Annual report [Section 13 and 15(d), not S-K Item 405]

Information About QVC Group's Operating Segments

v3.26.1
Information About QVC Group's Operating Segments
 12 Months Ended
Dec. 31, 2025
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments [Abstract]  
Information About QVC Group's Operating Segments (15) Information About QVC Group's Operating Segments
QVC Group, through its ownership interests in subsidiaries and other companies, is primarily engaged in the video and on-line commerce industries. QVC Group identifies its reportable segments as (A) those operating segments that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of QVC Group's annual pre-tax earnings. The segment presentation for prior periods has been conformed to the current period segment presentation.
QVC Group’s chief operating decision maker, the chief executive officer, evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue, cost of goods sold, gross profit, operating expense, advertising expense, SG&A and Adjusted OIBDA, in addition to average sales price per unit, number of units shipped and revenue or sales per customer equivalent. In addition, QVC Group reviews nonfinancial measures such as unique website visitors, conversion rates and active customers, as appropriate.
For segment reporting purposes, QVC Group defines Adjusted OIBDA as revenue less cost of goods sold, operating expenses, and SG&A excluding stock-based compensation and, where applicable, separately identified items impacting comparability. QVC Group believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform
analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, and where applicable, separately identified impairments, litigation settlements, restructuring, penalties, fire related costs, net of recoveries (including Rocky Mount inventory losses) and gains on sales of assets and sale leaseback transactions, that are included in the measurement of operating income (loss) pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. QVC Group generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.
For the year ended December 31, 2025, QVC Group has identified the following operating segments as its reportable segments, which are also operating segments:
•QxH – QxH markets and sells a wide variety of consumer products in the U.S., primarily by means of its televised shopping programs and via the internet through their websites and mobile applications;
•QVC International – QVC International markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the internet through its international websites and mobile applications; and
•CBI – CBI consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the internet through their websites.
QVC Group's operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments are the same as those described in the Company's summary of significant accounting policies.
Performance Measures
Year ended December 31, 2025
QxH QVC Int'l CBI Corporate and other Total
amounts in millions
Total revenue, net $ 5,936  2,357  937  —  9,230 
Cost of goods sold (excluding depreciation and amortization) 3,979  1,526  559  —  6,064 
Gross profit 1,957  831  378  —  3,166 
Operating expense 454  183  38  —  675 
Advertising expense 330  39  163  —  532 
SG&A (excluding stock based compensation and advertising) 656  316  161  55  1,188 
Adjusted OIBDA $ 517  293  16  (55) 771 
Year ended December 31, 2024
QxH QVC Int'l CBI Corporate and other Total
amounts in millions
Total revenue, net $ 6,598  2,399  1,040  —  10,037 
Cost of goods sold (excluding depreciation and amortization) 4,373  1,532  619  —  6,524 
Gross profit 2,225  867  421  —  3,513 
Operating expense 512  181  41  —  734 
Advertising expense 277  35  172  —  484 
SG&A (excluding stock based compensation and advertising) 671  318  172  31  1,192 
Adjusted OIBDA $ 765  333  36  (31) 1,103 
Year ended December 31, 2023
QxH QVC Int'l CBI Corporate and other Total
amounts in millions
Total revenue, net $ 6,995  2,454  1,165  301  10,915 
Cost of goods sold (excluding depreciation, amortization, and Rocky Mount inventory losses) 4,711  1,562  717  240  7,230 
Gross profit 2,284  892  448  61  3,685 
Operating expense 549  190  45  11  795 
Advertising expense 251  38  178  30  497 
SG&A (excluding stock based compensation and advertising) 738  339  158  84  1,319 
Adjusted OIBDA $ 746  325  67  (64) 1,074 
Other Information
December 31, 2025 December 31, 2024 December 31, 2023
Depreciation Amortization Depreciation Amortization Depreciation Amortization
amounts in millions
QxH $ 91  224  51  252  59  265 
QVC International 27  27  26  22  31  17 
CBI 16  13  13  19  9  17 
Corporate and other —  —  —  —  5  4 
Consolidated QVC Group $ 134  264  90  293  104  303 

December 31, 2025 December 31, 2024
Total
assets		 Capital
expenditures		 Total
assets		 Capital
expenditures
amounts in millions
QxH $ 4,780  97  6,388  122 
QVC International 1,927  37  1,761  51 
CBI 495  23  567  26 
Corporate and other 441  —  527  — 
Consolidated QVC Group $ 7,643  157  9,243  199 
Property and equipment, net of accumulated depreciation, by segment was as follows:
Years ended December 31,
2025 2024
amounts in millions
QxH $ 166  259 
QVC International 150  151 
CBI 85  92 
Consolidated QVC Group $ 401  502 
The following table provides a reconciliation of consolidated segment Adjusted OIBDA to operating income and earnings (loss) from continuing operations before income taxes:
Years ended December 31,
2025 2024 2023
amounts in millions
Consolidated segment Adjusted OIBDA $ 771  1,103  1,074 
Depreciation and amortization (398) (383) (407)
Impairment of intangible assets (930) (578) — 
Impairment of goodwill (1,477) (902) (326)
Gains on sale of assets and sale leaseback transactions 5  1  113 
Restructuring, penalties and fire related (costs), net of recoveries (53) (18) 189 
Stock-based compensation (16) (32) (53)
Operating income (2,098) (809) 590 
Interest expense (496) (468) (451)
Interest and dividend income 50  50  52 
Realized and unrealized gains (losses) on financial instruments, net (40) (60) (61)
Loss on disposition of Zulily, net —  —  (64)
Tax sharing income (expense) with Liberty Broadband 10  (4) (11)
Other, net (9) —  11 
Earnings (loss) from continuing operations before income taxes $ (2,583) (1,291) 66 
Revenue by Geographic Area
The following table summarizes net revenue generated by subsidiaries located within the identified geographic areas:
Years ended December 31,
2025 2024 2023
amounts in millions
United States $ 6,873  7,638  8,442 
Japan 825  870  945 
Germany 784  785  788 
Other foreign countries 748  744  740 
Consolidated QVC Group $ 9,230  10,037  10,915 
Property and Equipment by Geographic Area
The following table summarizes property and equipment, net of accumulated depreciation, based on physical location:
Years ended December 31,
2025 2024
amounts in millions
U.S. $ 251  351 
Japan 79  81 
Other foreign countries 71  70 
Consolidated QVC Group $ 401  502