v3.26.1
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

12. SEGMENT REPORTING

The Company has one reportable and operating segment and operates in two principal geographic locations – Canada and the United States. Revenue continues to be derived almost exclusively from projects in North America and predominantly from the United States. The Company’s revenue from operations from external customers, based on location of operations, and information about its non-current assets, is detailed below.

Revenue from external customers

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Canada

 

 

5,162

 

 

 

4,044

 

 

 

10,970

 

 

 

10,922

 

U.S.

 

 

35,148

 

 

 

34,878

 

 

 

71,772

 

 

 

69,295

 

 

 

 

40,310

 

 

 

38,922

 

 

 

82,742

 

 

 

80,217

 

Non-current assets

 

 

 

 

 

 

 

As at June 30,

 

 

As at December 31,

 

 

 

 

 

 

 

2026

 

 

2025

 

Canada

 

 

 

 

 

 

23,313

 

 

 

26,013

 

U.S.

 

 

 

 

 

 

12,527

 

 

 

14,104

 

 

 

 

 

 

 

 

35,840

 

 

 

40,117

 

 

DIRTT has one reportable segment: solutions. The DIRTT solutions segment derives revenues from customers by providing physical products and digital tools through our ICE software to create interior spaces for our customers across the commercial, healthcare, education and government industries. The solutions segment provides digital tools (access to ICE software) and physical products to create modular interior construction spaces for our customers.

DIRTT’s chief operating decision makers are its chief financial officer and chief executive officer. The chief operating decision makers assess performance for the solutions segment and decide how to allocate resources based on gross profit and net income (loss) that also is reported on the Consolidated Statement of Operations and Comprehensive Income (Loss) as consolidated gross profit and net income (loss). The measure of segment assets is reported on the balance sheet as total consolidated assets. The chief operating decision makers use net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the solutions segment or into other parts of the entity, such as to repay long-term debt.

Net income (loss) are used to monitor budget versus actual results. The chief operating decision makers also use net income (loss) in competitive analysis by benchmarking to DIRTT’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation.

DIRTT derives revenue primarily in North America and manages the business activities on a consolidated basis. The technology used in the customer arrangements is based on a single software platform that is deployed to, and implemented by, customers in a similar manner.

Segment profit and loss reconciliation to Net income (loss) after tax

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

($ in thousands)

 

 

($ in thousands)

 

Revenue

 

 

40,310

 

 

 

38,922

 

 

 

82,742

 

 

 

80,217

 

Operating expenses (1)

 

 

12,683

 

 

 

15,156

 

 

 

28,948

 

 

 

30,020

 

Operating income (loss)

 

 

1,301

 

 

 

(4,338

)

 

 

(1,963

)

 

 

(4,660

)

Other (expenses)/income and (losses)/gains (2)

 

 

(242

)

 

 

(2,264

)

 

 

(251

)

 

 

(2,603

)

Net income (loss) after tax

 

 

1,059

 

 

 

(6,602

)

 

 

(2,214

)

 

 

(7,263

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of profit or loss

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net income (loss) after tax

 

 

1,059

 

 

 

(6,602

)

 

 

(2,214

)

 

 

(7,263

)

(1) Includes Sales and marketing, General and administrative, Operations support, Technology and development, Stock-based compensation, and Reorganization costs.

(2) Includes Tax expenses, non-recurring gains and losses, foreign exchange gains (losses), interest income and interest expenses.