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Beachbody Company, Inc.

BODI
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Business Summary

The Beachbody Company, Inc. (BODi) operates as a leading fitness and nutrition company, providing fitness, nutrition, and stress-reducing programs. The company's core business model revolves around digital subscriptions and nutritional products, often bundled together, with a recent strategic shift from a multi-level marketing (MLM) network to a single-level affiliate model, referred to as the "Pivot," which launched on November 1, 2024. As of December 31, 2025, BODi had 0.9 million digital subscriptions and 0.1 million nutritional subscriptions . The company generates revenue through direct response marketing, contact with current and past customers, e-commerce marketplaces like Amazon, and its affiliate network.

BODi's digital platform, Beachbody On Demand Interactive (BODi), offers an extensive library of over 140 complete streaming programs and over 11,000 unique streaming videos . The annual subscription price for BODi is $179 . In 2025, the DAU/MAU averaged 31.8% , and subscribers viewed 72.5 million streams . The month-over-month retention rate for digital subscribers was approximately 96.9% for the year ended December 31, 2025 . The company also offers select digital content for individual purchase, ranging primarily from $60 to $80 , and digital content from certain trainers for $10 per month .

The nutritional products segment includes Shakeology® and Beachbody Performance® supplements, designed to complement fitness offerings. Shakeology®, a superfood health mix, is clinically shown to help reduce cravings and promote healthy weight loss. Beachbody Performance supplements include pre-workout Energize, Hydrate, and post-workout Recover. In 2026, the company plans to launch a comprehensive retail initiative, starting with Shakeology® in the first half of 2026, followed by a new P90X® nutritional line and Insanity® branded supplements later in the year.

For the fiscal year ended December 31, 2025, total revenue was $251.7 million , representing a 40% decrease from the prior year . Digital revenue was $153.3 million , a 32% decrease , while nutrition and other revenue was $97.6 million , a 48% decrease . Connected fitness revenue, which ceased in the first quarter of 2025, was $0.9 million , an 87% decrease . Gross profit for the year was $183.8 million , with a gross margin of 73.0% , an increase of 440 basis points . Operating income was $5.5 million , compared to an operating loss of $66.2 million in the prior year . Net loss was $2.9 million , compared to a net loss of $71.6 million in the prior year . Diluted EPS was $(0.41) . Adjusted EBITDA was $30.8 million , and Adjusted Net Income was $3.5 million . As of December 31, 2025, cash and cash equivalents totaled $39.0 million . The current portion of the Term Loan was $1.062 million , and the long-term portion was $22.564 million . Net cash provided by operating activities was $21.750 million , and free cash flow was $17.351 million .

The decrease in digital revenue was primarily due to an $48.6 million decrease in revenue from digital streaming services, reflecting 18% fewer average digital subscriptions , an $11.8 million decrease in digital program sales , and a $9.9 million decrease in Partner fees due to the Pivot . The decline in nutrition and other revenue was mainly due to a $71.7 million decrease in nutritional products revenue from 44% fewer average nutritional subscriptions , a $14.3 million decrease in preferred customer fees , and a $5.7 million decrease in shipping revenue , partially offset by a $5.7 million increase in Amazon sales . The digital gross margin increased to 87.1% from 81.3% in the prior year, while nutrition and other gross margin decreased to 52.9% from 58.4% . Total operating expenses decreased to $178.3 million from $353.6 million in the prior year, which included a $20.0 million impairment of goodwill . Selling and marketing expenses decreased by $106.587 million to $93.558 million , primarily due to a $93.0 million decrease in Partner compensation . Enterprise technology and development expenses decreased by $34.059 million to $42.311 million , largely due to an $18.9 million decrease in depreciation expense and a $15.2 million decrease in personnel-related expenses . General and administrative expenses decreased by $9.283 million to $39.907 million .

A significant operational development was the "Pivot," announced on September 30, 2024, which transitioned the company from an MLM network model to a single-level affiliate model. This restructuring led to a reduction of approximately 33% of the company's workforce at the time of the announcement and centralized the business around BODi.com. The company ceased the sale of connected fitness equipment inventory in the first quarter of 2025. On February 29, 2024, the company sold its Van Nuys production facility for $6.2 million and simultaneously entered into a five-year lease for the facility.

Business Outlook

The company's outlook includes a comprehensive retail initiative launching in 2026, which will leverage some of its best-known brands. Specifically, Shakeology® is planned to be sold via the retail market for the first time in the first half of 2026. This will be followed later in 2026 by the launch of the company's new P90X® nutritional line and Insanity® branded supplements. This retail expansion represents a new channel for distribution beyond the existing direct-to-consumer and affiliate models.

Operationally, the company has undertaken significant restructuring with the "Pivot," transitioning from a multi-level marketing (MLM) network to a single-level affiliate model, which launched on November 1, 2024. This shift aimed to streamline operations, reduce costs, and broaden distribution channels. The Pivot resulted in a workforce reduction of approximately 33% in the fourth quarter of 2024 and eliminated Partner and preferred customer fees after November 1, 2024. The company incurred $2.5 million in post-Pivot restructuring expenses in 2025, primarily related to additional headcount reductions of approximately 70 employees in the third quarter of 2025.

Regarding capital allocation, the company's ABL Facility, amended on January 7, 2026, eliminated the capital expenditures covenant. The company believes that existing cash and cash equivalents and ongoing cost control initiatives will provide sufficient liquidity to meet anticipated cash needs, including debt service requirements, for at least one year following the issuance date of the financial statements, as well as for the longer term. The company may explore additional debt or equity financing to supplement working capital and strengthen its financial position, but the form or terms of such financing are not currently known.

The company's ABL Facility, which matures on May 13, 2028, bears interest based on the one-month Secured Overnight Financing Rate ("SOFR") plus 9.00% at its inception, with a potential reduction to SOFR plus 7.75% after December 31, 2026, if the company's billings fixed charge coverage ratio (BFCCR) is greater than 1.1x . The SOFR is subject to a 3.5% floor . The ABL Facility has no required principal payments until July 1, 2026 , after which principal repayments are approximately $2.1 million per year , split into equal monthly payments of $177,083 . The remaining unpaid principal balance will be due on May 13, 2028. The minimum liquidity financial covenant has been increased from $12 million to $15 million . The minimum Monthly Digital Subscriptions Target covenant level has been decreased from 850,000 to 700,000 , which is tested if a Covenant Testing Period is triggered.

Risk Factors

The company faces several material risks, including the inability to anticipate and satisfy evolving consumer preferences in the fitness and nutrition industry, which is highly susceptible to rapid shifts in demand and the introduction of new competitive products or weight management plans, such as GLP-1 weight loss drugs. The success of the company's strategic initiatives, including the "Pivot" from an MLM to an affiliate model, is uncertain and could lead to disruptions, revenue decline, or increased subscriber churn. The company's reliance on social media for marketing exposes it to widespread negative publicity and changes in platform algorithms or policies, which could harm its brand and ability to engage customers. Furthermore, the business relies heavily on a few key products, with the digital platform accounting for approximately 61% of revenue and nutrition products for approximately 39% of revenue , making it vulnerable to decreased consumer demand for these specific offerings. Supply chain disruptions, forecasting errors, and the failure of contract manufacturers to comply with product specifications could lead to product recalls, reputational damage, and significant liability. The company's substantial indebtedness, including the ABL Facility, imposes restrictive covenants, such as maintaining minimum liquidity of $15 million and, if a Covenant Testing Period is triggered, minimum monthly digital subscriptions of 700,000 and a minimum billings fixed charge coverage ratio of at least 1.1x . Failure to comply with these covenants could result in accelerated debt repayment. The company's co-founder and CEO, Carl Daikeler, controls over 80% of the voting power through "super" voting stock, limiting other stockholders' influence on corporate matters. Cybersecurity risks, including data breaches and system failures, pose a threat to customer data confidentiality and business operations. The company is also subject to extensive and evolving government regulations, including those related to data privacy (GDPR, CCPA, CPRA), food and dietary supplements (FDA), and automatically renewing subscriptions, with non-compliance potentially leading to significant penalties and litigation.

Management Priorities

Management's message to shareholders emphasizes a commitment to providing holistic health and fitness content, subscription-based solutions, and digital program sales, leveraging its history of content creation, nutrition innovation, and affiliate network to penetrate the fitness and nutrition markets. The company has undertaken a significant restructuring, the "Pivot," to streamline operations and broaden distribution channels by transitioning from a multi-level marketing model to a single-level affiliate model, which launched on November 1, 2024. This strategic shift is intended to position the company for future profitable growth. Management has highlighted the achievement of its first full year operating income since going public in 2021, with operating income of $5.5 million , and its first full year adjusted net income of $3.5 million . The company believes that existing cash and cash equivalents, coupled with continued cost control initiatives, will provide sufficient liquidity to meet anticipated cash needs for at least one year and for the longer term.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business
  2. [2] Item 1, Business
  3. [3] Item 1, Business
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  5. [5] Item 7, MD&A — Key Operational and Business Metrics
  6. [6] Item 7, MD&A — Key Operational and Business Metrics
  7. [7] Item 1, Business
  8. [8] Item 1, Business
  9. [9] Item 1, Business
  10. [10] Item 7, MD&A — Results of Operations
  11. [11] Item 7, MD&A — Results of Operations
  12. [12] Item 7, MD&A — Results of Operations
  13. [13] Item 7, MD&A — Results of Operations
  14. [14] Item 7, MD&A — Results of Operations
  15. [15] Item 7, MD&A — Results of Operations
  16. [16] Item 7, MD&A — Results of Operations
  17. [17] Item 7, MD&A — Results of Operations
  18. [18] Item 7, MD&A — Results of Operations
  19. [19] Item 7, MD&A — Results of Operations
  20. [20] Item 7, MD&A — Overview
  21. [21] Item 7, MD&A — Overview
  22. [22] Item 7, MD&A — Overview
  23. [23] Item 7, MD&A — Overview
  24. [24] Item 7, MD&A — Overview
  25. [25] Item 8, Consolidated Statements of Operations
  26. [26] Item 7, MD&A — Overview
  27. [27] Item 7, MD&A — Overview
  28. [28] Item 7, MD&A — Liquidity and Capital Resources
  29. [29] Item 8, Consolidated Balance Sheets
  30. [30] Item 8, Consolidated Balance Sheets
  31. [31] Item 7, MD&A — Cash Flows
  32. [32] Item 7, MD&A — Free Cash Flow
  33. [33] Item 7, MD&A — Revenue
  34. [34] Item 7, MD&A — Revenue
  35. [35] Item 7, MD&A — Revenue
  36. [36] Item 7, MD&A — Revenue
  37. [37] Item 7, MD&A — Revenue
  38. [38] Item 7, MD&A — Revenue
  39. [39] Item 7, MD&A — Revenue
  40. [40] Item 7, MD&A — Gross profit
  41. [41] Item 7, MD&A — Gross profit
  42. [42] Item 7, MD&A — Gross profit
  43. [43] Item 7, MD&A — Gross profit
  44. [44] Item 7, MD&A — Overview
  45. [45] Item 7, MD&A — Overview
  46. [46] Item 7, MD&A — Overview
  47. [47] Item 7, MD&A — Selling and Marketing
  48. [48] Item 7, MD&A — Selling and Marketing
  49. [49] Item 7, MD&A — Selling and Marketing
  50. [50] Item 7, MD&A — Enterprise Technology and Development
  51. [51] Item 7, MD&A — Enterprise Technology and Development
  52. [52] Item 7, MD&A — Enterprise Technology and Development
  53. [53] Item 7, MD&A — Enterprise Technology and Development
  54. [54] Item 7, MD&A — General and Administrative
  55. [55] Item 7, MD&A — General and Administrative
  56. [56] Item 7, MD&A — Overview
  57. [57] Item 6, Property and Equipment, Net
  58. [58] Item 7, MD&A — Overview
  59. [59] Item 7, MD&A — Restructuring
  60. [60] Item 14, Restructuring
  61. [61] Item 7, MD&A — ABL Facility Amendment
  62. [62] Item 7, MD&A — ABL Facility Amendment
  63. [63] Item 7, MD&A — ABL Facility Amendment
  64. [64] Item 10, Debt
  65. [65] Item 10, Debt
  66. [66] Item 10, Debt
  67. [67] Item 10, Debt
  68. [68] Item 7, MD&A — ABL Facility Amendment
  69. [69] Item 7, MD&A — ABL Facility Amendment
  70. [70] Item 1A, Risk Factors
  71. [71] Item 1A, Risk Factors
  72. [72] Item 7, MD&A — ABL Facility Amendment
  73. [73] Item 7, MD&A — ABL Facility Amendment
  74. [74] Item 7, MD&A — ABL Facility Amendment
  75. [75] Item 1A, Risk Factors
  76. [76] Item 7, MD&A — Overview
  77. [77] Item 7, MD&A — Overview

Analysis on 5/20/2026