v3.26.3
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 38. Segment reporting

 

The Group has two operating and reportable segments that meet the criteria set forth in ASC 280-10-50: Semiconductors and ASIC.

 

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 of the Group. 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.

Unaudited 6 months ended June 30,  2026   2025 
USD’000  Semiconductors   ASIC   Total   Semiconductors   ASIC   Total 
Revenues from external customers   8,603    2,504    11,107    4,825    
-
    4,825 
Intersegment revenues        1,302    1,302    
-
    
-
    
-
 
    8,603    3,806    12,409    4,825    
-
    4,825 
                               
Reconciliation of revenue                              
Elimination of intersegment revenue        (1,302)   (1,302)             
-
 
Other revenue2             44                
Total consolidated revenue             11,151              4,825 
                               
Less:1                              
Cost of revenue   4,910    821    5,731    3,199    
-
    3,199 
Segment gross profit   3,693    1,683    5,376    1,626    
-
    1,626 
                               
Less:1                              
Total operating expenses   11,113    6,612    17,725    7,328    
-
    7,328 
Other segment items (gain) / loss   (129)   517    388    691    
-
    691 
Segment profit / (loss) before income taxes   (7,291)   (5,446)   (12,737)   (6,393)   
-
    (6,393)
                               
Reconciliation of profit or loss (segment profit/(loss))                              
Other profit or loss2             (14,895)             (13,635)
Elimination of intersegment profits             (62)             
-
 
Income / (loss) before income taxes             (27,694)             (20,028)
                               
Other segment disclosures                              
Interest revenue   
-
    
-
    
-
    7    
-
    7 
Interest expense   358    35    393    7    
-
    7 
Depreciation and amortization   421    2,238    2,659    313    
-
    313 
Profit / (loss) from intersegment sales   
-
    62    62    
-
    
-
    
-
 
Income tax recovery / (expense)   
-
    295    295    
-
    
-
    
-
 
Segment assets   21,418    29,399    50,817    13,233         13,233 

 

(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 four operating segments that include the sales and distribution of semiconductors, and the newly acquired Wecan and Miraex. 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.

 

Asset reconciliation  Unaudited
6 months ended June 30,		 
USD’000  2026   2025 
Total assets from reportable segments   50,817    13,233 
Other assets1   654,619    162,549 
Elimination of intersegment receivables   (45,798)   (14,430)
Elimination of intersegment investment and goodwill   (44,997)   (19,332)
Consolidated total assets   614,641    142,020 

 

(1)Assets from segments below the quantitative thresholds are attributable to operating activities including semiconductor sales and distribution, as well as the newly acquired Wecan and Miraex. None of these individual segments met the quantitative thresholds for reportable segments during the period. Most of Other assets refers to SEALSQ Corp, as the holding is currently excluded from the reportable segments and consists mostly 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  Unaudited
6 months ended June 30,		 
USD’000  2026   2025 
North America   5,560    3,083 
Europe, Middle East & Africa   3,705    852 
Asia Pacific   1,886    795 
Latin America   
-
    95 
Total net sales   11,151    4,825 

 

Property, plant and equipment, net of depreciation, by region
USD’000		  As of
June 30,
2026
(unaudited)		   As of
December 31,
2025		 
Europe, Middle East & Africa   5,014    3,770 
Total Property, plant and equipment, net of depreciation   5,014    3,770