| Operating Segments and Geographic Information |
17. Operating Segments and Geographic Information Effective January 1, 2024, the Company revised its reportable segments to align with the Company’s business strategy, and the manner in which the Chief Executive Officer, the Company's CODM, assesses the performance and makes decisions regarding the allocation of resources for the Company. The Company’s reportable segments consist of Branded Services, Experiential Services, and Retailer Services. The reportable segments reported below are the segments of the Company for which separate financial information is available. Through the Company's Branded Services segment, the Company offers capabilities in brokerage, branded merchandising and omni-commerce marketing services to CPG manufacturers. Through the Company's Experiential Services segment, the Company expands the reach of consumer brands and retailer products to convert shoppers into buyers through sampling and product demonstration programs executed in-store and online. Through the Company's Retailer Services segment, the Company provides retailers with end-to-end advisory, retailer merchandising, and agency expertise to drive sales. The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; therefore, no additional information is produced or included herein. Segment operating income is the measure utilized by the CODM to assess performance and allocate resources. When evaluating the Company’s financial performance, the CODM regularly reviews revenues, compensation and benefits, reimbursable expenses and other segment items. Compensation costs are key metrics reviewed by the CODM when allocating resources and assessing performance as the Company depends significantly on human capital to deliver services to its clients. The CODM uses segment operating (loss) income as the profit measure in evaluating segment performance during the annual planning and forecasting process and in monitoring actual performance versus plan. Revenues and significant expenses by segment are as follows:
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Year Ended December 31, 2025 |
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(in thousands) |
Branded Services |
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Experiential Services |
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Retailer Services |
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Total Company |
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Revenues |
$ |
1,163,672 |
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$ |
1,435,297 |
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$ |
943,673 |
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$ |
3,542,642 |
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Less: |
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Compensation and benefits |
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644,587 |
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|
696,910 |
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589,976 |
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1,931,473 |
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Reimbursable expenses (1) |
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133,287 |
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411,709 |
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— |
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|
544,996 |
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Other segment items (2) |
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281,920 |
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248,046 |
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292,204 |
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822,170 |
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Impairment of goodwill and indefinite-lived asset |
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77,797 |
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53,086 |
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72,802 |
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203,685 |
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Depreciation and amortization |
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125,807 |
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|
42,751 |
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33,700 |
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|
202,258 |
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Income from investment in European joint venture and other |
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(7,491 |
) |
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— |
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— |
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(7,491 |
) |
Gain on divestiture |
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(27,983 |
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— |
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— |
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(27,983 |
) |
Total segment operating expenses from continuing operations |
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1,227,924 |
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1,452,502 |
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988,682 |
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3,669,108 |
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Total segment operating loss from continuing operations |
$ |
(64,252 |
) |
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$ |
(17,205 |
) |
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$ |
(45,009 |
) |
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$ |
(126,466 |
) |
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Year Ended December 31, 2024 |
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(in thousands) |
Branded Services |
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Experiential Services |
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Retailer Services |
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Total Company |
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Revenues |
$ |
1,306,336 |
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$ |
1,295,029 |
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$ |
964,959 |
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$ |
3,566,324 |
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Less: |
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Compensation and benefits |
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719,089 |
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701,906 |
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619,387 |
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2,040,382 |
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Reimbursable expenses (1) |
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171,766 |
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349,991 |
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— |
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521,757 |
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Other segment items (2) |
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330,736 |
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201,149 |
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289,624 |
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821,509 |
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Impairment of goodwill and indefinite-lived asset |
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275,170 |
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— |
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— |
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275,170 |
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Depreciation and amortization |
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130,212 |
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41,728 |
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32,613 |
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204,553 |
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Income from investment in European joint venture and other |
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(2,064 |
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— |
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— |
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(2,064 |
) |
Total segment operating expenses from continuing operations |
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1,624,909 |
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1,294,774 |
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941,624 |
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3,861,307 |
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Total segment operating (loss) income from continuing operations |
$ |
(318,573 |
) |
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$ |
255 |
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$ |
23,335 |
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$ |
(294,983 |
) |
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Year Ended December 31, 2023 |
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(in thousands) |
Branded Services |
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Experiential Services |
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Retailer Services |
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Total Company |
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Revenues |
$ |
1,758,417 |
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$ |
1,159,449 |
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$ |
982,259 |
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$ |
3,900,125 |
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Less: |
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Compensation and benefits |
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1,009,334 |
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638,081 |
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630,484 |
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2,277,899 |
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Reimbursable expenses (1) |
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179,029 |
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307,610 |
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— |
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486,639 |
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Other segment items (2) |
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417,320 |
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173,879 |
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304,334 |
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895,533 |
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Impairment of goodwill and indefinite-lived asset |
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43,500 |
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— |
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— |
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43,500 |
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Depreciation and amortization |
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140,932 |
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36,584 |
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31,340 |
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208,856 |
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Deconsolidation of European joint venture |
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(58,891 |
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— |
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— |
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(58,891 |
) |
Total segment operating expenses from continuing operations |
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1,731,224 |
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1,156,154 |
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966,158 |
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3,853,536 |
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Total segment operating income from continuing operations |
$ |
27,193 |
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$ |
3,295 |
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$ |
16,101 |
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$ |
46,589 |
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(1) |
Reimbursable expenses are costs incurred in the delivery of services to the Company's clients that the client has agreed to reimburse, including media, sample, retailer fees and other marketing and production costs. |
(2) |
The “other segment items” category primarily consists of costs incurred in the execution of service obligations, including supplies, technology, and other direct expenses such as travel and indirect general and administrative expenses such as professional fees. These costs align with the segment-level information regularly provided to the CODM and represent the difference between revenue and the significant expense categories above in determining segment profitability. |
Revenues by geographic region are as follows:
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Year Ended December 31, |
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(in thousands) |
2025 |
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2024 |
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2023 |
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Revenues |
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North America |
$ |
3,368,209 |
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$ |
3,412,947 |
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$ |
3,393,718 |
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Asia Pacific |
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163,209 |
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145,574 |
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125,569 |
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Europe |
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11,224 |
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7,803 |
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6,472 |
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European Joint Venture (1) |
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— |
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— |
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374,366 |
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Total revenues |
$ |
3,542,642 |
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$ |
3,566,324 |
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$ |
3,900,125 |
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(1) |
The Company’s European joint venture was deconsolidated during fiscal year 2023. For further details, see Note 2 — Discontinued Operations, Divestitures and Deconsolidation of European Joint Venture. |
North American revenues were primarily services provided in the U.S. representing revenues of $3.1 billion, $3.1 billion, and $3.2 billion during the years ended December 31, 2025, 2024, and 2023, respectively. The majority of the Company’s long-lived assets are primarily located in North America. Long-lived assets located in all other geographic regions as of December 31, 2025 and 2024 are not material. North American long-lived assets were primarily in the U.S. representing long-lived assets of $114.8 million and $97.1 million as of December 31, 2025 and 2024, respectively. The classification of “Asia Pacific” primarily includes the Company’s operations in Japan, South Korea and Taiwan. The classification of “Europe” primarily includes the Company’s operations in Spain, France and Sweden. The Company does not disclose total assets by segment as it is not provided to the CODM.
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