v3.26.3
Segment Reporting
 6 Months Ended 12 Months Ended
Jun. 30, 2026
Dec. 31, 2025
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)

 

1Other 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.

 

 

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 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)

 

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 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)

 

1Other 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.

 

 

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 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)

 

1The 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.

 

2Other 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:

  

   2026   2025 
   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)

 

 

BANZAI INTERNATIONAL, INC.

Unaudited Notes to Condensed Consolidated Financial Statements

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

 

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:

 

   2026   2025 
   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:

  

Revenue %  2026   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%

 

1The 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.

 

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.