Quarterly report [Sections 13 or 15(d)]

SEGMENT DISCLOSURES

v3.26.1
SEGMENT DISCLOSURES
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT DISCLOSURES SEGMENT DISCLOSURES
The Company has one reportable operating segment, IoT services. This segment sells IoT services that are grouped into two primary categories: IoT Connectivity services and IoT Solutions services (collectively, the “Services”) as well as products including IoT Connectivity (consisting of SIM cards) and IoT devices (within a comprehensive IoT solution) together referred to as “Products”.
The Company’s Chief Operating Decision Maker (“CODM”) is its President and Chief Executive Officer. The CODM uses Net Income (Loss), as reported on the condensed consolidated statements of operations and comprehensive loss, for the purposes of making operating decisions, allocating resources, and evaluating financial performance. The Company derived approximately 84% and 86% of its revenues from the United States for the three months ended March 31, 2026 and 2025, respectively. No single customer of the Company generated 10% or more of the Company’s total net sales for the three months ended March 31, 2026 and 2025, respectively. The measure of segment assets is reported on the Company’s condensed consolidated balance sheets as total consolidated assets. The segment’s accounting policies are the same as the accounting policies for the Company, as described in Part II, Item 8, Note 2 — Summary of Significant Accounting Policies of the Company’s Annual Report on Form 10-K.

The following table sets forth the operating financial results of the Company’s singular operating segment that are regularly reviewed by the Company’s CODM for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,
(in thousands) 2026 2025
Services revenue $ 55,857  $ 55,431 
Products revenue 9,962  16,711 
Total revenue $ 65,819  $ 72,142 
Less: expenses
Cost of revenue, Services, excluding depreciation and amortization $ 21,139  $ 23,326 
Cost of revenue, Products, excluding depreciation and amortization 5,564  9,696 
Salaries and benefits 16,651  18,502 
Interest expense 13,428  12,977 
Depreciation and amortization 13,151  13,911 
Change in fair value of warrant liabilities to affiliates 11,544  (1,804)
Professional services 5,231  2,689 
Other selling, general, and administrative expenses (1)
2,687  1,074 
License, memberships & subscriptions 1,848  1,961 
Facilities and office 1,269  1,845 
Foreign exchange 1,253  (1,482)
Network services 744  1,072 
Channel partner commissions 437  2,042 
Income tax expense 74  1,109 
Interest income (258) (144)
Other (487) 276 
Segment net loss $ (28,456) $ (14,908)

(1) Certain expense line items which the Company deemed immaterial, both individually and in the aggregate, primarily comprised of travel and expense, sales and use tax, and bad debt expense.