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

Information about QVC's Operating Segments and Geographical Data

v3.26.1
Information about QVC's Operating Segments and Geographical Data
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Information about QVC's Operating Segments and Geographical Data Information about QVC's Operating Segments and Geographical Data
The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA (defined below), gross margin, average sales price per unit, number of units shipped and revenue or sales per customer. For segment reporting purposes, the Company defines Adjusted OIBDA, as net revenue less cost of goods sold (excluding fire related costs, net of recoveries, see note 12), operating expenses, and SG&A (excluding stock-based compensation, penalties and restructuring costs). The Company believes this measure is an important indicator of the operational strength and performance of its segments by identifying those items that are not directly a reflection of each segment's performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among the Company's businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization, impairment losses, gains on sale of assets and sale-leaseback transactions, restructuring, penalties and fire related costs, net of recoveries and stock-based compensation that are included in the measurement of operating income pursuant to U.S. 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 U.S. GAAP.
The Company's chief operating decision maker ("CODM") is the Company's Chief Executive Officer who has ultimate responsibility for enterprise decisions. QVC's CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise, QxH, and QVC-International. The segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. QVC's CODM relies on internal management reporting that analyzes enterprise results and segment results to the Adjusted OIBDA level (see below).
For the year ended December 31, 2025, QVC has identified QxH and QVC-International as its two reportable segments. Both operating segments are retailers of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised-shopping programs as well as via the internet and mobile applications in certain markets.
QVC allocates certain corporate costs for management reporting purposes from its QxH segment to the QVC-International segment. These management cost allocations are related to certain functions such as merchandising, commerce platforms, information technology, human resources, legal, finance, brand and communications, corporate development and administration that support all of QVC’s operations. For the years ended December 31, 2025, 2024 and 2023, the costs allocated to QVC-International totaled $44 million, $45 million and $49 million, respectively.
Performance measures
Year ended December 31, 2025
(in millions) QxH QVC-International Total
Total revenue, net $ 5,936  2,357  8,293 
Cost of goods sold (exclusive of depreciation and amortization) 3,979  1,526  5,505 
Segment gross profit 1,957  831  2,788 
Operating expense 454  183  637 
Advertising expense 330  39  369 
SG&A, excluding stock-based compensation and advertising expense 656  316  972 
Adjusted OIBDA $ 517  293  810 
Year ended December 31, 2024
(in millions) QxH QVC-International Total
Total revenue, net $ 6,598  2,399  8,997 
Cost of goods sold (exclusive of depreciation and amortization) 4,373  1,532  5,905 
Segment gross profit 2,225  867  3,092 
Operating expense 512  181  693 
Advertising expense 277  35  312 
SG&A, excluding stock-based compensation and advertising expense 671  318  989 
Adjusted OIBDA $ 765  333  1,098 
Year ended December 31, 2023
(in millions) QxH QVC-International Total
Total revenue, net $ 6,995  2,454  9,449 
Cost of goods sold (exclusive of depreciation and amortization) 4,711  1,562  6,273 
Segment gross profit 2,284  892  3,176 
Operating expense 549  190  739 
Advertising expense 251  38  289 
SG&A, excluding stock-based compensation and advertising expense 738  339  1,077 
Adjusted OIBDA $ 746  325  1,071 
Other information
Years ended December 31,
2025 2024 2023
(in millions) Depreciation Amortization Depreciation Amortization Depreciation Amortization
QxH $ 91  223  51  252  59  265 
QVC-International 27  28  26  22  31  17 
Consolidated QVC $ 118  251  77  274  90  282 
Years ended December 31,
2025 2024
(in millions) Total
assets		 Capital
expenditures		 Total
assets		 Capital
expenditures
QxH $ 6,529  96  8,128  122 
QVC-International 1,927  36  1,761  51 
Consolidated QVC $ 8,456  132  9,889  173 
Property and equipment, net of accumulated depreciation, by segment was as follows:
December 31,
(in millions) 2025 2024
QxH $ 166  259 
QVC-International 150  151 
Consolidated QVC $ 316  410 
The following table provides a reconciliation of Adjusted OIBDA to income before income taxes:
Years ended December 31,
(in millions) 2025 2024 2023
Adjusted OIBDA $ 810  1,098  1,071 
Depreciation and amortization (369) (351) (372)
Impairment of intangible assets (930) (578) — 
Impairment of goodwill (1,465) (902) (326)
Gains on sales of assets and sale leaseback transactions 5  1  113 
Restructuring, penalties and fire related (costs), net of recoveries
(53) (18) 196 
Stock-based compensation (15) (20) (37)
Operating (loss) income (2,017) (770) 645 
Interest expense (286) (267) (247)
Interest income 35  16  19 
Other (loss) income (12) 2  (1)
(Loss) income before income taxes $ (2,280) (1,019) 416 
The following table summarizes net revenues based on revenues generated by subsidiaries located within the identified geographic area:
Years ended December 31,
(in millions) 2025 2024 2023
United States $ 5,936  6,598  6,995 
Japan 825  870  945 
Germany 784  785  788 
United Kingdom 636  629  594 
Other countries 112  115  127 
Consolidated QVC $ 8,293  8,997  9,449 
The following table summarizes property and equipment, net of accumulated depreciation, based on physical location:
December 31,
(in millions) 2025 2024
United States $ 166  259 
Japan 79  81 
Other countries 71  70 
Consolidated QVC $ 316  410