Beachbody outlines nutrition retail rollout and projects Q3 2026 for first clean year-over-year revenue comparison

Earnings Call Insights: The Beachbody Company, Inc. (BODI) Q4 2025

MANAGEMENT VIEW

* Mark Goldston, Executive Chairman, highlighted that 2025 was a “transitional year for BODi” following the shift from the multilevel marketing (MLM) business model to a five-pronged omnichannel model. He stated, “As a result of the dramatic shift in our business model, year-over-year comparisons are not really relevant from a revenue perspective, because we're no longer utilizing the tens of thousands of former MLM sellers.”
* Goldston detailed, “We achieved positive net income in Q3 2025. And today, we're reporting that we achieved positive net income in Q4 of 2025, and we've achieved positive adjusted net income for the full year 2025. We also achieved positive operating income in both Q4 and for the full year of 2025.”
* He emphasized the upcoming retail entry: “We're going to enter the retail market of grocery, drug stores, mass merchants and club stores for the first time ever in Q2 of this year with our new P90X line of nutritional supplements, a new 7-serve $34.99 form factor of our Shakeology brand... Shakeology... has never been sold at retail.”
* Carl Daikeler, Co-Founder and CEO, indicated, “Our supplement strategy represents a significant business model shift... We'll soon offer our highly effective supplements under the P90X and Shakeology brands at $15 to $35 price points with healthy margins.”
* Brad Ramberg, Interim Chief Financial Officer, reported, “For the quarter, we exceeded our guidance for net income and adjusted EBITDA while producing revenues that were above the midpoint of guidance.”

OUTLOOK

* Ramberg guided, “We expect first quarter revenues to be in the range of $49 million to $54 million, net income to be in the range of negative $2 million to positive $1 million, and adjusted EBITDA to be in the range of $4 million to $7 million.”
* Management highlighted a notable shift: “We currently expect a notable shift by the end of '26 to a much larger percentage of our business being in Nutrition and Other and the attendant margins that come along with it.”
* The company reiterated that Q3 2026 will be the first time a “clean” year-over-year revenue comparison reflecting the new business model will be possible.

FINANCIAL RESULTS

* Total revenues for Q4 were $55.5 million, down 7.3% sequentially and down 35.7% year-over-year, as the company emphasized the ongoing impact of the business model transition.
* Digital revenue decreased 5.8% sequentially to $34.3 million; nutrition and other revenue decreased 9.6% from the prior quarter to $21.2 million.
* Digital subscriptions fell 3.3% sequentially to approximately 870,000.
* Gross margin for the quarter was 74.5%. Operating expenses declined 16.4% sequentially to $33.2 million.
* Operating income was $8.2 million in Q4, with net income of $5.2 million. Adjusted EBITDA was $12.9 million for the quarter.
* Cash balance as of December 31, 2025, was $39 million against $25 million in debt.

Q&A

* Alec Legg, Canaccord Genuity: Asked about management’s priorities post-turnaround and whether there will be a shift from profitability focus to growth. Goldston responded, “We've worked so hard to re-architect the company to be focused on profitability that that's just not something we're probably ever going to take out of our primary focus... you'll see an increased focus, as Carl alluded to, on Nutrition.”
* Legg followed up on the early read from the P90X launch. Daikeler responded that “the initial indications are good, but it's also early days, and this next wave of success stories are what sort of propel the momentum of a new program like this.”
* Eric Des Lauriers, Craig-Hallum: Inquired about the 10 Minute BODi consumer response. Daikeler explained, “8% of the viewership for the entire platform is coming from 10-minute or less microdose fitness workouts... I'm quite pleased with what the conversion is of people who come in with the intent to buy the $10 a month subscription who actually then level up to the full subscription.”
* Michael Kupinski, NOBLE Capital: Asked about the scope of the Shakeology rollout in Sprouts and timing for broader revenue growth. Goldston clarified, “It will be a meaningful component, but it will be a component of that.” He added, “He did not say and did not make a projection that we will grow in that quarter because that would be giving guidance beyond the quarter in front of us, which, of course, we don't do.”
* George Kelly, ROTH Capital: Queried about accounting for bonus accrual and pricing for Shakeology. Ramberg confirmed a $2.2 million reversal and an additional $2.2 million not accrued, affirming a $4.4 million benefit to guidance. Goldston explained the rationale for premium pricing on Shakeology and the use of promotional strategies.

SENTIMENT ANALYSIS

* Analysts expressed a positive to slightly positive tone, repeatedly congratulating management on financial milestones and the turnaround, while probing for specifics on growth levers and new product performance.
* Management maintained a confident tone in prepared remarks, highlighting successes and a robust innovation pipeline. In Q&A, management was measured, emphasizing discipline but also showing enthusiasm for upcoming launches; Goldston stated, “financial discipline will never go away.”
* Compared to the previous quarter, both analysts and management demonstrated increased confidence, with less focus on restructuring and more on growth initiatives and market expansion.

QUARTER-OVER-QUARTER COMPARISON

* The current quarter featured a shift from restructuring and cost reduction to an emphasis on innovation, retail expansion, and building the nutrition business.
* Guidance language now centers on the Nutrition segment’s future contribution and the importance of the Q3 2026 comparison.
* Management’s tone moved from cautious optimism about financial stabilization to greater confidence in sustainable profitability and growth.
* Analysts shifted their focus from operational restructuring to product rollout timelines, market penetration, and early customer response.

RISKS AND CONCERNS

* Management identified the transition period for new retail products as a risk, noting the need to “develop traction in these new lines of business.”
* Goldston and Daikeler acknowledged the challenge of building awareness and adoption for microdose fitness among non-exercisers, and the longer gestation period for such products.
* The impact of GLP-1 weight loss pharmaceuticals was discussed, with Daikeler viewing it as “an opportunity for us,” but recognizing it changes the landscape for nutrition and fitness offerings.

FINAL TAKEAWAY

Management emphasized that 2025 marked a successful financial turnaround, a year ahead of schedule, with positive operating income, net income, and adjusted EBITDA. The company’s strategic focus now shifts to launching new nutritional products in retail and direct channels, leveraging strong legacy brands at lower price points. The innovation pipeline, particularly the retail rollout of Shakeology and P90X supplements, is positioned to transform the revenue mix, with Q3 2026 marked as the first period for a clean year-over-year comparison under the new business model. Management remains committed to profitability while investing in product innovation and multi-channel growth, supported by a strengthened balance sheet and operational discipline.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/bodi/earnings/transcripts]

MORE ON THE BEACHBODY COMPANY

* The Beachbody Company, Inc. (BODI) Q4 2025 Earnings Call Transcript [https://seekingalpha.com/article/4880790-the-beachbody-company-inc-bodi-q4-2025-earnings-call-transcript]
* The Beachbody Company Non-GAAP EPS of $7.20, revenue of $55.5M beats by $1.5M [https://seekingalpha.com/news/4562895-the-beachbody-company-non-gaap-eps-of-7_20-revenue-of-55_5m-beats-by-1_5m]
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* Historical earnings data for The Beachbody Company [https://seekingalpha.com/symbol/BODI/earnings]
* Financial information for The Beachbody Company [https://seekingalpha.com/symbol/BODI/income-statement]