BODI

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 5 p.m. ET Executive Chairman - Mark Goldston Co-Founder and Chief Executive Officer - Carl Daikeler Interim Chief Financial Officer - Brad Ramberg Managing Director of ICR - Bruce Williams Operator: Thank you. Hello everyone. Thank you for joining us and welcome to The Beachbody Company, Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Bruce Williams, Managing Director of ICR. Bruce, please go ahead. Bruce Williams: 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'll open the call 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. Mark Goldston: Thanks very much, Bruce, and good afternoon, everyone. Welcome to the BODi Second Quarter 2026 Earnings Call. I'm pleased to report that BODi delivered another quarter of consistent execution against the turnaround we've been building for 3 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 margins, which tells you that the operational discipline that we've built into this business over the past 3 years is durable. Net income for the quarter was $1.4 million, also above the high end of our guidance range of a loss of $3 million to breakeven. So across the board, revenue, net income and adjusted EBITDA, we either met or exceeded our own guidance again this quarter. Let's turn to the balance sheet. We ended the quarter with $32.4 million of cash. That's against the total debt of approximately $23.6 million. So we had a net cash position of $8.8 million. I'm pleased that we modified our lending agreement with Tiger Finance, and we now have a much less restrictive covenant package. Our new agreement demonstrates the conviction and confidence that our partners have in our long-term strategic initiatives. Let me give you an update on the retail expansion, which continues to build momentum. Shakeology is off to a great start at Sprouts Farmers Market stores, and they've now expanded our footprint into 131 Sprouts stores nationwide. And importantly, we're already seeing stores coming back for reorders on Shakeology. This quarter, in fact, right now, we brought Shakeology into 481 Vitamin Shoppe locations around the country. We've also continued to build on our relationship with KeHE, one of the 2 largest distributors of natural and organic products in the country. And this gives us a path into their network of grocery accounts. And just recently, we added an account, which will open up the UNFI distribution network, but that will happen in November of this year and UNFI is the other major distributor of consumer goods to the grocery channel. As we've previously discussed, waiting for the retailer shelf set planogram to be updated is a 6- to 12-month process. While we continue to actively participate in that process with strong distribution partners, we expect to modestly build distribution this year with the expectation for accelerated growth in 2027 as we become more integrated into retailers' planograms. On the nutrition innovation side, our P90X supplement line, which is preworkout, hydration, creatine, recovery protein and fast-acting energy, that just became available on Amazon, which opens up an important channel for us to build brand awareness and drive trial. We're also in the process of preparing for the Southern California test market for our new energy drink lineup. We've hired one of the top beverage distribution companies in the country to represent us in the market and both our Insanity liquid shock and our P90X energy drinks are in production and will soon be ready to ship. We expect the test market rollout to begin in late Q3 or into Q4, and we will continue that rollout throughout the end of the year. I'm very pleased with our packaging and the flavors, and they really distinguish us from the competition. The digital fitness category is a $13 billion market, and the nutritional supplement category is a $164 billion market. That's like a lake versus an ocean. So by leading with Nutrition, which is exactly what we've done with P90X and Shakeology this year, we're acquiring customers more efficiently and a meaningful share of those nutrition customers are actually converting into our digital fitness subscriptions as well. So that combination, what we call the total solution is what has always driven this company's best results, and it's exactly what's fueling our direct-to-consumer expansion today. With that, let me turn the call over to Carl. Carl Daikeler: Thanks, Mark. Coming out of Q1, we outlined a handful of initiatives. We planned to build on the momentum of the P90X Generation Next launch by bringing the P90X supplement line direct-to-consumer and setting it up for retail. We were planning to transition on to the Shopify e-commerce platform, keep expanding our 10-Minute BODi microdose fitness catalog, including promotion to the GLP-1 audience, and we talked about our plans to launch our new 30-day booty Boost program with a new Super Trainer. Our focus in Q2 was also to continue shifting the business toward a nutrition-first multichannel model now that we're free of the margin and distribution constraints of the old operating expense structure. Here's where each of those initiatives stand. I'll start with P90X. The Generation Next launch in February was very well received and did exactly what we designed it to do. It set us up for the direct-to-consumer launch of the P90X supplement line in April. Promoting the P90X brand as a whole puts us in a strong position to build demand for both the P90X supplement and the brand-new P90X ready-to-drink energy beverage. On the retail front, we're navigating the retailers' planogram reset timing, which governs when new products get on the shelf. So we don't control the growth as much as we'd like, but the interest is definitely real. As Mark outlined, Shakeology is seeing reorders in our test with Sprouts, and we just launched into 481 Vitamin Shoppe stores. And the P90X and Insanity energy beverage line will launch at retail in the second half of 2026. Our transition to the Shopify platform, which we completed right at the end of Q1 was achieved efficiently and with no business interruption. And honestly, the most exciting thing to come out of Q2, in my opinion, was the visibility Shopify has given us to areas where we can make dramatic improvements in the sales funnel, such as improving order conversion from existing traffic, improving engagement in the funnel and reducing visitor bounce rate. Shopify ran a thorough audit for us, and we're aggressively adjusting our landing pages and promotions to conform to best practices. We'll continue to see benefits with faster checkout using Shop Pay, better conversion and the flexibility to run bundle and Subscribe & Save offers that we simply couldn't do on our old e-commerce platform. We see real opportunity to improve conversion further as we optimize our landing pages and site navigation. And we have new creative and marketing campaigns in development to build on that momentum. This is our top priority heading into the third quarter, especially as we set up for the prime health and fitness season in Q1 of 2027. Likewise, the shift to Shopify unlocks our ability to improve our HSA/FSA partnership with industry leader Truemed, which will make it much easier for qualified customers to use their HSA and FSA benefits to save on their purchase of eligible BODi products like Shakeology by using pretax dollars. Our 10-Minute BODi initiative has proven to be a genuinely valuable addition to the catalog because it fills a need that a fitness app is uniquely qualified to meet versus gyms. We now have a massive catalog of over 400 microdose workouts between 5 and 10 minutes long for people who are only getting started on their fitness journey or who simply have no more time than that. That very much includes GLP-1 users who the data shows are statistically undexercising, even though their use of these weight loss medications makes resistance training all the more critical, even if it's just 10-minutes a day. And speaking of GLP-1s, here's something we didn't fully anticipate. Our super food protein shake, Shakeology is seeing real demand from that same GLP-1 audience. So we're leaning into that application in our advertising and on our landing pages. In early June, we launched 30-day booty Boost with a terrific new Super Trainer Chase Collect, and the feedback on both the program and the trainer has been exceptional. It continues to add to what is the most substantial library of health and fitness content in the world. But the most important observation from Q2 is this. Our cost to acquire a customer through nutrition products like Shakeology, P90X and others is substantially lower than the cost of acquiring a customer through fitness program advertising. So to act on that insight, we've inverted our media allocation toward nutrition advertising. That's driving more traffic to the site, and that shift has an added benefit. It increases the visibility of these nutrition products and helps drive our retail presence at the same time as we expand our direct-to-consumer footprint. Q3 has been about integration and testing. We're putting the Shopify improvements to work across our e-commerce platform, taking advantage of the flexibility to test promotions and bundling configurations that used to be tedious, if not impossible, on our old technology. The move toward nutrition advertising has been productive, and we expect the benefits of these changes to begin materializing at the end of this quarter and into Q4. We've launched a significant affiliate promotion in August, running in parallel with the launch of an exciting new lifting program from Shaun T called Max Built, a simplified strength program launching in early September. It pairs extremely well with the P90X supplement stack, and it's well timed to serve the households shifting back into their normal routine as the kids head back to school. And looking forward to the end of the year, we're particularly excited about our November promotions around Black Friday and Cyber Monday, which will be built around a brand-new program and preworkout supplement under the Insanity brand. We're just wrapping up principal photography on what we're calling Insanity Unhinged, led by one of the most recognizable faces in hybrid fitness, three-time HYROX World Champion Hunter McIntyre. Shaun T, who originated the Insanity program, has signed on as executive producer and is really supporting how we're making Insanity attractive to a broader audience with this iteration. I can tell you, this program is going to be outstanding, and it's the perfect launch heading into the end of the year and into Q1 of 2027. Taken together, what our Q2 results demonstrate is agility. Because we significantly reduced our operating expenses and moved on to Shopify, we can now iterate and operate with far more flexibility to test, to learn and to reposition the business to return to growth as a multichannel nutrition-led company. That's exactly the platform we set out to build, and the team is doing outstanding work to continue making progress with our turnaround. Okay. With that, I'll turn it over to Brad Ramberg, our CFO, to walk you through the Q2 financial details and our guidance. Brad? Brad Ramberg: Thank you, Carl, and thank you, everyone, for joining the call today. I will review our second quarter results and provide our outlook for the third quarter of 2026. We continue to make significant progress on our transformation and in driving operating efficiencies. For the quarter, revenue exceeded the midpoint of our guidance and both net income and adjusted EBITDA exceeded the high end of our guidance. We generated our fourth consecutive quarter of both positive net income and operating income and our 11th consecutive quarter of positive adjusted EBITDA. For the quarter, total revenue was $49.6 million, a decrease of 8.6% sequentially and a decrease of 22.4% year-over-year. Keep in mind, revenues continue to be impacted in the near term by our shift from a multilevel marketing platform to our current omnichannel model. Turning to revenue by category. Please note the direct year-over-year comparisons I'm about to disclose for Digital and Nutrition revenue are still skewed by the fact the 2026 numbers reflect the new business model versus the 2025 numbers, which still had a major component of revenue that was driven in part by the legacy MLM. As we move to Q3 of 2026, we will be able to show a direct year-over-year comparison because the remaining legacy revenue associated with the former MLM will have burned off and those customers who remain from that cohort will become part of the new BODi business model's revenue base. I'll go into more detail regarding Q3 guidance later on the call. With that said, Digital revenue decreased 7.2% sequentially to $31.2 million and decreased 21.5% year-over-year. Digital revenues reflect continued pressure on our digital subscriptions, which decreased 6.2% sequentially to 760,000 and decreased 19.1% compared to the same period a year ago. The number of digital subscribers continues to be impacted by churn from our legacy file. However, the number of new subscribers has increased over the prior year period. Nutrition and other revenue decreased 10.9% sequentially to $18.5 million and decreased 23.7% year-over-year. Nutritional subscriptions increased approximately 16.7% sequentially to approximately 70,000 and were essentially flat to the same period a year ago. As our business evolves into a multichannel model, generating higher onetime sales and retail sales, the Nutrition subscription metric will become a less relevant KPI. Digital gross margin was 87.1%, decreasing approximately 30 basis points sequentially and approximately 60 basis points from the prior year. Our Digital gross margin was in line with our target. Nutrition and Other gross margin was 46.7%, flat sequentially and down approximately 470 basis points versus last year. Our Nutrition and Other gross margin was in line with our target, considering volume expectations and promotional efforts during the quarter. Consolidated Q2 gross margin was 72%, increasing 20 basis points sequentially and declining 30 basis points compared to the prior year. We're pleased to report that consolidated gross margin is at the high end of our estimated gross margin range of 69% to 72%. Operating expenses for the quarter decreased 5% sequentially and decreased 32.1% year-over-year to $34.1 million. Selling and marketing expense as a percent of revenue decreased approximately 310 basis points sequentially. The decrease compared to the prior quarter was due to seasonally higher media spend in Q1. Selling and marketing expense decreased approximately 840 basis points year-over-year to 31.5%. The significant improvement over prior year stems from eliminating the MLM seller compensation following our December 31, 2024, exit from the multilevel marketing channel. Enterprise technology and development expense was approximately 19.9% of revenue, increasing approximately 260 basis points sequentially and approximately 330 basis points year-over-year. The increase was primarily due to product development and revenue deleverage. G&A was 17.3% of revenue, increasing approximately 310 basis points sequentially due to lower capitalized labor and revenue deleverage and decreasing approximately 80 basis points year-over-year. Operating income for the quarter was $1.7 million compared to $3.1 million in the prior quarter and an operating loss of $4 million in the prior year period, marking our fourth consecutive quarter of positive operating income. Net income for the quarter was $1.4 million compared to $2.3 million in the prior quarter and a net loss of $5.9 million in the prior year period, marking our fourth consecutive quarter of positive net income. Adjusted net income was $0.9 million for the quarter compared to $2.5 million in the prior quarter and an adjusted net loss of $2.8 million in the prior year period. Adjusted EBITDA was $6.7 million compared to $8.0 million sequentially and $4.6 million in the prior year period, marking our 11th consecutive quarter of positive adjusted EBITDA. Our adjusted EBITDA margin was approximately 13.4% in the quarter, our fourth consecutive quarter of double-digit adjusted EBITDA margin. Now turning to the balance sheet. Our cash balance was $32.4 million compared to $36.6 million in the prior quarter and $39 million at the end of last year. Our net cash position was $8.8 million. As Mark mentioned, we're also pleased to announce that on August 3, we amended our credit agreement to a more flexible covenant structure, which reflects our lenders' continued confidence in the long-term trajectory of our business. For the 6 months ended June 30, 2026, cash used in operating activities was $4.3 million compared to cash provided by operating activities of $6.6 million in the prior year period. And cash used in investing activities was $1.4 million compared to $2.5 million in the prior year period. Free cash flow was negative $5.7 million compared to $4.1 million generated in the prior year period. The decline in free cash flow in the current year is primarily due to cash used for inventory purchases as we have shifted our focus to nutrition and our retail rollout and a continued decline in deferred revenue. Now turning to our third quarter guidance. As mentioned previously, Q3 will be the first quarter since winding down our legacy MLM model that we're able to compare our new business model year-over-year. We expect third quarter revenues to be in the range of $44 million to $48 million, net income to be in the range of negative $3 million to breakeven and adjusted EBITDA to be in the range of $3 million to $6 million. For the quarter, we continue to anticipate revenues to approximate 60% Digital and 40% Nutrition and Other. However, in line with the strategies articulated on this call, we currently expect a shift by the end of 2026 to a larger percentage of our business being in Nutrition and the attendant margins that come along with it. For the quarter, our Digital gross margin target is expected to be in the range of 86% to 88%. Our Nutrition and Other gross margin target is forecast to be in the range of 42% to 45%, which is in line with our volume expectations and certain promotional efforts planned. Our total gross margin target is expected to be in the 68% to 71% range. In closing, we continue to make considerable progress against our business transformation. We strengthened our financial position and lowered our breakeven point, putting us on a solid foundation to execute against our growth initiatives that will drive long-term shareholder value. I look forward to updating you on our progress on our next earnings call. I'll now turn the call back over to Mark for closing remarks. Mark Goldston: Thank you, Brad. Thank you, everyone. We will now turn it over to Sarah, so we'll get people into the Q&A queue, so we can go through because I see there's some people waiting there. So Sarah, can you please process those with questions? Operator: [Operator Instructions] Your first question comes from the line of Susan Anderson with Canaccord Genuity. Susan Anderson: I was wondering about -- so it looks like the nutritional segment is starting to see some traction there. I guess I'm curious, is that being driven by the rollout to, say, Vitamin Shoppe, Sprouts, Amazon, et cetera. Are you seeing that really kind of drive the sales there? Or I guess, is it related to the increased marketing spend that you spent in the quarter? And then also, what should we expect for marketing going forward? Mark Goldston: Susan, thanks for the question. No, it's organic. It's not on the retail yet because Sprouts is doing great, but we got the initial order from Sprouts put it into KeHE who feeds Sprouts. So while they have reordered and it's doing well, that's really not what's reflected there. And the Vitamin Shoppe just started literally this week. So that's a Q3 number, not Q2. So what you're seeing is Q2 organic traction in nutrition and as a result of the pivot that we announced a couple of months ago, where we're putting more of our money into the nutritional marketing. In terms of going forward, yes, we expect to see more traction on Amazon. We just launched recently the 7-serve Shakeology, as you know. We used to sell the 30-serve bag on that for like $149. Now we've got a 7-serve that's selling at $34.99, which is a huge difference. And P90X just this week, went up -- actually, just at the end of last week, went up on Amazon for the first time. So on a go-forward basis, we should see Amazon become a little bit more of a factor. We may look at some other marketplaces. We will have retail rollouts continuing, hopefully, get sell-through and replenishment from Vitamin Shoppe, from Sprouts. And then as we move towards the end of this year, Susan, and into the beginning of '27, we should have a broader distribution footprint for both Shake and P90X, and we will also have the SoCal test market results in full swing for the Insanity liquid shock energy drink and the P90X energy drink. Susan Anderson: Okay. Great. That sounds exciting. And then maybe just one follow-up on the digital side. Maybe if you could just talk about the consumer response, what it's been to the 10-Minute BODi programs that you've rolled out? How are those trending? And then also, I guess, what are you doing around the marketing on the digital front to get new customers into the brand? Carl Daikeler: Thanks, Susan. We're continuing the playbook that we started with the 10-Minute BODi series as a complement to the overall subscription plus its own unique subscription for $10 a month. I would say the most interesting finding there is that how it is proving to be applicable for GLP-1 users. So we're really riding in the tailwind of the growth of the GLP-1 segment as these are people who are generally under exercising according to statistics and our GLP-1 fitness formula, the 10-Minute program that we designed for that, plus the overall catalog, specifically for the 10-Minute beginner program is definitely appealing to that segment. So our advertising that is putting GLP-1 messaging forward is benefiting both the 10-Minute series plus our catalog overall from a digital perspective. And I'll add, it's also benefiting Shakeology, which is a great nutritional complement to people who are taking a GLP-1. So overall, I would say that 10-Minute BODi has been successful for us. Otherwise, as I mentioned, that we've got the 30-day booty Boost that came out this summer, which got very warm reception, and we have a new program called Max Built coming from Shaun T, which I'm personally excited about because it's a simpler approach to weightlifting resistance training, which aligns very well with the P90X supplement story for people who want to increase their metabolic health, improve bone density and overall, just improve their metabolism with weight lifting. So we continue to build the catalog in a way that is both on trend, complements the overall catalog and expands the catalog with these short-form workouts, microdose fitness workouts so that we're appealing to the customer who might not be interested in going to the gym. They're not going to do 10-Minute workouts at the gym. They're going to do it at home, and that's where we really appeal with this catalog. Operator: Your next question comes from the line of Michael Kupinski with NOBLE Capital Markets. Michael Kupinski: Mark, I was wondering if you can just provide us some early indications from Shakeology's rollout in Sprouts. I know that you were talking about that you're already getting some reorders. But I was wondering if you had any early indications in terms of sell-through, repeat purchases or probably more importantly, I would think, what the performance is relative to the retailers' expectations? And then maybe what you've learned about -- learned from the rollout that could influence your much broader rollout? Mark Goldston: Great question, Michael. Here's what I can tell you. We were originally, as you know, in 90 Sprouts stores. Then we got expanded, I think, to 110. Now I think we're up to 131. So they've continued to expand within Sprouts. I think some of the Sprouts store GMs are seeing what's being posted about what's selling through, one. Two, KeHE, our distributor, actually ran low on stock from what we had originally sold into them. So there was a little bit of a gap and they had to reorder, which, of course, is a good thing because that means that it's selling through well at Sprouts. So they've expanded our store count. We're 40 stores more now than we were then, which is a 45% increase from the 90 where we were at. And so we're feeling really good about that. And we will start to get specific sell-through data as we move forward. But thus far, they're happy with it, evidenced the 45% expansion of the stores that we're in. And KeHE obviously is happy because they were running low on goods and had a reorder from us. So all of that's a good thing. Michael Kupinski: Got you. And I know that the free cash flow was a little negative. I was just wondering if you can talk a little bit about cash usage. I assume it's associated with the preparing for retail expansion. Just wondering if when we should start to see working capital begin to normalize on that? Brad Ramberg: Michael, this is Brad. Yes, you're absolutely right. So the decline in free cash flow was due to two things. One, primarily an increase in inventory as we shifted the strategy to more nutrition and the retail rollout. We needed to invest a little bit in inventory. And then likewise, as we shifted to inventory, we have a little less deferred revenue. So the decline in free cash flow was due to those two factors. Michael Kupinski: Got you. And then you've been highlighting more flexible covenant structure on your new credit agreement. I was just wondering if you could just talk a little bit about the changes and maybe how this might give you the ability to invest in growth or deploy capital. I was just wondering if you can just give some color there. Mark Goldston: Yes. I mean -- thanks, Michael. It's -- look, the lender and we meet all the time. As you know, they're very happy with how we're operating this business. I mean the fact that we've made almost $80 million over the past 11 quarters in EBITDA has been very impressive to them. So what we did was we renegotiated the covenant package so that the thresholds are even lower than they were, so that's not anything to be concerned about, one. And two, as you remember, we used to have to have $4.6 million above the outstanding debt level in order to not test covenants. That was going to be about $29.6 million. That has now been lowered by almost $7 million to $22.5 million. So what does that do? It buys us $7-plus million of additional cushion vis-a-vis the hurdle rate that they use to measure the covenants. So as long as we keep our cash balance above that $22.5 million level, then the covenants never get tested. And so we have that, plus we have the $18 million minimum liquidity against the $25 million outstanding loan. So much better situation, lower metrics in terms of hurdles to hit on billable subscribers, billings. So it's just an overall response from the lender that they recognize the operational excellence that we've had in this turnaround and they've given us essentially more room to operate with all of these growth initiatives in front of us. Michael Kupinski: Yes, that's terrific. One last question, just a little bit about your Q3 guide. Your revenue of $44 million to $48 million. What are the major variables that would determine whether or not those results land at the high end or the low end of those ranges? Carl Daikeler: This is Carl. I would say that it's really looking at the market dynamics, meaning we have said for a couple of years that we want to be pursuing revenue that is profitable, right, not just revenue or billings for billings sake. So the variables are obviously efficiency of media and also, we're looking at the variables of how the sell-through at retail continues to go. So we're balancing those factors, but not being overly optimistic that the marketplace is going to respond to any one particular promotion. So we're cautiously optimistic about what we're pursuing right now and the launch of Max Built and the launch of the P90X supplements on Amazon. And how those will relate, how the marketing will all contribute to all channels performing is sort of the unknown. But ultimately, we're going to do it in the most efficient way possible to get the most out of our media spend. Mark Goldston: So Michael, the best thing for you to think about as an analyst would be, if you look at the buckets, so you got a legacy bucket, people who've been here, renew, et cetera. Then you've got the newly acquired DTC customers. Some of them are onetime nutritional purchasers, some of them subscribers. And then you've got the subscribers that you get on the digital side. Then you've got the marketplaces, the principal one being Amazon. Now that you've got these new products on Amazon, if you want to try to get to the high end of that range or better or whatever the case may be, that performance will also be critical. And then lastly, but much less, you have the retail component because as the retail rollouts start to occur, the orders will start to roll in, but you're going to have some free fill and slotting, et cetera, that occurs. So the Q3 revenue will not be wholly dependent at all on any one element. And if I had to rank them, I would say it would be legacy, one, DTC, two, marketplaces, three, retail, four. Now we have this discussion in Q1, Q2 of 2027. We'll have a different mix. But for right now, that's what we're looking at. Operator: Your next question comes from the line of Alex Hantman with Sidoti & Company. Alex Hantman: Maybe just to piggyback on the retail rollout. Can we talk about Vitamin Shoppe? I know it's live at a little under 500 stores. I think that was ahead of the fall time line you discussed in June. So I was curious what pulled the launch forward and how you think about building towards the full chain? Mark Goldston: Yes. Alex, great to hear from you. Listen, they were great. They're very excited about this. I mean they've really gotten behind it such that we were able to get in those stores probably 2 to 3, 2 to 4 weeks ahead of when we thought. So the folks at Vitamin Shoppe have been great partners. They're very bullish on the opportunity as are we. And so yes, so that's what's going on, and we're in 481 of those stores, and we just got in there a couple of days ago, and we have a whole plan that we're laying out for the next several months on how to try to support Vitamin Shoppe and our distribution there. But yes, we're looking for really good things. Alex Hantman: Great. And I know you touched on the sample sets in the prepared remarks. My understanding is it November, April planogram resets, is there any update on how many decisions might land for the next window? Mark Goldston: It's a great question. We -- Carl and I just had a status meeting on that with the team 4 days ago. And there are -- I think there are 12 decisions pending between middle of September and the end of November. So we'll wait to see how those go. Listen, right now, in addition to Vitamin Shoppe and Sprouts, which combined are about 610 doors. I think altogether, we have another 100, 150 doors on top of that. And that's going to continue to roll and gain momentum. Getting in Vitamin Shoppe and getting P90X and Shakeology form factors on Amazon. And being now in 131 Sprouts will help the other retailers who are looking at and considering Shake and P90X. It will definitely help because those are pinnacle retailers that a lot of other retail buyers look to for proof of concept, et cetera. So that's what you'll start to see probably as we get into the middle of Q4. Operator: Your next question comes from the line of Eric Des Lauriers with Craig-Hallum Capital Group. Eric Des Lauriers: Congrats on another strong bottom line quarter and the great progress with Sprouts. My first question here is just on the P90X Amazon launch. I think you said it just launched recently. I believe you've had Shakeology on Amazon for about a year or 2 now. How have those learnings from Shakeology sort of informed your P90X strategy on Amazon? And then overall, as you -- or I guess, as Amazon potentially comes a larger mix of sales, how does that sort of impact your customer acquisition retention efforts? Overall, how should we think about the sort of road map for product launches on Amazon and the kind of impact that could have on your model? Mark Goldston: Well, the one thing to think about, as you asked about Shakeology performance on Amazon over the last, call it, 1.5 years is we were basically selling a 30-serves that we normally sell for $129.95. That thing was on Amazon for $149 to $169, which is not to be humorous, it's like you're in charge of sales prevention. That's not what's going on in Amazon. People are buying Amazon products are between $29 and $69. And so we were on Amazon, but we were being protective of that former business model, the MLM that we couldn't undercut. We have just now started to seed the multiple SKUs of Shakeology in the 7-serve bag, which is a $34.95 product, which is a completely different pitch to the consumer. Same thing on P90X. We just got up in Amazon. It was like 4 days ago. But that line is a $15 to $39.95 product line. So between Shake and P90X, everything that we're selling other than the big bag, which will still be there, everything is sub-$40. That opens up a whole -- because as you know, in most nutrition companies, and I don't know how it will be for us, but most nutrition companies do 25% to 30% of their total revenue on Amazon. These are all of the nutrition companies that you know. So how it will play out for us, I don't know yet, but we were with one arm behind our back before because of our price points and because of the limitations that the MLM had placed on our pricing, those shackles are now gone. So we got pricing, we got form factor, we got distribution. So there's a much bigger opportunity there. And in terms of retaining those customers, look, they'll either retain by coming to us for a repurchase or they'll go back to Amazon. Either way, we're happy. What we want to do is get a wider aperture of distribution and therefore, get more customers. And whether they buy it from us or they buy it directly on Amazon or they buy it at Sprouts or Vitamin Shoppe or wherever else, we're happy regardless. And that assumption mix is what went into Brad's guidance that he gave you on nutritional gross margin. Eric Des Lauriers: That's certainly exciting. We'll be excited to track that progress. You also called out a meaningful share of nutrition customers that are converting to digital subscriptions. Just wondering if you could share any more detail on that and just overall how that might compare to your internal expectations? Carl Daikeler: I don't think we break that out individually, but we're offering everybody who comes in on a nutrition subscription gets a 30-day trial into the digital subscription. So they -- if they don't cancel, they renew into a monthly subscription and have the opportunity then to upgrade. You can imagine in a world where supplements are growing so quickly, we're definitely seeing the improvement in demand and efficiency on the front end by selling nutritionals. But it's also an additional value add or increases the value proposition by offering a free month of digital subscription and access to 225 fitness programs that we've developed over 20 years that people are getting that additional value with their purchase. So we're pleased with the number of starts that we're getting from the digital -- digital subscription being attached to nutritionals. We haven't implemented that out into retail yet, but we do think, as we've mentioned before, that, that will be a part of our strategy of the value equation that we can offer uniquely. Eric Des Lauriers: That's great color. I appreciate that. And then just last one for me. You called out a few insights you learned from Shopify in terms of, I suppose, overall optimizing the user experience and minimizing friction. You mentioned aggressively adjusting the website. So I guess we have a little over kind of 3 months until the holiday season. Just how confident do you feel in being able to get all those adjustments done in time? And just any other color that you want to share on some of those improvements you're making would be great. Carl Daikeler: Yes. Thank you. This is the thing I'm most excited about because we can easily watch the KPIs of these things improve. Harmonizing the front-end ads with the landing pages is something that is a best practice of Shopify, obviously. And this gives us the ability now to show the actual price that somebody is going to get from a special offer or a special promotion, which both improves traffic from the front end, but then add the cart and ultimate conversion on the back end. So we are rapidly iterating and in fact, have one of the best companies that works with Shopify clients to make improvements to our landing pages so that we can increase our conversion. We've recently started to consolidate landing pages. So we had multiple URLs that are now coming right into the Shopify platform. So we're getting all this organic traffic coming into a better performing, a better converting website experience that people are familiar with rather than our old e-commerce platform, which was unique to us. So I think as we go into Black Friday, Cyber Monday, we're definitely going to see the benefits of the Shopify platform and that familiarity and the fact that people already have accounts with Shopify, that will in order to the benefit of the promotions that we have going into the holidays in Q1. Eric Des Lauriers: Well, you have a lot of exciting things upcoming. Congrats on the progress guys. Operator: There are no further questions at this time. I will now turn the call back over to Mark Goldston. Mark Goldston: Thank you, Sarah, and thanks, everybody, for attending. As always, if you have any questions, et cetera, please reach out to the company. We are going to be presenting tomorrow at the Canaccord Conference here at Canaccord Growth here in Boston. And so we will have a webcast of that. And again, we look forward to keeping you informed on our progress as we talk to you on the next quarter earnings call. So thanks very much. Have a great evening. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Beachbody, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Beachbody wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 17, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Beachbody (BODI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Revenue: $49.6 million, above the midpoint of guidance ($46 million to $51 million), down 22.4% year over year. Digital Revenue: $31.2 million, down 7.2% sequentially and 21.5% year over year. Nutrition and Other Revenue: $18.5 million, down 10.9% sequentially and 23.7% year over year. Digital Subscribers: 760,000, down 6.2% sequentially and 19.1% year over year. Nutritional Subscriptions: Approximately 70,000, up 16.7% sequentially and flat year over year. Consolidated Gross Margin: 72%, up 20 basis points sequentially and down 30 basis points year over year. Digital Gross Margin: 87.1%, down 30 basis points sequentially and 60 basis points year over year. Nutrition and Other Gross Margin: 46.7%, flat sequentially and down 470 basis points year over year. Operating Expenses: $34.1 million, down 5% sequentially and 32.1% year over year. Operating Income: $1.7 million, compared to $3.1 million in the prior quarter and an operating loss of $4 million in the prior year period. Net Income: $1.4 million, compared to $2.3 million in the prior quarter and a net loss of $5.9 million in the prior year period. Adjusted EBITDA: $6.7 million, above the high end of guidance ($3 million to $6 million), compared to $8.0 million sequentially and $4.6 million in the prior year period. Adjusted EBITDA Margin: Approximately 13.4%, the fourth consecutive quarter of double-digit margins. Cash Position: $32.4 million in cash against total debt of approximately $23.6 million, resulting in a net cash position of $8.8 million. Free Cash Flow: Negative $5.7 million for the six months ended June 30, 2026, compared to $4.1 million generated in the prior year period. Warning! GuruFocus has detected 3 Warning Signs with BODI. Is BODI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Beachbody Co Inc (NASDAQ:BODI) reported its fourth consecutive quarter of positive operating income and net income, with adjusted EBITDA of $6.7 million, exceeding guidance and marking the 11th consecutive quarter of positive adjusted EBITDA. The company achieved a fourth consecutive quarter of double-digit adjusted EBITDA margins (13.4%), demonstrating durable operational discipline. Retail expansion is gaining momentum, with Shakeology now in 131 Sprouts stores (up from 90) and 481 The Vitamin Shoppe locations, with reorders already occurring at Sprouts. The transition to the Shopify e-commerce platform was completed efficiently, providing improved visibility into the sales funnel and enabling faster checkout, better conversion, and flexible bundle/subscribe-and-save offers. The company is capitalizing on the GLP-1 trend by promoting 10-Minute BODi microdose workouts and Shakeology to this audience, which is driving demand and lowering customer acquisition costs. The P90X supplement line launched on Amazon, opening a new channel for brand awareness and trial, with products priced under $40 to better align with marketplace expectations. The company amended its credit agreement with Tiger Finance, reducing covenant restrictions and increasing cash cushion by $7 million, reflecting lender confidence in the turnaround. Nutritional subscriptions increased 16.7% sequentially to 70,000, and new digital subscribers increased year-over-year, indicating early traction in the nutrition-first strategy. The company is preparing for a Southern California test market for its new energy drink lineup (INSANITY Liquid Shock and P90X energy drink), with production underway and rollout expected in late Q3 or Q4. Upcoming product launches, including the INSANITY Unhinged program with Hunter McIntyre and the Max Built lifting program with Shaun T, are expected to drive engagement and sales in Q4 and Q1 2027. Total revenue decreased 22.4% year-over-year to $49.6 million, reflecting continued pressure from the transition away from the legacy MLM model. Digital subscriptions decreased 6.2% sequentially and 19.1% year-over-year to 760,000, with churn from the legacy customer base still impacting growth. Nutrition and other revenue decreased 23.7% year-over-year, and the company expects a shift to a larger percentage of nutrition revenue, which carries lower gross margins (42-45% vs. digital's 86-88%). Free cash flow was negative $5.7 million for the first half of 2026, primarily due to increased inventory purchases for retail rollouts and a decline in deferred revenue. The company's Q3 2026 guidance projects a potential net loss of up to $3 million, indicating that profitability may not be sustained in the near term. Retail expansion is subject to planogram reset timing, which can take 6-12 months, limiting near-term growth and making revenue from this channel unpredictable. The company faces execution risks with its new energy drink test market, which is still in early stages and may not yield immediate results. Selling and marketing expenses, while improved year-over-year, remain a significant cost, and the company is still optimizing its media allocation to balance efficiency and growth. The transition to Shopify, while beneficial, requires ongoing adjustments to landing pages and promotions, which may take time to fully optimize and could impact conversion rates in the short term. The company's reliance on the GLP-1 trend and nutrition-first strategy may be vulnerable to market shifts or increased competition in the weight loss and supplement space. Q: Can you provide early indications from Shakeology's rollout at Sprouts, including sell-through, repeat purchases, and performance relative to retailer expectations?A: Mark Goldston, Executive Chairman: The rollout is exceeding expectations. Sprouts has expanded our footprint from 90 to 131 stores, a 45% increase, which is a strong signal of their satisfaction. Our distributor, KeHE, ran low on stock and had to reorder, indicating strong sell-through. We are feeling very good about the progress and will begin receiving specific sell-through data as we move forward. Q: What are the major variables that will determine whether Q3 revenue lands at the high or low end of the $44 million to $48 million guidance range?A: Carl Daikeler, CEO: The key variables are the efficiency of our media spend and the performance of our retail sell-through. We are focused on pursuing profitable revenue, not just billings. Mark Goldston, Executive Chairman, added that the revenue mix will be driven by four buckets: legacy subscribers, newly acquired DTC customers, marketplaces like Amazon, and retail. The performance of the new P90X supplements on Amazon will be critical to hitting the high end of the range. Q: How have learnings from Shakeology on Amazon informed the P90X launch strategy, and how will Amazon's growing role impact customer acquisition and the overall model?A: Mark Goldston, Executive Chairman: Previously, our Amazon strategy was hampered by high price points (e.g., a $149 30-serve bag) and restrictions from the legacy MLM model. We have now removed those shackles. We launched a 7-serve Shakeology at $34.95 and the P90X line at $15-$39.95, which are much more appropriate price points for Amazon. We expect Amazon to become a significant channel, as it is for most nutrition companies, and we are happy whether customers buy from us directly or on Amazon, as it widens our distribution aperture. Q: Can you share more detail on the conversion of nutrition customers to digital subscriptions and how that compares to internal expectations?A: Carl Daikeler, CEO: We offer a 30-day free trial of our digital subscription to all nutrition subscribers. We are pleased with the number of digital subscription starts attached to nutritionals. This strategy improves front-end efficiency by selling nutritionals and increases the value proposition by providing access to our library of 225 fitness programs. We have not yet implemented this cross-sell in the retail channel, but it is part of our unique value equation going forward. Q: How confident are you in completing the Shopify website optimizations in time for the holiday season, and what are some of the key improvements being made?A: Carl Daikeler, CEO: We are rapidly iterating and are highly confident. We are harmonizing front-end ads with landing pages to show accurate promotional pricing, which improves traffic and conversion. We have consolidated multiple landing pages onto the Shopify platform to capture organic traffic with a better-converting experience. We expect to see significant benefits during Black Friday and Cyber Monday from the platform's familiarity and features like Shop Pay. Q: What is driving the traction in the nutritional segment, and what should we expect for marketing spend going forward?A: Mark Goldston, Executive Chairman: The Q2 traction is organic and not yet from the retail rollouts, as The Vitamin Shoppe launch just began and Sprouts reorders are still early. The growth is a result of our strategic pivot to allocate more media spend toward nutrition advertising, which has a substantially lower customer acquisition cost than fitness program advertising. We expect continued traction from Amazon with new lower-priced SKUs and the upcoming retail rollouts. Q: Can you discuss the changes to the credit agreement with Tiger Finance and how it provides more flexibility?A: Mark Goldston, Executive Chairman: We renegotiated the covenant package to have lower thresholds, providing more room to operate. The cash balance required to avoid testing covenants was lowered by almost $7 million to $22.5 million. This provides us with a larger cushion and reflects the lender's confidence in our operational execution and long-term strategic initiatives. Q: What was the consumer response to the 10-Minute BODi programs, and what is the marketing strategy for digital to acquire new customers?A: Carl Daikeler, CEO: The 10-Minute BODi series has been successful, particularly in appealing to the GLP-1 user segment, who are statistically under-exercising. Our advertising with GLP-1 messaging is benefiting both the 10-minute series and the overall digital catalog, as well as Shakeology. We are also building on this momentum with new programs like 30-Day Booty Boost and the upcoming Max Built program from Shaun T, which aligns well with the P90X supplement line. Q: What pulled The Vitamin Shoppe launch forward, and how are you thinking about building towards the full chain?A: Mark Goldston, Executive Chairman: The Vitamin Shoppe was very excited about the partnership, which allowed us to launch in 481 stores two to four weeks ahead of schedule. They are very bullish on the opportunity. We have a comprehensive plan to support the distribution over the next several months and are looking for really good things from this partnership. Q: Can you provide an update on the pending planogram reset decisions for retail expansion?A: Mark Goldston, Executive Chairman: There are 12 decisions pending between mid-September and the end of November. The successful launches at Sprouts and The Vitamin Shoppe, combined with our presence on Amazon, serve as proof of concept for other retailers. We expect to see the results of these decisions and further momentum as we get into the middle of Q4. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved fourth consecutive quarter of positive net income and 11th consecutive quarter of positive adjusted EBITDA, signaling the durability of the company's operational discipline. Pivoted to a 'Nutrition-First' model, leveraging the $164 billion nutritional supplement market to acquire customers more efficiently than through digital fitness advertising alone. Successfully transitioned to the Shopify e-commerce platform, unlocking advanced funnel optimization, faster checkout via Shop Pay, and flexible bundling capabilities previously impossible on legacy systems. Expanded retail footprint to 481 Vitamin Shoppe locations and 131 Sprouts stores, with early reorder signals from Sprouts validating the brand's brick-and-mortar appeal. Inverted media allocation toward nutrition advertising to drive higher site traffic and support the growing retail presence while maintaining a lower customer acquisition cost. Modified lending agreements to secure a less restrictive covenant package, providing approximately $7 million in additional liquidity cushion to fund growth initiatives. Identified a significant growth opportunity within the GLP-1 user demographic, positioning Shakeology and 'microdose' 10-minute workouts as essential metabolic health tools for this audience. Anticipate a strategic shift in revenue mix by year-end 2026, with Nutrition expected to represent a larger percentage of the business compared to the current 60/40 Digital-to-Nutrition split. Expect accelerated retail growth in 2027 as the company becomes more integrated into major retailers' 6-to-12 month planogram reset cycles. Launching a Southern California test market for Insanity and P90X energy drinks in late Q3 or Q4 2026, supported by a top-tier national beverage distributor. Q3 2026 will mark the first clean year-over-year comparison for the new business model as the final legacy revenue from the former MLM structure burns off. Planned Q4 promotions for Black Friday and Cyber Monday will center on the new 'Insanity Unhinged' program and a corresponding pre-workout supplement launch. Free cash flow was negative $5.7 million in the first half of 2026, primarily driven by strategic inventory builds for the retail rollout and declining deferred revenue from the legacy model. Digital subscriber counts continue to face pressure from legacy file churn, though management notes that new subscriber acquisition rates have improved year-over-year. Retail expansion remains subject to retailer planogram timing, which limits management's direct control over the immediate pace of physical distribution growth. Nutrition gross margins are forecasted in the 42% to 45% range for Q3, reflecting planned promotional efforts and volume expectations during the retail scaling phase. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that Q2 traction was organic and driven by the marketing pivot, as the Vitamin Shoppe rollout only began in Q3. Future growth will be supported by new 'form factors' on Amazon, such as the 7-serve Shakeology bag priced at $34.99, which is more competitive than the previous $149 bulk offering. Store count expanded 45% from the initial 90-store test to 131 stores, driven by positive sell-through and reorders from the distributor KeHE. Management views Sprouts and Vitamin Shoppe as 'pinnacle retailers' that provide proof of concept for other major retail buyers currently evaluating the brand. The platform allows for 'harmonizing' front-end ads with landing pages, enabling the display of actual promotional prices which improves 'add to cart' rates. Management expressed high confidence in being fully optimized for the Q4 holiday season, citing the ability to rapidly iterate landing pages with specialized Shopify partners. The minimum liquidity threshold was lowered from $29.6 million to $22.5 million, granting the company more operational room to invest in growth initiatives. The amendment reflects the lender's confidence in the company's ability to generate consistent EBITDA over the last 11 quarters.

The Beachbody Company, Inc. (BODI) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of a loss of $0.14 per share. This compares to a loss of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +135.71%. A quarter ago, it was expected that this company would post a loss of $0.02 per share when it actually produced earnings of $0.32, delivering a surprise of +1700%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. The Beachbody Company, which belongs to the Zacks Consumer Services - Miscellaneous industry, posted revenues of $49.61 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.01%. This compares to year-ago revenues of $63.94 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. The Beachbody Company shares have lost about 0.3% since the beginning of the year versus the S&P 500's gain of 13.3%. While The Beachbody Company has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for The Beachbody Company was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $55.86 million in revenues for the coming quarter and $0.37 on $215.87 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Services - Miscellaneous is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, H&R Block (HRB), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This tax preparer is expected to post quarterly earnings of $2.23 per share in its upcoming report, which represents a year-over-year change of -1.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. H&R Block's revenues are expected to be $1.12 billion, up 0.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Beachbody Company, Inc. (BODI) : Free Stock Analysis Report H&R Block, Inc. (HRB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in The Beachbody Company, Inc.? Here are five stocks we like better. Beachbody exceeded its second-quarter outlook, reporting $49.6 million in revenue, $6.7 million in adjusted EBITDA and $1.4 million in net income. The quarter marked its fourth consecutive period of positive operating and net income and its 11th consecutive quarter of positive adjusted EBITDA. Revenue continued to decline during the transition away from multi-level marketing, falling 22.4% year over year, while digital subscriptions dropped to 760,000. Management is shifting toward a nutrition-led, omni-channel model, with expanded Shakeology distribution at Sprouts and Vitamin Shoppe and new P90X and Shakeology offerings on Amazon. Beachbody ended the quarter with $32.4 million in cash and $23.6 million in debt, but first-half free cash flow was negative $5.7 million due largely to inventory investments. For the third quarter, it expects revenue of $44 million to $48 million and adjusted EBITDA of $3 million to $6 million. Beachbody (NASDAQ:BODI) reported second-quarter 2026 revenue of $49.6 million, exceeding the midpoint of its guidance range, while extending its streak of positive operating income, net income and adjusted EBITDA as the company continues shifting toward a nutrition-led, multi-channel model. Executive Chairman Mark Goldston said revenue was above the company’s guided range midpoint of $46 million to $51 million. Adjusted EBITDA totaled $6.7 million, above the high end of guidance, while net income reached $1.4 million compared with the company’s projected range of a $3 million loss to breakeven. → MarketBeat Week in Review – 08/03 - 08/07 The quarter marked Beachbody’s fourth consecutive period of positive operating income and net income, as well as its 11th consecutive quarter of positive adjusted EBITDA. Adjusted EBITDA margin was 13.4%, the company’s fourth straight quarter with a double-digit margin. Despite exceeding its outlook, total revenue declined 8.6% sequentially and 22.4% year over year. Interim Chief Financial Officer Brad Ramberg said results remain affected by the company’s transition away from its former multi-level marketing model to an omni-channel business. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Digital revenue declined 7.2% from the prior quarter to $31.2 million and fell 21.5% from a year earlier. Digital subscriptions fell 6.2% sequentially to 760,000 and declined 19.1% year over year, which Ramberg attributed in part to continuing churn from the company’s legacy customer file. However, he said the number of new subscribers increased from the prior-year period. Nutrition and other revenue decreased 10.9% sequentially to $18.5 million and was down 23.7% year over year. Nutrition subscriptions rose about 16.7% from the first quarter to approximately 70,000 and were essentially flat from a year earlier. Ramberg noted that subscription counts will become a less relevant measure as one-time and retail nutrition sales expand. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Consolidated gross margin was 72%, up 20 basis points sequentially and down 30 basis points from the prior-year quarter. Digital gross margin was 87.1%, while nutrition and other gross margin was 46.7%. Operating expenses fell 5% sequentially and 32.1% year over year to $34.1 million. Selling and marketing expense represented 31.5% of revenue, reflecting the removal of multi-level marketing seller compensation following Beachbody’s exit from that channel at the end of 2024. Management highlighted progress in expanding Shakeology and P90X nutrition products through retail and online marketplaces. Goldston said Shakeology has expanded to 131 Sprouts Farmers Market stores, with the distributor KeHE reordering inventory after running low on initial supply. He said the store count had increased from an initial 90 locations. The company also began selling Shakeology in 481 The Vitamin Shoppe locations during the third quarter. Goldston said the rollout arrived several weeks earlier than expected and that the retailer has been supportive of the opportunity. Beachbody expects distribution growth to remain modest this year because new products must wait for retailer planogram resets, a process management said can take six to 12 months. The company has 12 retail decisions pending between mid-September and late November, according to Goldston. Management expects broader distribution growth in 2027 as products become more integrated into retailer shelf plans. The company is also expanding its distributor relationships. KeHE provides a path into grocery accounts, while a new account is expected to open access to the UNFI distribution network in November. P90X supplements, including pre-workout, hydration, creatine, recovery protein and energy products, recently became available on Amazon. Goldston said the company has also begun offering a seven-serving Shakeology package for about $35 on Amazon, compared with a previously emphasized 30-serving product that carried a substantially higher price point. He said the revised price points and product formats create a larger opportunity for Amazon sales. Chief Executive Officer Carl Daikeler said Beachbody has found that acquiring customers through nutrition advertising is “substantially lower” in cost than acquiring customers through advertising for fitness programs. In response, the company has shifted more media spending toward products such as Shakeology and P90X. Daikeler said the strategy is increasing website traffic and can support both direct-to-consumer growth and retail visibility. Nutrition customers who subscribe receive a 30-day trial of the company’s digital service, which provides access to its fitness-program library. The company completed its migration to the Shopify e-commerce platform at the end of the first quarter without business interruption. Daikeler said Shopify has provided greater visibility into conversion rates, customer engagement and website bounce rates, while enabling faster checkout through Shop Pay and more flexibility for bundles and subscription offers. Beachbody is working with a Shopify-focused company to refine landing pages and consolidate website traffic onto the platform. Daikeler said management expects the changes to support promotions during Black Friday and Cyber Monday and into the first quarter of 2027. On the digital side, the company continues to promote its 10-Minute Body catalog, which includes more than 400 workouts lasting five to 10 minutes. Daikeler said the programs have been particularly relevant for users of GLP-1 weight-loss medications, an audience the company is targeting with both fitness and Shakeology marketing. Beachbody launched its 30 Day Booty Boost program in June with trainer Chace Collett and plans to introduce Shaun T’s MAX BUILT strength program in early September. The company is also preparing an Insanity Unhinged program, led by HYROX World Champion Hunter McIntyre, for November promotions alongside a new Insanity pre-workout supplement. Beachbody ended the quarter with $32.4 million in cash and approximately $23.6 million in debt, for net cash of $8.8 million. The company amended its Tiger Finance credit agreement on Aug. 3, adopting a less restrictive covenant structure. For the first six months of 2026, free cash flow was negative $5.7 million, compared with $4.1 million generated in the prior-year period. Ramberg said the change primarily reflected inventory purchases for nutrition and retail expansion, as well as a decline in deferred revenue. For the third quarter, Beachbody forecast revenue of $44 million to $48 million, net income ranging from a $3 million loss to breakeven, and adjusted EBITDA of $3 million to $6 million. Management expects revenue during the period to be approximately 60% digital and 40% nutrition and other, though it anticipates nutrition will represent a larger share of the business by the end of 2026. Beachbody is a consumer-oriented health and fitness company based in Santa Monica, California. Founded in 1998 by Carl Daikeler and Jon Congdon, the company originally gained prominence through at-home workout programs distributed on DVD. Over time, Beachbody has transitioned much of its content delivery to a subscription-based digital platform, offering on-demand streaming of exercise routines, meal plans and wellness coaching. The company’s portfolio includes a range of branded fitness programs—such as P90X, Insanity, 21 Day Fix and Body Beast—alongside nutrition and supplement products marketed under the Beachbody Nutrition brand. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Beachbody Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Net Income and Operating Income Reported for Fourth Consecutive Quarter Net Income and Adjusted EBITDA Exceed High End of Guidance Revenue Exceeds Mid-Point of Guidance Eleventh Consecutive Quarter of Positive Adjusted EBITDA EL SEGUNDO, Calif., August 10, 2026--(BUSINESS WIRE)--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 second quarter ended June 30, 2026. "Q2 marks our fourth consecutive quarter of net income and operating income, further validating the strength of our transformed business model," said Carl Daikeler, co-founder and BODi’s Chief Executive Officer. "We’re continuing to build out our omni-channel nutrition strategy, bringing iconic brands like P90X and Shakeology to retail while expanding our direct-to-consumer reach. With our broad range of nutritional supplements, we can acquire nutrition customers efficiently and seamlessly migrate them to our digital fitness platform, delivering the total solution that has always driven our best customer results." "Our second quarter results mark our eleventh consecutive quarter of positive Adjusted EBITDA and our fourth consecutive quarter of double-digit Adjusted EBITDA margins, a clear sign that the operational discipline we’ve built into this business is durable," said Mark Goldston, BODi’s Executive Chairman. "With our high gross margins, a dramatically lowered breakeven point, and a strong balance sheet, we have the financial flexibility to fund our omni channel expansion and innovation pipeline while continuing to capitalize on significant growth opportunities. We were also pleased to announce that on August 3, 2026 we amended our credit agreement to a more flexible covenant structure, which reflects our lender's continued confidence in the long-term trajectory of our business." Second Quarter 2026 Results Total revenue was $49.6 million compared to $63.9 million in the prior year period. Gross margin was 72.0% compared to 72.3% in the prior year period. Total operating expenses were $34.1 million compared to $50.2 million in the prior year period, which included $2.5 million of restructuring related costs. Operating income improved by $5.6 million to $1.7 million, the Company's fourth consecutive quarter of operating income, compared to an operating loss of $4.0 million in the prior year period. Net income was $1.4 million, the Company's fourth consecutive quarter of net income, compared to a net loss of $5.9 million in the prior year period, which included $2.5 million of restructuring related costs. Adjusted EBITDA1 was $6.7 million compared to $4.6 million in the prior year period. Adjusted net income1 was $0.9 million compared to a loss of $2.8 million in the prior year period. Cash used in operating activities for the six months ended June 30, 2026 was $4.3 million compared to cash provided by operating activities of $6.6 million in the prior year period, and cash used in investing activities was $1.4 million compared to cash used in investing activities of $2.5 million in the prior year period. Free cash flow1 was $(5.7) million compared to $4.1 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 Outlook for The Third Quarter of 2026 Conference Call and Webcast Information BODi will host a conference call at 5:00pm ET on Monday, August 10, 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: 309733825. 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 the 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 third 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.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: 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: 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: 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: View source version on businesswire.com: https://www.businesswire.com/news/home/20260810999104/en/ Contacts Investor Relations [email protected]

Powered by BODi’s proven Glute Activation Method, the 30-day program targets all three glute muscles to help build a rounder, fuller, more lifted "peach" EL SEGUNDO, Calif., June 09, 2026--(BUSINESS WIRE)--BODi (NASDAQ: BODI), the proactive wellness company delivering nutrition, supplements, and proven fitness programs that help people take control of their health inside and out, today announced the launch of its unique new fitness program led by new BODi Super Trainer Chace Collett, 30 Day Booty Boost. Designed to deliver visible glute gains and a healthy total-body transformation, the 30-day program combines precision strength training, targeted supplementation, and accessible nutrition guidance into one streamlined system that eliminates the guesswork. While many people think endless squats and lunges are the key to firming and lifting the butt, those common exercises only address part of the posterior chain, and can place more demand on the legs, leading to more gains in the thighs than the glutes. 30 Day Booty Boost uses BODi’s proprietary Glute Activation Method to target all three glute muscles: the maximus, medius, and minimus, through activation, compound lifts, and isolation work. It’s designed to build glutes that are firmer, rounder, fuller, and more lifted, while total-body training sculpts a stronger, leaner, more athletic body without bulking the thighs. "30 Day Booty Boost is exactly what BODi does best: take a major consumer goal and turn it into a smart, proven, easy-to-follow system," said Carl Daikeler, co-founder and CEO of BODi. "This is not just another lower-body workout. It is a targeted program built around glute activation, strength training, total-body fitness, nutrition, and supplementation to help people achieve visible results in a way that feels empowering and sustainable. Chace brings incredible energy and expertise to this program, and the result is a workout experience that helps women build strength, shape, confidence, and pride in what their bodies can do." The program structure is simple: 30-50 minute workouts, six days a week, with an optional recovery day, including upper-body, total-body, and cardio/core training for healthy full-body results. 30 Day Booty Boost requires a bench, dumbbells, Power Loops, and Strength Slides. "We created 30 Day Booty Boost to help people train their glutes with intention, precision, and confidence," said Collett. "This program is about more than just chasing a look. It is about learning how to activate the right muscles, build real strength, and reshape the body in a way that is empowering. If you have wanted to focus on your glutes and see visible change, this program gives you my proven structure, intensity, and support to go after those results in just 30 days." Supplements Designed to Support Results In addition to training, 30 Day Booty Boost is combined with targeted BODi supplements to complement the program and help maximize progress, all while tasting as good as they perform. P90X Lean Muscle Stack - P90X Whey Protein, Pre-Workout, and Creatine work together to fuel results by helping enhance greater, lean glute muscle gains and boost overall strength and performance, each with their proprietary P90X-Factor formulation. Shakeology by BODi - Made with superfoods, prebiotics, probiotics, minerals, vitamins, and 16–17g of protein, Shakeology has delivered more than one billion servings since launch, helping provide vital nutrients often missing from everyday diets to support healthy energy, weight loss, gut health, and immune health. To mark the launch of the new program, BODi is offering a special Booty Bundle promotion that includes an $80 discount on its Annual Digital Subscription for just $99, which breaks down to $8.25 monthly for a savings of 45% overall, along with a complimentary 14-day serving pack of Shakeology (a value of $69.95) and Power Loops (a value of $29.95). To learn more, discover BODi’s premium nutrition and supplements, or sign up, visit www.BODi.com. About BODi and The Beachbody Company 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. To subscribe and shop, visit BODi.com. For company and investor information, please visit TheBeachbodyCompany.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260609072102/en/ Contacts Media Relations: [email protected] Investor Relations:[email protected]

Image source: The Motley Fool. Tuesday, May 12, 2026 at 5 p.m. ET Executive Chairman — Mark R. Goldston Cofounder and Chief Executive Officer — Carl D. Daikeler Interim Chief Financial Officer — Brad Ramberg Mark R. Goldston, Executive Chairman of Beachbody Company. Carl D. Daikeler, Cofounder and Chief Executive Officer, 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 2 thousand. 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 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. Mark R. Goldston: Thanks very much, Bruce, and good afternoon, everyone. Welcome to the Body Q1 26 Earnings Call. Last quarter, we reported our Q4 and full year 2025 results. A transformational year where we achieved positive operating income and adjusted net income for the first time since going public. Today, I am pleased to report the momentum continued in 2020-- let me start with the numbers and the Q1 2026 financial highlights. Total revenue for Q1 was $54.3 million which came in above the high end of our guidance. As a reminder, and as we have consistently noted, Q3 26 will mark the first quarter where we can make direct year over year comparisons that fully reflect our new business model as the legacy MLM business will have completely cycled out of both periods. More importantly, we delivered our third consecutive quarter of net income at $2.3 million compared to a net loss of $5.7 million in 2025. Operating income was $3.1 million, marking our third consecutive quarter of profitability on this metric. We posted our tenth consecutive quarter of positive adjusted EBITDA at $8 million up from $3.7 million in the prior year. And gross margin remained strong at 71.8% and within our guidance. As of March 31, our cash balance was $36.6 million against outstanding debt principal of approximately $25 million. Providing financial flexibility to execute our growth strategy. The operational discipline that we have built in over the past 2 plus years is now embedded in how we run the business. We have lowered our EBITDA breakeven from over $900 million in 2022 to approximately $180 million currently giving us tremendous operating leverage and the ability to invest strategically in growth initiatives without sacrificing profitability. As we discussed in March 2026 is the year we are unleashing our innovation pipeline. With our strong balance sheet and substantially improved financial position, we have got the flexibility to fund our retail expansion, and the innovation pipeline without compromising the financial discipline that delivered this turnaround. The cornerstone of our growth strategy is a pivot towards a heavier emphasis on nutrition. And that will be executed through an omnichannel strategy spanning direct to consumer, to retail distribution. This represents entry into a nutrition products category with a market opportunity that is more than 12x the size of the digital fitness category. We are bringing iconic brand names like P90X, Insanity, and Shakeology to retail with very high aided brand awareness. Now we are freed from the MLM commission constraints, and we can price our new nutritional products at dramatically lower price points than we have done in the past. In the case of Shakeology, we can utilize a much smaller form factor. The 7 serving size, which will give us a $34.95 retail price point versus our previous price point, which was a $129 for a 30 serve pack. This represents a significant opportunity for us. As many of you may know, in my career, I have got a long history in the consumer products or CPG industry. From my days at Johnson and Johnson and Bristol, Myers, Clare All, Cheeseboro Ponds, Revlon, and as president of Faberge, which became Faberge Elizabeth Arden. I have got background at Reebok, LA Gear, and the huge flower company, FTD. I have been responsible for the creation and/or billions of dollars worth of some of the most successful consumer products of all time sold through retail distribution. And that is 1 of our major areas of expansion that I brought to body. The process is submitting samples through our broker sales organization Advantage Solutions, securing buyer commitments, and then waiting for the retailer shelf set planogram to be updated is about a 6- to 12-month process with inflexible adherence dates. We are right now in the midst of that process, And over the next 60 to 90 days, we expect to see which retailers will be adding Shakeology, and the P90X line of nutritional supplements. Look. I am sure you have seen the recent spate of acquisitions in the CPG industry, whether it be Huel, Ghost, Bloom, Alani Nu, Poppy, and a host of other companies that have sold for between $1 billion to $2 billion in the past year. With brand names that while we have great respect for, are not nearly as well known as the P90X and even Shakeology brand names. So the potential for creating massive brand equity value for sure of body within the nutritional supplement and energy drink industry for body is potentially the single largest mid to long term opportunity that we have got at the company. Speaking of securing retail distribution, last week, we announced that Shakeology will be carried in more than 80 Sprouts Farmers Market stores around the country. Starting in late May, early June. And we just secured a partnership with KeHE Distributors which is 1 of the 2 largest distributors of natural, organic, and fresh products to the grocery industry. This will give us the opportunity to reach the 30 thousand grocery, supermarket, and online channels that are covered by the KeHE distribution network. And in late breaking news, we just announced in a press release yesterday that Shakeology will now be carried by The Vitamin Shoppe, across its more than 640 stores all over the USA later this year with The Vitamin Shoppe taking all 5 of the Shakeology flavor variants in our new 7-serve $34.99 retail price packaging. This exciting news along with the Sprouts Farmers Market news and the KeHE distribution deal will mark the first time that Shakeology, which is a $4 billion cumulative sales brand with more than 1 billion cumulative servings, the first time it will be available in retail stores across the USA. On the next quarterly earnings call, we hope to have an update on more exciting retail partners for the Shakeology brand and new retailers signed up to carry the P90X line of supplements and the retail stores who will be carrying the Insanity and P90X energy drinks in the Southern California test market we will be running later this summer. 1 of the truly unique and compelling aspects of the new body retail distribution initiative as a consumer product company is that we fundamentally created a virtual consumer products company. What do I mean by that? Well, we have outsourced virtually every aspect of our supply chain and distribution infrastructure. Manufacturing is outsourced to best in class contract manufacturers. Sales and retail distribution are managed through our outside partner, Advantage Solutions. Fulfillment and logistics of all of the retail orders are handled by a third party logistics provider or a 3PL. And we are evaluating the use of purchase order financing and accounts receivable factoring to optimize our working capital as it relates to the retail project. What we keep in house are the core competencies that drive our competitive advantage. Those are marketing, brand management, product innovation, and R&D. So this asset light model gives us exceptional financial flexibility, minimal capital requirements, and importantly, the ability to scale rapidly without proportional increases in fixed costs. Since this structure moves the majority of those costs to a variable based cost based on usage and demand. So in conclusion, our financial turnaround has created massive operating leverage, giving us the ability to invest strategically in high return initiatives while maintaining profitability. We are excited about the opportunities ahead, particularly as we move into the 2026 and then beyond. This year marks the opening of our nutritional innovation pipeline. We are actively in the process of developing new products, securing retail placement, and building market acceptance. While we expect to see initial traction in 2026, The substantial yield from these initiatives will materialize in 2027 and beyond, as our retail presence expands and our multichannel strategy fully takes hold. We have built a resilient financial foundation that positions us to capitalize on significant growth opportunities in both nutrition and digital fitness. And we are taking a disciplined, methodical approach to ensure we execute this transition successfully. I will now turn it over to Carl to discuss our operational progress and product innovation strategy. Carl? Carl D. Daikeler: Thanks, Mark. Our Q1 results demonstrate the operational momentum we have been building throughout 2025 and into early 2026. The financial discipline we have established has created an extremely efficient platform with leverage to execute against the compelling innovation pipeline across multiple sales channels. P90X Generation Next launched in early February to a packed house of media and influencers in New York City, generating millions of impressions in both earned and paid media. The response from our subscriber base has been very enthusiastic. And we are now gathering the success stories from the first wave of participants. that is especially important as we launch our branded nutritional line extensions in the P90X supplements, which will be sold direct to consumer on Amazon, TikTok shops, as Mark mentioned, at retail including an entire ready to drink line of P90X energy drinks. This is a really big deal with very special formulations, which live up to the reputation of the best selling extreme home fitness program of all time. We have launched a P90X pre workout, P90X hydration, P90X creatine, P 90 X recovery protein, and P90X fast acting energy that can be used to fuel longer training sessions. Or in my case, for a midday boost of energy. Each SKU in the line has something called a P90X factor, a proprietary element of the formulation, which makes it fast acting, potent, and effective so you get the performance benefits as promised. The P90X supplement line launched with our long overdue transition over to the Shopify ecommerce platform, which will make it easier for us to offer special bundle configurations, subscribe and save discounts, and improve AOV using Shopify's add to cart recommendation engine. Combine these entire new product lines with the new ease of shopping and thousands of success stories coming in from the first wave of P90X generation next users. We expect that to propel momentum of the fitness program and the P90X supplement line in every channel over the next 12 months. Meanwhile, the 10 minute body initiative continues to gain traction, The category of microdose fitness, we launched under the 10 minute body brand just before Christmas, continues to be a very popular program on the platform. Since our last call, we have expanded the catalog with 3 new targeted programs, 10 minute speed train by Joel Freeman, 10 minute active aging led by Debbie Sievers for those 60 and older, You will recognize Debbie from her recent appearance on ABC's Golden Bachelor. She is also 1 of the first super trainers to help us launch the company. We also just launched the 10 minute GLP 1 fitness formula. Specifically designed to help people on GLP 1 medications to build and preserve muscle mass. The platform now features over 400 science backed 10 minute workouts, and this high volume, low price subscription at $10 a month is successfully opening up our addressable market to the over 185 million Americans who are overweight or obese and may be intimidated by longer workout programs. Okay. Looking ahead to the summer, we have a new super trainer joining us, Chase Colette, with the brand new 30 day booty boost program launching in June. This has been 1 of the most requested additions to the catalog by subscribers and prospects, and we will integrate the P90X supplement line to help people get the maximum gains from the program where it counts using the pre workout, P90X creatine, and P90X protein. And that is exactly how nutrition has been fundamental to our success since we founded the company, helping people get the best results from their effort. And Shakeology the world's first superfood protein shake, which we launched in 2009, is probably our most significant nutrition innovation in the company's history. To put that in perspective, during our peak revenue years, fitness programs accounted for roughly 1-third total revenue, while nutrition drove about 2-thirds largely driven by Shakeology. Now that we are freed from the margin and distribution constraints, of the network marketing model, we can offer all our supplements, whether it is Shakeology, P90X, or other brands, all at more accessible price points with healthy margins. Dramatically expanding our opportunities to grow and scale in multiple sales channels like Amazon, TikTok shops, and retail, as Mark outlined. But what makes this nutrition expansion especially compelling is how it transforms our customer engagement and results model. Our data continues to show that we scale customer acquisition at a lower cost when offering nutrition first and bundling fitness with it. As opposed to offering digital fitness first. I believe that is because of the significant size of the nutrition and the ease of consumption relative to the decision to start a new fitness program. By leading with nutrition in this substantially larger category, we can attract customers through a wider top of the funnel. Then introduce them to our digital fitness platform through free trial offers. Every customer who enters the ecosystem with a nutrition purchase is offered a free trial to join the fitness platform, a major value and a competitive advantage in the massive supplement market. This nutrition first approach with fitness second enables us to deliver the total solution, the unique combination of comprehensive lifestyle change that has consistently driven our best customer results over nearly 3 decades. We think this construct could be especially potent for the digital app experience now that we just launched the ability to add up to 4 additional profiles to 1 membership, meaning anyone who is in a free trial of the digital app can invite up to 4 members of their household to set up their own profile under the same membership at no extra cost. This can help overall conversion as more household use should translate into retention. And what follows, of course, is more people using the body app in the household means more people who would likely consume our P90X supplements, our preworkouts, Shakeology, and so on in order to maximize their results. All of these improvements work together to optimize our marketing model that will drive traffic across multiple channels and improve the customer experience at every touch point. And all of this should position us well to build on the momentum of our turnaround. Now I will turn it over to Brad Ramberg, our CFO, to walk you through the Q1 financial details and our guidance for Q2. Brad Ramberg: Brad? Thank you, Carl, and thank you everyone for joining the call today. I will review our Q1 results and provide our outlook for 2026. We continue to make significant progress on our transformation and on driving operating efficiency. For the quarter, we exceeded the high end of our guidance for revenue net income and adjusted EBITDA. We generated our third consecutive quarter of net income and operating income and our tenth consecutive quarter of positive adjusted EBITDA. For the quarter, total revenues of $54.3 million declined 2.3% sequentially and declined 25% year over year, better than expectations as we continue to execute in our strategic transformation. Revenues continue to be impacted in the near term by a shift from a multilevel marketing platform to our current omnichannel model. Moving to digital and nutrition and other revenues. it is important to reiterate that the year over year decline continues to be heavily influenced by remnant revenue from the former MLM legacy business which was shut down 12/31/2024. Therefore, there is a component of MLM legacy digital and nutrition revenue that will remain through the first half of this year. As we move to Q3 of 26, we will be able to show a direct year over year comparison because the remaining legacy revenue associated with a former MLM will have burned off and those who remain from that cohort will become part of the body new business model revenue base. To be clear, this is not to suggest that we are projecting year over year revenue growth in March 2026. We are not providing guidance for 2026. As that will occur on our next earnings release. Now note, the direct year over year comparisons I am about to disclose for digital nutrition revenue are still skewed by the fact that the 2026 numbers reflect the new business model versus the 2025 numbers, which still had a major component of revenue that was part of the legacy MLM. Digital revenue decreased 2.1% sequentially to $33.6 million and 21.8% year over year. Digital revenues reflect continued pressure on our digital subscriptions, which decreased 6.9% quarter over quarter to approximately 810 thousand and declined 20.6% compared to the same period a year ago. Nutrition and other revenue decreased 2.5% from the prior quarter to $20.7 million and decreased 27.7% year over year. Nutrition subscriptions decreased 25% sequentially to 60 thousand. And fell 18.5% year over year. As our business evolves into an omnichannel model generating higher 1 time sales and retail sales, the subscription metric will be a less relevant KPI. Digital gross margin was 87.4%, increasing 10 basis points sequentially up 190 basis points from prior year. Our digital gross margin was in line with our target. The continued strength in year over year gross margin was primarily due to a decrease in digital content amortization and depreciation, due to more disciplined production and fixed asset spending. Nutrition and other gross margin was 46.7% decreasing 700 basis points sequentially and down 640 basis points versus last year. Nutrition and other gross margin was in line with our target. As a reminder, Q4 25 nutrition gross margin of 53.7% included certain 1 time benefits. Exclusive of those benefits, nutrition and other gross margins declined 390 basis points sequentially. The decrease in nutrition and other gross margin was primarily due to inventory adjustments in the current quarter. Consolidated Q1 gross margins were 71.8%, reflecting a decrease of 270 basis points sequentially but an increase of 60 basis points compared with the prior year. We are pleased to report that consolidated gross margin remained within our target gross margin range. Operating expenses for the quarter increased 8.2% sequentially, and declined 35% year over year to $35.9 million. Selling and marketing expense as a percent of revenue increased 230 basis points over the prior quarter. The increase from the prior quarter was due to planned higher advertising spend and new product launch expense. Selling and marketing expense declined 820 basis points year over year to 34.6%. The significant improvement over prior year stems from eliminating MLM seller compensation following our 12/31/2024 exit from the multilevel marketing channel. Enterprise technology and development was 17.3% of revenue, up 160 basis points sequentially and declined 10 basis points year over year. As a reminder, Q4 25 enterprise technology and development expense at 15.7% included certain 1 time benefits. Excluding these benefits, enterprise technology and development expense increased 40 basis points. Sequentially. G&A was 14.2% of revenue. Increasing 240 basis points sequentially. As a reminder, Q4 25's G&A expense of 11.8% included certain onetime benefits. Excluding these benefits, G and A expense increased 70 basis points sequentially. G and A declined 190 basis points from the prior year due to a decrease in personnel related expenses and professional fees. Operating income for the quarter was $3.1 million compared to a loss of $3.7 million in the prior year. Marking our third consecutive quarter of operating income. Net income for the quarter was $2.3 million, compared to a net loss of $5.7 million in the prior year. Marking our third consecutive quarter of net income. Adjusted net income was $2.5 million for the quarter, versus a $5.1 million adjusted net loss in the prior year. Adjusted EBITDA was $8 million compared to $12.9 million sequentially and 3.7 million in the prior year. Marking our tenth consecutive quarter Of positive adjusted EBITDA. Now turning to the balance sheet. Our cash balance was 36.6 million compared to $39 million in the prior quarter and $18.1 million last year. Our net cash position was $13 million Cash used in operations for the quarter was $1 million compared to cash generated from operations of $2.3 million in prior year. Free cash flow was negative $1.7 million compared to positive $1.6 million in the prior year. Now turning to our second quarter guidance. While we are pleased with the execution of our transformation, I want to reiterate that this guidance should not be compared to 2025. Because 2025 still had revenue recognized in the legacy MLM model. We continue to drive operating leverage and we are excited about the opportunities ahead. We have a stronger balance sheet, a sustainable and viable long term business model that allows us to grow without the structural impediment of the previous MLM model. However, we are still in the early stages of the new distribution model, and it will take time to develop traction in these new lines of business. As a reminder, the tail of our legacy business is winding down, and we expect that the first time we will be able to do a year over year comparison of our new business model will be comparing 2026 to 2025. We expect second quarter revenues to be in the range of $46 million to $51 million Net income to be in the range of negative $3 million to breakeven, and adjusted EBITDA to be in the range of $3 million to $6 million. For the quarter, we anticipate revenues to approximate 60% digital and 40% nutrition and other. However, in line with the strategies we articulated on this call, we currently expect a shift by 2026 to a larger percentage of our business being in nutrition and the attendant margins that come along with it. For the quarter, our digital gross margin target is expected to be in the range of 86% to 88%. Our nutrition and other gross margin target is forecasted to be in the 43 to 47% range which is in line with our volume expectations and certain promotional efforts plan. Our total gross margin target is expected to be in the 69% to 72% range. In closing, we continue to make considerable progress against our business transformation. We significantly lowered our breakeven point and strengthened our financial position. Putting us on a solid financial foundation to execute against our growth initiatives that will drive long term shareholder value. I look forward to updating you on our progress on our next earnings call. Operator: We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, please press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Susan Kay Anderson with Canaccord Genuity. Your line is open. Please go ahead. Susan Kay Anderson: Hi. Good evening. Thanks for taking my questions. Nice job on the quarter. I was wondering maybe if you could give some more color on the new P90X launch and then the 10 minute body programs. It sounds like they are doing well, particularly the 10 minute body. I guess, is there any way to quantify what percent utilizing the program or new subscribers versus existing subscribers. Carl D. Daikeler: Thanks, Susan. You can hear me okay? Yeah. Okay. Great. So I just wanted to make sure. So we do not break them out like that, but I will say that as we pivoted to the nutrition where we are advertising nutrition, I will say that the P90X supplements are attracting both new traffic, but also doing a really good job of activating new customers from the large database that we have got. So it is a reactivation play that is actually where pleasantly surprised by how it is working within the database. 10 minute body is where we are seeing more of a new subscriber acquisition volume happen because of that high volume, low price opportunity where we are advertising 10-day free trial and a $10-per-month subscription. But seeing a nice proportion of those people coming in for the 10-day free trial, $10, level up to the $19 a month full subscription. So that is the way we are looking at those 2 particular aspects of the content. But like I said, P90X is in its very early days. We are just collecting all the success stories from the first wave and that is what is gonna propel the next 12 to 18 months of traffic and excitement about that particular program and then we layer on top of it with the new programs like the 30 day booty boost that will come out this summer. But, again, all of it, is secondary to the strength of customer acquisition that we are seeing from advertising nutrition first digital second. Susan Kay Anderson: K. Great. that is completely positive. Carl D. Daikeler: And then maybe if you could give us an update on the Shopify transition. I think that happened in late Mark. Any changes there? Any color on how that transition went? Susan Kay Anderson: Yeah. Well, that is that is probably my favorite thing to talk about. Carl D. Daikeler: I will try not to monopolize this. But we are definitely seeing across the board that was a very good decision. What we are even more encouraged by is how we are improving conversion of the current rate of traffic based on the ease of use of both the Shopify platform and now adding the Shop Pay option so that people who already have their information with 1 click of the purple button have an easier time to check out. But, I think maybe what is most encouraging to me, there is 2 things. 1, we are seeing that from a competitive standpoint, our website is actually converting better than some competitors that were appropriately compared to. And but there is also some low fruit on the tree for us to make improvements in our conversion and our landing page and landing pages and site navigation so we can even make more efficient use of the traffic that we are already generating. So, again, we got 2 levers here to work with. 1 is nutrition is generating traffic at a much more efficient cost of acquisition, and the ease of use of the Shopify platform is converting more of those customers and we see low fruit on the tree to improve on that traffic already. So overall, it is been a very good transition for us despite being at the end of the quarter and a lot of stuff going on, very pleased with the effort that the team put into that. Susan Kay Anderson: Okay. Great. Then maybe if I could just add 1 more, I guess, just trying to get a sense of what the top line will look like once you know, we cycle the MLM departure. So I guess, you know, when we when you look at the top line right now, it is seems like kind of the quarters are about a $50 million run rate. I guess, do you have any insight into, you know, if you know, think there is still a lot of legacy MLM subscribers left to cancel or you know, kind of what that run rate will look like once we are done with that? Thanks. Mark R. Goldston: Most of the Most of that is gonna be cleaned by Q3. that is why we say Q3. Susan, this is Mark, is gonna be the first sort of a year on year clean quarter read. So we are just getting to the remnants of it right now and, you know, through the end of Q2. And then when we get to Q3, that should be a rather de minimis amount. There will be a pure read of Q3 26 versus Q3 25. Susan Kay Anderson: Okay. Great. Thanks so much. Carl D. Daikeler: Good luck the rest of the year. Thanks, Susan. Operator: Your next question comes from the line of Eric DeLoret with Craig Hallum Capital Group. Your line is open. Please go ahead. Analyst (Eric DeLoret): Thank you for taking my questions. Congrats on the continued impressive progress here. So my first question is a bit of a follow on to the last question. Mark R. Goldston: So sequential revenue declines here, they have improved now to less than 3%. And then average revenue per digital subscriber increased sequentially for the first time in nearly 2 years. Average revenue per nutrition subscriber also up sequentially. Can you talk about just kind of trying to parse that out, the impact of any recent price increases on that sort of average revenue per nutrition subscriber and, I guess, digital as well. And then just whether we should take that, you know, these sequential increases as signs of the MLM headwinds easing or if there is other sort of pricing or customer dynamics to sort of be aware of here. Just wondering how you expect that average revenue per subscriber number to progress and if that is a sign of MLM headwinds easing? Brad Ramberg: Yeah. Hey, Eric. Those are great questions. So, essentially, it is not really because of the headwinds easing. Mark R. Goldston: We really did not have pricing increases to speak of. As we talked about in the last call, you know, we started a pivot and we are pushing nutrition more than we did before. We were using the digital fitness sort of as the lead before, and then we would convert people to nutrition. But realizing that digital fitness is a $13 billion category and nutrition is $164 billion it was kind of like the tail was wagging the dog. So since we changed our pivot, 1, our CACs are lower. Even though we do not publicly disclose the actual CAC, our CACs are lower. And the conversion rates are great. And there is a very high percentage of people who take nutritional supplements in general, as you know, who exercise. We are seeing organic improvement. In that nutrition business, and part of it is up until about 9 months ago, we never even advertised it. I mean, by and large, you know, it was only done by the MLM where they sold it direct or they sold it as an add on. So we are making the public, which previously had not seen these products, aware of them. And the results have been quite effective. And so that is a big reason why we made the pivot and why we feel so emboldened by the results that we are seeing. So not saying it is gonna be on a high glide path because we do not know that. We are not projecting that. But we do see as our future goes that because this company in its past had 66% of its revenue in nutrition, that the opportunity for us to significantly grow that part of our business is real, and we are going after it. Analyst (Eric DeLoret): Yeah. Certainly a very attractive, you know, growth opportunity and outlook here. I guess just 1 more on that. So should I understand the increase in sort of average revenue per subscriber as lowered customer acquisition costs as you were kind of just touching on or, you know, lower contra revenue items, or is there some other sort of just organic growth aspect that is that is helping drive that average revenue per subscriber number up? Brad Ramberg: I think Eric, this is Brad. In terms of, nutrition in particular, we are having more 1 time sales, especially now that we are advertising it. So as I as I mentioned in my sort of prepared remarks, I think the nutrition sub number is not necessarily the best metric to use going forward. And over the time, we will come up with a better sense of guidance, but there is certainly more 1 time sales. In addition to the nutrition orders that are sold via subscription. Mark R. Goldston: Yeah. And remember, a lot of people do not just buy a single product. Carl D. Daikeler: So if they buy a bundle or buy a stack, as the case may be, that obviously helps to build AOV. Yeah. Absolutely. Analyst (Eric DeLoret): that is helpful. Thank you. Just wondering if you could expand on the impact of KeHE distribution. I mean, does this simply sort of get you a seat at the table with grocers, or is KeHE itself doing any marketing on behalf of Beachbody? If you could just expand on what you expect from that partnership. That would be great. Mark R. Goldston: Great question. As you know, KeHE is a huge company, 1 of the 2 dominant distributors in the food industry. They have got as I understand, over 30 thousand individual grocers who are in their network. So the way it works is, for example, we are selling Sprouts. Sprouts is part of the KeHE network. And so when you get Sprouts, you get added to KeHE. And now you are in their system. And KeHE has its own sales organization, which goes out to these 30 thousand retailers as well. So separate from our broker organization that we have hired at Advantage, They have their own internal organization, so they can now make their client companies, the 30 thousand grocers, aware of the fact that they now carry our product, and it is available for purchase. So we intend to work closely with KeHE to help indoctrinate their sales organization so that they can do effective communications out to their grocer member network so that they can potentially buy our Shakeology product, and this is for Shakeology. that is all very encouraging. Analyst (Eric DeLoret): Thank you. Yes. Thank you, Eric. Operator: Your next question comes from the line of George Arthur Kelly with ROTH Capital Partners. Your line is open. Please go ahead. George Arthur Kelly: Hi everyone. Thanks for taking my questions. Carl D. Daikeler: Sure. Hey, George. George Arthur Kelly: First 1, hey, Mark. Mark R. Goldston: First 1 is on the Southern California test. Can you just update us on the status of that test and what you have learned? I am not sure what the distribution looks like or just any kind of update on that test would be great. George Arthur Kelly: We literally just got off a call an hour ago on this. So we have hired the best beverage distribution beverage company to help us distribute it in country, which is LA Libations. Out of Los Angeles. They are just top drawer. Mark R. Goldston: Heck, they just ran their beverage forum 2 weeks ago. It was massively attended. So they are representing us in the Southern California market. To go out to distribution, remembering that we are, George, off the planogram cycle right now. So most of these retailers are you know, already have their store shelves set. So they are gonna be going out with what they would call an interrupt sale, which is you are going in off cycle. To show 2 very compelling products. So Insanity, which is gonna be called Insanity Liquid Shock. that is what we are calling it. And then we have got our P90X product, And so that product is in the process of going through final stage of production. We will have production quantities available in July, and then they are ready to ship. So we anticipate probably being on shelf in Southern California stores that the LA libation sales organization will be selling over the next, call it, 6 to 8 weeks, probably be on shelf at some point in August, which is exactly when we thought we would be. So we are tracking. it is on schedule, and the plan would be put it in the test market. Read the results. And then a lot of retailers, have their meetings in October and November for their spring 27 planogram resets. So the planogram resets for most retailers is in March of 2027. And the presentations to get into those planograms, this is for national will be in October and November. So the goal is get on shelf, end of the summer, get some great reads hopefully, of P90X and Insanity energy drinks in the Southern California market, and then use that as a proxy to go into those October and November national meetings to secure distribution that will then occur in 2027. George Arthur Kelly: Okay. Okay. that is that is great. And then a follow-up to that. As you build both the business you were just talking about, the P90X and Insanity stuff as well as the Shakeology at retail. Mark R. Goldston: Mhmm. How should we think about gross margin? Is it gonna be a material kind of impact as those revenue lines grow? And just any kind of context there would be helpful. I think the best way to think about it and, Brad, feel free to jump in here, those margins in nutrition as wholesale becomes a bigger and bigger part of the business, which now that it will, will probably be in and around the mid forties. And so for nutrition. So that is the best way to think about that. And so on a weighted average basis, you know, versus where we were, which is 48 to 50, it will not be a huge difference. And the way we look at it, George, is while that will be the margin, component as we move into 2027, we are looking at the material gross profit dollars themselves. Because this should become a volume business at some point where we are just looking at actual gross profit. So we know going in that a wholesale business in nutrition will be in the 40 plus range of margin. And so the question will become what percentage of our overall company is that? And then where do your weighted average gross margins go? But at this point, we really cannot project that yet because we are in such early days. George Arthur Kelly: Yep. Understood. And then last question for you. I know it is less a focus, but the digital fitness side of your business, How is the sort of content spend and new programming and, like, how much are you scaling all of that back? Carl D. Daikeler: And marketing around your digital fitness business like, how quickly should we think about, the shift in focus like, starting to sort of play through the numbers? Or am I-- yeah. I really would not-- how much it is-- Yeah. I would not look at it that way, George. What we are really seeing like, it is still a very critical and, frankly, a competitive advantage that we have with the size of the library, the scope of the over a 160 programs in the library. And, frankly, we have kept the capital allocation to new content the same for about the last 2.5, 3 years. So that is consistent. What we have found, though, is we are acquiring customers into both the digital subscription and the nutritional products at a more efficient rate by leading with the nutritional. So if you think about it just from a consumer standpoint, they are thinking about a healthy lifestyle change. See Shakeology, or they see the new P90X supplements being advertised D2C. And they go, oh, you know what? I would like to make a lifestyle change. They come in, and then see the digital subscription offerings available to them and we are still converting people into digital. So plus, when they buy for instance, a Shakeology let's say they buy a bag of Shakeology, and that is about a $120. They might get a little discount on that. If they are a first time customer, we will offer them a free 30 day trial into the digital subscription that rolls over into, whether either a monthly or an annual subscription. So it is still what we call the total solution. Which is what has driven the company, to growth since we started it. So it is so digital fitness is still fundamental. We are still investing in it, and it is still, I think, an important competitive advantage that we have got in all these sales channels where we are leading with nutrition. Mark R. Goldston: Sure. Let me-- the value that we get to add to the purchase-- let me add something on to what Carl just said, and think about it like this because this is really a very clever move that we are making here. With the digital fitness market, being $13 billion, just imagine you are fishing in a lake. The nutritional category, $164 billion, is literally an ocean. And what we are finding is that it is a much more efficient catch mechanism. To go into that larger nutritional market because 60-plus percent of the people who take nutritional supplements exercise. So we are now taking a focus, and we are going to get you out there with the advertising on nutrition. And when you come to the Body website and you see that we are the premier player in the world in digital fitness, we are getting a lot of upselling occurring. So people now buying the supplements, but buying the digital fitness. So what does that do? That brings your CAC down. So you are getting much more efficient CAC because you are promoting nutrition and you are getting the add on of digital fitness, or they are going right to digital fitness and they just were attracted by the advertising and nutrition. So what we are finding is that with the same level of dollar spend, we are actually getting a preferential customer acquisition cost which gives us a better yield and lifetime value. Does that make sense? George Arthur Kelly: It does. Yeah. It does. Thank you. Carl D. Daikeler: Sure. Operator: Your next question comes from the line of Alec Hantman with Sidoti & Co. Your line is open. Please go ahead. Analyst (Alex Hantman): Good evening. Thanks for taking our questions. Mark R. Goldston: Hey, Alec. My first question just following up on the retail launch. I know you spoke about Vitamin Shoppe coming into play later this year. Could you talk a little bit about, how many stores might be used at launch and if there is any metric that you might be looking to hit for the rollout to be expanded. Analyst (Alex Hantman): So luckily, they were very impressed with the product line. Mark R. Goldston: So it is going-- I think it is going chain wide to the over 600 vitamin shop stores out of the gate. So it is not a limited roll. See how it does, and then roll it out. We are going chain wide. Nationwide with Vitamin Shoppe at present. So it should be in stores, you know, probably sometime maybe late August into early September. that is the plan. So, yeah, they are a great partner, and they are excited about it, and so are we. Analyst (Alex Hantman): that is great. Congrats, Mark. Mark R. Goldston: Yeah. Thank you. Is Sprouts also starting, you know, at the full rollout? Analyst (Alex Hantman): No. Mark R. Goldston: Sprouts, I think we are gonna be at 90 stores. And that was, you know, basically laid out by them and us as the best places for us to be out of the gate. And assuming we have great success there, I assume there will be more stores obviously added after that. But we have a great component of stores that we are going in and enough to really do a meaningful business. And they are, again, a fantastic partner to be in incredibly well respected, not only by the consumer, but by their brethren in the grocery business. that is great momentum. Thank you. Analyst (Alex Hantman): Yeah. And then just, yeah, a couple more from us. You know, I know you have spoken about nutrition being, you know, much more efficient catch mechanism, you know, and providing a lot of cross selling opportunities. I know you mentioned, that the retail products will come with complementary digital access. Do you have, you know, conversion rate assumptions? You know, basically, how are you thinking about the cross selling success of that channel after launch? Mark R. Goldston: Measuring that? Well, we will have uh, we do not really know because we are still waiting on you know, we have like, 30, 40 sets of samples that are sitting in retail buyers' offices waiting to get responses from them as to who we will be adding the product line. So hard to make any kind of an estimate while we are not really sure where that distribution's going. So I said in my prepared remarks, hopefully, the next call, we will have an update as to who is carrying these products where, and what kind of doors we will have. But there is really no way to know that out of the gate. I mean, we can make an educated guess, but you do not really know that. And so we are gonna have to see how it plays out, but it is a tremendously effective tool And, so it just depends on how many doors promote our product, whether we get end cap displays or just in line. And whether there will be in store signage that touts the fact that when you buy the product, you are getting a month of free access to Body. So but that will all start to materialize as we get the distribution nailed down. Analyst (Alex Hantman): Understood. that is great. Thank you. Sure. Operator: Thank you. As a reminder, if you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, please press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted, please remember to unmute your device. Your next question comes from the line of Michael Lipinski with Noble Capital Markets. Your line is open. Please go ahead. Carl D. Daikeler: Mark R. Goldston: Hi, Michael. Operator: Michael, you might be muted on your end. Mark R. Goldston: Yeah, Michael. We are not hearing you. Michael, I will have you try 1 more time. Your line is open. Please go ahead. Mark R. Goldston: Well, it looks like the string to the an dixie cup may have been disconnected. Operator: Well, that concludes our Q&A session for today. I will now turn the call back to Mark R. Goldston for closing remarks. Mark R. Goldston: Thanks very much, Elizabeth. Really appreciate everybody attending today. We are really, really proud of the quarter. That we just put up, and we are we are really excited about what the future holds for the company as we have articulated. So as always, if you have any questions, please feel free to reach out to the company either through ICR or directly to Brad Ramberg, our CFO. Thanks, everyone. Have a great evening. Operator: That concludes today's call. Thank you for your participation. And enjoy the rest of your day. You may now disconnect. Before you buy stock in Beachbody, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Beachbody wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,205!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,384,459!* Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Beachbody (BODI) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved third consecutive quarter of net income and operating income, signaling the successful stabilization of the business following the legacy MLM exit. Lowered the EBITDA breakeven point from over $900 million in 2022 to approximately $180 million, creating significant operating leverage for growth investments. Pivoted to a 'nutrition-first' strategy to target a $164 billion market opportunity, which is more than 12x the size of the digital fitness category. Transitioned to an asset-light 'virtual CPG' model by outsourcing manufacturing, sales, and logistics to maintain financial flexibility and scale rapidly. Leveraging high aided brand awareness of P90X, Insanity, and Shakeology to secure retail placement, freed from previous MLM pricing and commission constraints. Adopted a nutrition-led customer acquisition framework, finding that leading with supplements results in lower acquisition costs and higher cross-sell potential for digital fitness. Implemented a Shopify-based e-commerce platform to improve conversion rates, site navigation, and average order value through better bundling and one-click checkout. Q2 2026 guidance anticipates revenue between $46 million and $51 million, with a projected shift toward a larger percentage of nutrition revenue by year-end. Expects Q3 2026 to be the first quarter for clean year-over-year comparisons as legacy MLM revenue remnants fully cycle out of the financial results. Anticipates initial retail traction in the second half of 2026, with substantial financial yield expected in 2027 as national planogram resets occur. Planning a Southern California test market for P90X and Insanity energy drinks in August to provide performance data for national retail meetings in late 2026. Evaluating the use of purchase order financing and accounts receivable factoring to optimize working capital as the retail business scales. Announced major retail partnerships with Vitamin Shoppe (640+ stores) and Sprouts Farmers Market (80+ stores) for Shakeology's first-ever retail presence. Secured a distribution agreement with KeHE, providing potential access to a network of 30,000 grocery and online retail channels. Launched the '10-minute GLP-1 fitness formula' to target the growing market of individuals using weight-loss medications who need to preserve muscle mass. Introduced a new 7-serving Shakeology form factor at a $34.95 price point to better align with retail consumer expectations versus the legacy $129 bulk pack. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that P90X supplements are primarily driving reactivation of the existing database and attracting new traffic through earned media. The 10-minute body initiative is the primary driver for new subscriber acquisition due to its low-price, high-volume $10 per month entry point. Management expects wholesale nutrition margins to be in the mid-40s range, slightly lower than the current 48% to 50% for direct-to-consumer nutrition. The strategic focus is on increasing total gross profit dollars through volume, even if the weighted average margin percentage shifts slightly due to the wholesale mix. Management explained that the nutrition market is an 'ocean' compared to the fitness 'lake,' allowing for more efficient customer catchment. Advertising nutrition first lowers Customer Acquisition Cost (CAC) because it appeals to a broader audience, many of whom then opt-in to digital fitness trials as an add-on. Most major retailers set their spring 2027 planograms in March, with critical selection meetings occurring in October and November of 2026. The company is timing its Southern California tests to provide 'proxy' data for these national meetings to secure widespread distribution for 2027.

Interested in The Beachbody Company, Inc.? Here are five stocks we like better. Beachbody’s Q1 2026 results beat expectations, with revenue of $54.3 million above guidance and its third straight quarter of profitability on both a net income and operating income basis. Net income came in at $2.3 million, operating income was $3.1 million, and adjusted EBITDA rose to $8.0 million. Management is shifting the business away from the legacy MLM model and toward nutrition and retail distribution. Revenue is still declining year over year as the old model rolls off, but Beachbody says nutrition is becoming the centerpiece of growth through channels like Amazon, TikTok Shop, Sprouts, KeHE and The Vitamin Shoppe. The company is broadening its product pipeline and subscription offerings with P90X supplements, energy drinks, and the expanding Ten Minute Body platform. Beachbody also ended the quarter with a stronger balance sheet, including $36.6 million in cash and a net cash position of $13.0 million. Beachbody (NASDAQ:BODI) reported first-quarter 2026 results that management said extended the company’s financial turnaround, with revenue above guidance and a third consecutive quarter of profitability on both a net income and operating income basis. Executive Chairman Mark Goldston said total revenue for the quarter was $54.3 million, above the high end of the company’s guidance. Beachbody posted net income of $2.3 million, compared with a net loss of $5.7 million in the first quarter of 2025. Operating income was $3.1 million, compared with an operating loss of $3.7 million a year earlier. → MercadoLibre Boldly Invests in Growth: Discount Deepens Adjusted EBITDA was $8.0 million, up from $3.7 million in the prior-year period, marking the company’s 10th consecutive quarter of positive adjusted EBITDA. Gross margin was 71.8%, which management said was within its guidance range. “The operational discipline that we've built in over the past 2-plus years is now embedded in how we run the business,” Goldston said. He added that Beachbody has lowered its adjusted EBITDA breakeven point from more than $900 million in 2022 to approximately $180 million currently. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Interim Chief Financial Officer Brad Ramberg said total revenue declined 2.3% sequentially and 25% year over year, as the company continues to move away from its former multi-level marketing model and toward an omni-channel business model. The legacy MLM business was shut down on Dec. 31, 2024, but Ramberg said some remaining revenue from that model will continue to affect comparisons through the first half of 2026. Ramberg said the company expects the third quarter of 2026 to be the first period where year-over-year comparisons will fully reflect the new business model. He cautioned that this does not mean the company is projecting year-over-year revenue growth in the third quarter. → 3 Small-Cap Stocks to Buy as the Russell 2000 Extends Its Rally Digital revenue was $33.6 million, down 2.1% sequentially and 21.8% from the year-ago period. Digital subscriptions decreased 6.9% from the prior quarter to approximately 810,000 and declined 20.6% year over year. Nutrition and other revenue was $20.7 million, down 2.5% sequentially and 27.7% from the prior-year quarter. Nutrition subscriptions decreased 25% sequentially to approximately 60,000 and fell 18.5% year over year. Ramberg said the nutrition subscription metric will become less relevant as the company’s model shifts toward one-time sales and retail distribution. Management emphasized that nutrition is becoming the centerpiece of Beachbody’s growth strategy, supported by direct-to-consumer sales, Amazon, TikTok Shop and retail distribution. Goldston said the nutrition products category represents a market opportunity more than 12 times the size of the digital fitness category. He said the company is bringing established brands including P90X, Insanity and Shakeology into retail channels, aided by brand awareness and lower pricing made possible by the elimination of MLM commission constraints. For Shakeology, Goldston said Beachbody is introducing a smaller seven-serving package at a retail price of $34.95, compared with the prior 30-serving package priced at $129. He described the shift as a significant opportunity for the company. Beachbody announced that Shakeology will be carried in more than 80 Sprouts Farmers Market stores beginning in late May or early June. Goldston also said the company has secured a partnership with KeHE Distributors, giving Beachbody access to KeHE’s network of approximately 30,000 grocery, supermarket and online channels. The company also announced that The Vitamin Shoppe will carry all five Shakeology flavor variants in the new seven-serving packaging across more than 640 stores later this year. In response to an analyst question, Goldston said The Vitamin Shoppe launch is expected to be chainwide rather than a limited rollout, with products likely arriving in stores in late August or early September. Co-founder and Chief Executive Officer Carl Daikeler said P90X Generation Next launched in early February at a media and influencer event in New York City and generated millions of impressions through earned and paid media. He said early subscriber response has been enthusiastic, and the company is collecting success stories from the first wave of participants. Beachbody has launched a P90X supplement line that includes pre-workout, hydration, creatine, 100% whey protein and P90X Energy products. Daikeler said each SKU includes a proprietary formulation element the company calls the “P90X Factor.” The P90X supplements launched alongside Beachbody’s transition to the Shopify e-commerce platform. Daikeler said Shopify should make it easier to offer bundles, subscribe-and-save discounts and improved average order value through add-to-cart recommendations. In the Q&A portion of the call, Daikeler said the Shopify transition is already helping conversion. He cited the ease of use of the platform and the addition of Shop Pay as positives, while noting that management sees further opportunities to improve landing pages and site navigation. Goldston also discussed Beachbody’s planned Southern California test market for Insanity and P90X energy drinks. He said the company is working with L.A. Libations on distribution and expects production quantities to be available in July, with products potentially on shelves in August. If the test produces strong results, management plans to use the data in October and November meetings with retailers for spring 2027 planogram resets. Daikeler said Beachbody’s Ten Minute Body initiative continues to gain traction. The platform now includes more than 400 science-backed 10-minute workouts, with the subscription priced at $10 per month. Recent additions include Ten Minute Speed Train by Joel Freeman, Ten Minute Active Aging led by Debbie Siebers and Ten Minute GLP-1 Fitness Formula, which is designed to help people taking GLP-1 medications build and preserve muscle mass. Daikeler said Ten Minute Body is helping open Beachbody’s addressable market to Americans who may be intimidated by longer workout programs. He said the company is seeing more new subscriber acquisition from Ten Minute Body, while the P90X supplements are helping reactivate customers in the company’s database. The company also plans to launch Thirty-Day Booty Boost in June with new super trainer Chase Collett. Daikeler said Beachbody will integrate the P90X supplement line into the program. For the second quarter of 2026, Beachbody guided for revenue of $46 million to $51 million. The company expects net income to range from a loss of $3 million to breakeven, and adjusted EBITDA to range from $3 million to $6 million. Ramberg said second-quarter revenue is expected to be approximately 60% digital and 40% nutrition and other, but management expects the business mix to shift toward a larger nutrition component by the end of 2026. The company expects digital gross margin of 86% to 88%, nutrition and other gross margin of 43% to 47%, and total gross margin of 69% to 72% in the second quarter. Beachbody ended the first quarter with $36.6 million in cash, compared with $39.0 million in the prior quarter and $18.1 million a year earlier. The company reported outstanding debt principal of approximately $25 million and a net cash position of $13.0 million. Ramberg said Beachbody continues to have “a stronger balance sheet” and a more sustainable model, though he noted the company remains in the early stages of building traction in its new distribution channels. Beachbody is a consumer-oriented health and fitness company based in Santa Monica, California. Founded in 1998 by Carl Daikeler and Jon Congdon, the company originally gained prominence through at-home workout programs distributed on DVD. Over time, Beachbody has transitioned much of its content delivery to a subscription-based digital platform, offering on-demand streaming of exercise routines, meal plans and wellness coaching. The company’s portfolio includes a range of branded fitness programs—such as P90X, Insanity, 21 Day Fix and Body Beast—alongside nutrition and supplement products marketed under the Beachbody Nutrition brand. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Beachbody Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.