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Note 9 - Segment Information
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

(9)

SEGMENT INFORMATION

 

We assess segment reporting in accordance with FASB Accounting Standards Codification Topic 280, Segment Reporting, each reporting period, including evaluating the reporting package provided and reviewed by the Chief Operating Decision Maker (“CODM”). We have concluded that our Chief Executive Officer is our CODM at September 30, 2025.

 

Based on the way our business is managed and reported to our CODM, we believe we have a single operating segment. We also have one reportable segment. Our revenue is primarily derived and our long-lived assets are primarily held in the United States and our business is managed on a consolidated basis. All of our solutions within our one reporting segment provide analytics and insights that facilitate the measurement and improvement of patient and employee experience for healthcare organizations related to marketing, experience, reputation, and governance.

 

The accounting policies for our operating segment are consistent with those described in the summary of significant accounting policies. The CODM assesses performance of our segment and allocates resources based on revenue and associate expenses based on three team categories: delivery, growth and support. The CODM uses net income, cash balances, and debt availability to make decisions related to dividend distributions, acquisitions, and stock repurchases. Our segment results for our one reportable segment are the same as presented in our Consolidated Statements of Income. We do not have intra-entity sales or transfers. The measure of segment assets is reported on our consolidated balance sheet as total consolidated assets.

 

The table below presents our segment results, including other significant expenses reported to our CODM and other information related to our segment for the three and nine month periods ended September 30, 2025 and 2024 (in thousands):

 

   

Three months ended

September 30,

    

Nine months ended

September 30,

  
   

2025

    

2024

    

2025

    

2024

  

Revenue

   $ 34,608     $ 35,819     $ 102,196     $ 106,154  

Less:

                                

Delivery associate expense

     4,492       5,947       13,973       17,437  

Delivery other operating expenses

     7,648       9,214       23,332       23,712  

Delivery total operating expenses

     12,140       15,161       37,305       41,149  

Growth associate expenses

     5,875       6,027       18,584       17,361  

Growth other operating expenses

     770       1,501       2,475       5,300  

Growth total operating expenses

     6,645       7,528       21,059       22,661  

Support associate expenses

     2,677       1,353       11,203       4,420  

Support other operating expenses

     5,408       3,797       14,708       12,318  

Support total operating expenses

     8,085       5,150       25,911       16,738  

Operating income

     7,738       7,980       17,921       25,606  

Interest income

     41       34       82       103  

Interest expense

     (1,461 )     (706 )     (3,393 )     (1,866 )

Other non-operating income (expense)

     (45 )     (12 )     (34 )     (28 )

Provision for income taxes

     (2,151 )     (1,608 )     (4,774 )     (5,592 )

Net income

   $ 4,122     $ 5,688     $ 9,802     $ 18,223  

Other significant expenses provided to CODM*

                                

Variable direct expenses

   $ 4,788     $ 6,619     $ 15,236     $ 17,044  

Fixed direct expenses

     7,616       8,686       23,200       25,539  

Non-recurring and non-cash executive compensation**

     925       188       8,043       96  

Tax effect of executive share-based compensation and cash bonus

     (39 )     (46 )     (528 )     (24 )

IT operational expenses

     4,951       5,242       14,433       14,765  

Total expenditures for purchases of long-lived assets***

   $ 1,279     $ 10,033     $ 8,374     $ 18,459  

 

 

*

Other significant expenses are also included within the team expenses captions such as associate and other operating expenses.
 

**

Includes non-cash share-based compensation and non-recurring executive cash bonuses
 

***

Long-lived assets include property and equipment, right of use assets, intangible assets and goodwill, including those acquired in business combinations.

 

   

Three months ended

September 30,

    

Nine months ended

September 30,

  
   

2025

    

2024

    

2025

    

2024

  

Other significant noncash items*

                                

Depreciation and amortization expense

   $ 2,195     $ 1,546     $ 5,479     $ 4,506  

Deferred income tax expense (benefit)

     (48 )     18       (80 )     (118 )

Reserve for uncertain tax positions

     (46 )     72       103       211  

Share-based compensation expense

     925       189       1,403       96  

Change in fair value of contingent consideration

     49       23       131       23  

 

 

*

Other significant expenses are also included within the team expenses captions such as associate and other operating expenses.