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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2025
SEGMENT INFORMATION  
SEGMENT INFORMATION

7.SEGMENT INFORMATION

The reportable segments presented below represent the Company’s segments for which separate financial information is available and is utilized on a regular basis by its CODM to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its segments.

Management evaluates the operating results of each of its reportable segments based upon revenues and Adjusted Segment EBITDA. Adjusted Segment EBITDA is defined by us as a segment’s operating income (loss) from continuing operations plus depreciation and amortization, litigation contingency and stock-based compensation expenses. See “Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report for a discussion of why management believes Adjusted Segment EBITDA, a non-U.S. GAAP measure, is useful. The Company’s presentation of Adjusted Segment EBITDA may not be comparable to similar measures used by other companies.

The Company’s three reportable segments are as follows:

●North American Realty: includes real estate brokerage operations in the United States and Canada, as well as lead-generation and other real estate support services provided in North America.
●International Realty: includes real estate brokerage operations in all other international locations.
●Other Affiliated Services: includes our SUCCESS® Magazine, and other ancillary ventures.

The Company also reports corporate expenses, as further detailed below, as “Corporate and other” which include expenses incurred in connection with business development support provided to the agents as well as resources, including administrative, brokerage operations and legal functions.

All segments follow the same basis of presentation and accounting policies as those described throughout the Notes to the Condensed Consolidated Financial Statements included herein. The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. The following table provides information about the Company’s reportable segments and a reconciliation of the total segment Revenues to consolidated Revenues and Adjusted Segment EBITDA to the consolidated operating profit (loss) from continuing operations and Goodwill (in thousands).

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​

​

​

​

​

Revenues

​

Three Months Ended March 31,

​

2025

​

2024

North American Realty

$ 923,048

​

$ 927,137

International Realty

31,657

​

15,596

Other Affiliated Services

827

​

1,788

Revenues reconciliation:

​

​

​

Segment eliminations

(626)

​

(1,467)

Consolidated revenues

$ 954,906

​

$ 943,054

​

​

​

​

​

​

Commissions and other agent-related costs

​

Three Months Ended March 31,

​

2025

​

2024

North American Realty

$ 852,058

​

$ 852,238

International Realty

26,373

​

12,618

Other Affiliated Services

340

​

662

Commissions reconciliation:

​

​

​

Segment eliminations

-

​

(772)

Consolidated commissions and other agent-related costs

$ 878,771

​

$ 864,746

​

​

​

​

​

​

Adjusted EBITDA

​

Three Months Ended March 31,

​

2025

​

2024

North American Realty

$ 7,736

​

$ 17,807

International Realty

(1,615)

​

(3,355)

Other Affiliated Services

(1,455)

​

(767)

Corporate expenses and other

(2,509)

​

(2,643)

Consolidated Adjusted EBITDA

$ 2,157

​

$ 11,042

​

​

​

​

(Loss) income before income tax expense reconciliation:

​

​

​

Depreciation and amortization expense

2,561

​

2,399

Litigation contingency

-

​

16,000

Stock-based compensation expense

8,119

​

8,827

Stock option expense

1,853

​

1,990

Other (income) expense, net

(1,023)

​

(1,039)

Consolidated (loss) income before income tax expense

($ 9,353)

​

($ 17,135)

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​

​

​

​

​

Goodwill

​

March 31, 2025

​

December 31, 2024

North American Realty

$ 17,263

​

$ 17,226

International Realty

-

​

-

Other Affiliated Services

-

​

-

Segment and consolidated total

17,263

​

17,226

​

The Company does not use segment assets to allocate resources or to assess performance of the segments and therefore, total segment assets have not been disclosed.