SharkNinja, Inc.SN
SharkNinja, Inc. Segments Disclosure
3. Segment Reporting
Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated on a regular basis by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company has two operating segments, Domestic and International, for which discrete financial information is available and regularly reviewed by the CODM, who is the Company’s Chief Executive Officer (“CEO”). Domestic consists of the United States and Canada, and International consists of markets outside the United States and Canada.
The Company has determined that these two operating segments are aggregated into one reportable segment based on the criteria in ASC 280-10-50-11. Domestic and International have similar economic characteristics, including similar long-term gross margin profiles, and are similar in the qualitative factors specified in ASC 280-10-50-11, including the nature of the products and services, the nature of the production processes, the type or class of customer, and the methods used to distribute products. Both operating segments sell substantially the same products and services, which are supported by a single global sourcing/manufacturing ecosystem and distribution model, and serve similar classes of customers (including large retailers and end consumers).
The CODM uses gross profit as the primary measure to assess performance and allocate resources, and reviews operating results, including gross profit information, at both the consolidated level and by geographic operating segment. The CODM also reviews operating expenses and other performance information primarily on a consolidated basis, including comparisons of functional spend categories to forecast, to assess variances and trends. Transactions between operating segments are not material. The following table presents selected financial information with respect to the Company’s single reportable segment for the years ended December 31, 2025, 2024 and 2023:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Net sales | $ | 6,399,188 | $ | 5,528,639 | $ | 4,253,710 | |||||||||||
| Less: | |||||||||||||||||
| Cost of sales | 3,262,698 | 2,866,648 | 2,345,858 | ||||||||||||||
| Advertising expenses and consumer insight initiatives | 641,334 | 597,398 | 415,454 | ||||||||||||||
Personnel expenses(1) | 568,087 | 461,038 | 348,479 | ||||||||||||||
| Delivery and distribution expenses | 433,904 | 367,749 | 254,057 | ||||||||||||||
Professional service expenses(2) | 147,518 | 151,494 | 98,543 | ||||||||||||||
| Merchant and processing fees | 80,026 | 70,509 | 53,965 | ||||||||||||||
| Facilities and technology support costs | 82,584 | 63,049 | 44,658 | ||||||||||||||
Depreciation and amortization expenses(3) | 69,991 | 62,561 | 60,199 | ||||||||||||||
| Prototypes and testing expenses | 54,773 | 50,364 | 28,868 | ||||||||||||||
Transaction-related costs(4) | 8,458 | 1,342 | 82,277 | ||||||||||||||
Other segment items(5) | 129,534 | 192,325 | 147,788 | ||||||||||||||
| Interest expense, net | 48,600 | 63,715 | 44,909 | ||||||||||||||
| Other (income) expense, net | (28,597) | 7,980 | 35,427 | ||||||||||||||
| Provision for income taxes | 198,904 | 133,762 | 126,150 | ||||||||||||||
| Segment net income | $ | 701,374 | $ | 438,705 | $ | 167,078 | |||||||||||
| Reconciliation of profit or loss | |||||||||||||||||
| Adjustments and reconciling items | — | — | — | ||||||||||||||
| Consolidated net income | $ | 701,374 | $ | 438,705 | $ | 167,078 | |||||||||||
(1)Excludes (i) shared-based compensation, a non-cash expense related to awards issued from the SharkNinja and JS Global equity incentive plans and (ii) shareholder-funded executive bonuses, which reflects cash bonuses paid to certain executives by Mr. Xuning Wang, the Chairperson of the board of directors and the Company’s controlling shareholder, which had no impact on the Company’s overall cash flow. These costs have been excluded from personnel expenses and reclassified to other segment items, as they are not presented to or reviewed by the CODM. Additionally, it excludes certain costs incurred related to the separation and distribution from JS Global, which have been reclassified to transaction-related costs.
(2)Excludes litigation costs incurred and related settlements for certain patent infringement claims, false advertising claims against us, and product safety concerns, and excludes certain costs incurred related to the separation and distribution from JS Global, secondary offering transactions and transaction-related due diligence initiatives, and costs incurred related to the voluntary product recall. These costs have been excluded from professional service expenses and reclassified to other segment items or transaction-related costs, as they are not presented to or reviewed by the CODM.
(3)Excludes amortization of acquired intangible assets that we do not consider normal recurring operating expenses, as the intangible assets relate to JS Global’s acquisition of our business. These costs have been excluded from depreciation and amortization expenses and reclassified to other segment items, as they are not presented to or reviewed by the CODM.
(4)Represents certain costs incurred related to the separation and distribution from JS Global, secondary offering transactions and transaction-related due diligence initiatives.
(5)Other segment items include travel expenses, commissions, miscellaneous expenses and the expenses listed in Notes 1 through 3 above.
The accounting policies of the Company’s reportable segment are the same as those described in “Note 2 - Summary of Significant Accounting Policies.” Segment assets are not regularly provided to the CODM, and therefore the measure of segment assets is reported as total consolidated assets.
Entity-Wide Information
Net sales by geographical region can be found in the disaggregation of net sales in “Note 2 - Summary of Significant Accounting Policies.” In addition, the following table presents the Company’s property and equipment, net of depreciation and amortization, by geographic region:
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in thousands) | |||||||||||
| United States | $ | 51,896 | $ | 66,858 | |||||||
| China | 150,166 | 112,988 | |||||||||
| Rest of World | 30,164 | 31,618 | |||||||||
| Total property and equipment, net | $ | 232,226 | $ | 211,464 | |||||||
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.