Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

Segment Information

Schedule of Revenue from External Customers By Segment

The following table presents revenue from external customers by segment (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Continuing franchise fees	$	27,643	$	29,387	$	56,008	$	58,934
Annual dues		8,151		8,587		16,376		17,205
Broker fees		14,528		14,321		25,244		25,213
Franchise sales and other revenue		4,427		5,264		11,569		16,837
Total Real Estate		54,749		57,559		109,197		118,189
Continuing franchise fees		2,697		2,714		5,417		5,243
Franchise sales and other revenue		980		902		1,893		1,561
Total Mortgage		3,677		3,616		7,310		6,804
Marketing Funds fees		20,027		21,077		40,233		42,419
Other		—		195		—		436
Total revenue	$	78,453	$	82,447	$	156,740	$	167,848

Schedule of Revenue and Adjusted EBITDA of the Company's Reportable Segment

The following table presents a reconciliation of Adjusted EBITDA by segment to income (loss) before provision for income taxes (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Adjusted EBITDA: Real Estate	$	29,771	$	28,721	$	49,974	$	51,413
Adjusted EBITDA: Mortgage		(1,681)		(1,457)		(2,842)		(4,054)
Adjusted EBITDA: Other		(14)		(620)		(63)		(795)
Adjusted EBITDA: Consolidated		28,076		26,644		47,069		46,564
Equity-based compensation expense		(3,902)		(4,708)		(9,825)		(9,159)
Acquisition-related expense (a)		—		(64)		—		(101)
Fair value adjustments to contingent consideration (b)		(103)		95		(137)		99
Restructuring charges (c)		9		72		41		33
Other (d)		(775)		(666)		(1,839)		(1,076)
Interest income		949		1,141		1,950		2,145
Interest expense		(9,191)		(8,840)		(18,447)		(17,085)
Depreciation and amortization		(7,400)		(8,008)		(15,252)		(16,041)
Income (loss) before provision for income taxes	$	7,663	$	5,666	$	3,560	$	5,379

(a) Acquisition-related expense includes personnel, legal, accounting, advisory and consulting fees incurred in connection with the acquisition activities and integration of acquired companies.

(b) Fair value adjustments to contingent consideration include amounts recognized for changes in the estimated fair value of the contingent consideration liabilities. See Note 8, Fair Value Measurements for additional information.

(c) During the third quarter of 2023, the Company announced a reduction in force and reorganization intended to streamline the Company’s operations and yield cost savings over the long term. See Note 2, Summary of Significant Accounting Policies for additional information.

(d) Other is primarily made up of employee retention related expenses from the Company's CEO transition.