v3.26.1
Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segments Segments
As of March 31, 2026, we had two reportable segments: Direct-to-Consumer and Licensing. The Direct-to-Consumer segment derives revenue from sales of consumer products sold directly to customers online or at brick-and-mortar stores through our lingerie business, Honey Birdette, with 50 stores in three countries as of March 31, 2026. The Licensing segment derives revenue from trademark licenses for third-party consumer products and location-based entertainment businesses, minimum guaranteed royalties from licensing certain intellectual property and the operation of our Playboy Plus, Playboy TV (online and linear) and Playboy Club digital businesses to Byborg pursuant to the LMA.
The “All Other” column for the three months ended March 31, 2026 includes amortization of deferred revenue balances related to the previously reported digital subscriptions and content operations that existed as of December 31, 2024 (prior to the LMA effective date of January 1, 2025), which will be recognized over the next four years.
The “All Other” column for the three months ended March 31, 2025 includes amortization of deferred revenue balances related to our previously reported digital subscriptions and content operations that existed as of December 31, 2024 (prior to the LMA effective date of January 1, 2025), the write-off of certain previously capitalized content expenses and transition expenses incurred pursuant to the TSA.
Revenues and expenses associated with Playboy magazine, sales of access to our iPlayboy archives and events and sponsorships were not allocated to segments for the three months ended March 31, 2026 and 2025, and were instead presented in our corporate revenue and expense allocations as activities associated with brand marketing and awareness.
Our Chief Executive Officer is our Chief Operating Decision Maker (“CODM”). Segment information is presented in the same manner that our CODM reviews the operating results in assessing performance and allocating resources. Consolidated operating loss is the measure of segment operating loss most consistent with GAAP that is regularly reviewed by our CODM. Total asset information is not included in the tables below as it is not provided to and reviewed by our CODM. The “All Other” operations are no longer reviewed by our CODM due to their transition into a licensing model pursuant to the LMA. The “Corporate” line item in the tables below includes operating revenues and expenses that are not allocated to the reportable segments presented to our CODM. These revenues are associated with brand marketing and awareness, and include payments from subscribers for access to our iPlayboy archives, revenues from Playboy magazine and events and sponsorships. Corporate expenses include legal, human resources, information technology and facilities, accounting/finance and brand marketing costs. Expenses associated with Playboy magazine, events and sponsorships are included in brand marketing costs. The accounting policies of the reportable segments are the same as those described in Note 1, Basis of Presentation and Summary of Significant Accounting Policies.
The following table sets forth financial information by reportable segment and attributable to corporate and certain other activities (in thousands):
Three Months Ended March 31,
20262025
Direct-to-ConsumerLicensingCorporate
All Other
TotalDirect-to-ConsumerLicensingCorporate
All Other
Total
Net revenues$18,847 $10,932 $138 $319 $30,236 $16,331 $11,451 $247 $846 $28,875 
Cost of sales(1)
(8,053)(1,491)— — (9,544)(6,907)(596)— (1,550)(9,053)
Gross profit10,794 9,441 138 319 20,692 9,424 10,855 247 (704)19,822 
Personnel(4,714)(383)(4,197)— (9,294)(4,347)(594)(5,743)(2,705)(13,389)
Rent(1,850)— (195)— (2,045)(1,719)(7)(621)— (2,347)
Marketing(1,820)(12)(134)— (1,966)(1,462)(20)(578)(34)(2,094)
Transaction expenses
— — (2,833)— (2,833)— — — — — 
Other segment items(2)
(847)(1,127)(4,221)— (6,195)(2,426)(1,277)(3,666)(883)(8,252)
Operating (loss) income1,563 7,919 (11,442)319 (1,641)(530)8,957 (10,361)(4,326)(6,260)
Interest expense(2,499)(1,888)
Other nonoperating income, net1,027 202 
Loss before income taxes$(3,113)$(7,946)
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(1) Direct-to-consumer cost of sales includes an immaterial amount of personnel and rent for the three months ended March 31, 2026 and 2025.
(2) Includes intercompany expense allocations from our corporate segment to our direct-to-consumer segment of $0.3 million and $0.9 million for the three months ended March 31, 2026 and 2025, respectively, which are eliminated upon consolidation.
Other segment items for the three months ended March 31, 2026 and 2025 were primarily comprised of the following:
Direct-to-Consumer: outside consulting and legal fees, as well as technology and equipment expenses.
Licensing: expenses that were attributable to our former China joint venture (for the 2025 period only), outside consulting expenses and legal fees.
Corporate: outside consulting expenses, insurance expense, audit and tax fees, brand marketing costs associated with Playboy magazine, events and sponsorships, as well as non-cash impairment charges of $0.3 million on our artwork held for sale (for the 2025 period only) during the three months ended March 31, 2025.
All Other: these only apply to the 2025 period and included outside consulting expenses, technology and equipment expense.
Geographic Information
Revenue by geography is based on where the customer is located. The following table sets forth revenue by geographic area (in thousands):
Three Months Ended
March 31,
20262025
Net revenues:
United States$10,566 $9,987 
Australia7,134 6,638 
Luxembourg5,000 5,000 
China3,012 3,196 
United Kingdom2,852 2,641 
Other1,672 1,413 
Total$30,236 $28,875