Personalis, Inc. Segments Disclosure
Note 10. Segment and Geographic Information
The Company operates in one reportable segment, which is to provide advanced cancer genomic testing services for precision oncology and personalized testing. The Company develops, markets, and sells testing services to pharmaceutical companies, biopharmaceutical companies, diagnostic companies, universities, non-profits, government entities and cancer patients. It derives revenue primarily in the United States from the sale of genomic testing services and manages its business activities on a consolidated basis. The Company does not have intra-entity sales or transfers. The Company’s CODM is its , who reviews consolidated operating results, accompanied by disaggregated information about net revenues by customer types, as presented below, to make decisions about allocating resources and assessing performance for the entire Company.
Consolidated net loss is used to monitor actual performance compared to plans and forecasts. The CODM assesses performance based on revenue growth which is reported on the consolidated statements of operations. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The measure of segment assets is reported on the consolidated balance sheet as total assets. Substantially all of the Company’s long-lived assets are located in the United States.
The Company attributes revenues to geographic region based on the billing addresses of customers. The following table presents net revenues by geographic region:
|
|
Year ended December 31, |
||
|
|
2025 |
|
2024 |
United States |
|
90% |
|
96% |
Others |
|
10% |
|
4% |
The following table provides information about reported segment revenue, segment loss, and significant segment expenses (in thousands):
|
|
Year ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Revenue |
|
$ |
69,648 |
|
|
$ |
84,614 |
|
Less: |
|
|
|
|
|
|
||
Payroll and related costs |
|
|
69,995 |
|
|
|
66,910 |
|
Lab supplies and outside services |
|
|
14,209 |
|
|
|
12,029 |
|
Facility costs |
|
|
9,934 |
|
|
|
10,132 |
|
Professional services |
|
|
11,248 |
|
|
|
9,079 |
|
Repairs and maintenance |
|
|
8,808 |
|
|
|
8,210 |
|
Change in fair value of the Tempus Warrants |
|
|
— |
|
|
|
18,274 |
|
Depreciation and amortization |
|
|
9,787 |
|
|
|
10,941 |
|
Other segment items(a) |
|
|
34,092 |
|
|
|
35,833 |
|
Interest income |
|
|
(7,155 |
) |
|
|
(5,510 |
) |
Segment and consolidated net loss |
|
$ |
(81,270 |
) |
|
$ |
(81,284 |
) |
(a) Other segment items included in segment net loss include materials cost related to cost of revenue, marketing expenses, office expenses, foreign currency exchange gain and losses, and other overhead expenses.
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.