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

17. Segment Reporting

 

The Company has three reportable operating segments, Banzai Operating Co, Inc., OpenReel, and Vidello. The Company’s segments deliver SaaS tools that leverage data, analytics, and AI to provide marketing and sales solutions, including video production and editing, for businesses of all sizes.

Our Chief Executive Officer, who serves as the Company's chief operating decision maker ("CODM"), primarily uses segment revenue, gross profit, and adjusted EBITDA to allocate resources and assess performance. Segment revenue and gross profit are determined on the same basis as consolidated revenue and consolidated gross profit as shown in the Company’s consolidated statements of operations. Segment adjusted EBITDA is defined as revenue less the following expenses associated with each segment: cost of revenue, people, marketing and advertising, technology, and other segment expenses. Segment adjusted EBITDA excludes certain non-cash items or items that management does not consider reflective of ongoing core operations. Currently, the CODM does not review assets in evaluating the results of the operating segments, and therefore, such information is not presented.

 

The table below presents information about segments for the three months ended March 31, 2026:

 

Three months ended March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banzai Operating

 

 

OpenReel

 

 

Vidello

 

 

Total Consolidated

 

Revenue

 

$

1,026

 

 

$

1,376

 

 

$

294

 

 

$

2,696

 

Cost of revenue

 

 

390

 

 

 

64

 

 

 

67

 

 

 

521

 

Gross profit

 

 

636

 

 

 

1,312

 

 

 

227

 

 

 

2,175

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

People

 

 

1,944

 

 

 

1,033

 

 

 

119

 

 

 

3,096

 

Marketing and advertising

 

 

369

 

 

 

51

 

 

 

113

 

 

 

533

 

Technology

 

 

180

 

 

 

37

 

 

 

13

 

 

 

230

 

Other segment expenses1

 

 

184

 

 

 

36

 

 

 

4

 

 

 

224

 

Total expenses

 

 

2,677

 

 

 

1,157

 

 

 

249

 

 

 

4,083

 

Segment Adjusted EBITDA

 

 

(2,041

)

 

 

155

 

 

 

(22

)

 

 

(1,908

)

Transaction, PubCo. Expenses and Stock-based compensation

 

 

3,567

 

 

 

-

 

 

 

-

 

 

 

3,567

 

Adjusted EBITDA

 

$

(5,608

)

 

$

155

 

 

$

(22

)

 

$

(5,475

)

1 Other segment expenses for each reportable segment includes provision for credit losses, foreign currency exchange rate changes, travel and entertainment expenses, professional expenses other than those included in transaction and PubCo expenses, insurance expenses, and expenses related to licenses.

The table below presents information about segments for the three months ended March 31, 2025:

 

Three months ended March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banzai Operating

 

 

OpenReel

 

 

Vidello1

 

 

Total Consolidated

 

Revenue

 

$

1,160

 

 

$

1,441

 

 

$

778

 

 

$

3,379

 

Cost of revenue

 

 

377

 

 

 

74

 

 

 

155

 

 

 

606

 

Gross profit

 

 

783

 

 

 

1,367

 

 

 

623

 

 

 

2,773

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

People

 

 

2,204

 

 

 

90

 

 

 

—

 

 

 

2,294

 

Marketing and advertising

 

 

795

 

 

 

39

 

 

 

103

 

 

 

937

 

Technology

 

 

276

 

 

 

519

 

 

 

27

 

 

 

822

 

Other segment expenses2

 

 

369

 

 

 

20

 

 

 

73

 

 

 

462

 

Total expenses

 

 

3,644

 

 

 

668

 

 

 

203

 

 

 

4,515

 

Segment Adjusted EBITDA

 

 

(2,861

)

 

 

699

 

 

 

420

 

 

 

(1,742

)

Transaction, PubCo. Expenses and Stock-based compensation

 

 

2,616

 

 

 

302

 

 

 

—

 

 

 

2,918

 

Adjusted EBITDA

 

$

(5,477

)

 

$

397

 

 

$

420

 

 

$

(4,660

)

 

1 The Vidello acquisition occurred on January 31, 2025 (refer to Note 4 – Acquisitions and therefore does not represent activity for the full three month period.

 

2 Other segment expenses for each reportable segment includes travel and entertainment expenses, professional expenses other than those included in transaction and PubCo expenses, the SEPA commitment fee expense and deferred fee expense, the GEM warrant expense, and the GEM commitment fee expense.

 

A reconciliation between EBITDA by reportable segment to consolidated net loss before income taxes for the three months ended March 31, 2026, and 2025 is as follows:

 

 

March 31, 2026

 

 

March 31, 2025

 

EBITDA by segment

 

 

 

 

 

 

     Banzai Operating Co.

 

$

(5,608

)

 

$

(5,477

)

     OpenReel

 

 

155

 

 

 

397

 

     Vidello

 

 

(22

)

 

 

420

 

Total

 

 

(5,475

)

 

 

(4,660

)

 

 

 

 

 

 

Reconciliation to loss before income taxes:

 

 

 

 

 

 

Interest income

 

 

(3

)

 

 

—

 

Interest expense

 

 

9

 

 

 

—

 

Interest expense – related party

 

 

194

 

 

 

358

 

Depreciation and amortization expense

 

 

305

 

 

 

247

 

Gain on extinguishment of liabilities, net

 

 

6

 

 

 

(2,573

)

Loss on Yorkville SEPA advances

 

 

28

 

 

 

385

 

Loss on debt issuance

 

 

1,647

 

 

 

274

 

Changes in fair value of financial instruments

 

 

258

 

 

 

344

 

Other

 

 

550

 

 

 

(125

)

Loss before income taxes

 

$

(8,469

)

 

$

(3,570

)

 

Disaggregation of Revenue

 

The following table presents the Company's percentage of revenue generated by SaaS product for the three months ended March 31, 2026 and 2025:

 

 

 

Three Months Ended March 31,

 

Revenue %

 

2026

 

 

2025

 

Reach

 

 

2.2

%

 

 

3.8

%

Demio

 

 

34.2

%

 

 

91.0

%

OpenReel 1

 

 

45.0

%

 

 

5.2

%

Vidello 2

 

 

18.6

%

 

 

—

%

Total

 

 

100.0

%

 

 

100.0

%

 

For disaggregation of revenue by geographic area, refer to Note 6 – Revenue.