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v3.25.2

Segments (Tables) | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information, by Segment | The following table sets forth financial information by reportable segment and attributable to corporate and certain other activities (in thousands):
| Three Months Ended June 30,
| 2025 |  | 2024
| Direct-to-Consumer |  | Licensing |  | Corporate |  | All Other (2) |  | Total |  | Direct-to-Consumer |  | Licensing |  | Corporate |  | All Other |  | Total
Net revenues | $ | 16,493 |  |  | $ | 10,932 |  |  | $ | 135 |  |  | $ | 588 |  |  | $ | 28,148 |  |  | $ | 14,504 |  |  | $ | 5,335 |  |  | $ | — |  |  | $ | 5,046 |  |  | $ | 24,885 |
Cost of sales (1) | (6,835) |  |  | (2,503) |  |  | — |  |  | (401) |  |  | (9,739) |  |  | (6,177) |  |  | 418 |  |  | — |  |  | (2,259) |  |  | (8,018) |
Gross profit | 9,658 |  |  | 8,429 |  |  | 135 |  |  | 187 |  |  | 18,409 |  |  | 8,327 |  |  | 5,753 |  |  | — |  |  | 2,787 |  |  | 16,867 |
Personnel | (4,806) |  |  | (1,190) |  |  | (4,793) |  |  | (603) |  |  | (11,392) |  |  | (4,103) |  |  | (963) |  |  | (3,305) |  |  | (3,887) |  |  | (12,258) |
Rent | (1,702) |  |  | (5) |  |  | (498) |  |  | — |  |  | (2,205) |  |  | (1,833) |  |  | — |  |  | (633) |  |  | (7) |  |  | (2,473) |
Marketing | (1,336) |  |  | (9) |  |  | (29) |  |  | — |  |  | (1,374) |  |  | (1,376) |  |  | (27) |  |  | — |  |  | (166) |  |  | (1,569) |
Other segment items (3) | (2,564) |  |  | (1,673) |  |  | (4,740) |  |  | (344) |  |  | (9,321) |  |  | (4,178) |  |  | (377) |  |  | (4,212) |  |  | (1,003) |  |  | (9,770) |
Operating (loss) income | (750) |  |  | 5,552 |  |  | (9,925) |  |  | (760) |  |  | (5,883) |  |  | (3,163) |  |  | 4,386 |  |  | (8,150) |  |  | (2,276) |  |  | (9,203) |
Interest expense |  |  |  |  |  |  |  |  | (1,907) |  |  |  |  |  |  |  |  |  |  | (6,588) |
Other nonoperating income (expense), net |  |  |  |  |  |  |  |  | 1,000 |  |  |  |  |  |  |  |  |  |  | (245) |
Loss before income taxes |  |  |  |  |  |  |  |  | $ | (6,790) |  |  |  |  |  |  |  |  |  |  | $ | (16,036) |
_________________ (1) Direct-to-consumer cost of sales includes an immaterial amount of personnel and rent for the three months ended June 30, 2025 and 2024.
(2) For the three months ended June 30, 2025, transition expenses associated with the digital businesses licensed to Byborg, which we are responsible for during the transition period pursuant to the TSA, were $1.2 million, with $0.4 million recorded as cost of sales and $0.8 million recorded as selling and administrative expenses in the condensed consolidated statements of operations for the three months ended June 30, 2025.
(3) Includes intercompany expense allocations from our corporate segment to our direct-to-consumer segment that eliminate upon consolidation of $0.9 million and $0.8 million for the three months ended June 30, 2025 and 2024, respectively.
| Six Months Ended June 30,
| 2025 |  | 2024
| Direct-to-Consumer |  | Licensing |  | Corporate |  | All Other (2) |  | Total |  | Direct-to-Consumer |  | Licensing |  | Corporate |  | All Other |  | Total
Net revenues | $ | 32,824 |  |  | $ | 22,317 |  |  | $ | 448 |  |  | $ | 1,434 |  |  | $ | 57,023 |  |  | $ | 33,244 |  |  | $ | 9,482 |  |  | $ | — |  |  | $ | 10,478 |  |  | $ | 53,204 |
Cost of sales (1) | (13,742) |  |  | (3,099) |  |  | — |  |  | (1,951) |  |  | (18,792) |  |  | (15,169) |  |  | 90 |  |  | — |  |  | (5,446) |  |  | (20,525) |
Gross profit | 19,082 |  |  | 19,218 |  |  | 448 |  |  | (517) |  |  | 38,231 |  |  | 18,075 |  |  | 9,572 |  |  | — |  |  | 5,032 |  |  | 32,679 |
Personnel | (9,153) |  |  | (1,784) |  |  | (10,536) |  |  | (3,308) |  |  | (24,781) |  |  | (8,348) |  |  | (1,907) |  |  | (7,268) |  |  | (5,205) |  |  | (22,728) |
Rent | (3,421) |  |  | (12) |  |  | (1,119) |  |  | — |  |  | (4,552) |  |  | (3,658) |  |  | — |  |  | (1,331) |  |  | (14) |  |  | (5,003) |
Marketing | (2,798) |  |  | (29) |  |  | (607) |  |  | (34) |  |  | (3,468) |  |  | (2,631) |  |  | (39) |  |  | — |  |  | (173) |  |  | (2,843) |
Other segment items (3) | (4,990) |  |  | (2,950) |  |  | (8,406) |  |  | (1,227) |  |  | (17,573) |  |  | (6,748) |  |  | (1,161) |  |  | (10,249) |  |  | (2,067) |  |  | (20,225) |
Operating (loss) income | (1,280) |  |  | 14,443 |  |  | (20,220) |  |  | (5,086) |  |  | (12,143) |  |  | (3,310) |  |  | 6,465 |  |  | (18,848) |  |  | (2,427) |  |  | (18,120) |
Interest expense |  |  |  |  |  |  |  |  | (3,795) |  |  |  |  |  |  |  |  |  |  | (13,015) |
Other nonoperating income, net |  |  |  |  |  |  |  |  | 1,202 |  |  |  |  |  |  |  |  |  |  | (295) |
Loss before income taxes |  |  |  |  |  |  |  |  | $ | (14,736) |  |  |  |  |  |  |  |  |  |  | $ | (31,430) |
_________________ (1) Direct-to-consumer cost of sales includes an immaterial amount of personnel and rent for the six months ended June 30, 2025 and 2024.
(2) For the six months ended June 30, 2025, transition expenses associated with the digital businesses licensed to Byborg, which we are responsible for during the transition period pursuant to the TSA, reached the $5.0 million threshold, with $1.7 million recorded as cost of sales and $3.3 million recorded as selling and administrative expenses in the condensed consolidated statements of operations for the six months ended June 30, 2025.
(3) Includes intercompany expense allocations from our corporate segment to our direct-to-consumer segment that eliminate upon consolidation of $1.8 million for the six months ended June 30, 2025 and 2024.
Schedule of Geographic Information | The following table sets forth revenue by geographic area (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Net revenues: |  |  |  |  |  |  |
United States | $ | 8,833 |  |  | $ | 11,470 |  |  | $ | 18,820 |  |  | $ | 25,630 |
Australia | 6,840 |  |  | 6,689 |  |  | 13,478 |  |  | 14,823 |
Luxembourg | 5,000 |  |  | — |  |  | 10,000 |  |  | — |
China | 3,180 |  |  | 3,024 |  |  | 6,376 |  |  | 4,470 |
UK | 2,949 |  |  | 2,044 |  |  | 5,590 |  |  | 4,744 |
Other | 1,346 |  |  | 1,658 |  |  | 2,759 |  |  | 3,537 |
Total | $ | 28,148 |  |  | $ | 24,885 |  |  | $ | 57,023 |  |  | $ | 53,204 |
Schedule of Goodwill | Changes in the recorded carrying value of goodwill for the six months ended June 30, 2025 by reportable segment were as follows (in thousands):
| Direct-to-Consumer |  | Licensing |  | All Other (1)
Balance at December 31, 2024 | $ | 19,923 |  |  | $ | — |  |  | $ | 16,084 |
Reclassification to reflect segment restructuring | — |  |  | 16,084 |  |  | (16,084) |
Foreign currency translation and other adjustments | 978 |  |  | — |  |  | — |
Balance at June 30, 2025 | $ | 20,901 |  |  | $ | 16,084 |  |  | $ | — |
_________________ (1) Previously reported under the Digital Subscriptions and Content operating and reportable segment in our most recent Annual Report on Form 10-K filed with the SEC on March 13, 2025.

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