The Beachbody Company, Inc. Class A Common Stock Canaccord Genuity's 46th Annual Growth Conference

Thank you. Thanks. Let's put up the forward-looking statement.

Well, welcome everybody. I'll be taking you through essentially the road that we've taken to the turnaround and where we're going to go from here. Just to start out with on the mission of this company, we say that our mission is we're helping people achieve their goals to lead healthier and more fulfilling lives. We've got them covered from both an exercise, nutrition, and lifestyle basis. The origins of this company, first of all, it's 28 years old. We've had 230 plus programs, 11,500 individual videos. We've got 10 nutrition brands. We've had massive qualified views since inception. It's over 1 billion. 32 million people have used this product, and we've generated over $12.5 billion in sales. The market, as you know, is huge, a $6.5 trillion market.

The relevant components of that, which is nutrition and the physical part of the market, physical activity, is about $2.2 trillion, so plenty of opportunity for us. We had 22 years of positive EBITDA, reached a peak of $1.2 billion in revenue and $135 million in adjusted EBITDA back in 2015. It was originally an infomercial-based company, and it was expanded later into a multi-level marketing company in 2008. At one point, we had hundreds of thousands of MLM sellers. Company went public as a de-SPAC back in 2021, and market cap was $3.2 billion. Had a bunch of headwinds happen post-COVID, and we'll go through a bunch of that. I joined three years ago, almost to the month. My background is I've been running public companies for close to 40 years. I came in as executive chairman. My specialty is doing turnarounds of consumer companies.

I wrote a book called "The Turnaround Prescription," turned around Fabergé, Reebok, EllerGear, was the original chairman and CEO of NetZero, which became United Online, which was one of the most profitable Internet companies of all time. Was the original CEO and built out Einstein Bros. Bagels, et cetera. I came here because the assets of this company, in my view, were massively more valuable than the market cap of the company. We recently, about a year ago, did a Hilco valuation on our fitness library. Came in at over a half a billion dollars of value. The brand names in this company are legendary. The best-selling fitness program of all time, P90X, with a 62% aided brand awareness level, Insanity right behind that, et cetera. We are the Netflix of fitness, essentially. Then we have a nutrition business with the world's first superfood shake, which is Shakeology.

Then we have Energize, and we just recently launched a line of P90X supplements, taking our legendary fitness brand name and putting it on supplements. The goal, basically, of this turnaround was to turn us into an omni-channel business and get out of the MLM structure with its burdensome comp structure, which is what we've done. The MLM was disbanded in December of 2024, and we basically moved back to our roots as a DTC company, and now we're also expanding with brick-and-mortar retail distribution, which we'll talk more about. We've completely re-architected this company. I've been doing turnarounds, as I said, for close to four decades, and I've never seen results like we've achieved in the past three years. The headcount's been reduced from over 1,000 people to under 300.

Our adjusted EBITDA breakeven level was $900 million to make a dime, and it is now down to $160 million breakeven, which is really quite remarkable. We reduced our selling and marketing expenses by 22 points. In so doing, we did not spend less money on conventional media. We just took out all the ancillary costs that were in this business that did not need to be there. We previously, when I joined, had $50 million of debt. We have refinanced that since down to $25 million with Tiger Finance, lowered our interest rate by 47% in so doing that. The company's turnaround from a financial standpoint is well in excess of a year ahead of schedule. We have now had 11 consecutive quarters of positive adjusted EBITDA. I have been here 12 quarters.

The first quarter, I was kind of figuring out where everything was. From the very next quarter on, we have had 11 consecutive quarters generating $76.5 million of adjusted EBITDA. We reported full-year operating income in 2025. That is the first time since the IPO in 2021, and we are operating income positive first half of 2026. We were free cash flow positive for the year in 2025. We also had positive net income in each of the four quarters ending in June 30th of 2026, and also positive adjusted net income for the year 2025. That is the first time that has happened since the IPO of 2021. Since we have done this amazing financial turnaround a year ahead of schedule, we have taken our innovation pipeline that we have created, which was originally going to come out in 2027, and now it is coming out throughout 2026, and we will talk about that.

We have a lot of key programs, one of which is the 10-Minute Body that was launched in December. This is a program designed to go after people who do not exercise, which is 185 million sedentary, overweight Americans. These are programs that are designed in 10-minute intervals to just get you up and get you moving. We are really excited about the prospects for that. We launched the new P90X program in early part of 2026. That is the first new P90X program in over a decade. It is called P90X Generation Next. That is really exciting. We did that sort of coincident to the launch of a brand-new line of supplements under the P90X brand name. Shakeology, which was the original superfood protein brand, has been around for 15 years.

It has generated $3.7 billion of cumulative sales, over 1 billion servings. It has never been sold at retail, and until a year ago, was not even really sold on our website. It was sold through the direct selling force. In May of this year, we started selling in Sprouts stores. We originally were in about 88 Sprouts stores. We have recently been expanded, because we are doing very well there, up to 131 Sprouts stores. So we are almost 50% more doors in just a couple of months. Starting two days ago, we are now in 481 The Vitamin Shoppe stores all around the country. We have created a new form factor. What you see on this page is a lot of what we created in the innovation pipeline over the past two years. At the top, you see Shakeology. That is the retail package. It is a seven-serve. It says right across the top, "Over one billion servings sold." Then you see the P90X supplement line in the center, and then there's a P90X energy drink on the lower left, and an Insanity energy drink on the lower right, and those are going into a Southern California test market in the second half of 2026.

Insanity is called Liquid Shock. It's got 300 milligrams of caffeine, so it's kind of for the your hair's on fire crowd. The P90X energy drink has an X-Factor in it, which is an ATP X, which is basically designed for scientifically-oriented beverage consumers. Really excited about this. In February, we launched our first new P90X exercise program in 13 years with our new trainer, Waza Shire. P90X is the most successful fitness program in history, and over $1 billion of cumulative sales.

The other programs in the pipeline, which were originally scheduled to come out in 2027, have now been pushed earlier into 2026 because our financial turnaround is so much ahead of schedule. The multi-channel strategy will feature P90X, Insanity, and Shakeology nutritional products at retail and DTC and on Amazon. We made a pivot about four months ago to prioritize nutrition in favor of fitness in our advertising because the fitness market is about $13 billion, but the nutritional supplement market's $164 billion. As a catchment vehicle, we're leading with nutrition to then convert back to fitness. We're really doing all of this under the new umbrella of body wellness. We're really positioning our company as a wellness company under the BODi name, and a lot of momentum that will be built there with all these new items that'll be coming out.