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

17. Segment Reporting

 

The Company has three reportable operating segments, Banzai Operating, 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 June 30, 2026:

 

Three months ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banzai Operating

 

 

OpenReel

 

 

Vidello

 

 

Total Consolidated

 

Revenue

 

$

1,010

 

 

$

1,036

 

 

$

227

 

 

$

2,273

 

Cost of revenue

 

 

351

 

 

 

55

 

 

 

44

 

 

 

450

 

Gross profit

 

 

659

 

 

 

981

 

 

 

183

 

 

 

1,823

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

People

 

 

1,965

 

 

 

843

 

 

 

135

 

 

 

2,943

 

Marketing and advertising

 

 

125

 

 

 

12

 

 

 

180

 

 

 

317

 

Technology

 

 

166

 

 

 

35

 

 

 

17

 

 

 

218

 

Other segment expenses1

 

 

(10

)

 

 

35

 

 

 

3

 

 

 

28

 

Total expenses

 

 

2,246

 

 

 

925

 

 

 

335

 

 

 

3,506

 

Segment Adjusted EBITDA

 

 

(1,587

)

 

 

56

 

 

 

(152

)

 

 

(1,683

)

Transaction, public company expenses and stock-based compensation

 

 

2,400

 

 

 

—

 

 

 

—

 

 

 

2,400

 

Adjusted EBITDA

 

$

(3,987

)

 

$

56

 

 

$

(152

)

 

$

(4,083

)

 

1 Other segment expenses for each reportable segment includes travel and entertainment expenses, professional expenses other than those included in transaction and public company expenses, and the SEPA commitment fee expense and deferred fee expense.

 

The table below presents information about segments for the six months ended June 30, 2026:

 

Six months ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banzai Operating

 

 

OpenReel

 

 

Vidello

 

 

Total Consolidated

 

Revenue

 

$

2,036

 

 

$

2,412

 

 

$

521

 

 

$

4,969

 

Cost of revenue

 

 

741

 

 

 

119

 

 

 

111

 

 

 

971

 

Gross profit

 

 

1,295

 

 

 

2,293

 

 

 

410

 

 

 

3,998

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

People

 

 

3,909

 

 

 

1,876

 

 

 

254

 

 

 

6,039

 

Marketing and advertising

 

 

409

 

 

 

63

 

 

 

293

 

 

 

765

 

Technology

 

 

346

 

 

 

72

 

 

 

30

 

 

 

448

 

Other segment expenses1

 

 

174

 

 

 

71

 

 

 

7

 

 

 

252

 

Total expenses

 

 

4,838

 

 

 

2,082

 

 

 

584

 

 

 

7,504

 

Segment Adjusted EBITDA

 

 

(3,543

)

 

 

211

 

 

 

(174

)

 

 

(3,506

)

Transaction, public company expenses and stock-based compensation

 

 

6,052

 

 

 

—

 

 

 

—

 

 

 

6,052

 

Adjusted EBITDA

 

$

(9,595

)

 

$

211

 

 

$

(174

)

 

$

(9,558

)

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 public company expenses, insurance expenses, and expenses related to licenses.

The table below presents information about segments for the three months ended June 30, 2025:

 

Three months ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banzai Operating

 

 

OpenReel

 

 

Vidello

 

 

Total Consolidated

 

Revenue

 

$

1,011

 

 

$

1,387

 

 

$

729

 

 

$

3,127

 

Cost of revenue

 

 

368

 

 

 

78

 

 

 

108

 

 

 

554

 

Gross profit

 

 

643

 

 

 

1,309

 

 

 

621

 

 

 

2,573

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

People

 

 

1,143

 

 

 

1,261

 

 

 

86

 

 

 

2,490

 

Marketing and advertising

 

 

198

 

 

 

18

 

 

 

172

 

 

 

388

 

Technology

 

 

251

 

 

 

64

 

 

 

22

 

 

 

337

 

Other segment expenses1

 

 

201

 

 

 

26

 

 

 

71

 

 

 

298

 

Total expenses

 

 

1,793

 

 

 

1,369

 

 

 

351

 

 

 

3,513

 

Segment Adjusted EBITDA

 

 

(1,150

)

 

 

(60

)

 

 

270

 

 

 

(940

)

Transaction, public company expenses and stock-based compensation

 

 

3,476

 

 

 

22

 

 

 

102

 

 

 

3,600

 

Adjusted EBITDA

 

$

(4,626

)

 

$

(82

)

 

$

168

 

 

$

(4,540

)

 

1 Other segment expenses for each reportable segment includes travel and entertainment expenses, professional expenses other than those included in transaction and public company expenses, and the SEPA commitment fee expense and deferred fee expense. The expense classification for 2025 has been recast to conform to the current year expense classification.

The table below presents information about segments for the six months ended June 30, 2025:

 

Six months ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banzai Operating

 

 

OpenReel

 

 

Vidello1

 

 

Total Consolidated

 

Revenue

 

$

2,171

 

 

$

2,828

 

 

$

1,507

 

 

$

6,506

 

Cost of revenue

 

 

745

 

 

 

152

 

 

 

263

 

 

 

1,160

 

Gross profit

 

 

1,426

 

 

 

2,676

 

 

 

1,244

 

 

 

5,346

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

People

 

 

2,437

 

 

 

2,383

 

 

 

86

 

 

 

4,906

 

Marketing and advertising

 

 

387

 

 

 

57

 

 

 

310

 

 

 

754

 

Technology

 

 

530

 

 

 

123

 

 

 

52

 

 

 

705

 

Other segment expenses2

 

 

403

 

 

 

49

 

 

 

215

 

 

 

667

 

Total expenses

 

 

3,757

 

 

 

2,612

 

 

 

663

 

 

 

7,032

 

Segment Adjusted EBITDA

 

 

(2,331

)

 

 

64

 

 

 

581

 

 

 

(1,686

)

Transaction, public company expenses and stock-based compensation

 

 

7,087

 

 

 

324

 

 

 

103

 

 

 

7,514

 

Adjusted EBITDA

 

$

(9,418

)

 

$

(260

)

 

$

478

 

 

$

(9,200

)

 

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

 

2 Other segment expenses for each reportable segment includes travel and entertainment expenses, professional expenses other than those included in transaction and public company expenses, and the SEPA commitment fee expense and deferred fee expense. The expense classification for 2025 has been recast to conform to the current year expense classification.

 

A reconciliation between EBITDA by reportable segment to consolidated net loss before income taxes for the three months ended June 30, 2026 and 2025 is as follows:

 

 

 

Three Months Ended June 30,

 

 

 

2026

 

 

2025

 

EBITDA by segment

 

 

 

 

 

 

     Banzai Operating Co.

 

$

(3,987

)

 

 

(4,626

)

     OpenReel

 

 

56

 

 

 

(82

)

     Vidello

 

 

(152

)

 

 

168

 

Total

 

 

(4,083

)

 

 

(4,540

)

 

 

 

 

 

 

Reconciliation to loss before income taxes:

 

 

 

 

 

 

Interest income

 

 

(3

)

 

 

—

 

Interest expense

 

 

129

 

 

 

—

 

Interest expense – related party

 

 

202

 

 

 

537

 

Depreciation and amortization expense

 

 

303

 

 

 

300

 

Gain on extinguishment of liabilities, net

 

 

(663

)

 

 

(146

)

Loss on Yorkville SEPA advances

 

 

199

 

 

 

362

 

Loss on debt issuance

 

 

159

 

 

 

1,006

 

Changes in fair value of financial instruments

 

 

413

 

 

 

224

 

Other

 

 

224

 

 

 

1,336

 

Loss before income taxes

 

$

(5,046

)

 

$

(8,159

)

 

 

A reconciliation between EBITDA by reportable segment to consolidated net loss before income taxes for the six months ended June 30, 2026 and 2025 is as follows:

 

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

EBITDA by segment

 

 

 

 

 

 

     Banzai Operating Co.

 

$

(9,595

)

 

$

(9,418

)

     OpenReel

 

 

211

 

 

 

(260

)

     Vidello

 

 

(174

)

 

 

478

 

Total

 

 

(9,558

)

 

 

(9,200

)

 

 

 

 

 

 

Reconciliation to loss before income taxes:

 

 

 

 

 

 

Interest income

 

 

(6

)

 

 

—

 

Interest expense

 

 

138

 

 

 

—

 

Interest expense – related party

 

 

396

 

 

 

895

 

Depreciation and amortization expense

 

 

608

 

 

 

547

 

Gain on extinguishment of liabilities, net

 

 

(657

)

 

 

(2,719

)

Loss on Yorkville SEPA advances

 

 

227

 

 

 

747

 

Loss on debt issuance

 

 

1,806

 

 

 

1,280

 

Changes in fair value of financial instruments

 

 

671

 

 

 

568

 

Other

 

 

774

 

 

 

1,211

 

Loss before income taxes

 

$

(13,515

)

 

$

(11,729

)

 

Disaggregation of Revenue

 

The following table presents the Company's percentage of revenue generated by SaaS product for the six months ended June 30, 2026 and 2025:

 

 

 

Six Months Ended June 30,

 

Revenue %

 

2026

 

 

2025

 

Demio

 

 

34.2

%

 

 

91.0

%

OpenReel

 

 

45.0

%

 

 

5.2

%

Vidello 1

 

 

18.6

%

 

 

—

%

Reach

 

 

2.2

%

 

 

3.8

%

Total

 

 

100.0

%

 

 

100.0

%

 

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

 

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