v3.26.1
Segment Reporting
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Dec. 31, 2025
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)

 

1Other 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.

 

 

BANZAI INTERNATIONAL, INC.

Unaudited Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands unless otherwise stated, except share and per share data)

 

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

 

   Banzai Operating   OpenReel   Vidello1   Total Consolidated 
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)

 

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

 

2Other 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:

  

Revenue %  2026   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.

 

 

BANZAI INTERNATIONAL, INC.

Unaudited Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands unless otherwise stated, except share and per share data)

 

18. 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 year ended December 31, 2025:

 

Year ended December 31, 2025                
  

Banzai

Operating

   OpenReel   Vidello  

Total

Consolidated

 
Revenue  $4,426,868   $5,473,389   $2,261,162   $12,161,419 
Cost of revenue   1,476,701    310,362    401,520    2,188,583 
Gross profit   2,950,167    5,163,027    1,859,642    9,972,836 
                     
Expenses                    
People   6,254,527    4,545,813    393,025    11,193,365 
Marketing and advertising   2,160,168    155,237    558,059    2,873,464 
Technology   926,334    272,926    83,839    1,283,099 
Other segment expenses1   2,223,686    535,823    198,407    2,957,915 
Total expenses   11,564,715    5,509,799    1,233,330    18,307,843 
Segment Adjusted EBITDA   (8,614,548)   (346,772)   626,312    (8,335,007)
Transaction, PubCo. Expenses and Stock-based compensation   8,819,671    71,320    88,511    8,979,501 
Adjusted EBITDA  $(17,434,219)  $(418,092)  $537,801   $(17,314,508)

 

1Other 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 year ended December 31, 2024:

 

  

Banzai

Operating

   OpenReel   Vidello1  

Total

Consolidated

 
Year ended December 31, 2024                
  

Banzai

Operating

   OpenReel   Vidello1  

Total

Consolidated

 
Revenue  $4,305,429   $222,450   $—   $4,527,879 
Cost of revenue   1,407,564    14,978    —    1,422,542 
Gross profit   2,897,865    207,472    —    3,105,337 
                     
Expenses                    
People   6,209,488    17,642    —    6,227,130 
Marketing and advertising   1,587,085    5,020    —    1,592,105 
Technology   861,775    112,429    —    974,204 
Other segment expenses2   811,519    6,856    —    818,375 
Total expenses   9,469,867    141,947    —    9,611,814 
Segment Adjusted EBITDA   (6,572,002)   65,525    —    (6,506,477)
Transaction, PubCo. Expenses and Stock-based compensation   6,912,309    —    —    6,912,309 
Adjusted EBITDA  $(13,484,311)  $65,525   $—   $(13,418,786)

 

1The Vidello acquisition occurred on January 31, 2025 (refer to Note 4 – Acquisitions and therefore is presented at $0 for comparative purposes.

 

2Other 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 years ended December 31, 2025, and 2024 is as follows:

 

   December 31, 2025   December 31, 2024 
EBITDA by segment          
Banzai Operating Co.  $(17,434,219)  $(13,484,311)
OpenReel   (418,092)   65,525 
Vidello   537,801    — 
Total   (17,314,510)   (13,418,786)
           
Reconciliation to loss before income taxes:          
Interest income   (2,955)   (10)
Interest expense   -    - 
Interest expense – related party   1,156,984    3,047,101 
Depreciation and amortization expense   1,150,471    24,179 
Loss on conversion of liabilities   -    11,338,284 
Gain on extinguishment of liabilities, net   (2,085,895)   390,801 
Gain on release of Vidello revenue holdback   (973,000)   - 
Vidello earnout expense   485,720    - 
Failed acquisition costs   1,382,002    - 
Loss on Yorkville SEPA advances   974,079    - 
GEM settlement fee expense   -    200,000 
Yorkville prepayment premium expense   -    80,760 
Loss on debt issuance   5,580,835    653,208 
Changes in fair value of financial instruments   (3,052,229)   (478,288)
Goodwill impairment   -    2,725,460 
Other   (726,572)   113,108 
Loss before income taxes  $(21,203,950)  $(31,513,389)

 

 

Disaggregation of Revenue

 

The following table presents the Company’s percentage of revenue generated by SaaS product for the years ended December 31, 2025 and 2024:

 

Revenue %  2025   2024 
   Year Ended December 31, 
Revenue %  2025   2024 
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.