The Beachbody Company, Inc.

What they do

BODi sells digital fitness subscriptions under Beachbody On Demand Interactive (BODi) and nutrition products such as Shakeology, plus historically connected fitness equipment (bikes, discontinued). Operations are split into Digital, Nutrition and Other, and Connected Fitness segments. Revenue comes from recurring subscriptions, retail product sales, and supplement sales.

Revenue drivers

• Digital subscriptions — Generated $31.2M in Q2 2026, down 21% YoY, with 0.76M subscribers. Largest revenue segment.
• Nutrition and Other — Generated $18.5M in Q2 2026, down 24% YoY, with 0.07M nutritional subscriptions. Includes Shakeology and other supplements.
• Connected Fitness — Revenue was $0.0M in Q2 2026 (vs $0.1M prior year) after ceasing bike inventory sales in Q1 2025.

Recent performance

Q2 2026 revenue fell to $49.6M from $63.9M prior year, but operating income improved to $1.7M (fourth consecutive quarter of operating income) vs a $4.0M loss. Net income was $1.4M, and adjusted EBITDA was $6.7M, the eleventh consecutive positive quarter. Gross margin was 72.0%. Cash used in operations was $4.3M for the six months, with free cash flow of -$5.7M.

Strategy

Management is expanding an omni-channel nutrition strategy, bringing iconic brands like P90X and Shakeology to retail while maintaining direct-to-consumer reach. The goal is to acquire nutrition customers efficiently and migrate them to the digital fitness platform. They emphasize high gross margins, a lowered breakeven point, and a strong balance sheet to fund the omni-channel expansion and innovation pipeline. The company also amended its credit agreement in August 2026 for a more flexible covenant structure.

Risks

• Revenue decline continues — Total revenue fell 22% in Q2 2026, with digital and nutrition segments both down double-digit percentages year-over-year.
• Dependence on few key products — The company relies heavily on a limited number of products and brands (e.g., P90X, Shakeology) for revenue.
• Integration and restructuring execution — The 'Pivot' business model restructuring and any further restructurings could disrupt operations and future performance.
• Competition and market conditions — Intense competition in fitness and nutrition, plus global trade disruptions and tariffs, could impact costs and demand.

Outlook

Management expects to continue generating positive adjusted EBITDA and operating income, citing durable operational discipline. They plan to fund omni-channel expansion and innovation from internal cash flows, while maintaining a strong balance sheet. No specific revenue guidance was given in the latest release.