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Segments | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
Segments | Segments As of January 1, 2025, our digital subscriptions and content operations transitioned into a licensing model in conjunction with the LMA. As a result, our previously reported Digital Subscriptions and Content operating and reportable segment was eliminated as of January 1, 2025. As of June 30, 2025, we had two reportable segments: Direct-to-Consumer and Licensing. The Direct-to-Consumer segment derives revenue from sales of consumer products sold directly to customers online or at brick-and-mortar stores through our lingerie business, Honey Birdette, with 51 stores in three countries as of June 30, 2025. The Licensing segment derives revenue from trademark licenses for third-party consumer products and location-based entertainment businesses, and starting January 1, 2025, minimum guaranteed royalties from licensing certain intellectual property and operation of our Playboy Plus, Playboy TV (online and linear) and Playboy Club digital businesses to Byborg pursuant to the LMA. The prior year comparative period has been recast to include previously reported digital subscriptions and content operations in “All Other”. The “All Other” column in the prior year comparative period table below derived revenue from the subscription of Playboy programming that was distributed through various channels, including websites and domestic and international television, as well as sales of creator content offerings and memberships to consumers through the Playboy Club on playboy.com. The “All Other” column for the three and six months ended June 30, 2025 includes amortization of deferred revenue balances related to the previously reported digital subscriptions and content operations that existed as of December 31, 2024 (prior to the LMA effective date of January 1, 2025), the write-off of certain previously capitalized content expenses and transition expenses incurred pursuant to the TSA. Revenues and expenses associated with Playboy magazine, events and sponsorships, which were previously included in the Digital Subscriptions and Content segment, were not allocated to segments for the three and six months ended June 30, 2025 due to the realignment of the presentation of such revenues and expenses in the financial information our Chief Operating Decision Maker (“CODM”) reviews. Such revenues and expenses were instead presented in our corporate revenue and expense allocations as activities associated with brand marketing and awareness. Our prior year comparative period segment reporting recast such revenues and expenses to conform to our current period segment presentation for comparative purposes. In the first and second quarters of 2024, there were no business activities related to Playboy magazine, events and sponsorships. Our Chief Executive Officer is our CODM. Segment information is presented in the same manner that our CODM reviews the operating results in assessing performance and allocating resources. Consolidated operating (loss) income is the measure of segment operating (loss) profit most consistent with GAAP that is regularly reviewed by our CODM. Total asset information is not included in the tables below as it is not provided to and reviewed by our CODM. The “All Other” columns in the tables below primarily include previously reported digital subscriptions and content operations as described above. These operations are no longer reviewed by our CODM due to their transition into a licensing model pursuant to the LMA. The “Corporate” line item in the tables below includes operating revenues associated with Playboy magazine, events and sponsorships and expenses that are not allocated to the reportable segments presented to our CODM. These expenses include legal, human resources, information technology and facilities, accounting/finance and brand marketing costs. Expenses associated with Playboy magazine, events and sponsorships are included in brand marketing costs. The accounting policies of the reportable segments are the same as those described in Note 1, Basis of Presentation and Summary of Significant Accounting Policies. 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.
Other segment items for the three and six months ended June 30, 2025 and 2024 were primarily comprised of the following: Direct-to-Consumer: outside consulting and legal fees, as well as technology and equipment expenses. Licensing: expenses attributable to our China joint venture, outside consulting expenses and legal fees. Corporate: outside consulting expenses, rent expense, insurance expense, audit and tax fees, as well as non-cash impairment charges of $1.5 million and $0.6 million on our right-of-use assets related to our corporate leases during the three months ended June 30, 2025 and 2024, respectively, and $1.8 million and $3.0 million on our artwork held for sale and our right-of-use assets related to our corporate leases during the six months ended June 30, 2025 and 2024, respectively. Corporate expenses for the three and six months ended June 30, 2025 also include brand marketing costs, such as expenses associated with the relaunch of Playboy magazine, events and sponsorships, which were immaterial during the three months ended June 30, 2025, and $0.5 million during the six months ended June 30, 2025. There were no such costs incurred during the three and six months ended June 30, 2024. All Other: outside consulting expenses, as well as technology and equipment expense. Geographic Information Revenue by geography is based on where the customer is located. 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 |
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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- Definition The entire disclosure for reporting segments including data and tables. 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