Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.2
Segment Information
 6 Months Ended
Jun. 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 $2,731 and $5,348 of revenue outside of the United States during the three and six months ended June 30, 2025, respectively, and $3,502 and $7,090 during the three and six months ended June 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 June 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 June 30,

 

 

Six months ended June 30,

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

Total revenue, net

 

$

76,208

 

 

$

76,903

 

 

$

153,091

 

 

$

156,596

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Costs of product revenue

 

 

10,505

 

 

 

13,933

 

 

 

22,477

 

 

 

28,499

 

 

Costs of franchise and service revenue

 

 

3,955

 

 

 

5,834

 

 

 

8,052

 

 

 

10,881

 

 

Marketing and promotion

 

 

1,205

 

 

 

2,091

 

 

 

2,566

 

 

 

4,224

 

 

Salary and wages

 

 

10,555

 

 

 

11,040

 

 

 

22,027

 

 

 

22,239

 

 

Professional services (including legal and accounting)

 

 

1,841

 

 

 

9,429

 

 

 

24,671

 

 

 

15,186

 

 

Rent and occupancy

 

 

1,642

 

 

 

3,030

 

 

 

3,279

 

 

 

8,187

 

 

Marketing fund expense

 

 

8,855

 

 

 

7,847

 

 

 

18,212

 

 

 

14,362

 

 

Acquisition and transaction expenses (income)

 

 

(1,915

)

 

 

(1,217

)

 

 

(10,553

)

 

 

3,298

 

 

Other segment items(1)

 

 

7,066

 

 

 

7,456

 

 

 

13,114

 

 

 

16,497

 

 

Equity-based compensation

 

 

2,666

 

 

 

4,196

 

 

 

5,947

 

 

 

8,138

 

 

Depreciation and amortization

 

 

2,973

 

 

 

4,517

 

 

 

5,929

 

 

 

8,953

 

 

Impairment of goodwill and other noncurrent assets

 

 

12,928

 

 

 

12,089

 

 

 

14,843

 

 

 

12,089

 

 

Interest income

 

 

(701

)

 

 

(387

)

 

 

(1,320

)

 

 

(750

)

 

Interest expense

 

 

12,975

 

 

 

11,256

 

 

 

24,363

 

 

 

22,801

 

 

Income taxes

 

 

312

 

 

 

132

 

 

 

797

 

 

 

85

 

 

Segment net income (loss)

 

$

1,346

 

 

$

(14,343

)

 

$

(1,313

)

 

$

(18,093

)

 
(1)
Other segment items include restructuring expenses of $907 and $1,058 for the three and six months ended June 30, 2025, respectively, and $487 and $4,930 for the three and six months ended June 30, 2024, respectively. Other segment items also include travel expenses, insurance expense, TRA expense, and other selling, general and administrative expenses.