Tarsus Pharmaceuticals, Inc.TARS

Tarsus Pharmaceuticals, Inc. Segments Disclosure

10-KFiled Feb 23, 20262 min read
SEGMENT REPORTING
The Company manages business activities on an aggregated basis and operates in one reportable segment: therapeutics. The therapeutics segment derives revenue primarily through sales of XDEMVY to specialty pharmacies and distributors in the U.S, who in turn sell it directly to clinics, hospitals, pharmacies and federal healthcare programs. The segment also generates license fees and collaboration revenue related to the China Out-License (see Note 10). The accounting policies of the therapeutics segment are the same as those described in the summary of significant accounting policies (see Note 2).
The Company’s chief operating decision-maker (“CODM”) is its Chief Executive Officer (“CEO”). The CODM uses net loss, as reported in the accompanying Statements of Operations and Comprehensive Loss, to assess performance of the therapeutics segment and in deciding whether to allocate resources into the therapeutics segment or outside the segment, such as for acquisitions or new in-license agreements. The CODM uses net loss to regularly monitor budget versus actual results which are used in assessing performance of the segment and in establishing management’s compensation. The CODM does not review assets in evaluating the results of the therapeutics segment, and therefore, such information is not presented.
The following table provides the operating financial results of the therapeutics segment:
 Year Ended December 31,
 202520242023
Revenues:
Product sales, net$451,360 $180,059 $14,729 
License fees and collaboration revenue— 2,894 2,718 
Total revenues451,360 182,953 17,447 
Operating expenses:
Cost of sales30,684 12,826 1,593 
Research and development64,322 53,386 50,312 
Selling and marketing267,684 140,482 63,301 
General and administrative159,639 96,828 45,399 
Total operating expenses522,329 303,522 160,605 
Loss from operations(70,969)(120,569)(143,158)
Other reconciling items(1)
4,551 5,015 7,265 
Net loss$(66,418)$(115,554)$(135,893)
Other segment disclosures:
Interest income$15,747 $15,014 $10,337 
Interest expense$(8,935)$(7,849)$(3,346)
Depreciation and amortization expense$1,816 $1,225 $877 
(1) Other reconciling items primarily includes interest income, interest expense, and provision for income taxes. For the year ended December 31, 2024, other reconciling items also included loss on debt extinguishment.

Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 25, 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.

Other Available Disclosures

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