v3.26.1
Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segments Segments
As of June 30, 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 48 stores in three countries as of June 30, 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 and six months ended June 30, 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 and six months ended June 30, 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 June 30, 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 June 30,
20262025
Direct-to-ConsumerLicensingCorporateAll OtherTotalDirect-to-ConsumerLicensingCorporate
All Other(2)
Total
Net revenues19,487 11,169 307 255 31,218 $16,493 $10,932 $135 $588 $28,148 
Cost of sales(1)
(6,808)(475)(1,113)— (8,396)(6,835)(2,503)— (401)(9,739)
Gross profit12,679 10,694 (806)255 22,822 9,658 8,429 135 187 18,409 
Personnel(4,884)(308)(5,576)— (10,768)(4,806)(1,190)(4,793)(603)(11,392)
Rent(1,841)— (301)— (2,142)(1,702)(5)(498)— (2,205)
Marketing(1,637)(14)(186)— (1,837)(1,336)(9)(29)— (1,374)
Transaction expenses — — (155)— (155)— — — — — 
Other segment items(3)
(4,298)(817)170 — (4,945)(2,564)(1,673)(4,740)(344)(9,321)
Operating income (loss)19 9,555 (6,854)255 2,975 (750)5,552 (9,925)(760)(5,883)
Interest expense(2,218)(1,907)
Other nonoperating income, net500 1,000 
Income (loss) before income taxes$1,257 $(6,790)
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(1) Direct-to-consumer cost of sales includes an immaterial amount of personnel and rent for the three months ended June 30, 2026 and 2025.
(2) For the three months ended June 30, 2025, transition expenses associated with the digital businesses licensed to Byborg, which we were responsible for during the transition period pursuant to the TSA, were $1.2 million, with $0.4 million recorded as cost of sales and $0.8 million recorded as selling and administrative expenses in the condensed consolidated statements of operations for the three months ended June 30, 2025.
(3) Includes intercompany management fee expense allocations of $2.5 million and $0.9 million from our direct-to-consumer segment to our corporate segment, which eliminate upon consolidation, for the three months ended June 30, 2026 and 2025, respectively.
Six Months Ended June 30,
20262025
Direct-to-ConsumerLicensingCorporateAll OtherTotalDirect-to-ConsumerLicensingCorporate
All Other(2)
Total
Net revenues38,334 22,101 445 574 61,454 $32,824 $22,383 $382 $1,434 $57,023 
Cost of sales(1)
(14,861)(1,966)(1,113)— (17,940)(13,742)(3,099)— (1,951)(18,792)
Gross profit23,473 20,135 (668)574 43,514 19,082 19,284 382 (517)38,231 
Personnel(9,598)(691)(9,773)— (20,062)(9,153)(1,784)(10,536)(3,308)(24,781)
Rent(3,691)— (496)— (4,187)(3,421)(12)(1,119)— (4,552)
Marketing(3,457)(26)(320)— (3,803)(2,798)(29)(607)(34)(3,468)
Transaction expenses— — (3,364)— (3,364)— — — — — 
Other segment items(3)
(5,145)(1,944)(3,675)— (10,764)(4,990)(2,950)(8,406)(1,227)(17,573)
Operating income (loss) 1,582 17,474 (18,296)574 1,334 (1,280)14,509 (20,286)(5,086)(12,143)
Interest expense(4,717)(3,795)
Other nonoperating income, net1,527 1,202 
Loss before income taxes$(1,856)$(14,736)
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(1) Direct-to-consumer cost of sales includes an immaterial amount of personnel and rent for the six months ended June 30, 2026 and 2025.
(2) For the six months ended June 30, 2025, transition expenses associated with the digital businesses licensed to Byborg, which we were responsible for during the transition period pursuant to the TSA, reached the $5.0 million threshold of expenses payable by us, with $1.7 million recorded as cost of sales and $3.3 million recorded as selling and administrative expenses in our condensed consolidated statements of operations for the six months ended June 30, 2025.
(3) Includes intercompany management fee expense allocations of $2.1 million and $1.8 million from our direct-to-consumer segment to our corporate segment, which eliminate upon consolidation, for the six months ended June 30, 2026 and 2025.
Other segment items for the three and six months ended June 30, 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, audit, tax, and legal fees, information technology and software costs, insurance expense, as well as net changes in the fair value of contingent consideration and other miscellaneous corporate operating costs.
Prior year comparative periods also include non-cash impairment charges related to our corporate leases and artwork held for sale, which did not recur during the three and six months ended June 30, 2026. For the three months ended June 30, 2025, we recorded $1.5 million of impairment charges on our right-of-use assets related to our corporate leases. For the six months ended June 30, 2025, we recorded $1.8 million of impairment charges, comprised of the $1.5 million right-of-use asset impairment recognized in the second quarter of 2025 and $0.3 million of impairment charges on our artwork held for sale recognized in the first quarter of 2025.
All Other: these only apply to the 2025 period and included outside consulting expenses, as well as 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
June 30,		Six Months Ended
June 30,
2026202520262025
Net revenues:
United States$9,672 $8,833 $20,238 $18,820 
Australia7,988 6,840 15,122 13,478 
Luxembourg5,000 5,000 10,000 10,000 
United Kingdom3,446 2,949 6,298 5,590 
China 3,018 3,180 6,030 6,376 
Other2,094 1,346 3,766 2,759 
Total$31,218 $28,148 $61,454 $57,023