| SEGMENT REPORTING |
SEGMENT REPORTING Segment Information The Company manages its business geographically in two operating segments and two reportable segments, with the primary areas of measurement and decision-making being North America, which includes the U.S. and Canada, and International, which primarily includes Europe, Asia-Pacific, and Latin America. Segment reporting is based on the management approach, whereby external segment reporting is aligned with the internal reporting used by the CODM, which is the Company’s Chief Executive Officer. The CODM relies on an internal management reporting process that provides revenue and operating segment EBITDA for making decisions and assessing performance as the source of the Company’s reportable segments. EBITDA is used by management internally to measure operating and management performance and to evaluate the performance of the business. Summarized EBITDA information by operating segment consists of the following (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | | 2025 | | 2024 | | North America | | International | | Total | | North America | | International | | Total | Revenues(1) | $ | 744.0 | | | $ | 37.3 | | | $ | 781.3 | | | $ | 643.8 | | | $ | 34.0 | | | $ | 677.8 | | | Less: | | | | | | | | | | | | | Personnel | 357.2 | | | 24.9 | | | 382.1 | | | 268.9 | | | 24.9 | | | 293.8 | | | Marketing | 204.1 | | | 17.0 | | | 221.1 | | | 215.9 | | | 19.1 | | | 235.0 | | General and administrative (2) | 139.4 | | | 10.1 | | | 149.5 | | | 128.2 | | | 8.7 | | | 136.9 | | EBITDA | $ | 43.3 | | | $ | (14.7) | | | $ | 28.6 | | | $ | 30.8 | | | $ | (18.7) | | | $ | 12.1 | | | __________________________ | (1) See Note 3 for details of revenue disaggregated by segment. | (2) Excludes personnel costs. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | 2025 | | 2024 | | North America | | International | | Total | | North America | | International | | Total | Revenues(1) | $ | 1,441.4 | | | $ | 72.1 | | | $ | 1,513.5 | | | $ | 1,267.1 | | | $ | 67.1 | | | $ | 1,334.2 | | | Less: | | | | | | | | | | | | | Personnel | 677.8 | | | 46.4 | | | 724.2 | | | 545.7 | | | 48.1 | | | 593.8 | | | Marketing | 407.5 | | | 29.6 | | | 437.1 | | | 438.5 | | | 36.4 | | | 474.9 | | General and administrative (2) | 303.7 | | | 20.7 | | | 324.4 | | | 248.9 | | | 17.2 | | | 266.1 | | | EBITDA | $ | 52.4 | | | $ | (24.6) | | | $ | 27.8 | | | $ | 34.0 | | | $ | (34.6) | | | $ | (0.6) | | | __________________________ | (1) See Note 3 for details of revenue disaggregated by segment. | (2) Excludes personnel costs. |
The Company is domiciled in the U.S. and revenues earned outside the U.S. were $60.7 million and $41.4 million for three months ended June 30, 2025 and 2024, respectively, and $108.6 million and $79.1 million for the six months ended June 30, 2025 and 2024, respectively. The following summarizes stock-based compensation, which is a significant non-cash item included in the personnel costs above, by segment (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | North America | $ | 50.2 | | | $ | 21.1 | | | $ | 79.2 | | | $ | 43.0 | | International | 1.6 | | | 1.5 | | | 3.0 | | | 2.5 | | Total | $ | 51.8 | | | $ | 22.6 | | | $ | 82.2 | | | $ | 45.5 | |
The reconciliation of EBITDA to income before income taxes consists of the following (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | EBITDA | $ | 28.6 | | | $ | 12.1 | | | $ | 27.8 | | | $ | (0.6) | | | Amortization of acquired intangible assets in cost of revenues | (17.1) | | | (7.9) | | | (27.6) | | | (16.7) | | | Amortization of acquired intangible assets in operating expenses | (26.5) | | | (10.2) | | | (43.7) | | | (21.2) | | | Depreciation and other amortization | (12.2) | | | (10.1) | | | (26.5) | | | (20.4) | | Interest income, net | 32.5 | | | 53.5 | | | 71.0 | | | 109.7 | | Other income (expense), net (1) | 16.3 | | | (1.5) | | | 13.9 | | | (3.4) | | Income before income taxes | $ | 21.6 | | | $ | 35.9 | | | $ | 14.9 | | | $ | 47.4 | | | __________________________ | | | | | (1) Includes $8.5 million and $8.3 million of depreciation and amortization expense including above-market lease amortization associated with lessor activities for the three months ended June 30, 2025 and 2024, respectively, and $13.5 million and $13.8 million for the six months ended June 30, 2025 and 2024, respectively. |
Summarized information by operating segment consists of the following (in millions): | | | | | | | | | | | | | June 30,
2025 | | December 31,
2024 | | Property and equipment, net | | | | | North America | $ | 1,172.6 | | | $ | 1,006.7 | | | International | 34.1 | | | 8.2 | | | Total property and equipment, net | $ | 1,206.7 | | | $ | 1,014.9 | | | | | | | Goodwill | | | | | North America | $ | 3,436.1 | | | $ | 2,297.2 | | | International | 253.5 | | | 230.4 | | | Total goodwill | $ | 3,689.6 | | | $ | 2,527.6 | | | | | | | Assets | | | | | North America | $ | 9,719.7 | | | $ | 8,852.0 | | | International | 787.4 | | | 404.8 | | | Total assets | $ | 10,507.1 | | | $ | 9,256.8 | | | | | | | Liabilities | | | | | North America | $ | 1,798.6 | | | $ | 1,603.0 | | | International | 107.1 | | | 100.3 | | | Total liabilities | $ | 1,905.7 | | | $ | 1,703.3 | |
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