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Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information
14.
Segment Information

The Company determines an operating segment if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has discrete financial information, and is (iii) regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is the Chief Executive Officer, to make decisions regarding resource allocation for the segment and assess its performance. Once operating segments are identified, the Company performs an analysis to determine if aggregation of operating segments is applicable.

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 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 (loss) income before income taxes:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

(in millions)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

67.5

 

 

$

62.4

 

 

$

301.2

 

 

$

260.8

 

All Other Category

 

 

10.0

 

 

 

10.2

 

 

 

29.5

 

 

 

31.2

 

Total revenues

 

$

77.5

 

 

$

72.6

 

 

$

330.7

 

 

$

292.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1.0

 

Total other income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenues

 

$

22.9

 

 

$

20.7

 

 

$

109.8

 

 

$

96.2

 

Selling, general and administrative

 

 

21.5

 

 

 

18.1

 

 

 

67.0

 

 

 

59.4

 

Total expenses

 

$

44.4

 

 

$

38.8

 

 

$

176.8

 

 

$

155.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

23.1

 

 

$

23.6

 

 

$

124.4

 

 

$

106.2

 

Segment Adjusted EBITDA

 

$

23.1

 

 

$

23.6

 

 

$

124.4

 

 

$

106.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Other Category Adjusted EBITDA

 

$

2.2

 

 

$

1.6

 

 

$

4.7

 

 

$

3.7

 

General corporate and other expenses(1)

 

 

(12.5

)

 

 

(12.7

)

 

 

(38.3

)

 

 

(41.3

)

Interest expense, net

 

 

(10.1

)

 

 

(10.1

)

 

 

(34.8

)

 

 

(29.8

)

Intangible asset impairment charges

 

 

—

 

 

 

(6.3

)

 

 

—

 

 

 

(6.3

)

Depreciation and amortization expense

 

 

(8.7

)

 

 

(7.1

)

 

 

(22.7

)

 

 

(21.2

)

Stock-based compensation expense

 

 

(2.9

)

 

 

(0.7

)

 

 

(8.5

)

 

 

(4.7

)

Other items(2)

 

 

(9.0

)

 

 

(3.1

)

 

 

(21.4

)

 

 

(10.4

)

(Loss) income before income taxes

 

$

(17.9

)

 

$

(14.8

)

 

$

3.4

 

 

$

(3.8

)
(1)
General corporate and other expenses are primarily related to corporate level expenditures.
(2)
Other items for the three months ended September 30, 2025 included: (i) $0.7 million in acquisition-related transaction costs; (ii) $1.4 million in acquisition-related integration and restructuring-related transition costs; (iii) $1.8 million in non-recurring legal, audit and consulting fees; and (iv) $5.1 million in expense related to the remeasurement of contingent consideration. Other items for the three months ended September 30, 2024 included: (i) $1.0 million in acquisition-related transaction costs; (ii) $1.4 million in acquisition-related integration and restructuring-related transition costs; and (iii) $0.7 million in non-recurring legal, audit and consulting fees. Other items for the nine months ended September 30, 2025 included: (i) $5.6 million in acquisition-related transaction costs; (ii) $3.9 million in acquisition-related integration and restructuring-related transition costs; (iii) $3.2 million in non-recurring legal, audit and consulting fees; and (iv) $8.7 million in expense related to the remeasurement of contingent consideration. Other items for the nine months ended September 30, 2024 included: (i) $2.2 million in acquisition-related transaction costs; (ii) $7.2 million in acquisition-related integration and restructuring-related transition costs; (iii) $1.7 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
September 30,

 

 

Nine Months Ended
September 30,

 

(in millions)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

22.9

 

 

$

20.7

 

 

$

109.8

 

 

$

96.2

 

All Other Category

 

 

2.2

 

 

 

2.2

 

 

 

7.3

 

 

 

6.8

 

Other items(1)

 

 

0.2

 

 

 

0.2

 

 

 

0.2

 

 

 

0.7

 

Total cost of revenues

 

$

25.3

 

 

$

23.1

 

 

$

117.3

 

 

$

103.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

Connections Segment

 

$

21.5

 

 

$

18.1

 

 

$

67.0

 

 

$

59.4

 

All Other Category

 

 

5.6

 

 

 

6.4

 

 

 

17.5

 

 

 

20.7

 

Corporate

 

 

12.5

 

 

 

12.7

 

 

 

38.3

 

 

 

41.3

 

Other items(1)

 

 

11.7

 

 

 

3.6

 

 

 

29.7

 

 

 

14.4

 

Total selling, general and administrative expenses

 

$

51.3

 

 

$

40.8

 

 

$

152.5

 

 

$

135.8

 
(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 nine months ended September 30, 2025 and 2024. For the three and nine months ended September 30, 2025 and 2024, revenues were derived from transactions in the following countries:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

(in millions)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

62.7

 

 

$

69.3

 

 

$

299.9

 

 

$

282.7

 

All other countries

 

 

14.8

 

 

 

3.3

 

 

 

30.8

 

 

 

9.3

 

Total revenues

 

$

77.5

 

 

$

72.6

 

 

$

330.7

 

 

$

292.0