v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

4. Segment Reporting

Operating segments are defined as components of an entity for which discrete financial information is available and is regularly reviewed by the entity’s Chief Operating Decision Maker (“CODM”) in making decisions regarding resource allocation and performance assessment. Our CODM is our Chief Executive Officer.

We have determined that we have two operating and reportable segments: Marketplace and Resale. In our Marketplace segment, we primarily act as an intermediary between ticket buyers, sellers, and partners within our online ticket marketplace, through which we earn revenue processing ticket sales for live events and attractions and from facilitating the booking of hotel rooms and packages. In our Resale segment, we primarily acquire tickets to resell on secondary ticket marketplaces, including our own.

For both segments, our CODM uses contribution margin (defined as revenues less cost of revenues and marketing and selling expenses) as a means to allocate resources, evaluate performance, and make strategic decisions during the annual budgeting and forecasting process. Contribution margin forms the basis for measuring trends in performance and comparing the relative potential of various initiatives.

Cost of revenues largely consist of payment processing fees for our Marketplace segment and ticket costs for our Resale segment. Marketing and selling expenses, which relate entirely to our Marketplace segment, consist almost entirely of advertising costs. Most advertising costs are aimed towards acquiring new customers online through paid

search engine marketing, fees paid to our advertising affiliates and distributors, and other various digital marketing activities. However, to a lesser extent, advertising costs are also aimed towards acquiring new customers offline through traditional media channels, advertising agency costs, and partnership expenses with sports teams and other media partners.

We do not report our assets, capital expenditures, general and administrative expenses, or depreciation and amortization expenses by segment because our CODM does not use this information to evaluate the performance of our operating segments.

The following tables summarize our segment information for the three months ended March 31, 2026 and 2025 (in thousands):

 

 

Three Months Ended March 31, 2026

 

 

 

Marketplace

 

 

Resale

 

 

Total

 

Revenues

 

$

97,526

 

 

$

28,257

 

 

$

125,783

 

Cost of revenues (exclusive of depreciation and amortization shown separately below)

 

 

16,602

 

 

 

22,593

 

 

 

39,195

 

Marketing and selling:

 

 

 

 

 

 

 

 

 

Online advertising

 

 

46,977

 

 

 

—

 

 

 

46,977

 

Offline advertising

 

 

2,974

 

 

 

—

 

 

 

2,974

 

Total marketing and selling

 

 

49,951

 

 

 

—

 

 

 

49,951

 

Contribution margin

 

 

30,973

 

 

 

5,664

 

 

 

36,637

 

General and administrative

 

 

 

 

 

 

 

 

33,117

 

Depreciation and amortization

 

 

 

 

 

 

 

 

12,308

 

Loss from operations

 

 

 

 

 

 

 

 

(8,788

)

Interest expense – net

 

 

 

 

 

 

 

 

5,931

 

Other expense – net

 

 

 

 

 

 

 

 

1,070

 

Loss before income taxes

 

 

 

 

 

 

 

$

(15,789

)

 

 

 

Three Months Ended March 31, 2025

 

 

 

Marketplace

 

 

Resale

 

 

Total

 

Revenues

 

$

133,740

 

 

$

30,283

 

 

$

164,023

 

Cost of revenues (exclusive of depreciation and amortization shown separately below)

 

 

20,999

 

 

 

23,526

 

 

 

44,525

 

Marketing and selling:

 

 

 

 

 

 

 

 

 

Online advertising

 

 

59,199

 

 

 

—

 

 

 

59,199

 

Offline advertising

 

 

4,913

 

 

 

—

 

 

 

4,913

 

Total marketing and selling

 

 

64,112

 

 

 

—

 

 

 

64,112

 

Contribution margin

 

 

48,629

 

 

 

6,757

 

 

 

55,386

 

General and administrative

 

 

 

 

 

 

 

 

48,082

 

Depreciation and amortization

 

 

 

 

 

 

 

 

11,625

 

Loss from operations

 

 

 

 

 

 

 

 

(4,321

)

Interest expense – net

 

 

 

 

 

 

 

 

5,665

 

Other income – net

 

 

 

 

 

 

 

 

(4,154

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

801

 

Loss before income taxes

 

 

 

 

 

 

 

$

(6,633

)

Substantially all of our sales occur and assets reside in the United States.