The Beachbody Company, Inc. Class A Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- The Beachbody Company reported second quarter 2026 total revenue of $49.6 million, exceeding the midpoint of guidance ($46 to $51 million).
- The company achieved its fourth consecutive quarter of operating income ($1.7 million) and net income ($1.4 million), both above guidance expectations.
- Adjusted EBITDA was $6.7 million, surpassing the high end of guidance ($3 to $6 million) and marking the 11th consecutive quarter of positive adjusted EBITDA with double-digit margins (13.4%).
- Digital revenue declined 7.2% sequentially to $31.2 million and 21.5% year over year, reflecting ongoing churn from legacy subscribers but an increase in new subscribers.
- Nutrition and other revenue decreased 10.9% sequentially to $18.5 million and 23.7% year over year; however, nutrition options increased 16.7% sequentially to approximately 70,000 and were flat year over year.
- Gross margin was 72%, at the high end of the target range (69% to 72%).
- Operating expenses decreased 5% sequentially and 32.1% year over year to $34.1 million, with selling and marketing expenses improving due to elimination of MLM seller compensation.
- Cash balance was $32.4 million with net cash position of $8.8 million after $23.6 million total debt.
- Free cash flow was negative $5.7 million, primarily due to inventory purchases for nutrition and retail expansion and a decline in deferred revenue.
- Shakeology expanded to 131 Sprouts Farmers Market stores with reorder activity and launched in 481 Vitamin Shoppe stores.
- The P90x supplement line launched direct to consumer and on Amazon in April, with new energy drinks (Insanity Liquid Shock and P90x energy drinks) entering a Southern California test market in late Q3 or Q4.
- The company completed transition to the Shopify e-commerce platform, enabling improved sales funnel optimization and marketing flexibility.
- The ten minute body microdose fitness catalog continues to grow, targeting GLP-1 users who are under exercising, with positive consumer response to the 30 Day Booty Boost program and upcoming Max Built program by Shaun T.
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Transcript
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I will now hand the conference over to Bruce Williams, Managing Director of ICR.
Bruce, please go ahead. Welcome, everyone, and thank you for joining us for our second quarter earnings call.
With me on the call today are Mark Goldston, Executive Chairman of The Beachbody Company, Carl Daikeler, Co-founder and Chief Executive Officer, and Brad Ramberg, Interim Chief Financial Officer. Following the prepared remarks, we will open the call up for questions. Before we get started, I would like to remind you of the company's safe harbor language. Statements contained in this conference call, which are not historical facts, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual future results may differ materially from those suggested by such statements due to a number of risks and uncertainties, all of which are described in the company's filings with the SEC, which includes today's press release.
Today's call will include references to non-GAAP financial measures such as adjusted EBITDA, net cash, and free cash flow, and a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures is available within the earnings release, which can be found on our website. Now, I would like to turn the call over to Mark.
Thanks very much, Bruce, and good afternoon, everyone. Welcome to the BODi second quarter 2026 earnings call. I am pleased to report that BODi delivered another quarter of consistent execution against the turnaround we have been building for three years now. Total revenue for the second quarter was $49.6 million, above the midpoint of our guidance range of $46 million to $51 million. More importantly, this was our fourth consecutive quarter of both operating income and net income, and it was our 11th consecutive quarter of positive adjusted EBITDA, which came in at $6.7 million, which was above the high end of our guidance range of $3 million to $6 million. That also marks our fourth consecutive quarter of double-digit adjusted EBITDA margin, which tells you that the operational discipline that we have built into this business over the past three years is durable.
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