Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer (CEO), who is responsible for evaluating the performance of the Company's operating segments and allocating resources. The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) that has available discrete financial information; and (iii) whose operating results are regularly reviewed by the CODM. The Company does not conduct business outside of the United States and no single customer accounts for more than 10% of total revenue in any reporting period.
Our CODM makes operating decisions and assesses performance based on the services of identified operating segments and has identified three operating and reportable segments: Real Estate Brokerage; Mortgage; and Technology. Through its Real Estate Brokerage segment, the Company provides real estate brokerage services. Through its Mortgage segment, the Company provides residential loan origination and underwriting services. Through its Technology segment, the Company provides SaaS solutions and data mining for third party customers and continues to develop its intelliAgent platform for current use by the Company’s real estate agents.
The CODM reviews revenue and adjusted EBITDA to evaluate financial performance of the reportable segments and to allocate resources. Adjusted EBITDA represents the revenues of the operating segment less operating expenses directly attributable to the respective operating segment. Adjusted EBITDA is defined by us as net income (loss), excluding other income and expense, costs related to acquisitions, income taxes, depreciation and amortization, and share-based compensation expense. In particular, the Company believes the exclusion of non-cash share-based compensation expense related to restricted stock awards and stock options and transaction-related costs provides a useful supplemental measure in evaluating the performance of our operations and provides better transparency into our results of operations. The Company’s presentation of Adjusted EBITDA might not be comparable to similar measures used by other companies.
The Company has determined that the main expenses regularly reviewed by the CODM in assessing segment performance are:
•Compensation Expense – Includes salaries and wages for personnel across the Real Estate Brokerage, Mortgage, Technology, and Corporate and Other Services functions.
•Commission Expense – Includes commissions and related agent payments incurred in connection with revenue-generating transactions, across the Real Estate Brokerage, Mortgage, Technology, and Corporate and Other Services functions.
These expenses are presented within the segment disclosures below as they represent the most significant cost drivers impacting the Company’s operating segments and are used by management in evaluating performance, allocating resources, and assessing operating efficiency.
The Company has updated its segment reporting to include compensation and commission expenses as separate line items for each reportable segment beginning in fiscal year 2024. Prior-period segment disclosures have been reclassified to conform to the current period presentation.
The Company does not allocate assets to its operating segments as they are not included in the review performed by the CODM for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting.
Key operating data for the reportable segments for the three months ended March 31, 2025 and 2024 are set forth in the tables below (amounts in thousands):
Three Months Ended March 31, 2025
Real Estate Brokerage Mortgage Technology Total
Revenue $ 88,875  $ 2,603  $ 644  $ 92,122 
Intersegment revenue —  —  419  419 
Total segment revenue 88,875  2,603  1,063  92,541 
Corporate and other services (a) 1,047 
Elimination of intersegment revenue (453)
Total revenue 93,135 
Less:
Commissions 84,411  703  —  85,114 
Compensation 1,313  1,054  452  2,819 
Other segment expenses 1,566  1,224  139  2,929 
Adjusted EBITDA by segment 1,585  (378) 472  1,679 
Corporate and other services (a) expenses (3,153)
Total adjusted EBITDA (1,474)
Stock based compensation (1,506)
Litigation contingency (4)
Depreciation and amortization (1,440)
Other income (expense), net (1,205)
Loss before income tax $ (5,629)
Three Months Ended March 31, 2024
Real Estate Brokerage Mortgage Technology Total
Revenue $ 65,385  $ 2,264  $ 765  $ 68,414 
Intersegment revenue —  —  352  352 
Total segment revenue 65,385  2,264  1,117  68,766 
Corporate and other services (a) 1,385 
Elimination of intersegment revenue (352)
Total revenue 70,503 
Less:
Commissions 61,329  670  9  62,008 
Compensation 1,034  1,010  569  2,613 
Other segment expenses 2,179  1,104  566  3,849 
Adjusted EBITDA by segment 843  (520) (27) 296 
Corporate and other services (a) expenses (1,817)
Total adjusted EBITDA (1,521)
Stock based compensation (2,652)
Litigation contingency — 
Depreciation and amortization (1,480)
Other expense (income), net (257)
Loss before income tax $ (5,910)
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(a)Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and other services line.