v3.25.0.1
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
ASC 280 Segment Reporting establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The CODM is the Chief Executive Officer of the Company.

The Company works with engineering, procurement, and construction firms, to design a solar array to achieve the projects desired power output. The Company provides the solar tracking system components, which include standard and nonstandard parts. The Company delivers the fully functioning tracker systems for the project sites and provides commissioning services. Although the solar array may use different components and technology depending on the geography and type of system, the Company conducts its operations in the United States and internationally, primarily in Spain and Brazil and is expanding into other international markets through STI Operations.

The Company has two separate operating segments, Legacy Array and STI Operations, which are also reportable segments. Legacy Array consists primarily of amounts earned from the design and delivery of solar array’s in the United States, and STI operations consists primarily of amounts earned from the design and delivery of solar array’s outside of the United States.

The Company’s CODM assesses the performance of each operating segment by using gross profit. This measure is also predominantly used in the annual budget and forecasting process. The CODM primarily uses the annual operating plan and the monthly financial results for Legacy Array and STI Operations when making decisions about the allocation of operating and capital resources to each segment.

The following tables summarize the financial results by segment during the periods presented (in thousands):
Year Ended December 31, 2024
Array Legacy Operations
STI Operations
Consolidated
Segment revenue
$661,629 $254,178 $915,807 
Less:
Product cost (1)
353,034 225,517 578,551 
Amortization of developed technology
14,558 — 14,558 
Depreciation
2,045 90 2,135 
Other costs (2)
21,961 925 22,886 
Gross profit
$270,031 $27,646 $297,677 
Total operating expenses
— — (524,682)
Total other expense, net
— — (23,571)
Income (loss) before income taxes
$(250,576)
Segment assets
1,018,487 407,512 1,425,999 
Capital expenditures
6,423 882 7,305 
Depreciation and amortization
27,303 25,476 52,779 
Interest income
12,767 4,010 16,777 
Interest expense
32,516 2,309 34,825 
Year Ended December 31, 2023
Array Legacy Operations
STI Operations
Consolidated
Segment revenue
$1,172,827 $403,724 $1,576,551 
Less:
Product cost (1)
805,174 305,778 1,110,952 
Amortization of developed technology
14,558 — 14,558 
Depreciation (3)
1,348 — 1,348 
Other costs (2) (3)
34,142 — 34,142 
Gross profit
$317,605 $97,946 $415,551 
Total operating expenses
— — (201,427)
Total other expense, net
— — (36,967)
Income (loss) before income taxes
$177,157 
Segment assets
868,697 838,044 1,706,741 
Capital expenditures
15,748 1,241 16,989 
Depreciation and amortization
26,840 27,986 54,826 
Interest income
3,985 4,345 8,330 
Interest expense
40,982 3,247 44,229 
Year Ended December 31, 2022
Array Legacy Operations
STI Operations
Consolidated
Segment revenue
$1,267,883 $369,663 $1,637,546 
Less:
Product cost
1,047,772 310,557 1,358,329 
Amortization of developed technology
14,558 — 14,558 
Depreciation (3)
1,620 — 1,620 
Other costs (2) (3)
50,321 — 50,321 
Gross profit
$153,612 $59,106 $212,718 
Total operating expenses
— — (230,851)
Total other expense, net
— — 13,181 
Income (loss) before income taxes
$(4,952)
Segment assets
843,934 862,118 1,706,052 
Capital expenditures
9,831 788 10,619 
Depreciation and amortization
25,960 75,099 101,059 
Interest income
504 2,677 3,181 
Interest expense
34,272 2,422 36,694 

(1) Includes 45X benefits realized in the amount of $137.8 million and $9.3 million for fiscal 2024 and 2023, respectively.

(2) Other is primarily comprised of outbound freight and certain overhead costs.

(3) Depreciation and Other for STI Operations for the years ended December 31, 2023 and 2022 is immaterial and included within the line item product cost.

The following table presents revenues by geographic region, based on the customers project location (in thousands):        
Year Ended December 31,
202420232022
U.S.$643,481 $1,166,160 $1,286,064 
Spain83,742 99,160 129,292 
Brazil135,102 257,872 144,464 
Australia8,708 20,842 9,429 
Remainder44,774 32,517 68,297 
Total revenue$915,807 $1,576,551 $1,637,546 
The following table presents property, plant and equipment, net by geographic region at the end of the period (in thousands):
December 31,
20242023
U.S.$20,058 $18,982 
Spain2,967 3,457 
Brazil13 3,305 
Australia471 554 
Remainder2,713 1,595 
Total property, plant and equipment, net$26,222 $27,893