Beachbody (BODi) Reports First Quarter Financial Results

Beachbody (BODi) Reports First Quarter Financial Results May 12, 2026 Net Income and Operating Income Reported for Third Consecutive Quarter Revenues, Net Income and Adjusted EBITDA Exceed High End of Guidance Tenth Consecutive Quarter of Positive Adjusted EBITDA The Beachbody Company, Inc. (NASDAQ: BODi) (“BODi” or the “Company”), the proactive wellness company delivering nutrition, supplements, and proven fitness programs that help people take control of their health inside and out, today announced financial results for its first quarter ended March 31, 2026. “Q1 marks our third consecutive quarter of profitability on both net income and operating income, validating the strength of our transformed business model,” said Carl Daikeler, co-founder and BODi's Chief Executive Officer. “We're now deploying this efficient platform to capitalize on a major market opportunity in nutrition, a massive global category that's more than 12 times the size of digital fitness. With attractively priced supplements under iconic brands like P90X and Shakeology, we can acquire nutrition customers and seamlessly migrate them to our digital fitness platform, delivering the Total Solution that has always driven our best customer results.” “Our strong balance sheet and substantially improved financial position provide the flexibility to fund our retail expansion and innovation pipeline,” said Mark Goldston, BODi's Executive Chairman. “With ten consecutive quarters of positive Adjusted EBITDA and a dramatically lowered breakeven point that creates massive operating leverage, we've built a resilient financial foundation that positions us to capitalize on significant growth opportunities in both nutrition and digital fitness.” First Quarter 2026 Results Total revenue was $54.3 million compared to $72.4 million in the prior year period.Digital revenue was $33.6 million compared to $42.9 million in the prior year period and digital subscriptions totaled 0.81 million in the first quarter.Nutrition and Other revenue was $20.7 million compared to $28.7 million in the prior year period and nutritional subscriptions totaled 0.06 million in the first quarter.Connected Fitness revenue was $0.0 million compared to $0.8 million in the prior year period as we ceased the sale of bike inventory in the first quarter of 2025.Gross margin was 71.8% compared to 71.2% in the prior year period.Total operating expenses were $35.9 million compared to $55.2 million in the prior year period.Operating income improved by $6.8 million to $3.1 million, the Company's third consecutive quarter of operating income, compared to an operating loss of $3.7 million in the prior year period.Net income was $2.3 million, the Company's third consecutive quarter of net income, compared to a net loss of $5.7 million in the prior year period.Adjusted EBITDA 1 was $8.0 million compared to $3.7 million in the prior year period.Adjusted net income 1 was $2.5 million compared to a loss of $5.1 million in the prior year period.Cash used in operating activities for the three months ended March 31, 2026 was $1.0 million compared to cash provided by operating activities of $2.3 million in the prior year period, and cash used in investing activities was $0.7 million compared to cash used in investing activities of $0.7 million in the prior year period. Free cash flow 1 was $(1.7) million compared to $1.6 million in the prior year period. 1Definitions of (1) Adjusted EBITDA, (2) adjusted net income (loss), (3) free cash flow and (4) net cash position, and reconciliations to the comparable GAAP metrics, are at the end of this release. Key Operational and Business Metrics For the Three Months Ended March 31, 2026 2025 Change v 2025 Digital Subscriptions (in millions) 0.81 1.02 (20.6%) Nutritional Subscriptions (in millions) 0.06 0.08 (25.0%) Total Subscriptions (in millions) 0.87 1.10 (20.9%) Average Digital Retention 95.9% 97.0% (110bps) Total Streams (in millions) 17.8 20.7 (14.0%) DAU/MAU 33.1% 32.5% 60bps Connected Fitness Units Delivered (in thousands) — 1.5 (100.0%) Digital $33.6 $42.9 (21.8%) Nutrition & Other $20.7 $28.7 (27.7%) Connected Fitness $— $0.8 (100.0%) Revenue (in millions) $54.3 $72.4 (25.0%) Net Income (loss) (in millions) $2.3 ($5.7) NM Adjusted Net Income (loss) (in millions) $2.5 ($5.1) NM Adjusted EBITDA (in millions) $8.0 $3.7 NM N/M: Not meaningful Outlook for The Second Quarter of 2026 Outlook For Quarter Ending June 30, 2026 Low High (in millions) Revenue $ 46 $ 51 Net Income (Loss)(1) $ (3 ) $ — Adjusted Net Income (Loss)(1) $ (3 ) $ — Adjustments: Depreciation $ 2 $ 2 Amortization of Content Assets $ 2 $ 2 Interest Expense $ 1 $ 1 Equity-Based Compensation $ 1 $ 1 Total Adjustments $ 6 $ 6 Adjusted EBITDA $ 3 $ 6 (1)A reconciliation between the outlook of net income (loss) and the outlook for adjusted net income (loss) has not been provided given the inability to forecast certain reconciling items without unreasonable efforts. In particular the outlook for net income (loss) and adjusted net income (loss) does not include the change in fair value of warrant liabilities as that is significantly impacted by the change in the Company's stock price which cannot be estimated and other potential reconciling items such as impairment of goodwill that are not normal, recurring operating activities cannot be reasonably forecasted. Conference Call and Webcast Information BODi will host a conference call at 5:00 pm ET on Tuesday, May 12, 2026, to discuss its financial results and matters other than past results, such as guidance. To participate in the live call, please dial (833) 461-5787 (U.S. & Canada) and provide the conference identification number: 684011158. The conference call will also be available to interested parties through a live webcast at https://investors.thebeachbodycompany.com/. After the conference call, a webcast replay will remain available on the investor relations section of the Company’s website for one year. About BODi and The Beachbody Company, Inc. BODi is a proactive wellness company delivering nutrition, supplements, and proven fitness programs that help people take control of their health inside and out. With nearly three decades of experience, BODi, formerly Beachbody, has evolved from a leader in home fitness into a comprehensive health and fitness ecosystem designed to help people achieve their goals and lead healthier, more fulfilling lives. Anchored by science-backed nutrition solutions like Shakeology and supported by its portfolio of proven fitness and habit-building programs, including P90X and INSANITY, BODi is creating a more accessible and effective path to long-term health. Since its inception, BODi has supported more than 30 million customers in achieving lasting results. The company continues to innovate across nutrition and digital fitness to deliver simple, proven solutions for modern lifestyles. For more information, please visit TheBeachBodyCompany.com. Safe Harbor Statement This press release of The Beachbody Company, Inc. (“we,” “us,” “our,” and similar terms) contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are statements other than statements of historical facts and statements in future tense. These statements include but are not limited to, statements regarding our future performance and our market opportunity, including expected financial results for the second quarter and full year, our business strategy, our plans, and our objectives and future operations. Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date hereof, and are subject to risks and uncertainties. Accordingly, actual results could differ materially due to a variety of factors, including: our ability to effectively compete in the fitness and nutrition industries; our ability to successfully acquire and integrate new operations; our reliance on a few key products; market conditions and global and economic factors beyond our control; intense competition and competitive pressures from other companies worldwide in the industries in which we operate; and litigation and the ability to adequately protect our intellectual property rights. You can identify these statements by the use of terminology such as "believe", “plans”, "expect", "will", "should," "could", "estimate", "anticipate" or similar forward-looking terms. You should not rely on these forward-looking statements as they involve risks and uncertainties that may cause actual results to vary materially from the forward-looking statements. For more information regarding the risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, as well as risks relating to our business in general, we refer you to the "Risk Factors" section of our Securities and Exchange Commission ("SEC") filings, including those risks and uncertainties included in the Form 10-K filed with the SEC on March 10, 2026 and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, which are available on the Investor Relations page of our website at https://investors.thebeachbodycompany.com and on the SEC's website at www.sec.gov. All forward-looking statements contained herein are based on information available to us as of the date hereof and you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. Undue reliance should not be placed on forward-looking statements. The Beachbody Company, Inc. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) March 31, December 31, 2026 2025 (unaudited) Assets Current assets: Cash and cash equivalents (restricted cash of $0.1 million at March 31, 2026 and December 31, 2025, respectively) $ 36,591 $ 39,017 Restricted short-term investments 4,250 4,250 Inventory 10,130 9,410 Prepaid expenses 6,952 6,823 Other current assets 3,652 4,338 Total current assets 61,575 63,838 Property and equipment, net 7,067 8,523 Content assets, net 5,929 6,292 Goodwill 65,166 65,166 Right-of-use assets, net 1,426 1,625 Other assets 1,967 1,591 Total assets $ 143,130 $ 147,035 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 6,307 $ 5,304 Accrued expenses 14,237 18,408 Deferred revenue 55,167 56,866 Current portion of lease liabilities 942 1,036 Current portion of Term Loan 1,594 1,062 Other current liabilities 2,593 3,920 Total current liabilities 80,840 86,596 Term Loan 21,960 22,564 Long-term lease liabilities, net 602 738 Other liabilities 5,377 5,817 Total liabilities 108,779 115,715 Stockholders’ equity: Preferred stock, $0.0001 par value; 100,000,000 shares authorized, none issued and outstanding at March 31, 2026 and December 31, 2025 — — Common stock, $0.0001 par value, 1,900,000,000 shares authorized (1,600,000,000 Class A, 200,000,000 Class X and 100,000,000 Class C); Class A: 4,506,164 and 4,450,721 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively; 1 1 Class X: 2,729,003 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively; 1 1 Class C: no shares issued and outstanding at March 31, 2026 and December 31, 2025 — — Additional paid-in capital 678,503 677,743 Accumulated deficit (644,092 ) (646,378 ) Accumulated other comprehensive loss (62 ) (47 ) Total stockholders’ equity 34,351 31,320 Total liabilities and stockholders’ equity $ 143,130 $ 147,035 The Beachbody Company, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data) Three months ended March 31, 2026 2025 Revenue: Digital $ 33,562 $ 42,911 Nutrition and other 20,722 28,653 Connected fitness — 799 Total revenue 54,284 72,363 Cost of revenue: Digital 4,230 6,211 Nutrition and other 11,055 13,451 Connected fitness — 1,152 Total cost of revenue 15,285 20,814 Gross profit 38,999 51,549 Operating expenses: Selling and marketing 18,759 30,970 Enterprise technology and development 9,407 12,596 General and administrative 7,719 11,657 Total operating expenses 35,885 55,223 Operating income (loss) 3,114 (3,674 ) Other income (expense): Change in fair value of warrant liabilities (191 ) (689 ) Interest expense (1,014 ) (1,565 ) Other income, net 409 225 Income (loss) before income taxes 2,318 (5,703 ) Income tax provision (32 ) (45 ) Net income (loss) $ 2,286 $ (5,748 ) Net income (loss) per common share, basic (1) $ 0.32 $ (0.84 ) Net income (loss) per common share, diluted (1) $ 0.30 $ (0.84 ) Weighted-average common shares outstanding, basic 7,114 6,883 Weighted-average common shares outstanding, diluted 7,569 6,883 (1) In computing basic and diluted net income per common share, net income is reduced by the amount of undistributed net income allocated to participating securities other than common shares, as required under the two-class method. The Beachbody Company, Inc. Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) Three months ended March 31, 2026 2025 Cash flows from operating activities: Net income (loss) $ 2,286 $ (5,748 ) Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: Depreciation and amortization expense 2,228 2,888 Amortization of content assets 1,369 2,729 Provision for inventory 595 146 Change in fair value of warrant liabilities 191 689 Equity-based compensation 1,118 1,726 Amortization of debt issuance costs 178 728 Paid-in-kind interest expense — 154 Change in lease assets 199 259 Changes in operating assets and liabilities: Inventory (1,315 ) 2,677 Content assets (1,006 ) (688 ) Prepaid expenses (129 ) 1,867 Other assets 294 10,985 Accounts payable 944 (1,310 ) Accrued expenses (4,188 ) (5,597 ) Deferred revenue (2,247 ) (7,369 ) Other liabilities (1,556 ) (1,794 ) Net cash (used in) provided by operating activities (1,039 ) 2,342 Cash flows from investing activities: Purchase of property and equipment (684 ) (694 ) Net cash used in investing activities (684 ) (694 ) Cash flows from financing activities: Proceeds from exercise of stock options 14 47 Debt repayments — (3,625 ) Tax withholding payments for vesting of restricted stock (372 ) (151 ) Payment of debt issuance costs (250 ) — Net cash used in financing activities (608 ) (3,729 ) Effect of exchange rates on cash, cash equivalents, and restricted cash (95 ) 20 Net decrease in cash, cash equivalents, and restricted cash (2,426 ) (2,061 ) Cash, cash equivalents and restricted cash, beginning of period 39,017 20,187 Cash, cash equivalents, and restricted cash, end of period $ 36,591 $ 18,126 Supplemental disclosure of cash flow information: Cash paid during the period for interest $ 830 $ 645 Cash received during the year for Texas GMT income taxes (21 ) (27 ) Cash (received) paid during the year for UK income taxes (4 ) 9 Cash paid during the year for Canada income taxes 6 11 Cash paid during the year for income taxes from other jurisdictions 11 14 Supplemental disclosure of noncash investing activities: Property and equipment acquired but not yet paid for $ 367 $ 331 The Beachbody Company, Inc. Non GAAP Information Adjusted EBITDA We use Adjusted EBITDA, which is a non-GAAP performance measure, to supplement our results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We believe Adjusted EBITDA is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. We define and calculate Adjusted EBITDA as net income (loss) adjusted for depreciation and amortization, amortization of capitalized cloud computing implementation costs, amortization of content assets, interest expense, income tax provision, equity-based compensation, restructuring costs, and other items that are not normal, recurring, operating expenses necessary to operate the Company’s business as described in the reconciliation below. We include this non-GAAP financial measure because it is used by management to evaluate BODi’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because they are non-cash (for example, in the case of depreciation and amortization and equity-based compensation) or are not related to our underlying business performance (for example, in the case of restructuring costs, interest income and expense). The table below presents our Adjusted EBITDA reconciled to our net income (loss), the closest GAAP measure, for the periods indicated: Three months ended March 31, (in thousands) 2026 2025 Net income (loss) $ 2,286 $ (5,748 ) Adjusted for: Depreciation and amortization 2,228 2,888 Amortization of capitalized cloud computing implementation costs 37 37 Amortization of content assets 1,369 2,729 Interest expense 1,014 1,565 Income tax provision 32 45 Equity-based compensation (1) 1,118 1,726 Change in fair value of warrant liabilities 191 689 Non-operating (2) (316 ) (218 ) Adjusted EBITDA $ 7,959 $ 3,713 1 Includes benefits due to the modification of stock awards of approximately zero and $0.9 million for the three months ended March 31, 2026 and 2025, respectively. 2 Primarily includes interest income. Adjusted Net Income (Loss) We use adjusted net income (loss), which is a non-GAAP performance measure, to supplement our results presented in accordance with GAAP. We believe adjusted net income (loss) is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted net income (loss) is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. We define and calculate adjusted net income (loss) as net income (loss) adjusted for impairment of goodwill, restructuring costs, the change in fair value of warrant liabilities, and other items that are not normal, recurring operating activities necessary to operate the Company's business, and the tax impact of the adjustments as described in the reconciliation below. We include this non-GAAP financial measure because it is used by management to evaluate BODi’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted net income (loss) excludes certain expenses that are required in accordance with GAAP because they are non-cash (for example, in the case of impairment of goodwill and the change in fair value of warrant liabilities) or are not related to our underlying business performance (for example, in the case of restructuring costs). The table below presents our adjusted net income (loss) reconciled to our net income (loss), the closest GAAP measure, for the periods indicated: Three Months Ended March 31, (in thousands) 2026 2025 Net income (loss) $ 2,286 $ (5,748 ) Adjusted for: Change in fair value of warrant liabilities 191 689 Tax impact of adjustment (1) (3 ) (5 ) Adjusted net income (loss) $ 2,474 $ (5,064 ) (1) Tax impact calculated using the annual effective tax rate. Net Cash Position We use net cash position, which is a non-GAAP liquidity measure, to supplement our liquidity as presented in accordance with GAAP. We believe that net cash position is useful in viewing our liquidity, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing liquidity. Net cash position is not intended to be a substitute for GAAP financial measures and, as calculated may not be comparable to other similarly titled measures of liquidity for other companies in other industries or within the same industry. The table below presents our net cash position, which is our cash and cash equivalents less the debt on our balance sheet for the periods indicated: March 31, December 31, (in thousands) 2026 2025 Cash and cash equivalents $ 36,591 $ 39,017 Less: Current portion of Term Loan 1,594 1,062 Term Loan 21,960 22,564 Net cash position $ 13,037 $ 15,391 Free Cash Flow We use free cash flow, which is a non-GAAP liquidity measure, to supplement our cash provided by (used in) operating activities as presented in accordance with GAAP. We believe that free cash flow is useful in evaluating our liquidity, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing liquidity. Free cash flow is not intended to be a substitute for GAAP financial measures and, as calculated may not be comparable to other similarly titled measures of liquidity for other companies in other industries or within the same industry. The table below presents our free cash flow, which is our net cash provided by operating activities less cash used for the purchase of property and equipment for the periods indicated: Three months ended March 31, (in thousands) 2026 2025 Net cash (used in) provided by operating activities $ (1,039 ) $ 2,342 Less: Cash used in the purchase of property and equipment 684 694 Free cash flow $ (1,723 ) $ 1,648 Source: The Beachbody Company, Inc.