Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 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 $2,703 and $4,865 of revenue outside of the United States during the three and six months ended June 30, 2026, respectively, and $2,731 and $5,348 during the three and six months ended June 30, 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 June 30, 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 June 30,

 

 

Six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Total revenue, net

 

$

65,968

 

 

$

76,208

 

 

$

126,682

 

 

$

153,091

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Costs of product revenue

 

 

5,579

 

 

 

10,505

 

 

 

9,209

 

 

 

22,477

 

Costs of franchise and service revenue

 

 

4,198

 

 

 

3,955

 

 

 

7,460

 

 

 

8,052

 

Marketing and promotion

 

 

2,266

 

 

 

1,205

 

 

 

3,760

 

 

 

2,566

 

Salary and wages

 

 

9,281

 

 

 

10,555

 

 

 

19,250

 

 

 

22,027

 

Professional services (including legal and accounting)

 

 

10,288

 

 

 

1,841

 

 

 

20,367

 

 

 

24,671

 

Rent and occupancy

 

 

1,050

 

 

 

1,642

 

 

 

2,275

 

 

 

3,279

 

Marketing fund expense

 

 

11,440

 

 

 

8,855

 

 

 

23,114

 

 

 

18,212

 

Acquisition and transaction expense (income)

 

 

1,439

 

 

 

(1,915

)

 

 

(1,748

)

 

 

(10,553

)

Other segment items(1)

 

 

7,445

 

 

 

7,066

 

 

 

12,734

 

 

 

13,114

 

Equity-based compensation

 

 

1,703

 

 

 

2,666

 

 

 

3,687

 

 

 

5,947

 

Depreciation and amortization

 

 

1,765

 

 

 

2,973

 

 

 

4,017

 

 

 

5,929

 

Impairment of goodwill and other noncurrent assets

 

 

—

 

 

 

12,928

 

 

 

—

 

 

 

14,843

 

Interest income

 

 

(668

)

 

 

(701

)

 

 

(1,305

)

 

 

(1,320

)

Interest expense

 

 

14,948

 

 

 

12,975

 

 

 

29,442

 

 

 

24,363

 

Income taxes

 

 

65

 

 

 

312

 

 

 

71

 

 

 

797

 

Segment net income (loss)

 

$

(4,831

)

 

$

1,346

 

 

$

(5,651

)

 

$

(1,313

)
(1)
Other segment items include restructuring expenses (recovery) of $(91) and $674 for the three and six months ended June 30, 2026, respectively, and $907 and $1,058 for the three and six months ended June 30, 2025, respectively. Other segment items also include travel expenses, insurance expenses, TRA expenses, and other selling, general and administrative expenses.