Note 15 - Segments

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

Segments

NOTE 15 SEGMENTS

We manage our operations in two reportable segments - pharmaceutical and diagnostics. The following is a brief description of our reportable segments and a description of business activities conducted by our corporate operations.

Pharmaceutical — this segment consists of our operations in Chile, Mexico, Ireland, Israel, Spain, Brazil, and Uruguay, Rayaldee product sales, NGENLA royalty and profit-sharing sales, and our pharmaceutical research and development.

Diagnostics — this segment primarily consists of clinical laboratory operations through BioReference and our point-of-care operations.

To provide greater transparency into the factors affecting segment profitability, the Company discloses significant expense categories for each reportable segment in the tables below. Our CODM is Phillip Frost, M.D., our Chairman and Chief Executive Officer. Dr. Frost reviews our operating results and operating plans and makes resource allocation decisions on a Company-wide or aggregate basis. Our CODM may discuss and review financial information at the Pharmaceutical and Diagnostic operating segment level. The CODM uses segment information to evaluate segment profitability, monitor trends, identify risks and opportunities, allocate resources (such as capital expenditures and R&D funding), and set strategic priorities (including new product development and market expansion). These expenses, along with segment revenue, are used to calculate gross margin, a key profitability metric that the CODM uses to assess segment performance. In computing operating income, none of the following items have been included: interest expense, other non-operating income and expenses, and income taxes. Segment operating income (expense) is total revenue, less cost of revenue and operating expenses relative to each segment. There are no significant inter-segment sales, nor is there any inter-segment allocation of interest expense or income taxes.

The following are descriptions of the significant expense categories included in the segment reporting tables below:

For the pharmaceutical segment:

•Cost of product revenue: Represents the direct costs of manufacturing and distributing pharmaceutical products, including raw materials, manufacturing overhead, and distribution costs.

•Selling, general and administrative (SG&A) expenses: Encompasses operating expenses such as salaries, marketing and advertising costs, and administrative overhead.

•Research and development (R&D) expenses: Incurred in developing new pharmaceutical products, including costs related to research, clinical trials, and regulatory approvals.

•Intangible asset amortization: Represents the periodic expensing of acquired intangible assets, such as patents and licenses.

•Depreciation: Relates to the depreciation of property, plant, and equipment used in the segment's operations.

For the diagnostics segment:

•Cost of service revenue: Includes the direct costs of providing diagnostic testing services, such as laboratory supplies, equipment costs, and labor costs.

•Selling, general and administrative (SG&A) expenses: Similar to the Pharmaceuticals segment, includes salaries, marketing expenses, and administrative overhead.

•Research and development (R&D) expenses: Incurred in developing new diagnostic products and services, including costs related to research, clinical studies, regulatory submissions, and new technology development.

•Intangible asset amortization: Represents the periodic expensing of acquired intangible assets, such as intellectual property and customer relationships.

•Other segment items: primarily consists of gains and losses recognized on the sale of businesses or assets.

•Depreciation: Relates to the depreciation of property, plant, and equipment used in the segment's operations.

The tables below present information about reported segments, unallocated corporate operations as well as geographic information for the three and nine months ended September 30, 2025 and 2024:

	For the three months ended September 30,						For the nine months ended September 30,
(In thousands)	2025			2024			2025			2024
Revenue from services:
Pharmaceutical	$	—		$	—		$	—		$	—
Diagnostics		95,244			121,271			299,190			377,557
Corporate		—			—			—			—
	$	95,244		$	121,271		$	299,190		$	377,557
Revenue from products:
Pharmaceutical	$	37,676		$	39,143		$	113,261		$	117,675
Diagnostics		—			—			—			—
Corporate		—			—			—			—
	$	37,676		$	39,143		$	113,261		$	117,675
Revenue from transfer of intellectual property and other:
Pharmaceutical	$	18,749		$	13,218		$	45,978		$	34,272
Diagnostics		—			—			—			—
Corporate		—			—			—			—
	$	18,749		$	13,218		$	45,978		$	34,272
Cost of revenue:
Pharmaceutical	$	21,374		$	24,657		$	69,211		$	69,856
Diagnostics		80,402			108,846			247,303			325,797
Corporate		—			—			—			—
	$	101,776		$	133,503		$	316,514		$	395,653
Gross margin:
Pharmaceutical	$	35,052		$	27,704		$	90,028		$	82,091
Diagnostics		14,842			12,425			51,887			51,760
Corporate		—			—			—			—
	$	49,894		$	40,129		$	141,915		$	133,851
Selling, general and administrative:
Pharmaceutical	$	13,057		$	15,161		$	38,964		$	44,264
Diagnostics		31,503			70,946			102,828			161,208
Corporate		9,244			12,096			30,695			31,719
	$	53,804		$	98,203		$	172,487		$	237,191
Research and development:
Pharmaceutical	$	29,644		$	28,244		$	89,660		$	73,177
Diagnostics		289			493			1,311			1,545
Corporate		145			33			290			67
	$	30,078		$	28,770		$	91,261		$	74,789
Amortization of intangible assets:
Pharmaceutical	$	16,539		$	16,495		$	49,064		$	49,347
Diagnostics		2,992			3,938			9,771			12,943
Corporate		—			—			—			—
	$	19,531		$	20,433		$	58,835		$	62,290
Other segment items:
Pharmaceutical	$	—		$	—		$	—		$	—
Diagnostics		(101,576	)		(121,493	)		(101,576	)		(121,493	)
Corporate		—			—			—			—
	$	(101,576	)	$	(121,493	)	$	(101,576	)	$	(121,493	)
Segment operating loss:
Pharmaceutical	$	(24,189	)	$	(32,196	)	$	(87,660	)	$	(84,697	)
Diagnostics		81,634			58,541			39,553			(2,443	)
Corporate		(9,389	)		(12,129	)		(30,985	)		(31,786	)
	$	48,056		$	14,216		$	(79,092	)	$	(118,926	)

	For the three months ended September 30,				For the nine months ended September 30,
	2025		2024		2025		2024
Depreciation and amortization:
Pharmaceutical	$	18,041	$	18,043	$	53,973	$	53,899
Diagnostics		4,698		6,120		15,281		20,238
Corporate		—		—		—		—
	$	22,739	$	24,163	$	69,254	$	74,137
Revenues:
United States	$	110,923	$	132,663	$	342,014	$	410,422
Ireland		12,078		11,514		29,299		30,579
Chile		14,360		16,576		44,895		49,067
Spain		6,337		6,297		19,501		17,828
Israel		140		196		351		797
Mexico		6,737		5,630		19,263		18,621
Other		1,094		756		3,106		2,190
	$	151,669	$	173,632	$	458,429	$	529,504

Segment assets for the two reportable segments in which we operate are shown in the following tables. Corporate assets are principally cash and are not allocated to an operating segment. Identifiable assets by segment are those assets that are used in our operations in each segment. The accounting policies of the segments are the same as those described in Note 3 summary of significant accounting policies.

	September 30,		December 31,
(In thousands)	2025		2024
Assets:
Pharmaceutical	$	1,322,948	$	1,359,270
Diagnostics		376,985		493,898
Corporate		295,575		347,044
	$	1,995,508	$	2,200,212
Goodwill:
Pharmaceutical	$	320,590	$	309,545
Diagnostics		163,442		219,707
	$	484,032	$	529,252

No customer represented more than 10% of our total consolidated revenue for the nine months ended September 30, 2025 and 2024. As of September 30, 2025 and December 31, 2024, no customer represented more than 10% of our accounts receivable balance.