v3.25.3
Segment Reporting
 9 Months Ended 12 Months Ended
Sep. 30, 2025
Dec. 31, 2024
Segment Reporting [Abstract]    
Segment Reporting

19. Segment Reporting

 

The Company has three reportable operating segments, Banzai Operating Co, Inc., Banzai Reel Acquisition Inc. (OpenReel), and Vidello Limited (Vidello). The Company’s segments deliver SaaS tools that leverage data, analytics, and AI to provide marketing and sales solutions, including video production and editing, for businesses of all sizes.

 

Our Chief Executive Officer, who serves as the Company’s chief operating decision maker (“CODM”), primarily uses segment revenue, gross profit, and adjusted EBITDA to allocate resources and assess performance. Segment revenue and gross profit are determined on the same basis as consolidated revenue and consolidated gross profit as shown in the Company’s consolidated statements of operations. Segment adjusted EBITDA is defined as revenue less the following expenses associated with each segment: cost of revenue, people, marketing and advertising, technology, and other segment expenses. Segment adjusted EBITDA excludes certain non-cash items or items that management does not consider reflective of ongoing core operations. Currently, the CODM does not review assets in evaluating the results of the operating segments, and therefore, such information is not presented.

 

The tables below present information about reported segments for the three and nine months ending September 30, 2025:

 

Three months ended September 30, 2025

 

   Banzai Operating   OpenReel   Vidello   Total Consolidated 
Revenue  $1,143,619   $1,355,810   $345,079   $2,844,508 
Cost of revenue   377,481    80,425    61,505    519,411 
Gross profit   766,138    1,275,385    283,574    2,325,097 
                     
Expenses                    
People   1,427,945    711,530    123,527    2,263,002 
Marketing and advertising   408,425    26,018    106,105    540,548 
Technology   215,309    576,169    16,032    807,510 
Other segment expenses1   338,211    209,817    (59,351)   488,677 
Total expenses   2,389,890    1,523,534    186,313    4,099,737 
Segment Adjusted EBITDA   (1,623,752)   (248,149)   97,261    (1,774,640)
Transaction, PubCo. Expenses and Stock-based compensation   2,328,754    32,385    —    2,361,139 
Adjusted EBITDA  $(3,952,506)  $(280,534)  $97,261   $(4,135,779)

 

 

Nine months ended September 30, 2025

 

   Banzai Operating   OpenReel   Vidello   Total Consolidated 
Revenue  $3,314,643   $4,184,291   $1,851,639   $9,350,573 
Cost of revenue   1,122,552    232,927    324,446    1,679,925 
Gross profit   2,192,091    3,951,364    1,527,193    7,670,648 
                     
Expenses                    
People   4,034,874    1,977,525    210,284    6,222,683 
Marketing and advertising   1,658,275    83,512    384,456    2,126,243 
Technology   745,930    1,646,430    67,605    2,459,965 
Other segment expenses1   2,034,370    256,851    203,185    2,494,406 
Total expenses   8,473,449    3,964,318    865,530    13,303,297 
Segment Adjusted EBITDA   (6,281,358)   (12,954)   661,663    (5,632,649)
Transaction, PubCo. Expenses and Stock-based compensation   7,350,603    352,867    -    7,703,470 
Adjusted EBITDA  $(13,631,961)  $(365,821)  $661,663   $(13,336,119)

 

1Other segment expenses for each reportable segment includes provision for credit losses, foreign currency exchange rate changes, travel and entertainment expenses, professional expenses other than those included in transaction and PubCo. expenses, insurance expenses, and expenses related to licenses.

 

The tables below present information about reported segments for the three and nine months ending September 30, 2024:

 

Three months ended September 30, 2024

 

   Banzai Operating   OpenReel1   Vidello1   Total Consolidated 
Revenue  $1,080,607   $—   $—   $1,080,607 
Cost of revenue   338,023    —    —    338,023 
Gross profit   742,584    —    —    742,584 
                                   
Expenses                    
People   1,303,100    —    —    1,303,100 
Marketing and advertising   427,651    —    —    427,651 
Technology   153,297    —    —    153,297 
Other segment expenses2   148,878    —    —    148,878 
Total expenses   2,032,926    —    —    2,032,926 
Segment Adjusted EBITDA   (1,290,342)   —    —    (1,290,342)
Transaction, PubCo. Expenses and Stock-based compensation   1,480,516    —    —    1,480,516 
Adjusted EBITDA  $(2,770,858)  $—   $—   $(2,770,858)

 

 

Nine months ended September 30, 2024

 

   Banzai Operating   OpenReel1   Vidello1   Total Consolidated 
Revenue  $3,228,276   $—   $—   $3,228,276 
Cost of revenue   1,049,411    —    —    1,049,411 
Gross profit   2,178,865    —    —    2,178,865 
                                   
Expenses                    
People   3,879,525    —    —    3,879,525 
Marketing and advertising   1,357,397    —    —    1,357,397 
Technology   583,722    —    —    583,722 
Other segment expenses2   1,140,510    —    —    1,140,510 
Total expenses   6,961,154    —    —    6,961,154 
Segment Adjusted EBITDA   (4,782,289)   —    —    (4,782,289)
Transaction, PubCo. Expenses and Stock-based compensation   4,760,311    —    —    4,760,311 
Adjusted EBITDA  $(9,542,600)  $—   $—   $(9,542,600)

 

1The OpenReel acquisition occurred on December 18, 2024 and therefore is presented at $0 for comparative purposes. The Vidello acquisition occurred on January 31, 2025 (refer to Note 4) and therefore is presented at $0 for comparative purposes.

 

2Other segment expenses for each reportable segment includes travel and entertainment expenses, professional expenses other than those included in transaction and PubCo. expenses, the SEPA commitment fee expense and deferred fee expense, the GEM warrant expense, and the GEM commitment fee expense.

 

A reconciliation between EBITDA by reportable segment to consolidated net loss before income taxes for the three months ended September 30, 2025, and 2024, is as follows:

 

   September 30, 2025   September 30, 2024 
EBITDA by segment          
Banzai Operating Co.  $(3,952,506)   (2,770,858)
OpenReel   (280,534)   — 
Vidello   97,261    — 
Total   (4,135,779)   (2,770,858)
           
Reconciliation to loss before income taxes:          
Changes in fair value of financial instruments   (252,831)   (59,187)
Interest income   (1,425)   — 
Interest expense   —    — 
Interest expense - related party   393,968    1,050,363 
Gain on extinguishment of liabilities   —    (152,782)
Gain on release of Vidello revenue holdback   (973,000)   — 
Loss on debt issuance   192,000    — 
Loss on private placement issuance   1,439,000    — 
Loss on issuance of term notes   —    390,000 
Loss on issuance of convertible bridge notes   65,650    63,408 
Loss on conversion and settlement of Alco promissory notes - related party   —    4,808,882 
Loss on conversion and settlement of CP BF notes - related party   —    6,529,402 
Loss on extinguishment of term notes   —    — 
Yorkville prepayment premium expense   —    14,000 
Loss on Yorkville SEPA advances   190,489    — 
Vidello earnout expense   69,053    — 
Failed acquisition costs   —    — 
GEM settlement fee expense   —    60,000 
Other (income) expense, net   64,372    (62,927)
Depreciation and amortization expense   294,427    900 
Loss before income taxes  $(5,617,482)  $(15,412,917)

 

 

 

A reconciliation between EBITDA by reportable segment to consolidated net loss before income taxes for the nine months ended September 30, 2025, and 2024, is as follows:

 

   September 30, 2025   September 30, 2024 
EBITDA by segment          
Banzai Operating Co.  $(13,631,961)  $(9,542,600)
OpenReel   (365,821)   — 
Vidello   661,663    — 
Total   (13,336,119)   (9,542,600)
           
Reconciliation to loss before income taxes:          
Changes in fair value of financial instruments   315,264    (388,187)
Interest income   (1,427)   (10)
Interest expense   -    - 
Interest expense - related party   1,288,988    2,860,768 
Gain on extinguishment of liabilities   (4,488,627)   (680,762)
Gain on release of Vidello revenue holdback   (973,000)   - 
Loss on debt issuance   444,000    171,000 
Loss on private placement issuance   2,276,000    - 
Loss on issuance of term notes   110,500    390,000 
Loss on issuance of convertible bridge notes   146,150    63,408 
Loss on conversion and settlement of Alco promissory notes - related party   -    4,808,882 
Loss on conversion and settlement of CP BF notes - related party   -    6,529,402 
Loss on extinguishment of term notes   1,769,895    - 
Yorkville prepayment premium expense   -    94,760 
Loss on Yorkville SEPA advances   937,626    — 
Vidello earnout expense   485,720      
Failed acquisition costs   1,382,002      
GEM settlement fee expense   -    260,000 
Other (income) expense, net   (523,451)   (2,900)
Depreciation and amortization expense   841,664    3,725 
Loss before income taxes  $(17,347,423)  $(23,652,686)

 

Disaggregation of Revenue

 

The following table presents the Company’s percentage of revenue generated by SaaS product for the three months ended September 30, 2025, and 2024:

 

   Three Months Ended
September 30,		   Three Months Ended
September 30,		   Nine Months Ended
September 30,		   Nine Months Ended
September 30,		 
Revenue %  2025   2024   2025   2024 
Reach   2.9%   8.1%   2.5%   4.1%
Demio   35.5%   91.9%   33.0%   95.5%
OpenReel   47.6%   0.0%   44.7%   0.0%
Vidello   14.0%   0.0%   19.8%   0.0%
Other   0.0%   0.0%   0.0%   0.4%
Total   100.0%   100.0%   100.0%   100.0%

 

For disaggregation of revenue by geographic area, refer to Note 6.

 

21. Segment Reporting

 

The Company has two reportable operating segments, Banzai Operating Co., Inc and Banzai Reel Acquisition Inc. (OpenReel). The Company’s segments deliver SaaS tools that leverage data, analytics, and AI to provide marketing and sales solutions for business of all sizes.

 

Our Chief Executive Officer who serves as the Company’s chief operating decision maker (“CODM”), primarily uses segment revenue, gross profit, and adjusted EBITDA to allocate resources and assess performance. Segment revenue and gross profit are determined on the same basis as consolidated revenue and consolidated gross profit as shown in the Company’s consolidated statements of operations. Segment adjusted EBITDA is defined as revenue less the following expenses associated with each segment: cost of revenue, people, marketing and advertising, technology, and other segment expenses. Segment adjusted EBITDA excludes certain non-cash items or items that management does not consider reflective of ongoing core operations. Currently, the CODM does not review assets in evaluating the results of the operating segments, and therefore, such information is not presented.

 

The table below presents information about reported segments for the year ending December 31, 2024:

 

2024            
   Banzai Operating   OpenReel   Total Consolidated 
Revenue  $4,305,429   $222,450   $4,527,879 
Cost of revenue   1,407,564    14,978    1,422,542 
Gross profit   2,897,865    207,472    3,105,337 
                
Expenses               
People   6,209,488    17,642    6,227,130 
Marketing and advertising   1,587,085    5,020    1,592,105 
Technology   861,775    112,429    974,204 
Other segment expenses1   811,519    6,856    818,375 
Total expenses   9,469,867    141,947    9,611,814 
Adjusted EBITDA   (6,572,002)   65,525    (6,506,477)
Transaction, PubCo. Expenses and Stock-based compensation   6,912,309    —    6,912,309 
EBITDA  $(13,484,311)  $65,525   $(13,418,786)

 

1Other segment expenses for each reportable segment includes travel and entertainment expenses, professional expenses other than those included in transaction and PubCo. expenses, insurance expenses, and expenses related to licenses.

 

The table below presents information about reported segments for the year ending December 31, 2023:

 

2023            
   Banzai Operating   OpenReel1   Total Consolidated 
Revenue  $4,561,300   $—   $4,561,300 
Cost of revenue   1,444,618    —    1,444,618 
Gross profit   3,116,682    —    3,116,682 
                
Expenses               
People   5,809,973    —    5,809,973 
Marketing and advertising   941,737    —    941,737 
Technology   628,998    —    628,998 
Other segment expenses2   7,679,506    —    7,679,506 
Total expenses   15,060,214    —    15,060,214 
Adjusted EBITDA   (11,943,532)   —    (11,943,532)
Transaction, PubCo. Expenses and Stock-based compensation   6,118,859    —    6,118,859 
EBITDA  $(18,062,391)  $—   $(18,062,391)

 

 

1The OpenReel acquisition occurred on December 18, 2024 (refer to Note 5) and therefore is presented at $0 for comparative purposes.

 

2Other segment expenses for each reportable segment includes travel and entertainment expenses, professional expenses other than those included in transaction and PubCo. expenses, SEPA commitment fee and deferred fee expense, GEM warrant expense, and GEM commitment fee expense.

 

A reconciliation between reportable segment adjusted EBITDA to consolidated net loss before income taxes for the years ended December 31, 2024, and 2023, is as follows:

 

   December 31, 2024   December 31, 2023 
EBITDA by segment          
Banzai Operating Co.  $(13,484,311)  $(18,062,391)
OpenReel   65,525    — 
Total   (13,418,786)   (18,062,391)
           
Reconciliation to loss before income taxes:          
Changes in fair value of financial instruments   (478,288)   (9,154,141)
Interest income   (10)   (813)
Interest expense   —    1,068,447 
Interest expense – related party   3,047,101    4,486,027 
Gain (loss) on extinguishment of liabilities, net   390,801    — 
Loss on conversion of liabilities   11,338,284    — 
Loss on debt issuance   653,208    — 
GEM settlement fee expense   200,000    — 
Yorkville prepayment premium expense   80,760    — 
Goodwill impairment   2,725,460    — 
Depreciation and amortization   24,179    7,160 
Other   113,108    (62,809)
Loss before income taxes  $(31,513,389)  $(14,406,262)

 

Disaggregation of Revenue

 

The following table presents the Company’s revenue generated by SaaS product for the years ended December 31, 2024, and 2023:

   Year Ended
December 31,		   Year Ended
December 31,		 
Revenue %  2024   2023 
Reach   3.8%   4.5%
Demio   91.0%   94.9%
Other1   5.2%   0.6%
Total   100.0%   100.0%

 

1Other includes Boost sales for the years ended December 31, 2024, and 2023 and OpenReel product sales from acquisition date (refer to Note 5) to December 31, 2024.

 

For disaggregation of revenue by geographic area, refer to Note 7.