Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.3
Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information

Note 18 – Segment Information

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) for purposes of making operating decisions, allocating resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources and evaluating financial performance. As such, the Company has determined that it operates in one reportable and operating segment. The Company’s reportable segment is the Company’s franchise business of its health and wellness brands which require similar technology and operating strategies. The CODM evaluates the operating results through consolidated net income (loss). The CODM uses consolidated net income (loss) predominantly in the annual budget and forecasting process and to monitor budget-to-actual variances on a monthly basis in order to assess performance and allocate resources.

The Company generated $2,384 and $7,732 of revenue outside of the United States during the three and nine months ended September 30, 2025, respectively, and $3,808 and $10,898 during the three and nine months ended September 30, 2024, respectively. Revenue generated outside of the United States is primarily from franchise development fees and franchise royalty fees earned from master franchisees. As of September 30, 2025 and 2024, the Company did not have material assets located outside of the United States.

The following table presents the financial information for the Company’s one reportable and operating segment:

 

Three Months Ended September 30,

 

 

Nine months ended September 30,

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

Total revenue, net

 

$

78,824

 

 

$

80,530

 

 

$

231,915

 

 

$

237,126

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Costs of product revenue

 

 

10,246

 

 

 

17,287

 

 

 

32,723

 

 

 

45,786

 

 

Costs of franchise and service revenue

 

 

7,047

 

 

 

4,867

 

 

 

15,099

 

 

 

15,748

 

 

Marketing and promotion

 

 

757

 

 

 

1,312

 

 

 

3,323

 

 

 

5,536

 

 

Salary and wages

 

 

11,324

 

 

 

10,067

 

 

 

33,351

 

 

 

32,306

 

 

Professional services (including legal and accounting)

 

 

2,885

 

 

 

15,292

 

 

 

27,556

 

 

 

30,478

 

 

Rent and occupancy

 

 

1,526

 

 

 

4,871

 

 

 

4,805

 

 

 

13,058

 

 

Marketing fund expense

 

 

8,983

 

 

 

6,423

 

 

 

27,195

 

 

 

20,785

 

 

Acquisition and transaction expenses (income)

 

 

3,071

 

 

 

3,664

 

 

 

(7,482

)

 

 

6,962

 

 

Other segment items(1)

 

 

4,001

 

 

 

9,689

 

 

 

17,115

 

 

 

26,186

 

 

Equity-based compensation

 

 

2,394

 

 

 

4,983

 

 

 

8,341

 

 

 

13,121

 

 

Depreciation and amortization

 

 

3,679

 

 

 

4,226

 

 

 

9,608

 

 

 

13,179

 

 

Impairment of goodwill and other noncurrent assets

 

 

17,568

 

 

 

4,505

 

 

 

32,411

 

 

 

16,594

 

 

Interest income

 

 

(1,094

)

 

 

(481

)

 

 

(2,414

)

 

 

(1,231

)

 

Interest expense

 

 

12,917

 

 

 

11,843

 

 

 

37,280

 

 

 

34,644

 

 

Income taxes

 

 

266

 

 

 

131

 

 

 

1,063

 

 

 

216

 

 

Segment net income (loss)

 

$

(6,746

)

 

$

(18,149

)

 

$

(8,059

)

 

$

(36,242

)

 
(1)
Other segment items include restructuring expenses of $1,318 and $2,376 for the three and nine months ended September 30, 2025, respectively, and $5,542 and $10,472 for the three and nine months ended September 30, 2024, respectively. Other segment items also include travel expenses, insurance expense, TRA expense, and other selling, general and administrative expenses.