Arena Group Holdings, Inc.AREN
Arena Group Holdings, Inc. Segments Disclosure
Segment Reporting
The Company leverages its Platform to build content verticals powered by anchor brands. The Company’s strategy is to focus on key subject matter verticals where audiences are passionate about a topic category where it can leverage the strength of its core brands to grow its audience and monetize editorially focused online content through various display and video advertisements that are viewed by internet users of the content.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The Company’s reportable segments are organized in the subject matter verticals that offer content on the respective topics by brand. The Company has four reportable segments: Sports & Leisure, Finance, Lifestyle, and Platform & Other. Segment profit measure is segment gross profit defined as segment revenue less segment cost of revenue, consisting of costs and expenses directly attributable to the segment. The brand Men's Journal is organized under the subject matter vertical of Sports & Leisure for the year ending December 31, 2025. Accordingly, segment‑level year‑over‑year comparisons reflect this reclassification, with prior periods recast to conform to the current‑period presentation.
Each of the reportable segments derives its revenue from digital advertising, digital subscriptions, performance marketing, publisher revenue, and licensing and publisher revenues as described above in Note 2.
The following tables summarize key financial information by segment:
| For the Year Ended December 31, 2025 | |||||||||||||||||
| Sports & Leisure | Finance | Lifestyle | Platform & Other | Total | |||||||||||||
| Digital advertising | $ | 32,156 | $ | 21,740 | $ | 25,154 | $ | 7,894 | |||||||||
| Digital subscriptions | – | 5,833 | – | 15 | |||||||||||||
| Publisher revenue | 9,380 | 2,268 | 5,995 | 1,849 | |||||||||||||
| Performance Marketing | 5,213 | 8,394 | 6,031 | 1 | |||||||||||||
| Other digital revenue | 361 | 6 | 15 | 1,502 | |||||||||||||
| Total digital revenue | 47,110 | 38,241 | 37,195 | 11,261 | |||||||||||||
| Print revenue | 211 | 9 | 801 | – | |||||||||||||
| Total revenue | 47,321 | 38,250 | 37,996 | 11,261 | $ | 134,828 | |||||||||||
| Less: (1) | |||||||||||||||||
| External Cost of Content | 7,882 | 3,860 | 4,740 | 6,338 | |||||||||||||
| Internal Cost of Content | 6,918 | 7,313 | 7,770 | 393 | |||||||||||||
| Technology costs | 3,939 | 2,085 | 2,290 | 1,511 | |||||||||||||
| Print, distribution and fulfillment costs | (696) | – | 589 | – | |||||||||||||
| Other segment items (2) | 9 | 2 | 1 | 458 | |||||||||||||
| Segment gross profit | $ | 29,269 | $ | 24,990 | $ | 22,606 | $ | 2,561 | 79,426 | ||||||||
| Reconciliation of Segment Gross Profit to Income Before Income Taxes: | |||||
| Unallocated cost of revenue amounts: | |||||
| Internal cost of content | 1,204 | ||||
| Technology costs | 4,455 | ||||
| Amortization of developed technology and platform development | 5,418 | ||||
| Selling and marketing | 7,033 | ||||
| General and administrative | 17,056 | ||||
| Depreciation and amortization | 3,469 | ||||
| Interest expense, net | 11,358 | ||||
| Liquidated damages | 305 | ||||
| Total unallocated costs | 50,298 | ||||
| Income before income taxes | $ | 29,128 | |||
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(2)Other segment items are primarily comprised of inventory procurement and shipping fulfillment costs.
| For the Year Ended December 31, 2024 | |||||||||||||||||
| Sports & Leisure | Finance | Lifestyle | Platform & Other | Total | |||||||||||||
| Digital advertising | $ | 42,645 | $ | 14,475 | $ | 24,813 | $ | 11,075 | |||||||||
| Digital subscriptions | – | 7,760 | – | 40 | |||||||||||||
| Publisher revenue | 3,524 | 1,140 | 2,452 | 798 | |||||||||||||
| Performance Marketing | 2,965 | 4,207 | 3,755 | – | |||||||||||||
| Other digital revenue | 991 | 152 | 96 | 3,946 | |||||||||||||
| Total digital revenue | 50,125 | 27,734 | 31,116 | 15,859 | |||||||||||||
| Print revenue | 706 | – | 367 | – | |||||||||||||
| Total revenue | 50,831 | 27,734 | 31,483 | 15,859 | $ | 125,907 | |||||||||||
| Less: (1) | |||||||||||||||||
| External Cost of Content | 11,255 | 163 | 758 | 8,072 | |||||||||||||
| Internal Cost of Content | 9,739 | 6,847 | 7,460 | 36 | |||||||||||||
| Technology costs | 4,840 | 2,376 | 2,368 | 1,361 | |||||||||||||
| Print, distribution and fulfillment costs | 312 | – | 578 | – | |||||||||||||
| Other segment items (2) | 293 | – | (34) | – | |||||||||||||
| Segment gross profit | $ | 24,392 | $ | 18,348 | $ | 20,353 | $ | 6,390 | 69,483 | ||||||||
| Reconciliation of Segment Gross Profit to Income (Loss) Before Income Taxes: | |||||
| Less unallocated cost of revenue amounts: | |||||
| Internal cost of content | 2,021 | ||||
| Technology costs | 5,756 | ||||
| Amortization of developed technology and platform development | 5,988 | ||||
| Selling and marketing | 12,548 | ||||
| General and administrative | 30,399 | ||||
| Depreciation and amortization | 3,704 | ||||
| Interest expense, net | 14,668 | ||||
| Loss on impairment of assets | 1,198 | ||||
| Change in valuation of contingent consideration | 313 | ||||
| Liquidated damages | 306 | ||||
| Total unallocated costs | 76,901 | ||||
| Loss before income taxes | $ | (7,418) | |||
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(2)Other segment items primarily consist of sponsored content costs.
The Company’s long-lived assets, consisting of property and equipment, and operating leases, are located in the United States. No asset information is provided to the CODM.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.