v3.26.3
SEGMENT REPORTING
 9 Months Ended
Sep. 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 September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Canada

 

 

8,035

 

 

 

3,298

 

 

 

19,005

 

 

 

14,220

 

U.S.

 

 

36,697

 

 

 

34,418

 

 

 

108,469

 

 

 

103,713

 

 

 

 

44,732

 

 

 

37,716

 

 

 

127,474

 

 

 

117,933

 

Non-current assets, excluding deferred tax assets

 

 

 

 

 

 

 

As at September 30,

 

 

As at December 31,

 

 

 

 

 

 

 

2026

 

 

2025

 

Canada

 

 

 

 

 

 

22,475

 

 

 

26,013

 

U.S.

 

 

 

 

 

 

11,844

 

 

 

14,104

 

 

 

 

 

 

 

 

34,319

 

 

 

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) is 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 September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

($ in thousands)

 

 

($ in thousands)

 

Revenue

 

 

44,732

 

 

 

37,716

 

 

 

127,474

 

 

 

117,933

 

Operating expenses (1)

 

 

11,333

 

 

 

15,165

 

 

 

40,281

 

 

 

45,185

 

Operating income (loss)

 

 

4,378

 

 

 

(3,698

)

 

 

2,415

 

 

 

(8,358

)

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

 

 

12,742

 

 

 

214

 

 

 

12,491

 

 

 

(2,389

)

Net income (loss) after tax

 

 

17,120

 

 

 

(3,484

)

 

 

14,906

 

 

 

(10,747

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of profit or loss

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net income (loss) after tax

 

 

17,120

 

 

 

(3,484

)

 

 

14,906

 

 

 

(10,747

)

(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.