SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2024

SEGMENT INFORMATION

SEGMENT INFORMATION

8.SEGMENT INFORMATION

The reportable segments presented below represent the Company’s segments for which separate financial information is available and which is utilized on a regular basis by its chief operating decision maker 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 revenue and Adjusted Segment EBITDA. Adjusted Segment EBITDA is defined by us as a segment’s operating profit (loss) from continuing operations plus depreciation and amortization, litigation contingency and stock-based compensation expenses. The Company’s presentation of Adjusted Segment EBITDA may not be comparable to similar measures used by other companies. Historically, the Company has reported results for four reportable segments. In the first quarter of 2024, the Company determined that the Virbela segment qualified for reporting as discontinued operations. In prior years, Virbela represented an operating and reporting segment under ASC 280. Going forward, the remaining operations of Virbela will not meet the operating or reporting segment criteria, therefore, any operating results related to Virbela technology will be included in the

Other Affiliated Services segment. Prior year segment information has been reclassified to remove Virbela from the segment disclosure, in accordance with discontinued operations treatment.

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, Virbela Frame^® technology, and other smaller 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). Financial information for the comparable prior periods presented have been revised to conform with the current year presentation.

	Revenues
	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
North American Realty	$ 1,206,660	$ 1,198,207	$ 3,408,418	$ 3,254,666
International Realty	24,230	14,896	60,142	37,644
Other Affiliated Services	1,426	980	4,681	3,729
Revenues reconciliation:
Segment eliminations	(1,129)	(1,290)	(3,756)	(3,677)
Consolidated revenues	$ 1,231,187	$ 1,212,793	$ 3,469,485	$ 3,292,362

	Adjusted EBITDA
	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
North American Realty	$ 28,899	$ 27,169	$ 85,208	$ 82,495
International Realty	(1,670)	(2,647)	(7,401)	(10,105)
Other Affiliated Services	(1,282)	(918)	(3,037)	(2,767)
Corporate expenses and other	(2,005)	(2,812)	(6,973)	(7,360)
Consolidated Adjusted EBITDA	$ 23,942	$ 20,792	$ 67,797	$ 62,263
Operating Profit Reconciliation:
Depreciation and amortization expense	2,379	2,790	7,742	8,148
Litigation contingency	18,000	-	34,000	-
Stock compensation expense	9,910	11,764	28,067	29,912
Stock option expense	1,987	2,533	5,959	7,659
Consolidated operating (loss) profit	($ 8,334)	$ 3,705	($ 7,971)	$ 16,544

	Goodwill
	September 30, 2024	December 31, 2023
North American Realty	$ 17,479	$ 14,595
International Realty	-	-
Other Affiliated Services	2,387	2,387
Segment and consolidated total	19,866	16,982

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.