Segment Reporting

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

NOTE 15 — Segment Reporting

The Company accounts for its segments under ASC 280. The Company generates revenue through the sale of online advertising and online order reservation enablement on the Leafly platform for suppliers in its two segments: Retail and Brands. Within the Retail segment, the Company sells monthly subscriptions that enable retailers to advertise to and acquire potential shoppers. Within the Brands segment, revenue is derived by creating custom advertising campaigns for brands that target Leafly’s audience and by offering brands profile listings on the Leafly platform, which are sold on a monthly recurring subscription or annual basis.

The Company’s Chief Operating Decision Maker (“CODM”) is the Executive Leadership Team which includes primarily Leafly’s Chief Executive Officer, President and Chief Operating Officer and Chief Financial Officer. The CODM uses operating expenses to measure performance of its Retail and Brands segments. The determination of these two segments is consistent with the financial information regularly provided to the Company’s CODM. The Company’s CODM reviews and

evaluates the gross profit for purposes of assessing performance, making operating decisions, allocating resources, and planning and forecasting for future periods.

The Company does not allocate indirect costs to its segments and therefore only reports segment information for revenue and costs of sales. Assets are not allocated to segments for internal reporting presentations, nor are depreciation and amortization. Segment revenue, cost of sales, and gross profit were as follows during the periods presented:

	Year Ended December 31,
	2024		2023
Revenue:
Retail	$	29,912	$	35,923
Brands		4,730		6,329
Total revenue	$	34,642	$	42,252
Retail Cost of Sales: 1
Merchant Processing fees	$	696	$	821
Business platform		624		1,158
Website infrastructure		778		978
Labor allocation		1,043		1,138
		3,141		4,095
Brands Cost of Sales: 1
Merchant Processing fees		111		137
Website infrastructure		123		172
Labor allocation		165		200
Other		137		197
		536		706
Total cost of sales	$	3,677	$	4,801
Gross profit:
Retail	$	26,771	$	31,828
Brands		4,194		5,623
Total gross profit	$	30,965	$	37,451

1. Amounts for the prior period have been reclassified to conform to the current period presentation.

Geographic Areas

The Company’s operations are primarily in the U.S. and to a lesser extent, in Canada. Refer to Note 8 for revenue classified by major geographic area.