| Segment reporting |
Note 39.Segment reporting The Group has two operating and reportable segments that meet the criteria set forth in ASC 280-10-50: Semiconductors and ASIC. During the year ended December 31, 2025, following the acquisition of IC’Alps on August 4, 2025, the Group updated its reportable segments to reflect changes in its internal management reporting structure. Prior to the acquisition of IC’Alps, the Group’s operations were primarily composed of the Semiconductors business and corporate activities. Corporate activities are now included within “Other profit or loss.” Prior period segment information has been recast to conform to the current year presentation. The Group’s Chief Executive Officer, who is the Chief Operating Decision Maker, evaluates segment performance and allocates resources based on net sales, gross profit (where applicable), and operating income or loss. In making these decisions, the Chief Operating Decision Maker considers budgets, budget-to-actual variances, and key operating metrics, and allocates resources, including employees, property, plant and equipment, and financial resources, across the reportable segments. Both the Semiconductors and ASIC reportable segments are strategic business units that offer distinct products and services and are managed separately because they require dedicated resources and targeted marketing strategies. The Semiconductors segment encompasses the design, manufacturing, sales and distribution of high-end, Common Criteria EAL5+ & FIPS 140-3-certified secure microprocessors. The ASIC segment’s operations include a complete offering for Application Specific Integrated Circuits (ASIC) and Systems on Chip (SoC) development from circuit specification, mastering design in-house, up to qualification and the management of the entire production supply chain. The ASIC reportable segment did not exist prior to August 4, 2025, when SEALSQ acquired IC’Alps. The accounting policies of the segments are consistent with those described in the summary of significant accounting policies. Segment operating income includes directly attributable revenues and expenses. “Other segment items” include corporate expenses and other non-operating items that are not allocated to the reportable segments. The Group accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. | | | | | | | | | | | | | 12 months ended December 31, | | 2025 | | 2024 | USD’000 | | Semiconductors | | ASIC | | Total | | Semiconductors | | ASIC | | Total | Revenues from external customers | | 14,651 | | 3,601 | | 18,252 | | 10,981 | | — | | 10,981 | Intersegment revenues | | | | 483 | | 483 | | | | — | | — | | | 14,651 | | 4,084 | | 18,735 | | 10,981 | | — | | 10,981 | | | | | | | | | | | | | | Reconciliation of revenue | | | | | | | | | | | | | Elimination of intersegment revenue | | | | (483) | | (483) | | | | | | — | Total consolidated revenue | | | | | | 18,252 | | | | | | 10,981 | | | | | | | | | | | | | | Less:1 | | | | | | | | | | | | | Cost of revenue | | 9,203 | | 419 | | 9,622 | | 7,253 | | — | | 7,253 | Segment gross profit | | 5,448 | | 3,182 | | 8,630 | | 3,728 | | — | | 3,728 | | | | | | | | | | | | | | Less:1 | | | | | | | | | | | | | Total operating expenses | | 17,737 | | 5,022 | | 22,759 | | 12,845 | | — | | 12,845 | Other segment items | | 1,269 | | (240) | | 1,029 | | (109) | | — | | (109) | Segment profit /(loss) before income taxes | | (13,558) | | (1,600) | | (15,158) | | (9,008) | | — | | (9,008) | | | | | | | | | | | | | | Reconciliation of profit or loss (segment profit/(loss)) | | | | | | | | | | | | | Other profit or loss2 | | | | | | (19,029) | | | | — | | (9,108) | Elimination of intersegment profits | | | | | | (21) | | | | — | | — | Loss before income taxes | | | | | | (34,208) | | | | — | | (18,116) | | | | | | | | | | | | | | Other segment disclosures | | | | | | | | | | | | | Interest revenue | | 7 | | — | | 7 | | 160 | | — | | 160 | Interest expense | | 370 | | 51 | | 421 | | 95 | | — | | 95 | Depreciation and amortization | | 678 | | 1,525 | | 2,203 | | 628 | | — | | 628 | Profit / (loss) from intersegment sales | | — | | 21 | | 21 | | — | | — | | — | Income tax recovery / (expense) | | — | | (171) | | (171) | | (3,077) | | — | | (3,077) | Segment assets | | 17,171 | | 30,721 | | 47,892 | | 13,564 | | — | | 13,564 |
| | | | | | | 12 months ended December 31, | | 2023 | USD’000 | | Semiconductors | | ASIC | | Total | Revenues from external customers | | 30,058 | | — | | 30,058 | Intersegment revenues | | — | | — | | — | | | 30,058 | | — | | 30,058 | | | | | | | | Reconciliation of revenue | | | | | | | Elimination of intersegment revenue | | | | — | | — | Total consolidated revenue | | | | — | | 30,058 | | | | | | | | Less:1 | | | | | | | Cost of revenue | | 16,009 | | — | | 16,009 | Segment gross profit | | 14,049 | | — | | 14,049 | | | | | | | | Less:1 | | | | | | | Total operating expenses | | 12,300 | | — | | 12,300 | Other segment items | | (1,706) | | — | | (1,706) | Segment profit /(loss) before income taxes | | 3,455 | | — | | 3,455 | | | | | | | | Reconciliation of profit or loss (segment profit/(loss)) | | | | | | | Other profit or loss2 | | | | — | | (6,498) | Elimination of intersegment profits | | | | — | | — | Loss before income taxes | | | | — | | (3,043) | | | | | | | | Other segment disclosures | | | | | | | Interest revenue | | 88 | | — | | 88 | Interest expense | | 109 | | — | | 109 | Depreciation and amortization | | 571 | | — | | 571 | Profit / (loss) from intersegment sales | | — | | — | | — | Income tax recovery / (expense) | | (218) | | — | | (218) | Segment assets | | 23,736 | | — | | 23,736 |
| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown. |
| (2) | Profit or loss from segments below the quantitative thresholds are attributable to two operating segments that include the sales and distribution of semiconductors. None of those segments has ever met any of the quantitative thresholds for determining reportable segments. It also includes the holding company SEALSQ Corp, that does not meet the definitions of a reportable segment. |
Other segment items for each reportable segment are made up of non-operating expenses, including management expenses, foreign exchanges gains and losses, debt discount amortization and financing costs. | | | | | | | As at December 31, | USD’000 | | 2025 | | 2024 | Asset reconciliation | | | | | Total assets from reportable segments | | 47,892 | | 13,564 | Other assets (incl. goodwill)1 | | 524,536 | | 110,502 | Elimination of intersegment receivables | | (29,737) | | (7,168) | Elimination of intersegment investments | | (38,512) | | (19,332) | Consolidated total assets | | 504,179 | | 97,566 |
| (1) | Assets from segments below the quantitative thresholds are attributable to two operating segments that include the sales and distribution of semiconductors. None of those segments has ever met any of the quantitative thresholds for determining reportable segments. Most of Other assets refers to SEALSQ Corp, as the holding is currently excluded from the reportable segments. Most of Other assets consists of cash. |
Revenue and property, plant and equipment by geography The following tables summarize geographic information for net sales based on the billing address of the customer, and for property, plant and equipment. | | | | | | | Net sales by region | | 12 months ended December 31, | USD’000 | | 2025 | | 2024 | | 2023 | North America | | 10,487 | | 7,500 | | 16,531 | Europe, Middle East & Africa | | 4,444 | | 1,839 | | 9,985 | Asia Pacific | | 3,227 | | 1,642 | | 3,466 | Latin America | | 94 | | — | | 76 | Total net sales | | 18,252 | | 10,981 | | 30,058 |
| | | | | Property, plant and equipment, net of depreciation, by region | | As at December 31, | | As at December 31, | USD’000 | | 2025 | | 2024 | Europe, Middle East & Africa | | 3,770 | | 3,201 | Total Property, plant and equipment, net of depreciation | | 3,770 | | 3,201 |
|