v3.26.3
Segment Information And Information About Geographic Areas
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information And Information About Geographic Areas
24.
SEGMENT INFORMATION and information about geographic areas

The Company organizes its segments around its operations by geographic region and operates in one reportable segment (the “Domestic Segment”). The Domestic Segment provides SaaS platforms for the insurance economy and derives revenues from providing customers with software subscriptions to the platforms in addition to providing professional services and non-software services. The accounting policies of the Domestic Segment are the same as those described in Note 2.

The Company does not have intra-entity sales or transfers.

The chief operating decision maker (“CODM”) of the Domestic Segment is the Company’s chief executive officer. The CODM assesses performance for the Domestic Segment at the segment level and uses the segment’s performance when making strategic decisions on how to allocate resources and capital. In addition, the segment’s performance is used when reviewing actual financial performance against internal budgets and for establishing incentive compensation targets.

The CODM uses net income (loss) to evaluate income (loss) generated from operations in deciding whether to reinvest profits into the Domestic Segment or use for acquisitions, to pay dividends or repurchase outstanding shares of common stock. The CODM reviews financial information, including significant expenses, of the Domestic Segment on an adjusted basis, excluding certain items that may not be indicative of the Company’s recurring core business operations. This financial information reviewed by the CODM is accompanied by information about revenue by type of service and geographic region, for purposes of allocating resources and evaluating financial performance.

The Company’s financial information and performance measures used by the CODM do not include a metric or measure including segment assets and thus, no asset information is provided to the CODM for the purpose of making strategic decisions or allocating resources.

The following table presents the Company’s financial information about reported segment revenue, significant segment expenses, and the Company’s reconciliation of segment profit (loss) to condensed consolidated net income (loss) (in thousands):

 

 

 

For the Three Months
Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Revenue—Domestic Segment

 

$

292,347

 

 

$

265,402

 

 

$

856,106

 

 

$

774,028

 

Revenue—Other (1)

 

$

1,746

 

 

 

1,718

 

 

$

5,192

 

 

 

5,108

 

Total Revenue

 

 

294,093

 

 

 

267,120

 

 

 

861,298

 

 

 

779,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Data licenses and royalties—adjusted (2)

 

 

11,990

 

 

 

11,180

 

 

 

34,753

 

 

 

32,722

 

Customer services—adjusted (3)

 

 

27,936

 

 

 

29,034

 

 

 

81,419

 

 

 

83,368

 

Products and technology—adjusted (4)

 

 

85,587

 

 

 

76,546

 

 

 

244,292

 

 

 

221,982

 

Revenue enablement—adjusted (5)

 

 

34,438

 

 

 

36,171

 

 

 

107,442

 

 

 

103,906

 

General corporate and administrative—adjusted (6)

 

 

20,910

 

 

 

21,449

 

 

 

66,122

 

 

 

61,315

 

Other segment items (7)

 

 

18,606

 

 

 

22,379

 

 

 

64,132

 

 

 

117,398

 

Amortization expense

 

 

22,880

 

 

 

22,880

 

 

 

68,640

 

 

 

68,640

 

Depreciation expense

 

 

14,792

 

 

 

16,980

 

 

 

42,065

 

 

 

44,307

 

Interest expense

 

 

20,900

 

 

 

18,103

 

 

 

61,559

 

 

 

52,866

 

Interest income

 

 

(1,365

)

 

 

(1,065

)

 

 

(3,050

)

 

 

(4,233

)

Significant non-cash items (8)

 

 

(2,514

)

 

 

60

 

 

 

(10,019

)

 

 

8,441

 

Income tax provision (benefit)

 

 

9,703

 

 

 

15,373

 

 

 

37,508

 

 

 

(5,143

)

Total segment expenses

 

 

263,862

 

 

 

269,091

 

 

 

794,862

 

 

 

785,568

 

Net income (loss) including non-controlling interest

 

$

30,231

 

 

$

(1,971

)

 

$

66,435

 

 

$

(6,432

)

(1) Represents revenue from an insignificant segment that does not meet the quantitative thresholds for determining reportable segments.

(2) Data licenses and royalties—adjusted expenses include third party costs for data licensing and royalty fees. Data licenses and royalties – adjusted excludes stock-based compensation expense and related employer payroll tax.

(3) Customer services—adjusted expenses include the costs to deliver services to customers, including software configuration, integration and implementation services and customer support activities. Customer services—adjusted excludes stock-based compensation expense and related employer payroll tax.

(4) Products and technology—adjusted expenses include costs related to the engineering, product management design and development of the Company’s solutions, and costs related to the Company’s hosting environments, support of production

infrastructure, support of internal systems and infrastructure and IT security. Products and technology—adjusted excludes stock-based compensation expense and related employer payroll tax.

(5) Revenue enablement—adjusted expenses include costs for sales and marketing functions, including sales incentives, advertising costs, and event costs. Revenue enablement—adjusted excludes stock-based compensation expense and related employer payroll tax.

(6) General corporate and administrative—adjusted expenses include costs for our executive management and administrative employees, including finance and accounting, human resources, facilities and legal functions. Additional expenses include professional service fees, insurance premiums and other corporate expenses that are not allocated to the other adjusted expense categories. General corporate and administrative—adjusted excludes stock-based compensation expense and related employer payroll tax, litigation proceeds and litigation costs in which the Company is the plaintiff and related antitrust matters, costs associated with the acquisition and integration of completed and potential mergers and acquisitions, costs related to equity transactions, including secondary offerings and debt refinancing costs.

(7) Other segment items include stock-based compensation expense and related employer payroll taxes, as well as other items excluded from the significant segment expense categories and identified in the above descriptions, adjustments for capitalized labor costs incurred on internal development projects, and expenses of an insignificant segment that does not meet the quantitative thresholds for determining reporting segments.

(8) Significant non-cash items include changes in fair value of derivative instruments.

Revenues by geographic area, presented based upon the location of the customer are as follows (in thousands):

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

United States

 

$

292,347

 

 

$

265,402

 

 

$

856,106

 

 

$

774,028

 

China

 

$

1,746

 

 

 

1,718

 

 

$

5,192

 

 

 

5,108

 

Total revenues

 

$

294,093

 

 

$

267,120

 

 

$

861,298

 

 

$

779,136

 

Software, equipment and property—Net by geographic area are as follows (in thousands):

 

 

September 30,

 

 

December 31,

 

 

 

2026

 

 

2025

 

United States

 

$

173,015

 

 

$

166,644

 

China

 

$

156

 

 

 

152

 

Total software, equipment and property—Net

 

$

173,171

 

 

$

166,796