Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information

Note 16 – 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.

The Company generated $2,162 and $2,617 of revenue outside of the United States during the three months ended March 31, 2026 and 2025, respectively. Revenue generated outside of the United States is primarily from franchise development fees and franchise royalty fees earned from master franchisees. As of March 31, 2026 and 2025, 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 March 31,

 

 

 

2026

 

 

2025

 

Total revenue, net

 

$

60,714

 

 

$

76,883

 

Less:

 

 

 

 

 

Costs of product revenue

 

 

3,630

 

 

 

11,972

 

Costs of franchise and service revenue

 

 

3,262

 

 

 

4,097

 

Marketing and promotion

 

 

1,494

 

 

 

1,361

 

Salary and wages

 

 

9,969

 

 

 

11,472

 

Professional services (including legal and accounting)

 

 

10,079

 

 

 

22,830

 

Rent and occupancy

 

 

1,225

 

 

 

1,637

 

Marketing fund expense

 

 

11,674

 

 

 

9,357

 

Acquisition and transaction income

 

 

(3,187

)

 

 

(8,638

)

Other segment items(1)

 

 

5,289

 

 

 

6,048

 

Equity-based compensation

 

 

1,984

 

 

 

3,281

 

Depreciation and amortization

 

 

2,252

 

 

 

2,956

 

Impairment of goodwill and other noncurrent assets

 

 

—

 

 

 

1,915

 

Interest income

 

 

(637

)

 

 

(619

)

Interest expense

 

 

14,494

 

 

 

11,388

 

Income taxes

 

 

6

 

 

 

485

 

Segment net income (loss)

 

$

(820

)

 

$

(2,659

)
(1)
Other segment items include restructuring expenses of $765 and $151 for the three months ended March 31, 2026 and 2025, respectively. Other segment items also include travel expenses, insurance expenses, TRA expenses, and other selling, general and administrative expenses.