Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Information

v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 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 regularly 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.

During the years ended December 31, 2025, 2024 and 2023, the Company generated $11,092, $13,987, and $13,361 of revenue outside of the United States, respectively, primarily from franchise development fees and franchise royalty fees earned from master franchisees. As of December 31, 2024 and 2023, 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:

 

 

Year ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

Total revenue, net

 

$

314,879

 

 

$

320,346

 

 

$

317,937

 

 

Less:

 

 

 

 

 

 

 

 

 

Costs of product revenue

 

 

42,411

 

 

 

59,477

 

 

 

60,331

 

 

Costs of franchise and service revenue

 

 

22,338

 

 

 

21,806

 

 

 

15,985

 

 

Marketing and promotion

 

 

9,719

 

 

 

11,850

 

 

 

15,663

 

 

Salary and wages

 

 

47,232

 

 

 

43,132

 

 

 

55,400

 

 

Professional services (including legal and accounting)

 

 

56,114

 

 

 

53,837

 

 

 

29,642

 

 

Rent and occupancy

 

 

5,969

 

 

 

16,673

 

 

 

27,548

 

 

Marketing fund expense

 

 

40,484

 

 

 

26,673

 

 

 

22,683

 

 

Acquisition and transaction expenses (income)

 

 

(6,948

)

 

 

8,886

 

 

 

(18,464

)

 

Other segment items(1)

 

 

46,279

 

 

 

36,894

 

 

 

25,806

 

 

Equity-based compensation

 

 

12,908

 

 

 

15,466

 

 

 

17,997

 

 

Depreciation and amortization

 

 

12,027

 

 

 

17,713

 

 

 

16,883

 

 

Impairment of goodwill and other noncurrent assets

 

 

32,718

 

 

 

62,551

 

 

 

16,750

 

 

Interest income

 

 

(3,212

)

 

 

(1,824

)

 

 

(1,611

)

 

Interest expense

 

 

49,189

 

 

 

46,250

 

 

 

38,733

 

 

Income taxes

 

 

1,322

 

 

 

(342

)

 

 

1,034

 

 

Segment net loss

 

$

(53,671

)

 

$

(98,696

)

 

$

(6,443

)

 

 

(1)
Other segment items include restructuring expenses of $1,163, $14,915 and $5,689 for the years ended December 31, 2025, 2024 and 2023, respectively. Other segment items also include travel expenses, insurance expenses, TRA expense, and other selling, general and administrative expenses.