17. Segment and Geographical Information

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker (CODM), or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s CODM, its Chief Executive Officer, views the Company’s operations and manages the business as one operating segment focused on the development and commercialization of gene therapies to treat an array of diseases. The determination of a single operating segment is consistent with the consolidated financial information regularly provided to the CODM.

The CODM reviews and evaluates consolidated net income (loss) for purposes of assessing performance, making operating decisions and allocating resources. The CODM uses net income (loss) to assess performance versus operating budgets and in the preparation of near-term and long-range operating plans to inform decisions on resource and capital allocation. The CODM reviews consolidated cash, cash equivalents and marketable securities as a measure of segment assets. As of December 31, 2024 and 2023, the Company’s cash, cash equivalents and marketable securities were $244.9 million and $314.1 million, respectively.

The following table presents information about the Company's segment revenues, significant segment expenses regularly provided to the CODM, other segment items and consolidated net income (loss) (in thousands):


	Years Ended December 31,
	2024			2023			2022
Revenues	$	83,328		$	90,242		$	112,724
Less:
Cost of revenues		33,567			37,213			54,545
Research and development expense
Personnel		65,950			73,356			67,466
Direct development and support (a)		97,951			110,337			131,397
Facilities		11,410			11,653			10,284
Stock-based compensation		17,985			20,568			21,368
Depreciation and amortization		15,226			16,352			11,938
Total research and development expense		208,522			232,266			242,453
General and administrative expense
Personnel		20,816			22,304			21,270
Other general and administrative (b)		29,480			41,609			40,340
Facilities		4,856			3,914			3,280
Stock-based compensation		20,478			19,699			19,420
Depreciation and amortization		989			968			971
Total general and administrative expense		76,619			88,494			85,281
Other segment items (c)		8,278			4,237			(10,766	)
Net loss	$	(227,102	)	$	(263,494	)	$	(280,321	)

(a)

Direct development and support includes external goods and services for the development of product candidates and early-stage research activities, laboratory costs, consulting, development cost reimbursement to and from collaborators and other expenses in support of research and development activities.

(b)

Other general and administrative expenses include professional and administrative services, consulting, commercial cost reimbursement to and from collaborators and other corporate overhead expenses.

(c)

Other segment items include credit losses (recoveries), impairment of long-lived assets, other operating expenses (income), interest income from licensing, investment income, interest expense and income tax benefit.

The Company’s interest income during the years ended December 31, 2024, 2023 and 2022 included interest income from licensing as presented in the consolidated statements of operations and comprehensive loss, as well as interest income from investments of $12.1 million, $9.1 million and $5.5 million, respectively, which is included within investment income in the consolidated statements of operations and comprehensive loss.

The Company’s revenues consist of license and royalty revenue. For the year ended December 31, 2024, 36%, 10% and 10% of the Company’s revenues were attributed to the United States, Germany and United Arab Emirates, respectively, and no other countries accounted for 10% or more of the Company’s revenues. For the year ended December 31, 2023, 32% of the Company’s revenues were attributed to the United States and no other countries accounted for 10% or more of the Company’s revenues. For the year ended December 31, 2022, 35% and 10% of the Company’s revenues were attributed to the United States and Germany, respectively, and no other countries accounted for 10% or more of the Company’s revenues. The country of origin for license revenue is determined based on the country of domicile of the licensee. The country of origin for royalty revenue is determined based on the location of the underlying net sales of licensed products.

The substantial majority of the Company’s assets reside in the United States.

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.

REGENXBIO Inc. Segments Disclosure

About Segments Disclosures

Other Available Disclosures