Segment Reporting

3 Months Ended

Mar. 31, 2025

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:

	Three Months Ended March 31,
	2025		2024
Revenue:
Retail	$	6,946	$	7,871
Brands		936		1,177
Total revenue	$	7,882	$	9,048
Retail Cost of Sales:
Merchant Processing fees	$	163	$	181
Business platform		66		195
Website infrastructure		210		207
Labor allocation		232		259
		671		842
Brands Cost of Sales:
Merchant Processing fees		22		27
Website infrastructure		28		31
Labor allocation		31		39
Other		50		37
		131		134
Total cost of sales	$	802	$	976
Gross profit:
Retail	$	6,275	$	7,029
Brands		805		1,043
Total gross profit	$	7,080	$	8,072

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.