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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company's OPTAVIA segment derives revenues from clients through the sale of OPTAVIA products which are shipped directly to clients. Our OPTAVIA coaches help clients adopt healthy habits and learn the benefits of our products. The accounting policies of the Company's single segment are the same as those described in the Company's Significant Accounting Policies.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on net income (loss) that also is reported on the accompanying Unaudited Condensed Consolidated Statements of Operations as net income (loss). The measure of segment assets is reported on the Consolidated Balance Sheets as total assets. The CODM uses net income (loss) to evaluate the income (loss) generated from segment assets in deciding whether to reinvest profits into the segment or into other parts of the entity, such as for share buybacks. Net income (loss) is used to monitor budget versus actual results. The CODM also uses net income (loss) in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation. The Company does not have significant intra-entity sales or transfers.

The Company has one reportable segment: OPTAVIA. The OPTAVIA segment recognizes revenue when control of the products is transferred to the client. The segment pays commissions on the sale of products to OPTAVIA coaches. The Company derives all of its revenue from sales within the United States and manages the business activities on a consolidated basis.

The following table presents the OPTAVIA segment's revenue, significant segment expenses, and segment net income for the three months ended June 30, 2025 and 2024, respectively:

June 30, 2025June 30, 2024
Revenue$105,555$168,558
Less:
Cost of sales28,911 45,120 
Selling, marketing, and after sales support50,485 80,413 
Distribution5,305 18,549 
Technology10,566 13,371 
Administrative and corporate support functions8,685 16,527 
Equity compensation2,669 2,454 
Other loss (income) (1)
(3,941)2,774 
Provision (benefit) for income taxes395(2,496)
Segment net income (loss)$2,480 $(8,154)
Reconciliation of profit or loss
Adjustments and reconciling items— — 
Consolidated net income (loss)$2,480 $(8,154)
(1) Other loss (income) included within Segment net income (loss) includes interest income, interest expense, and realized and unrealized gains and losses on LifeMD common stock.
Segment depreciation expense of property, plant, and equipment for the three months ended June 30, 2025 and 2024 was $3.1 million and $10.5 million, respectively. Segment additions of property, plant, and equipment for the three months ended June 30, 2025, and 2024 were $1.4 million and $2.0 million, respectively.
The following table presents the OPTAVIA segment's revenue, significant segment expenses, and segment net income for the six months ended June 30, 2025 and 2024, respectively:
June 30, 2025June 30, 2024
Revenue$221,283$343,297
Less:
Cost of sales60,395 92,567 
Selling, marketing, and after sales support110,340 167,693 
Distribution9,831 26,058 
Technology21,608 26,170 
Administrative and corporate support functions16,667 26,121 
Equity compensation4,771 4,624 
Other income (1)
(5,730)(872)
Provision for income taxes1,693773
Segment net income$1,708 $163 
Reconciliation of profit or loss
Adjustments and reconciling items— — 
Consolidated net income$1,708 $163 
(1) Other income included within Segment net income includes interest income, interest expense, and realized and unrealized gains and losses on LifeMD common stock.
Segment depreciation expense of property, plant, and equipment for the six months ended June 30, 2025 and 2024 was $5.4 million and $12.8 million, respectively. Segment additions of property, plant, and equipment for the six months ended June 30, 2025 and 2024 were $2.9 million and $3.8 million, respectively.