108,481) | ||||||||||||||||
| Intangible impairment | 40,738 | ||||||||||||||||
| Non-recurring expenses | 4,046 | ||||||||||||||||
| Stock-based compensation expense | 1,596 | ||||||||||||||||
| Gain on contingent earn-out | (7,273) | ||||||||||||||||
| Foreign currency gain | (1,655) | ||||||||||||||||
| Income before income taxes | $ | 61,583 | |||||||||||||||
| Depreciation and amortization | $ | 51,178 | $ | 13,677 | $ | 64,855 | |||||||||||
| Purchases of property and equipment | $ | 4,287 | $ | 5,148 | $ | 9,435 | |||||||||||
| Segment assets | $ | 93,200 | $ | 191,946 | $ | 285,146 | |||||||||||
Total segment assets reconciled to consolidated amounts are as follows (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
| Total segment assets | $ | 339,208 | $ | 273,589 | |||||||
| Cash and cash equivalents | 325,927 | 198,456 | |||||||||
| Goodwill | 1,065,211 | 1,034,543 | |||||||||
| Customer lists, net | 628,189 | 637,745 | |||||||||
| Technology and patents, net | 184,804 | 173,307 | |||||||||
| Tradenames, net | 86,330 | 87,365 | |||||||||
| Tax assets | 23,338 | 11,389 | |||||||||
| Total consolidated assets | $ | 2,653,007 | $ | 2,416,394 | |||||||
Net sales by geographical area are as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| United States | 76 | % | 79 | % | 65 | % | |||||||||||
| Canada | 7 | 6 | 14 | ||||||||||||||
Other international sales (1) | 17 | 15 | 21 | ||||||||||||||
| Total net sales | 100 | % | 100 | % | 100 | % | |||||||||||
(1) The Company did not have net sales in excess of 10% in any other countries for the years ended December 31, 2025, 2024 and 2023.
Property, plant and equipment, net by geographical area consisted of the following (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
| United States | $ | 65,565 | $ | 46,580 | |||||||
| Germany | 13,392 | 12,643 | |||||||||
| Other foreign jurisdictions | 6,181 | 5,554 | |||||||||
| Total property, plant and equipment, net | $ | 85,138 | $ | 64,777 | |||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 31, 2022 | |
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.