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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company's OPTAVIA segment derives revenues from clients through the sale of OPTAVIA products which are shipped directly to clients. Our OPTAVIA coaches help clients adopt healthy habits and learn the benefits of our products. The accounting policies of the Company's single segment are the same as those described in the Company's Significant Accounting Policies.

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on net income (loss) that also is reported on the accompanying
Unaudited Condensed Consolidated Statements of Operations as net income (loss). The measure of segment assets is reported on the Consolidated Balance Sheets as total assets. The CODM uses net income (loss) to evaluate the income (loss) generated from segment assets in deciding whether to reinvest profits into the segment or into other parts of the entity, such as for share buybacks. Net income (loss) is used to monitor budget versus actual results. The CODM also uses net income (loss) in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation. The Company does not have significant intra-entity sales or transfers.

The Company has one reportable segment: OPTAVIA. The OPTAVIA segment recognizes revenue when control of the products is transferred to the client. The segment pays commissions on the sale of products to OPTAVIA coaches. The Company derives all of its revenue from sales within the United States and manages the business activities on a consolidated basis.

The following table presents the OPTAVIA segment's revenue, significant segment expenses, and segment net income for the three months ended September 30, 2025 and 2024, respectively:

September 30, 2025September 30, 2024
Revenue$89,409$140,163
Less:
Cost of sales27,250 34,489 
Selling, marketing, and after sales support41,543 74,867 
Distribution3,815 6,138 
Technology11,123 12,481 
Administrative and corporate support functions8,849 9,476 
Equity compensation910 606 
Other loss (income) (1)
(1,424)528 
Provision (benefit) for income taxes(396)449 
Segment net income (loss)$(2,261)$1,129 
Reconciliation of profit or loss
Adjustments and reconciling items— — 
Consolidated net income (loss)$(2,261)$1,129 
(1) Other loss (income) included within Segment net income (loss) includes interest income, interest expense, and unrealized gains and losses on LifeMD common stock.
Segment depreciation expense of property, plant, and equipment for the three months ended September 30, 2025 and 2024 was $2.5 million and $2.3 million, respectively. Segment additions of property, plant, and equipment for the three months ended September 30, 2025, and 2024 were $1.4 million and $1.4 million, respectively.
The following table presents the OPTAVIA segment's revenue, significant segment expenses, and segment net income for the nine months ended September 30, 2025 and 2024, respectively:
September 30, 2025September 30, 2024
Revenue$310,692$483,460
Less:
Cost of sales87,645127,056
Selling, marketing, and after sales support151,883242,560
Distribution13,64632,196
Technology32,73138,651
Administrative and corporate support functions25,73035,597
Equity compensation5,4675,231
Other income (1)
(7,153)(343)
Provision for income taxes1,2961,222
Segment net income$(553)$1,290
Reconciliation of profit or loss
Adjustments and reconciling items— — 
Consolidated net income (loss)
$(553)$1,290
(1) Other income included within Segment net income includes interest income, interest expense, and realized and unrealized gains and losses on LifeMD common stock.
Segment depreciation expense of property, plant, and equipment for the nine months ended September 30, 2025 and 2024 was $7.9 million and $15.1 million, respectively. Segment additions of property, plant, and equipment for the nine months ended September 30, 2025 and 2024 were $4.3 million and $5.2 million, respectively.