ARS Pharmaceuticals, Inc. Segments Disclosure
16. Segment Information
The Company reports segment information using the management approach and views its operations and manages its business as a operating segment. The Company’s Chief Operating Decision Maker (“CODM”), who is the , allocates resources and evaluates the performance of the operating segment based on historical and projected product sales, segment operating expenses, and consolidated net (loss) income, as reflected in the accompanying consolidated statements of operations and comprehensive (loss) income, which is the segment measure of (loss) income.
The segment reports that are provided to the CODM are tracked against the Company’s internally budgeted expenses. The segment operating expense categories consist primarily of the Company’s functional departments: clinical, development, medical affairs, sales and marketing, and general and administrative. The CODM does not review assets when evaluating the operating segment’s performance; therefore, this information is not presented.
Segment reporting for the years ended December 31, 2025 and 2024 (in thousands):
|
|
Years Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Total revenue |
|
$ |
84,278 |
|
|
$ |
89,149 |
|
Less segment operating expenses: |
|
|
|
|
|
|
||
Cost of goods sold |
|
|
20,423 |
|
|
|
977 |
|
Clinical |
|
|
5,342 |
|
|
|
6,113 |
|
Development |
|
|
5,315 |
|
|
|
8,485 |
|
Medical affairs |
|
|
4,334 |
|
|
|
2,462 |
|
Sales and marketing |
|
|
176,087 |
|
|
|
36,679 |
|
General and administrative |
|
|
29,352 |
|
|
|
22,849 |
|
Stock-based compensation |
|
|
22,095 |
|
|
|
14,534 |
|
Other segment operating expenses |
|
|
778 |
|
|
|
133 |
|
Other segment (income) expense: |
|
|
|
|
|
|
||
Interest income |
|
|
(10,669 |
) |
|
|
(11,369 |
) |
Interest expense |
|
|
2,599 |
|
|
|
— |
|
Income tax (benefit) expense |
|
|
(80 |
) |
|
|
288 |
|
Segment net (loss) income |
|
$ |
(171,298 |
) |
|
$ |
7,998 |
|
The following table summarizes revenue by geographic area based on the customers’ location (in thousands):
|
|
Years Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
United States |
|
$ |
72,192 |
|
|
$ |
7,255 |
|
Rest of world |
|
|
12,086 |
|
|
|
81,894 |
|
Total revenue |
|
$ |
84,278 |
|
|
$ |
89,149 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 20, 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.