Quarterly report [Sections 13 or 15(d)]

SEGMENTS AND REVENUE RECOGNITION

v3.25.3
SEGMENTS AND REVENUE RECOGNITION
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENTS AND REVENUE RECOGNITION SEGMENTS AND REVENUE RECOGNITION
Our reportable segments are Concerts, Ticketing and Sponsorship & Advertising. We use AOI to evaluate the performance of our operating segments and define AOI as operating income (loss) before certain acquisition expenses (including ongoing legal costs stemming from the Ticketmaster merger, changes in the fair value of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation), amortization of non-recoupable ticketing contract advances, depreciation and amortization (including goodwill impairment), loss (gain) on disposal of operating assets, and stock-based compensation expense. We also exclude from AOI the impact of estimated or realized liabilities for settlements or damages arising out of the Astroworld matter that exceed our estimated insurance recovery, due to the significant and non-recurring nature of the matter. Ongoing legal costs associated with defense of these claims, such as attorney fees, are not excluded from AOI. AOI assists investors by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income (loss), thus providing insights into both operations and the other factors that affect reported results.
Revenue and expenses earned and charged between segments are eliminated in consolidation. Our capital expenditures below include accruals for amounts incurred but not yet paid for, but are not reduced by reimbursements received from outside parties such as landlords and noncontrolling interest partners or replacements funded by insurance proceeds.
We manage our working capital on a consolidated basis. Accordingly, segment assets are not reported to, or used by, our management to allocate resources to or assess performance of our segments, and therefore, total segment assets and related depreciation and amortization have not been presented.
The Company’s Chief Executive Officer is the chief operating decision maker (“CODM”) and evaluates the operating performance of our operating segments based on AOI. The CODM uses segment AOI for evaluating performance of each segment and for making decisions on allocating capital and other resources to each segment. We have not identified any segment expenses that are considered significant and segment expenses are not regularly provided to the CODM. Other segments items are direct operating expenses and selling, general and administrative expenses (excluding acquisition expenses, amortization of non-recoupable ticketing contract advance, Astroworld estimated loss contingencies and stock-based compensation expense) which represents the difference between each operating segment’s revenue and AOI.
The following table presents the results of operations for our reportable segments for the three and nine months ended September 30, 2025 and 2024:
Concerts Ticketing Sponsorship
& Advertising		 Other & Eliminations Corporate Consolidated
(in thousands)
Three Months Ended September 30, 2025
Revenue $ 7,282,473  $ 797,572  $ 442,689  $ (23,591) $ —  $ 8,499,143 
% of Consolidated Revenue 85.7% 9.4% 5.2% (0.3)%
Other Segment Items $ 6,768,306  $ 511,623  $ 129,617  $ (17,420) $ 74,044  $ 7,466,170 
AOI $ 514,167  $ 285,949  $ 313,072  $ (6,171) $ (74,044) $ 1,032,973 
Intersegment revenue $ 12,727  $ 7,211  $ 3,653  $ (23,591) $ —  $ — 
Three Months Ended September 30, 2024
Revenue $ 6,580,595  $ 693,704  $ 390,345  $ (13,557) $ —  $ 7,651,087 
% of Consolidated Revenue 86.0% 9.1% 5.1% (0.2)%
Other Segment Items $ 6,106,542  $ 458,000  $ 115,016  $ (6,484) $ 68,182  $ 6,741,256 
AOI $ 474,053  $ 235,704  $ 275,329  $ (7,073) $ (68,182) $ 909,831 
Intersegment revenue $ 7,268  $ 6,289  $ —  $ (13,557) $ —  $ — 
Nine Months Ended September 30, 2025
Revenue $ 15,712,926  $ 2,234,940  $ 999,316  $ (59,281) $ —  $ 18,887,901 
% of Consolidated Revenue 83.2% 11.8% 5.3% (0.3)%
Other Segment Items $ 14,833,506  $ 1,405,839  $ 322,692  $ (40,512) $ 193,929  $ 16,715,454 
AOI $ 879,420  $ 829,101  $ 676,624  $ (18,769) $ (193,929) $ 2,172,447 
Intersegment revenue $ 38,191  $ 17,437  $ 3,653  $ (59,281) $ —  $ — 
Nine Months Ended September 30, 2024
Revenue $ 14,447,009  $ 2,147,559  $ 913,856  $ (34,392) $ —  $ 17,474,032 
% of Consolidated Revenue 82.7% 12.3% 5.2% (0.2)%
Other Segment Items $ 13,704,073  $ 1,335,207  $ 285,930  $ (11,939) $ 172,192  $ 15,485,463 
AOI $ 742,936  $ 812,352  $ 627,926  $ (22,453) $ (172,192) $ 1,988,569 
Intersegment revenue $ 19,671  $ 14,546  $ 175  $ (34,392) $ — $ —
The following table sets forth the reconciliation of consolidated AOI to operating income for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
(in thousands)
AOI $ 1,032,973  $ 909,831  $ 2,172,447  $ 1,988,569 
Acquisition expenses 32,983  94,565  141,873  95,087 
Amortization of non-recoupable ticketing contract advances 16,528  16,996  61,971  62,237 
Depreciation and amortization 165,600  137,001  474,080  407,324 
Gain on sale of operating assets (14,851) (3,968) (17,909) (5,398)
Astroworld estimated loss contingencies (553) —  (8,353) 279,915 
Stock-based compensation expense 40,815  25,712  126,912  85,450 
Operating income $ 792,451  $ 639,525  $ 1,393,873  $ 1,063,954 
Contract Advances
At September 30, 2025 and December 31, 2024, we had ticketing contract advances of $216.4 million and $158.1 million, respectively, recorded in prepaid expenses and $139.4 million and $128.9 million, respectively, recorded in long-term advances on the consolidated balance sheets.
Sponsorship Agreements
At September 30, 2025, we had contracted sponsorship agreements with terms greater than one year that had approximately $1.4 billion of revenue related to future benefits to be provided by us. We expect to recognize, based on current projections, approximately 12%, 41%, 25% and 22% of this revenue in the remainder of 2025, 2026, 2027 and thereafter, respectively.
Deferred Revenue
The majority of our deferred revenue is typically classified as current and is shown as a separate line item on the consolidated balance sheets. Deferred revenue that is not expected to be recognized within the next twelve months is classified as long-term and reflected in other long-term liabilities on the consolidated balance sheets.
The table below summarizes the amount of the preceding December 31 current deferred revenue recognized during the three and nine months ended September 30, 2025 and 2024:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2025 2024 2025 2024
(in thousands)
Concerts $ 868,774  $ 1,032,868  $ 3,082,881  $ 2,885,696 
Ticketing 44,419  50,140  185,083  165,463 
Sponsorship & Advertising 10,313  6,626  85,969  93,300 
$ 923,506  $ 1,089,634  $ 3,353,933  $ 3,144,459