Summary of Significant Accounting Policies (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Summary of Significant Accounting Policies |
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| Schedule of deferred revenue for franchise sales and annual dues and broker fees |
Changes in deferred revenue were as follows (in thousands): | | | | | | | | | | | | | | | Balance at | | | | | Revenue | | Balance at | | | August 24, 2026 (a) | | New billings | | recognized | | September 30, 2026 | Franchise sales | | $ | 16,694 | | $ | 98 | | $ | (1,298) | | $ | 15,494 | Annual dues | | | 11,482 | | | 2,889 | | | (3,053) | | | 11,318 | Broker fees and Other | | | 5,407 | | | 3,581 | | | (4,802) | | | 4,186 | | | $ | 33,583 | | $ | 6,568 | | $ | (9,153) | | $ | 30,998 |
| (a) | The Company assumed contract liabilities in connection with the Transaction on August 24, 2026. Accordingly, the opening contract liability balance presented for purposes of the revenue recognition disclosure is the balance as of the acquisition date rather than as of January 1, 2026. |
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| Schedule of commissions related to franchise sales and other contract costs |
Capitalized contract costs include commissions paid on Franchise sales and other contract costs that are recognized as an asset and amortized over the contract life of the franchise agreement. The activity in the Company’s capitalized contract costs (which are included in “Other current assets” and “Other assets, net of current portion” on the Condensed Consolidated Balance Sheets) consist of the following (in thousands): | | | | | | | | | | | | | | | | | | Additions to | | | | | | | | | Balance at | | contract costs | | Expense | | Balance at | | | August 24, 2026 (a) | | for new activity (b) | | recognized | | September 30, 2026 | Capitalized contract costs | | $ | 5,878 | | $ | 16 | | $ | (574) | | $ | 5,320 |
(a) | Additions to contract costs for new activity that are transacted in Canadian dollars have been translated into U.S. dollars at the balance sheet date. |
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| Schedule of transaction price allocated to the remaining performance obligations |
The following table presents revenue expected to be recognized from unsatisfied or partially unsatisfied performance obligations as of September 30, 2026 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | Remainder of 2026 | | 2027 | | 2028 | | 2029 | | 2030 | | 2031 | | Thereafter | | Total | Franchise sales | | $ | 1,393 | | $ | 4,838 | | $ | 3,641 | | $ | 2,485 | | $ | 1,466 | | $ | 575 | | $ | 1,096 | | $ | 15,494 | Annual dues | | | 5,306 | | | 6,012 | | | — | | | — | | | — | | | — | | | — | | | 11,318 | Total (a) | | $ | 6,699 | | $ | 10,850 | | $ | 3,641 | | $ | 2,485 | | $ | 1,466 | | $ | 575 | | $ | 1,096 | | $ | 26,812 |
| (a) | This amount differs from total deferred revenue of $31.0 million because deferred revenue also includes approximately $4.2 million related to broker fees and other arrangements for which the Company expects to recognize substantially all of the associated revenue within one year and has elected to apply the practical expedient not to disclose the related remaining performance obligations. |
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| Schedule of disaggregated revenue by segment and by geographical area |
In the following table, revenue is disaggregated by segment and by geographical area (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | U.S. | | $ | 612,538 | | $ | 494,620 | | $ | 1,668,786 | | $ | 1,288,888 | Canada | | | 81,458 | | | 69,361 | | | 180,996 | | | 162,486 | Global | | | 1,503 | | | 1,326 | | | 4,643 | | | 3,127 | Brokerage | | | 695,499 | | | 565,307 | | | 1,854,425 | | | 1,454,501 | U.S. | | | 18,500 | | | - | | | 18,500 | | | - | Canada | | | 6,526 | | | - | | | 6,526 | | | - | Global | | | 2,072 | | | - | | | 2,072 | | | - | Franchise | | | 27,098 | | | — | | | 27,098 | | | — | U.S. | | | 5,245 | | | 3,163 | | | 12,271 | | | 8,581 | Canada | | | 86 | | | 79 | | | 260 | | | 195 | Other | | | 5,331 | | | 3,242 | | | 12,531 | | | 8,776 | Total | | $ | 727,928 | | $ | 568,549 | | $ | 1,894,054 | | $ | 1,463,277 |
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| Schedule of reconciliation of cash, cash equivalents, and restricted cash |
The following table reconciles cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets to the total of the same amounts shown on the condensed consolidated statements of cash flows: | | | | | | | | | September 30, 2026 | | December 31, 2025 | Cash and cash equivalents | | $ | 102,526 | | $ | 33,213 | Restricted cash: | | | | | | | Marketing Funds (a) | | | 18,591 | | | — | Settlement Fund (b) | | | 1,500 | | | — | Customer Deposits & Other (c) | | | 42,215 | | | 26,338 | Total cash, cash equivalents and restricted cash | | $ | 164,832 | | $ | 59,551 |
| (a) | All cash held by the Marketing Funds is contractually restricted, pursuant to the applicable franchise agreements. |
| (b) | Represents the amount held in the qualified settlement escrow fund under the Batton Settlement Agreement (as defined below). See Note 14, Commitments and Contingencies, for additional information. |
| (c) | Customer deposits and other cash is held in escrow by the Company’s brokers and agents on behalf of real estate buyers where the Company does not have unilateral access to the funds. The Company recognizes a corresponding customer deposit liability until the funds are released. |
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| Schedule of other current assets and other assets, net of current portion |
Other current assets and Other assets, net of current portion consist of the following (in thousands): | | | | | | | | | September 30, | | December 31, | | | 2026 | | 2025 | Prepaid expenses | | $ | 13,940 | | $ | 2,194 | Capitalized contract costs | | | 1,144 | | | — | Taxes Receivable | | | 8,176 | | | 296 | Other | | | 901 | | | 543 | Other current assets | | $ | 24,161 | | $ | 3,033 | | | | | | | | Capitalized contract costs, net of current portion | | $ | 4,176 | | $ | — | Notes receivable, net of current portion | | | 2,941 | | | 2,308 | Other | | | 465 | | | — | Other assets, net of current portion | | $ | 7,582 | | $ | 2,308 |
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| Schedule of property and equipment, net |
Property and equipment, net consisted of the following (in thousands): | | | | | | | | | September 30, | | December 31, | | | 2026 | | 2025 | Furniture, fixture, and equipment | | $ | 4,091 | | $ | 1,382 | Leasehold improvements | | | 2,476 | | | — | Total property and equipment | | | 6,567 | | | 1,382 | Less accumulated depreciation | | | (1,023) | | | (624) | Total property and equipment, net | | $ | 5,544 | | $ | 758 |
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