This article first appeared on GuruFocus .
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Total Revenue:$49.6 million, above the midpoint of guidance ($46 million to $51 million), down 22.4% year over year.
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Digital Revenue:$31.2 million, down 7.2% sequentially and 21.5% year over year.
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Nutrition and Other Revenue:$18.5 million, down 10.9% sequentially and 23.7% year over year.
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Digital Subscribers:760,000, down 6.2% sequentially and 19.1% year over year.
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Nutritional Subscriptions:Approximately 70,000, up 16.7% sequentially and flat year over year.
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Consolidated Gross Margin:72%, up 20 basis points sequentially and down 30 basis points year over year.
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Digital Gross Margin:87.1%, down 30 basis points sequentially and 60 basis points year over year.
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Nutrition and Other Gross Margin:46.7%, flat sequentially and down 470 basis points year over year.
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Operating Expenses:$34.1 million, down 5% sequentially and 32.1% year over year.
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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.
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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.
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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.
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Adjusted EBITDA Margin:Approximately 13.4%, the fourth consecutive quarter of double-digit margins.
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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.
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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.
Release Date: August 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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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.
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The company achieved a fourth consecutive quarter of double-digit adjusted EBITDA margins (13.4%), demonstrating durable operational discipline.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
Negative Points
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Total revenue decreased 22.4% year-over-year to $49.6 million, reflecting continued pressure from the transition away from the legacy MLM model.
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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.
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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%).
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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.
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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.
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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.
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The company faces execution risks with its new energy drink test market, which is still in early stages and may not yield immediate results.
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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.
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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.
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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 & A Highlights
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 .
