| Segment Information |
5. SEGMENT INFORMATION The Company has organized its operations into two reportable segments. Its media segment includes its television, radio and digital marketing operations. Its ATS segment provides programmatic advertising and technology services through Smadex and Adwake. Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses, change in fair value of contingent consideration, impairment charge, other operating (gain) loss, and foreign currency (gain) loss. The Company generated 60% and 36% of its revenue from continuing operations outside the United States during the three-month periods ended March 31, 2026 and 2025, respectively. The accounting policies applied to determine the segment information are generally the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates the performance of its operating segments based on separate financial data for each operating segment as provided below (in thousands):
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Three-Month Period |
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Ended March 31, |
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% |
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2026 |
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2025 |
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Change |
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Net revenue |
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Media |
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$ |
42,421 |
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$ |
40,977 |
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4 |
% |
Advertising Technology & Services |
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154,550 |
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50,874 |
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204 |
% |
Consolidated |
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196,971 |
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91,851 |
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114 |
% |
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Cost of revenue |
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Media |
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5,365 |
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3,266 |
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64 |
% |
Advertising Technology & Services |
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96,589 |
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30,206 |
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220 |
% |
Consolidated |
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101,954 |
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33,472 |
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205 |
% |
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Direct operating expenses |
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Media |
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28,136 |
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26,550 |
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6 |
% |
Advertising Technology & Services |
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16,663 |
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8,952 |
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86 |
% |
Consolidated |
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44,799 |
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35,502 |
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26 |
% |
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Selling, general and administrative expenses |
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Media |
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11,352 |
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10,805 |
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5 |
% |
Advertising Technology & Services |
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6,787 |
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4,701 |
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44 |
% |
Consolidated |
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18,139 |
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15,506 |
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17 |
% |
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Depreciation and amortization |
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Media |
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2,786 |
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2,970 |
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(6 |
)% |
Advertising Technology & Services |
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205 |
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507 |
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(60 |
)% |
Consolidated |
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2,991 |
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3,477 |
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(14 |
)% |
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Segment operating profit (loss) |
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Media |
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(5,218 |
) |
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(2,614 |
) |
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100 |
% |
Advertising Technology & Services |
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34,306 |
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6,508 |
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427 |
% |
Consolidated |
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29,088 |
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3,894 |
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647 |
% |
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Corporate expenses |
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7,173 |
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7,788 |
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(8 |
)% |
Impairment charge |
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- |
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23,673 |
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(100 |
)% |
Loss on lease abandonment |
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- |
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25,191 |
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(100 |
)% |
Restructuring costs |
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983 |
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- |
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* |
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Foreign currency (gain) loss |
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243 |
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12 |
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1,925 |
% |
Operating income (loss) |
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20,689 |
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(52,770 |
) |
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* |
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Interest expense |
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$ |
(3,315 |
) |
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$ |
(3,663 |
) |
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(10 |
)% |
Interest income |
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358 |
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605 |
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(41 |
)% |
Dividend income |
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14 |
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- |
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* |
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Realized gain (loss) on marketable securities |
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8 |
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1 |
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700 |
% |
Income (loss) before income taxes |
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17,754 |
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(55,827 |
) |
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* |
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Capital expenditures |
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Media |
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$ |
2,899 |
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$ |
2,360 |
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Advertising Technology & Services |
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|
998 |
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24 |
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Consolidated |
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$ |
3,897 |
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$ |
2,384 |
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* Percentage not meaningful. |