v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Our Chief Executive Officer (“CEO”) is the CODM.
The Company classifies its operations into two operating segments: Domestic Operations and International. These operating segments represent strategic business units that are managed separately.
In January 2024, the Company updated the name of its previously titled "International and Other" operating segment to "International" due to the divestiture of the 25/7 Media production services business on December 29, 2023, which was the sole component of the operating segment that comprised “Other.” This update did not constitute a change in segment reporting, but rather an update in name only. Prior period segment information contained in this report for the "International" operating segment includes the results of the 25/7 Media production services business through the date of divestiture.
The Company evaluates segment performance based on operating segment adjusted operating income ("AOI"). The Company defines AOI as operating income (loss) before depreciation and amortization, cloud computing amortization, share-based compensation expenses or benefit, impairment and other charges (including gains or losses on sales or dispositions of businesses), restructuring and other related charges and including the Company’s proportionate share of adjusted operating
income (loss) from majority-owned equity method investees. The Company has presented the components that reconcile adjusted operating income to income from operations before income taxes, and other information as to the continuing operations of the Company's operating segments below.
Adjusted operating income reflects the Company’s ability to control costs and generate income through its operations to invest in its current business as well as new opportunities. The CODM uses adjusted operating income to monitor budget versus actual results and to benchmark to peer companies, as adjusted operating income and similar measures with similar titles are common performance measures used by investors, analysts, and peers to compare performance in the industry. The monitoring and evaluation of budgeted versus actual results facilitates the CODM’s assessment of segment performance and informs decisions on the allocation of resources, including decisions regarding executive compensation.
(In thousands)Year Ended December 31, 2025
Domestic OperationsInternationalTotal
Revenues, net from external customers
Subscription$1,264,823 $188,417 $1,453,240 
Advertising476,745 104,050 580,795 
Content licensing and other269,554 8,212 277,766 
2,011,122 300,679 2,311,801 
Inter-segment revenues (Content licensing and other) (a)
2,848 3,286 6,134 
2,013,970 303,965 2,317,935 
Reconciliation of revenue
    Elimination of inter-segment revenues (a)
(6,134)
Total consolidated revenues, net$2,311,801 
Less: (b)
     Content expenses843,643 77,248 
     Marketing, research, and advertising sales expenses310,921 21,549 
     Other (c)
369,243 161,988 
Segment adjusted operating income$490,163 $43,180 $533,343 
Reconciliation of total segment adjusted operating income:
Elimination of inter-segment profits(853)
Unallocated corporate overhead costs (d)
(120,616)
Share-based compensation expenses(25,330)
Depreciation and amortization(94,425)
Impairment and other charges(97,784)
Restructuring and other related charges(26,536)
Cloud computing amortization(10,733)
Majority-owned equity investees AOI(23,744)
Operating income133,322 
Other income (expense):
Interest expense(172,353)
Interest income27,746 
Gain on extinguishment of debt, net129,800 
Miscellaneous, net29,483 
Income from operations before income taxes$147,998 
(a) Inter-segment revenues primarily relate to Domestic Operations content licensing sales to International, as well as services performed by AMCNI on behalf of businesses within the Domestic Operations segment.
(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(c) Other for each reportable segment primarily includes employee-related costs, information technology costs, professional services expenses, occupancy expenses, certain overhead expenses and the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees.
(d) Unallocated corporate overhead costs include costs such as executive salaries and benefits and costs of maintaining corporate headquarters, facilities and common support functions.
(In thousands)Year Ended December 31, 2024
Domestic OperationsInternationalTotal
Revenues, net from external customers
Subscription$1,275,127 $196,924 $1,472,051 
Advertising561,301 115,333 676,634 
Content licensing and other264,772 7,857 272,629 
2,101,200 320,114 2,421,314 
Inter-segment revenues (Content licensing and other) (a)
11,789 4,914 16,703 
2,112,989 325,028 2,438,017 
Reconciliation of revenue
    Elimination of inter-segment revenues (a)
(16,703)
Total consolidated revenues, net$2,421,314 
Less: (b)
     Content expenses851,702 79,989 
     Marketing, research, and advertising sales expenses298,267 23,842 
     Other (c)
343,441 156,292 
Segment adjusted operating income$619,579 $64,905 $684,484 
Reconciliation of total segment adjusted operating income:
Elimination of inter-segment profits(2,228)
Unallocated corporate overhead costs (d)
(119,683)
Share-based compensation expenses(26,051)
Depreciation and amortization(98,015)
Impairment and other charges(399,513)
Restructuring and other related charges(49,464)
Cloud computing amortization(13,452)
Majority-owned equity investees AOI(15,678)
Operating loss(39,600)
Other income (expense):
Interest expense(166,186)
Interest income36,803 
Loss on extinguishment of debt, net(105)
Miscellaneous, net(5,409)
Loss from operations before income taxes$(174,497)
(a) Inter-segment revenues primarily relate to Domestic Operations content licensing sales to International, as well as services performed by AMCNI on behalf of businesses within the Domestic Operations segment.
(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(c) Other for each reportable segment primarily includes employee-related costs, information technology costs, professional services expenses, occupancy expenses, certain overhead expenses and the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees.
(d) Unallocated corporate overhead costs include costs such as executive salaries and benefits and costs of maintaining corporate headquarters, facilities and common support functions.
(In thousands)Year Ended December 31, 2023
Domestic OperationsInternationalTotal
Revenues, net from external customers
Subscription$1,340,207 $220,854 $1,561,061 
Advertising633,823 81,823 715,646 
Content licensing and other333,771 101,399 435,170 
2,307,801 404,076 2,711,877 
Inter-segment revenues (Content licensing and other) (a)
8,786 400 9,186 
2,316,587 404,476 2,721,063 
Reconciliation of revenue
    Elimination of inter-segment revenues (a)
(9,186)
Total consolidated revenues, net$2,711,877 
Less: (b)
     Content expenses924,490 83,117 
     Marketing, research, and advertising sales expenses266,839 22,783 
Production services costs for 25/7 Media— 72,080 
     Other (c)
412,514 165,948 
Segment adjusted operating income$712,744 $60,548 $773,292 
Reconciliation of total segment adjusted operating income:
Elimination of inter-segment profits2,217 
Unallocated corporate overhead costs (d)
(105,405)
Share-based compensation expenses(25,665)
Depreciation and amortization(107,402)
Impairment and other charges(96,689)
Restructuring and other related charges(27,787)
Cloud computing amortization(10,543)
Majority-owned equity investees AOI(13,606)
Operating income388,412 
Other income (expense):
Interest expense(152,703)
Interest income37,018 
Miscellaneous, net23,279 
Income from operations before income taxes$296,006 
(a) Inter-segment revenues primarily relate to Domestic Operations content licensing sales to International, as well as services performed by AMCNI on behalf of businesses within the Domestic Operations segment.
(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(c) Other for each reportable segment primarily includes employee-related costs, information technology costs, professional services expenses, occupancy expenses, certain overhead expenses and the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees.
(d) Unallocated corporate overhead costs include costs such as executive salaries and benefits and costs of maintaining corporate headquarters, facilities and common support functions.
Subscription revenues in the Domestic Operations segment include revenues related to the Company's streaming services of approximately $677.0 million, $603.0 million and $565.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company does not disclose total assets for each operating segment because these amounts are not regularly reviewed by the CODM nor are they used in assessing segment performance or deciding how to allocate resources to the segments.
One customer within the Domestic Operations segment accounted for approximately 18%, 16% and 13% of consolidated revenues, net for the years ended December 31, 2025, 2024 and 2023, respectively.
The table below summarizes revenue based on customer location:
Years Ended December 31,
(In thousands)202520242023
Revenue
United States$1,839,707 $1,917,532 $2,210,253 
Europe322,342 353,215 329,093 
Other149,752 150,567 172,531 
$2,311,801 $2,421,314 $2,711,877 
The table below summarizes property and equipment based on asset location:
Years Ended December 31,
(In thousands)20252024
Property and equipment, net
United States$97,357 $127,881 
Europe15,282 13,634 
Other3,339 1,521 
$115,978 $143,036