v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate under the Itron brand worldwide and manage and report under four reportable segments: Device Solutions, Networked Solutions, Outcomes, and Resiliency Solutions. Resiliency Solutions is a new reportable segment starting in the fourth quarter of 2025. We define these segments based on the structure in which internally reported financial information is regularly provided to the chief operating decision maker (CODM) to analyze financial performance, make strategic decisions, and allocate resources. The Company's CODM is the chief executive officer.

Segment Products

Device Solutions – This segment primarily includes hardware products used for measurement, control, or sensing. Examples from the Device Solutions portfolio include: standard endpoints that are shipped without Itron communications, such as our standard electricity, gas, and water meters for a variety of global markets and adhering to regulations and standards within those markets, as well as our heat and allocation products; communicating meters designed to operate outside of Itron end-to-end solutions and designed to meet market requirements; and the implementation and installation of associated devices.

Networked Solutions – This segment primarily includes a combination of communicating endpoints (e.g., smart meters, modules, endpoints, and sensors), network infrastructure, network design services, and associated headend management and application software designed and sold as a complete solution for acquiring and transporting robust application-specific data. Networked Solutions includes products, software and services for the implementation, installation, and management of communicating endpoints and data networks. The Industrial Internet of Things (IIoT) solutions supported by this segment include automated meter reading (AMR) and advanced metering infrastructure (AMI) for electricity, water, and gas; distributed energy resource management (DERMs); grid edge devices; distribution automation communications; smart lighting; and smart city sensors and applications. Our IIoT platform allows utility and smart city applications to be run and managed on a flexible, secure, and interoperable multi-purpose network.

Outcomes – This segment primarily includes our value-added, enhanced software and services, including use of distributed compute to manage, organize, analyze, and interpret raw, anonymized data using artificial intelligence, machine learning, statistical modeling, and other analytics. This delivers new value for utilities, municipalities, and cities through improving decision making, maximizing operational profitability, engaging consumers, ensuring safety, enhancing resource efficiency, and improving grid resiliency and reliability. Outcomes supports high-value use cases, such as data management, grid planning and operations, AMI operations, gas distribution safety, non-revenue water reduction, revenue assurance, distributed energy resources (DER) management, energy forecasting, consumer engagement, and smart payment. Utilities leverage these outcomes to unlock the capabilities of their networks and devices, improve the productivity of their workforce, increase the reliability of
their operations, manage and optimize the proliferation of DERs, address grid complexity, and enhance the customer experience. Revenue from these offerings are primarily recurring in nature and would include any direct management of Device Solutions, Networked Solutions, and other third-parties' products on behalf of our end customers.

Resiliency Solutions – This segment primarily includes software and services for worker safety, emergency preparedness and response, damage prevention, and digital construction management for critical infrastructure providers and their supporting contractors. These solutions enable utilities to plan smarter, respond faster, and operate more safely and are enhanced through the use of artificial intelligence-based models to predict events to aid in compliance, incident remedy, and prevention.

Intersegment revenues are minimal. Certain operating expenses are allocated to the reportable segments based upon internally established allocation methodologies. Corporate operating expenses, interest income, interest expense, other income (expense), and the income tax provision (benefit) are neither allocated to the segments, nor are they included in the measure of segment performance. These amounts are not included in the significant segment expense amounts below. Goodwill impairment charges are recognized in Corporate unallocated. No asset information for reportable segments is provided to the CODM. We do not manage the performance of the segments on a balance sheet basis. Other income (expense) primarily includes interest income, interest expense, and amortization of prepaid debt fees, and is not allocated to our segments.

The CODM assesses the segments' performance primarily by using each segment's adjusted operating income, predominantly in the annual budget and periodic forecasting processes. The CODM considers budget-to-actual and forecast-to-actual variances for these measures when making decisions about the allocation of operating and capital resources to each segment, including evaluating pricing strategy. Prior to the fourth quarter of 2025, the CODM used gross margin as the primary segment performance metric. Starting in the fourth quarter of 2025, the CODM believes adjusted segment operating income provides a more complete metric for allocating resources and assessing segment performance in line with our recent business acquisition and exclusion of amortization of core-developed technology.
Information about our reportable segments and Corporate unallocated and the reconciliation to income before income taxes was as follows:

Three Months Ended September 30, 2026
In thousandsDevice Solutions
Networked Solutions
OutcomesResiliency SolutionsTotal
Product revenues$101,189 $359,581 $27,276 $956 $489,002 
Service revenues331 29,921 64,965 15,114 110,331 
Total revenues101,520 389,502 92,241 16,070 599,333 
Adjusted cost of revenues (1)
65,620 226,817 55,339 4,117 
Adjusted sales, general and administrative2,887 6,991 4,464 3,148 
Adjusted research and development4,162 25,274 13,610 4,592 
Adjusted segment operating income28,851 130,420 18,828 4,213 182,312 
Reconciliation of adjusted segment operating income
Amortization of core-developed technology intangible assets(2,570)
Corporate unallocated expenses(84,254)
Total other income (expense)1,533 
Consolidated income before income taxes$97,021 
(1) Excludes amortization of core-developed technology intangible assets.
Nine Months Ended September 30, 2026
In thousandsDevice Solutions
Networked Solutions
OutcomesResiliency SolutionsTotal
Product revenues$335,857 $989,929 $92,031 $2,448 $1,420,265 
Service revenues1,485 89,474 192,519 45,474 328,952 
Total revenues337,342 1,079,403 284,550 47,922 1,749,217 
Adjusted cost of revenues (1)
218,664 628,491 170,244 12,354 
Adjusted sales, general and administrative8,890 21,457 14,290 8,877 
Adjusted research and development12,524 76,838 38,291 13,771 
Adjusted segment operating income97,264 352,617 61,725 12,920 524,526 
Reconciliation of adjusted segment operating income
Amortization of core-developed technology intangible assets(7,635)
Corporate unallocated expenses(277,760)
Total other income (expense)5,291 
Consolidated income before income taxes$244,422 
(1) Excludes amortization of core-developed technology intangible assets.
Three Months Ended September 30, 2025
In thousandsDevice Solutions
Networked Solutions
OutcomesTotal
Product revenues$103,097 $365,378 $25,848 $494,323 
Service revenues525 28,324 58,453 87,302 
Total revenues103,622 393,702 84,301 581,625 
Adjusted cost of revenues (1)
71,615 238,941 51,524 
Adjusted sales, general and administrative2,900 6,695 3,707 
Adjusted research and development4,232 26,186 12,264 
Adjusted segment operating income24,875 121,880 16,806 163,561 
Reconciliation of adjusted segment operating income
Amortization of core-developed technology intangible assets— 
Corporate unallocated expenses(81,778)
Total other income (expense)8,918 
Consolidated income before income taxes$90,701 
(1) Excludes amortization of core-developed technology intangible assets.
Nine Months Ended September 30, 2025
In thousandsDevice Solutions
Networked Solutions
OutcomesTotal
Product revenues$340,423 $1,119,381 $74,844 $1,534,648 
Service revenues1,830 85,987 173,072 260,889 
Total revenues342,253 1,205,368 247,916 1,795,537 
Adjusted cost of revenues (1)
238,902 744,650 151,603 
Adjusted sales, general and administrative9,856 20,852 12,420 
Adjusted research and development12,695 80,878 37,070 
Adjusted segment operating income80,800 358,988 46,823 486,611 
Reconciliation of adjusted segment operating income
Amortization of core-developed technology intangible assets— 
Corporate unallocated expenses(252,202)
Total other income (expense)22,053 
Consolidated income before income taxes$256,462 
(1) Excludes amortization of core-developed technology intangible assets.

For the three and nine months ended September 30, 2025, and the nine months ended September 30, 2026, no single customer represented more than 10% of total company revenue. For the three months ended September 30, 2026, one customer represented 10.4% of total company revenue. This revenue is included in both the Networked Solutions and Outcomes reporting segments.
Revenues by region were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
In thousands2026202520262025
United States and Canada$500,884 $477,715 $1,403,719 $1,464,462 
Europe, Middle East, and Africa72,721 75,202 257,822 250,107 
Asia Pacific25,728 28,708 87,676 80,968 
Total Company$599,333 $581,625 $1,749,217 $1,795,537 

Depreciation expense and amortization expense recognized in cost of revenues is allocated to the reportable segments based upon each segment's use of the assets. All amortization expense recognized in operating expenses is recognized within Corporate unallocated. Depreciation and amortization of intangible assets expense associated with our reportable segments and Corporate unallocated was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
In thousands2026202520262025
Device Solutions$2,044 $2,269 $6,369 $6,583 
Networked Solutions2,876 3,456 8,965 10,532 
Outcomes1,647 1,317 5,098 3,933 
Resiliency Solutions2,663 — 7,799 — 
Corporate unallocated9,210 4,997 27,371 15,173 
Total Company$18,440 $12,039 $55,602 $36,221