Relay Therapeutics, Inc. Segments Disclosure
3. Segment Information
As summarized in Note 2, Significant Accounting Policies, the Company’s CODM is the and the Company views its operations as one segment, which is using innovative experimental and computational approaches on protein motion for making medicines to drug protein targets that have previously been intractable or inadequately addressed. The factors used in determining the Company’s segments include the nature of the Company’s operating activities, the organizational and reporting structure, and the type of information provided to and reviewed by the Company’s CODM to allocate resources and evaluate financial performance.
The measure of segment assets is reported on the Company’s consolidated balance sheets as total consolidated assets. The Company only operates in the United States and all tangible assets, consisting of property and equipment and operating lease right-of-use assets, are held in the United States.
The Company’s CODM uses consolidated net loss to evaluate the Company’s expenditures and monitor budget-to-actual results. In connection therewith, the review of budget-to-actual results is used in assessing performance of the Company’s one operating segment, as well as in establishing resource allocations across the Company.
The following tables illustrates information about segment revenue, significant segment expenses, and segment net loss.
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|
Year Ended December 31, |
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2025 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
(in thousands) |
|
|||||||||
|
$ |
15,355 |
|
|
$ |
10,007 |
|
|
$ |
25,546 |
|
|
Less: |
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|
|
|
|
|
|
|
|
|||
Research and development expenses |
|
|
|
|
|
|
|
|
|
|||
External costs for programs in clinical trials |
|
$ |
104,268 |
|
|
$ |
92,096 |
|
|
$ |
101,055 |
|
External costs for platform technologies and preclinical programs |
|
|
38,526 |
|
|
|
76,392 |
|
|
|
76,471 |
|
Employee related expenses (1) |
|
|
57,600 |
|
|
|
71,979 |
|
|
|
77,120 |
|
Other expenses (2) |
|
|
19,930 |
|
|
|
22,302 |
|
|
|
22,512 |
|
General and administrative expenses (3) |
|
|
31,793 |
|
|
|
33,309 |
|
|
|
36,510 |
|
Other segment expenses (income) |
|
|
|
|
|
|
|
|
|
|||
Depreciation expense |
|
|
3,557 |
|
|
|
5,464 |
|
|
|
5,269 |
|
Stock compensation expense in research and development expenses |
|
|
37,981 |
|
|
|
51,622 |
|
|
|
48,351 |
|
Stock compensation expense in general and administrative expenses |
|
|
24,438 |
|
|
|
42,517 |
|
|
|
37,680 |
|
Change in fair value of contingent consideration liability |
|
|
— |
|
|
|
(13,206 |
) |
|
|
(6,422 |
) |
Interest income |
|
|
(27,035 |
) |
|
|
(34,746 |
) |
|
|
(31,045 |
) |
Other expense (income) |
|
|
776 |
|
|
|
(14 |
) |
|
|
18 |
|
Segment net loss |
|
|
(276,479 |
) |
|
|
(337,708 |
) |
|
|
(341,973 |
) |
Reconciliation to consolidated net loss: |
|
|
|
|
|
|
|
|
|
|||
Adjustments or reconciling items |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consolidated net loss |
|
$ |
(276,479 |
) |
|
$ |
(337,708 |
) |
|
$ |
(341,973 |
) |
The expense categories and amounts in the table above align with the segment-level information regularly provided to the CODM.
(1) "Employee related expenses" within research and development expenses excludes stock compensation expense.
(2) "Other expenses" within research and development expenses excludes depreciation expense.
(3) "General and administrative expenses" excludes stock compensation expense and depreciation expense.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
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.