Property and equipment, net is set forth in the table below (in thousands):
 December 31,
 2025 2024
Software (1)
$7,636 $7,479 
Leasehold improvements10,174 9,759 
Equipment3,660 3,743 
Furniture and fixtures (2)
28 1,810 
Construction in progress667 260 
Total property and equipment, gross22,165 23,051 
Less: accumulated depreciation(17,938)(18,180)
Total$4,227 $4,871 
_________________
(1) The net book value of our software was $0.5 million and $0.3 million as of December 31, 2025 and 2024, respectively, and primarily related to certain portions of our playboy.com website.
(2) The decrease in furniture and fixtures is due to the write-off of certain of our property, plant and equipment items as a result of our decision to sublease certain of our corporate office space during the second quarter of 2025, which resulted in a $0.4 million loss on disposal of assets for the year ended December 31, 2025.

Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Mar 13, 2025
2023Mar 29, 2024
2022Mar 16, 2023
2021Mar 16, 2022

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.