v3.26.1
Segment, Geographic and Other Revenue Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment, Geographic and Other Revenue Information
2. Segment, Geographic and Other Revenue Information
The Company operates in a single operating and reportable segment for all periods presented and the Chief Executive Officer has been identified as the chief operating decision maker (the “CODM”). The CODM reviews the Company's financial information on a consolidated basis for purposes of allocating resources and evaluating performance. The CODM uses income from operations to measure the profitability of the segment. These amounts are reported on the Condensed Consolidated Statements of Operations. The measure of segment assets is reported on the Condensed Consolidated Balance Sheets as total consolidated assets.
Effective in the first quarter of 2026, the Company updated the presentation of segment operating expenses provided to the CODM. Amounts previously reported separately as Sales and Marketing and General and Administrative expenses are now presented on a combined basis as Selling, General and Administrative expenses. This change reflects how segment information is currently reviewed by the CODM. Prior‑period segment information has been recast to conform to the current‑period presentation.
The financial data provided to the CODM is as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
US:
SUBLOCADE*$238 $195 $455 $359 
Sublingual & other5752107107
PERSERIS1
581012
Total U.S.
300256572478
Rest of World
43468890
Net revenue343 302 660 568 
Cost of sales50 52 90 96 
Gross profit294 250 570 472 
Operating expenses:
Selling, general and administrative122 158 245 291 
Research and development12 21 28 43 
Total operating expenses
134 179 273 334 
Operating income
160 72 297 138 
Other (income) and expenses:
Interest (income)(3)(6)(5)(10)
Interest expense2 15 9 27 
Loss on debt extinguishment
— — 18 — 
Income before income taxes
160 62 276 121 
Income tax expense
38 44 65 56 
Net income
$122 $18 $211 $65 
*Total SUBLOCADE net revenue
$253 $209 $486 $385 
Depreciation and amortization$2 $3 $4 $5 
Stock-based compensation expense
$11 $8 $20 $14 
1Marketing and promotional activities for PERSERIS were discontinued in 2024.

Significant segment expenses within net income include cost of sales, selling, general and administrative, and research and development at the consolidated level. Other segment items within net income include operating income, interest (income), interest expense, loss on debt extinguishment, and income tax expense. The Company's CODM is also regularly provided depreciation and amortization and stock-based compensation expense information, both of which are presented above and are recorded within cost of sales and selling, general and administrative expenses.
Revenue recognized from performance obligations satisfied in previous periods was $36 million and $64 million in the three and six months ended June 30, 2026 and $26 million and $45 million during the three and six months ended June 30, 2025, respectively.