v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information

Note 18. Segment Information

The Company routinely evaluates whether its operating and reportable segments continue to reflect the way the CODM evaluates the business. The determination is based on: (1) how the Company’s CODM evaluates the performance of the business, including resource allocation decisions, and (2) whether discrete financial information for each operating segment is available. The Company considers its Chief Executive Officer to be its CODM.

The Connections segment is the only operating segment which meets the criteria to be classified as a reportable segment. The Connections reportable segment includes all of Emerald’s trade shows and other live events. The other two operating segments, which provide diverse media services and e-commerce software solutions, do not meet the quantitative thresholds of a reportable segment and did not meet the aggregation criteria set forth in Accounting Standards Codification 280 (“ASC 280”), Segment Reporting, and as such are referred to as “All Other.”

Operating segment performance is evaluated by the Company’s CODM based on Adjusted EBITDA, defined as EBITDA exclusive of stock-based compensation expense, impairments and other items. These adjustments are primarily related to items that are managed on a consolidated basis at the corporate level. The exclusion of such charges from each segment is consistent with how the CODM evaluates segment performance. The CODM considers budget-to-actual variances and year-over-year growth on a monthly basis when assessing segment performance and making decisions about allocating resources to the segments.

The following table presents a reconciliation of reportable segment revenues, other income, and Adjusted EBITDA to net (loss) income before income taxes:

 

 

Years Ended December 31,

 

(in millions)

 

2025

 

 

2024

 

 

2023

 

Revenues

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

423.1

 

 

$

355.1

 

 

$

340.2

 

All Other Category

 

 

40.3

 

 

 

43.7

 

 

 

42.6

 

Total revenues

 

$

463.4

 

 

$

398.8

 

 

$

382.8

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

—

 

 

$

1.5

 

 

$

2.8

 

Total other income, net

 

$

—

 

 

$

1.5

 

 

$

2.8

 

 

 

 

 

 

 

 

 

 

Connections Segment expenses

 

 

 

 

 

 

 

 

 

Cost of Revenues

 

$

158.2

 

 

$

136.0

 

 

$

127.4

 

Selling, general and administrative

 

 

93.6

 

 

 

78.3

 

 

 

78.8

 

Total expenses

 

$

251.8

 

 

$

214.3

 

 

$

206.2

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

171.3

 

 

$

142.3

 

 

$

136.8

 

Segment Adjusted EBITDA

 

$

171.3

 

 

$

142.3

 

 

$

136.8

 

 

 

 

 

 

 

 

 

 

All Other Category Adjusted EBITDA

 

$

7.2

 

 

$

6.2

 

 

$

3.6

 

General corporate and other expenses(1)

 

 

(51.4

)

 

 

(46.8

)

 

 

(42.6

)

Interest expense, net

 

 

(44.2

)

 

 

(39.3

)

 

 

(35.1

)

Loss on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

(2.3

)

Intangible asset impairment charge

 

 

—

 

 

 

(7.3

)

 

 

—

 

Depreciation and amortization expense

 

 

(31.0

)

 

 

(28.3

)

 

 

(45.0

)

Stock-based compensation expense

 

 

(11.3

)

 

 

(5.8

)

 

 

(7.8

)

Remeasurement of contingent consideration

 

 

(45.8

)

 

 

1.2

 

 

 

2.3

 

Other items(2)

 

 

(16.4

)

 

 

(14.7

)

 

 

(12.8

)

(Loss) income before income taxes

 

$

(21.6

)

 

$

7.5

 

 

$

(2.9

)
(1)
General corporate and other expenses are primarily related to corporate level expenditures.
(2)
Other items for the year ended December 31, 2025 included: (i) $6.3 million in acquisition-related integration and restructuring-related transition costs; (ii) $6.2 million in acquisition-related transaction costs and (iii) $3.9 million in non-recurring legal, audit and consulting fees. Other items for the year ended December 31, 2024 included: (i) $8.3 million in acquisition-related integration and restructuring-related transition costs, including a one-time severance expense of $3.7 million; (ii) $3.4 million in acquisition-related transaction costs and (iii) $3.0 million in non-recurring legal, audit and consulting fees. Other items for the year ended December 31, 2023 included: (i) $6.1 million in acquisition-related integration and restructuring-related transition costs, including a one-time severance expense of $1.5 million; (ii) $2.6 million in acquisition-related transaction costs and (iii) $4.1 million in non-recurring legal, audit and consulting fees.

The following table presents reportable and non-reportable segment cost of revenues and selling, general and administrative expenses:

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(dollars in millions)

 

Cost of revenues

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

158.2

 

 

$

136.0

 

 

$

127.4

 

All Other Category

 

 

10.4

 

 

 

10.8

 

 

 

9.6

 

Other items(1)

 

 

0.1

 

 

 

0.7

 

 

 

0.6

 

Total cost of revenues

 

$

168.7

 

 

$

147.5

 

 

$

137.6

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

93.6

 

 

$

78.3

 

 

$

78.8

 

All Other Category

 

 

22.7

 

 

 

26.7

 

 

 

29.4

 

Corporate

 

 

51.4

 

 

 

46.8

 

 

 

42.6

 

Other items(1)

 

 

73.5

 

 

 

18.6

 

 

 

17.5

 

Total selling, general and administrative expenses

 

$

241.2

 

 

$

170.4

 

 

$

168.3

 
(1)
Other items included in cost of revenues and selling, general and administrative expenses relate to one-time adjustments that are considered to not be indicative of ongoing segment operative performance.

The Company’s CODM does not receive information with a measure of total assets or capital expenditures for each operating segment as this information is not used for the evaluation of operating segment performance as the Company’s operations are not capital intensive. Capital expenditure information is provided to the CODM on a consolidated basis. Therefore, the Company has not provided asset and capital expenditure information by reportable segment. For the years ended December 31, 2025, 2024 and 2023, revenues were derived from transactions in the following countries:

 

 

Years Ended December 31,

 

(in millions)

 

2025

 

 

2024

 

 

2023

 

Revenues

 

 

 

 

 

 

 

 

 

United States

 

$

414.2

 

 

$

382.8

 

 

$

369.4

 

All other countries

 

 

49.2

 

 

 

16.0

 

 

 

13.4

 

Total revenues

 

$

463.4

 

 

$

398.8

 

 

$

382.8