v3.26.1
Segment Reporting and Geographic Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information

20. Segment Reporting and Geographic Information

 

Operating segments are identified as components of an enterprise for which separate and discrete financial information is available and is used by the chief operating decision maker, or decision-making group, (the “CODM”), in making decisions on how to allocate resources and assess performance. The Company’s CODM consists of our Executive Chairman and our President and Chief Executive Officer.

 

The Company’s CODM uses measures of segment profit and loss to evaluate the performance areas of 1) revenue and gross margin; 2) staff and non-staff expenses against budget; 3) investment in capitalized software development; and 4) additional cash expenditures impacting working capital. The CODM uses the information to allocate financial resources and drive operation decisions such as investing in new customers, products, geographies and refocusing commercial teams to drive new sales, accelerating or delaying staffing or other selling, general and administrative expenditures and ensuring technology staff utilization on new product development.

 

During the first quarter of 2026, we changed our reportable segments to align with changes in our internal management reporting structure and the manner in which the CODM assesses performance and allocates resources.

 

As a result of these changes, the Company now reports the following reportable segments: Retail Solutions, Virtual Sports, and Interactive. Previously, the Company reported the following reportable segments: Gaming, Virtual Sports, Interactive, and Leisure. The change in reportable segments reflects organizational realignment and did not affect the Company’s consolidated financial position, results of operations, or cash flows. We believe this method of segment reporting reflects both the way our business segments are managed and the way the performance of each segment is evaluated.

 

Prior-period segment information has been recast to conform to the current period presentation. The recast had no impact on previously reported consolidated totals.

 

The refence below to “Other segment items” consist of costs incurred in restructuring activities.

 

 

The following tables present revenue, cost of sales, excluding depreciation and amortization, staff-related selling, general and administrative expenses, non-staff related selling, general and administrative expenses, labor costs capitalized, depreciation and amortization, stock-based compensation expense, other segment items, operating profit/(loss) and total capital and other long-lived asset expenditures for the periods ended June 30, 2026 and June 30, 2025, respectively, by business segment. Certain unallocated corporate function costs have not been allocated to the Company’s reportable operating segments because these costs are not allocable and to do so would not be practical. Corporate function costs consist primarily of selling, general and administrative expenses, depreciation and amortization and capital expenditures relating to corporate/shared functions. Asset information by reportable segment is not given as this information is not provided to the Company’s CODM due to it not being considered necessary in order for the CODM to assess the reportable segments’ performance or to make decisions concerning the allocation of resources.

 

Segment Information

 

Three Months Ended June 30, 2026

 

   Retail Solutions   Virtual Sports   Interactive   Corporate Functions   Total 
   (in millions) 
Revenue:                         
Service  $29.7   $8.9   $15.7   $—   $54.3 
Product sales   6.5    —    —    —    6.5 
Total revenue   36.2    8.9    15.7    —    60.8 
Cost of sales, excluding depreciation and amortization:                         
Cost of service   (7.3)   (0.6)   (0.8)   —    (8.7)
Cost of product sales   (3.5)   —    —    —    (3.5)
Staff-related selling, general and administrative expenses   (4.8)   (2.2)   (3.4)   (4.5)   (14.9)
Non-staff related selling, general and administrative expenses   (3.3)   (0.1)   (2.0)   (3.8)   (9.2)
Labor costs capitalized   1.1    0.7    0.8    —    2.6 
Stock-based compensation expense   (0.2)   (0.1)   (0.2)   (1.1)   (1.6)
Depreciation and amortization   (9.7)   (2.7)   (2.0)   (0.1)   (14.5)
Other segment items   (0.8)   —    —    (0.3)   (1.1)
Segment operating income (loss)   7.7    3.9    8.1    (9.8)   9.9 
                          
Net operating income                      $9.9 
                          
Total capital and other long-lived asset expenditures for the three months ended June 30, 2026  $3.2   $2.4   $1.4   $0.6   $7.6 

 

Three Months Ended June 30, 2025

 

   Retail Solutions   Virtual Sports   Interactive   Corporate Functions   Total 
   (in millions) 
Revenue:                    
Service  $51.0   $9.2   $13.6   $—   $73.8 
Product sales   6.5    —    —    —    6.5 
Total revenue   57.5    9.2    13.6    —    80.3 
Cost of sales, excluding depreciation and amortization:                         
Cost of service   (19.7)   (0.7)   (0.8)   —    (21.2)
Cost of product sales   (4.0)   —    —    —    (4.0)
Staff-related selling, general and administrative expenses   (8.7)   (2.4)   (3.0)   (4.6)   (18.7)
Non-staff related selling, general and administrative expenses   (6.5)   (0.5)   (1.6)   (3.2)   (11.8)
Labor costs capitalized   1.9    1.0    0.9    —    3.8 
Stock-based compensation expense   (0.5)   (0.1)   (0.2)   (1.0)   (1.8)
Depreciation and amortization   (10.9)   (1.9)   (1.6)   (0.9)   (15.3)
Other segment items   (0.4)   —    —    (3.0)   (3.4)
Segment operating income (loss)   8.7    4.6    7.3    (12.7)   7.9 
                          
Net operating income                      $7.9 
                          
Total capital and other long-lived asset expenditures for the three months ended June 30, 2025  $14.8   $1.2   $0.3   $0.6   $16.9 

 

 

Six Months Ended June 30, 2026

 

   Retail Solutions   Virtual Sports   Interactive   Corporate Functions   Total 
   (in millions) 
Revenue:                         
Service  $57.6   $17.6   $32.4   $—   $107.6 
Product sales   10.4    —    —    —    10.4 
Total revenue   68.0    17.6    32.4    —    118.0 
Cost of sales, excluding depreciation and amortization:                         
Cost of service   (14.6)   (1.1)   (1.6)   —    (17.3)
Cost of product sales   (6.1)   —    —    —    (6.1)
Staff-related selling, general and administrative expenses   (9.3)   (4.4)   (6.2)   (7.8)   (27.7)
Non-staff related selling, general and administrative expenses   (7.7)   (0.6)   (4.2)   (9.1)   (21.6)
Labor costs capitalized   2.4    1.3    1.7    —    5.4 
Stock-based compensation expense   (0.4)   (0.3)   (0.3)   (2.0)   (3.0)
Depreciation and amortization   (18.1)   (4.8)   (3.0)   (1.1)   (27.0)
Other segment items   (1.1)   —    —    (0.5)   (1.6)
Segment operating income (loss)   13.1    7.7    18.8    (20.5)   19.1 
                          
Net operating income                      $19.1 
                          
Total capital and other long-lived asset expenditures for the six months ended June 30, 2026  $9.8   $3.2   $2.8   $0.9   $16.7 

 

Six Months Ended June 30, 2025

 

   Retail Solutions   Virtual Sports   Interactive   Corporate Functions   Total 
   (in millions) 
Revenue:                         
Service  $87.2   $17.9   $25.7   $—   $130.8 
Product sales   9.9    —    —    —    9.9 
Total revenue   97.1    17.9    25.7    —    140.7 
Cost of sales, excluding depreciation and amortization:                         
Cost of service   (33.6)   (1.2)   (1.4)   —    (36.2)
Cost of product sales   (6.9)   —    —    —    (6.9)
Staff-related selling, general and administrative expenses   (16.1)   (4.6)   (5.4)   (7.8)   (33.9)
Non-staff related selling, general and administrative expenses   (12.9)   (1.1)   (3.6)   (6.6)   (24.2)
Labor costs capitalized   3.9    1.9    1.5    —    7.3 
Stock-based compensation expense   (0.8)   (0.2)   (0.3)   (1.9)   (3.2)
Depreciation and amortization   (18.8)   (3.2)   (2.3)   (1.6)   (25.9)
Other segment items   (0.6)   —    —    (7.6)   (8.2)
Segment operating income (loss)   11.3    9.5    14.2    (25.5)   9.5 
                          
Net operating income                      $9.5 
                          
Total capital and other long-lived asset expenditures for the six months ended June 30, 2025  $23.3   $1.7   $0.8   $1.6   $27.4 

 

 

Geographic Information

 

Geographic information for revenue is set forth below:

 

   2026   2025   2026   2025 
  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
   2026   2025   2026   2025 
   (in millions)   (in millions) 
Total revenue                    
UK  $34.6   $57.6   $69.1   $97.0 
Greece   6.4    6.2    12.9    12.4 
USA   5.8    3.9    10.5    7.8 
Rest of world   14.0    12.6    25.5    23.5 
Total  $60.8   $80.3   $118.0   $140.7 

 

UK revenue includes revenue from customers headquartered in the UK, but whose revenue is generated globally.

 

Geographic information of our non-current assets excluding goodwill is set forth below:

 

  

June 30,

2026

  

December 31,

2025

 
   (in millions) 
UK  $101.1   $110.9 
Greece   23.0    23.8 
Rest of world   18.1    19.8 
Total  $142.2   $154.5 

 

Software development costs are included as attributable to the market in which they are utilized.