| Schedule of Financial Information for the Company's One Reportable and Operating Segment |
The following table presents the financial information for the Company’s one reportable and operating segment:
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Three Months Ended September 30, |
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Nine months ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Total revenue, net |
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$ |
62,261 |
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$ |
78,824 |
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$ |
188,943 |
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$ |
231,915 |
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Less: |
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Costs of product revenue |
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3,140 |
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10,246 |
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|
12,349 |
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|
32,723 |
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Costs of franchise and service revenue |
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4,323 |
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|
7,047 |
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11,783 |
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|
15,099 |
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Marketing and promotion |
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|
951 |
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|
757 |
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|
4,711 |
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|
3,323 |
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Salary and wages |
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8,783 |
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11,324 |
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28,033 |
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|
33,351 |
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Professional services (including legal and accounting) |
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10,492 |
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2,885 |
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30,859 |
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27,556 |
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Rent and occupancy |
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1,104 |
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|
1,526 |
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3,379 |
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4,805 |
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Marketing fund expense |
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9,565 |
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8,983 |
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32,679 |
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|
27,195 |
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Acquisition and transaction expense (income) |
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|
(3,843 |
) |
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|
3,071 |
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(5,591 |
) |
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|
(7,482 |
) |
Other segment items(1) |
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4,842 |
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|
4,001 |
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17,576 |
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|
17,115 |
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Equity-based compensation |
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2,033 |
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2,394 |
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5,720 |
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|
8,341 |
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Depreciation and amortization |
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1,329 |
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3,679 |
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5,346 |
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|
9,608 |
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Impairment of goodwill and other noncurrent assets |
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— |
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17,568 |
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— |
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32,411 |
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Interest income |
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|
(684 |
) |
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(1,094 |
) |
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(1,989 |
) |
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(2,414 |
) |
Interest expense |
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15,195 |
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|
12,917 |
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44,637 |
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|
37,280 |
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Income taxes |
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|
123 |
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|
266 |
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|
194 |
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|
1,063 |
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Segment net income (loss) |
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$ |
4,908 |
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$ |
(6,746 |
) |
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$ |
(743 |
) |
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$ |
(8,059 |
) |
(1)
Other segment items include restructuring expenses (recovery) of $679 and $1,353 for the three and nine months ended September 30, 2026, respectively, and $1,318 and $2,376 for the three and nine months ended September 30, 2025, respectively. Other segment items also include travel expenses, insurance expenses, TRA expenses, and other selling, general and administrative expenses.
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