Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information

Note 8 - Segment Information

At the beginning of the fiscal year 2026, the Company reassessed its reportable segments in accordance with ASC 280, Segment Reporting. Previously, the Company reported its operations under two reportable segments based on geographic regions: Eastern and Western. The Eastern Region included the Company’s operations in Florida, Maryland, Massachusetts, New York, New Jersey, Illinois, and Pennsylvania. The Western Region includes the Company’s operations in Arizona and results from the Nevada business through June 24, 2024 when it was sold and subsequently deconsolidated. Following a review of the Company's operating performance, growth profile, and capital allocation strategy, management determined that the quantitative thresholds under ASC 280-10-50-12 were no longer met under the prior segmentation, and that disaggregating operations based on market maturity and growth profile better reflects how the Chief Operating Decision Maker ("CODM") evaluates performance and allocates resources.

Effective January 1, 2026, the Company changed its reportable segments to Established and Emerging, defined as follows:

 

The Established region reflects matured markets with limited growth opportunities and a lower allocation of capital investment in the short-term. This region includes operations in Arizona, Massachusetts, and Florida. The Emerging region reflects new markets with strong growth opportunities and/or those receiving higher capital investments. This region includes operations in New Jersey, Maryland, New York, Illinois, and Pennsylvania. While the change in presentation reflects a reclassification of operating units into new

segments, there were no changes to the underlying measurement or allocation of revenues, expenses, or assets. Prior periods are now conformed to the current period presentation. While the CODM continues to review the operating performance at a state-level, the revised reportable regions better segments how capital allocation and growth opportunities are identified and monitored.

 

The "Other" category in the disclosure below comprises items not separately identifiable to the two reportable operating segments and are not part of the measures used by the Company when assessing the reportable operating segments’ results. It also includes items related to operating segments of the Company that did not meet the quantitative thresholds under ASC 280-10-50-12 to be considered reportable operating segments, nor did they meet the aggregation criteria under ASC 280-10-50-11 to qualify for aggregation with one of the two reportable operating segments of the Company. All inter-segment profits are eliminated upon consolidation.

The following table presents results by segment for the three and nine months ended September 30, 2026 and 2025:

Reportable Segments

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2026

 

2025

 

2026

 

2025

Revenues, net of discounts

 

 

 

 

 

 

 

 

 

 

 

Established Region

$

17,899

 

$

16,626

 

$

50,285

 

$

54,718

Emerging Region

 

20,468

 

 

18,763

 

 

56,941

 

 

53,977

Total

$

38,367

 

$

35,389

 

$

107,226

 

$

108,695

Gross profit

 

 

 

 

 

 

 

 

 

 

 

Established Region

$

7,763

 

$

8,358

 

$

23,684

 

$

28,243

Emerging Region

 

8,909

 

 

7,224

 

 

25,007

 

 

22,369

Total

$

16,672

 

$

15,582

 

$

48,691

 

$

50,612

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

Established Region

$

5,648

 

$

6,554

 

$

17,396

 

$

20,443

Emerging Region

 

4,104

 

 

4,144

 

 

12,459

 

 

12,300

Other

 

3,355

 

 

4,333

 

 

11,133

 

 

14,918

Total

$

13,107

 

$

15,031

 

$

40,988

 

$

47,661

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

Established Region

$

2,494

 

$

2,682

 

$

7,475

 

$

8,095

Emerging Region

 

2,117

 

 

1,318

 

 

5,176

 

 

3,972

Other

 

400

 

 

110

 

 

625

 

 

342

Total

$

5,011

 

$

4,110

 

$

13,276

 

$

12,409

Write-downs, (recoveries) and other charges, net

 

 

 

 

 

 

 

 

 

 

 

Established Region

$

(5)

 

$

531

 

$

726

 

$

1,839

Emerging Region

 

188

 

 

60

 

 

(100)

 

 

60

Other

 

—

 

 

95

 

 

—

 

 

268

Total

$

183

 

$

686

 

$

626

 

$

2,167

Income (loss) from operations

 

 

 

 

 

 

 

 

 

 

 

Established Region

$

(374)

 

$

(1,409)

 

$

(1,913)

 

$

(2,133)

Emerging Region

 

2,500

 

 

1,702

 

 

7,472

 

 

6,037

Other

 

(3,755)

 

 

(4,538)

 

 

(11,758)

 

 

(15,529)

Total

$

(1,629)

 

$

(4,245)

 

$

(6,199)

 

$

(11,625)

Other income (expenses), net

 

 

 

 

 

 

 

 

 

 

 

Established Region

$

170

 

$

(1,256)

 

$

16

 

$

30,746

Emerging Region

 

284

 

 

(252)

 

 

(121)

 

 

917

Other

 

(5,008)

 

 

(3,320)

 

 

(14,584)

 

 

(34,539)

Total

$

(4,554)

 

$

(4,828)

 

$

(14,689)

 

$

(2,876)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

Established Region

$

1,587

 

$

1,404

 

$

6,669

 

$

4,148

Emerging Region

 

129

 

 

235

 

 

900

 

 

800

Other

 

5,298

 

 

1,833

 

 

13,473

 

 

6,664

Total

$

7,014

 

$

3,472

 

$

21,042

 

$

11,612

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

Established Region

$

(1,791)

 

$

(4,069)

 

$

(8,565)

 

$

24,464

Emerging Region

 

2,655

 

 

1,215

 

 

6,451

 

 

6,154

Other

 

(14,061)

 

 

(9,691)

 

 

(39,816)

 

 

(56,731)

Total

$

(13,197)

 

$

(12,545)

 

$

(41,930)

 

$

(26,113)

 

Supplemental segment disclosures:

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2026

 

2025

 

2026

 

2025

Purchase of property, plant and equipment

 

 

 

 

 

 

 

 

 

 

 

Established Region

$

811

 

$

2,161

 

$

2,789

 

$

5,901

Emerging Region

 

796

 

 

6,152

 

 

10,762

 

 

10,544

Other

 

(41)

 

 

58

 

 

(34)

 

 

314

Total

$

1,566

 

$

8,371

 

$

13,517

 

$

16,759

Purchase of other intangible assets

 

 

 

 

 

 

 

 

 

 

 

Established Region

$

(0)

 

$

—

 

$

8

 

$

—

Emerging Region

 

—

 

 

—

 

 

—

 

 

—

Other

 

72

 

 

9

 

 

185

 

 

82

Total

$

72

 

$

9

 

$

193

 

$

82

 

 

 

 

 

 

 

 

As of September 30,

 

As of December 31,

 

 

 

 

 

 

 

 

2026

 

 

2025

Assets

 

 

 

 

 

 

 

 

 

 

 

Established Region

 

 

 

 

 

 

$

151,568

 

$

160,437

Emerging Region

 

 

 

 

 

 

 

94,862

 

 

77,950

Other

 

 

 

 

 

 

 

11,196

 

 

17,599

Total

 

 

 

 

 

 

$

257,626

 

$

255,986

Major Customers

Major customers are defined as customers that each individually account for greater than 10.0% of the Company’s annual revenues. For the three and nine months ended September 30, 2026 and 2025, no sales were made to any one customer that represented in excess of 10.0% of the Company’s total revenues.

Geographic Information

As of September 30, 2026 and 2025, substantially all of the Company’s assets were located in the United States and all of the Company’s revenues were earned in the United States.

Disaggregated Revenues

The Company disaggregates revenues into categories that depict how the nature, amount, timing and uncertainty of the revenues and cash flows are affected by economic factors. For the three and nine months ended September 30, 2026 and 2025, the Company disaggregated its revenues as follows:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2026

 

2025

 

2026

 

2025

Revenues, net of discounts

 

 

 

 

 

 

 

 

 

 

 

iAnthus branded products

$

16,170

 

$

15,441

 

$

45,018

 

$

49,402

Third party branded products

 

12,615

 

 

13,173

 

 

36,462

 

 

41,194

Wholesale/bulk/other products

 

9,582

 

 

6,775

 

 

25,746

 

 

18,099

Total

$

38,367

 

$

35,389

 

$

107,226

 

$

108,695