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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information
15.
Segment Information

The Company routinely evaluates whether its operating and reportable segments continue to reflect the way the CODM evaluates the business. The determination is based on: (1) how the Company’s CODM evaluates the performance of the business, including resource allocation decisions, and (2) whether discrete financial information for each operating segment is available. The Company considers its Chief Executive Officer to be its CODM.

The CODM evaluates performance based on the results of three business lines, which represent the Company’s three operating segments. The Connections segment is the only operating segment which meets the criteria to be classified as a reportable segment. The Connections reportable segment includes all of Emerald’s trade shows and other live events. The other two operating segments, which provide diverse media services and e-commerce software solutions, did not meet the quantitative thresholds of a reportable segment and did not meet the aggregation criteria set forth in Accounting Standards Codification 280 (“ASC 280”), Segment Reporting and as such are referred to as “All Other.”

Operating segment performance is evaluated by the Company’s CODM based on Adjusted EBITDA, defined as EBITDA exclusive of general corporate expenses, stock-based compensation expense, impairments and other items. These adjustments are primarily related to items that are managed on a consolidated basis at the corporate level. The exclusion of such charges from each segment is consistent with how the CODM evaluates segment performance.

The following table presents a reconciliation of reportable segment revenues, other income, net, and Adjusted EBITDA to net income (loss) before income taxes:

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

(in millions)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

95.4

 

 

$

75.0

 

 

$

233.7

 

 

$

198.4

 

All Other Category

 

 

10.1

 

 

 

11.0

 

 

 

19.5

 

 

 

21.0

 

Total revenues

 

$

105.5

 

 

$

86.0

 

 

$

253.2

 

 

$

219.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1.0

 

Total other income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenues

 

$

38.1

 

 

$

30.2

 

 

$

86.9

 

 

$

75.5

 

Selling, general and administrative

 

 

22.1

 

 

 

18.4

 

 

 

45.5

 

 

 

41.3

 

Total expenses

 

$

60.2

 

 

$

48.6

 

 

$

132.4

 

 

$

116.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

35.2

 

 

$

26.4

 

 

$

101.3

 

 

$

82.6

 

Segment Adjusted EBITDA

 

$

35.2

 

 

$

26.4

 

 

$

101.3

 

 

$

82.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Other Category Adjusted EBITDA

 

$

1.8

 

 

$

1.8

 

 

$

2.5

 

 

$

2.1

 

General corporate and other expenses(1)

 

 

(12.6

)

 

 

(12.9

)

 

 

(25.8

)

 

 

(28.6

)

Interest expense, net

 

 

(9.6

)

 

 

(9.9

)

 

 

(24.7

)

 

 

(19.7

)

Depreciation and amortization expense

 

 

(7.6

)

 

 

(7.0

)

 

 

(14.0

)

 

 

(14.1

)

Stock-based compensation expense

 

 

(3.0

)

 

 

(1.5

)

 

 

(5.6

)

 

 

(4.0

)

Other items(2)

 

 

(3.6

)

 

 

(0.4

)

 

 

(12.4

)

 

 

(7.3

)

Income (loss) before income taxes

 

$

0.6

 

 

$

(3.5

)

 

$

21.3

 

 

$

11.0

 
(1)
General corporate and other expenses are primarily related to corporate level expenditures.
(2)
Other items for the three months ended June 30, 2025 included: (i) $1.1 million in acquisition-related transaction costs; (ii) $1.9 million in acquisition-related integration and restructuring-related transition costs; and (iii) $0.6 million in expense related to the remeasurement of contingent consideration. Other items for the three months ended June 30, 2024 included: (i) $0.9 million in acquisition-related transaction costs; (ii) $1.0 million in acquisition-related integration and restructuring-related transition costs; (iii) $0.7 million in non-recurring legal, audit and consulting fees; and (iv) $2.2 million in gains related to the remeasurement of contingent consideration. Other items for the six months ended June 30, 2025 included: (i) $4.9 million in acquisition-related transaction costs; (ii) $2.5 million in acquisition-related integration and restructuring-related transition costs; (iii) $1.4 million in non-recurring legal, audit and consulting fees; and (iv) $3.6 million in expense related to the remeasurement of contingent consideration. Other items for the six months ended June 30, 2024 included: (i) $1.2 million in acquisition-related transaction costs; (ii) $5.8 million in acquisition-related integration and restructuring-related transition costs; (iii) $1.0 million in non-recurring legal, audit and consulting fees; and (iv) $0.7 million in gains related to the remeasurement of contingent consideration.

The following table presents reportable and non-reportable segment cost of revenues and selling, general and administrative expenses:

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

(in millions)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

38.1

 

 

$

30.2

 

 

$

86.9

 

 

$

75.5

 

All Other Category

 

 

2.5

 

 

 

2.4

 

 

 

5.1

 

 

 

4.6

 

Other items(1)

 

 

—

 

 

 

0.5

 

 

 

—

 

 

 

0.5

 

Total cost of revenues

 

$

40.6

 

 

$

33.1

 

 

$

92.0

 

 

$

80.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

22.1

 

 

$

18.4

 

 

$

45.5

 

 

$

41.3

 

All Other Category

 

 

5.8

 

 

 

6.8

 

 

 

11.9

 

 

 

14.3

 

Corporate

 

 

12.6

 

 

 

12.9

 

 

 

25.8

 

 

 

28.6

 

Other items(1)

 

 

6.6

 

 

 

1.4

 

 

 

18.0

 

 

 

10.8

 

Total selling, general and administrative expenses

 

$

47.1

 

 

$

39.5

 

 

$

101.2

 

 

$

95.0

 
(1)
Other items included in cost of revenues and selling, general and administrative expenses relate to one-time adjustments that are considered to not be indicative of ongoing segment operative performance.

The Company’s CODM does not receive information with a measure of total assets or capital expenditures for each operating segment as this information is not used for the evaluation of operating segment performance as the Company’s operations are not capital intensive. Capital expenditure information is provided to the CODM on a consolidated basis. Therefore, the Company has not provided asset and capital expenditure information by reportable segment. Intersegment revenues were immaterial for the three and six months ended June 30, 2025 and 2024. For the three and six months ended June 30, 2025 and 2024, revenues were derived from transactions in the following countries: