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    BODI
    Earnings call· Jun 2026(Q2 FY26)

    Beachbody Company Q2 FY26 earnings call BODI

    Aug 10, 2026 Source

    Executive summary

    BODi Q2 FY26 — Strong Profitability and Strategic Multichannel Expansion

    BODi delivered another quarter of consistent execution against its turnaround strategy, marked by strong profitability and continued expansion into a nutrition-first, multichannel model. The company exceeded guidance for revenue, net income, and adjusted EBITDA, demonstrating durable operational discipline. Strategic retail partnerships and e-commerce launches are building momentum, while the transition to Shopify is expected to drive significant improvements in conversion and sales funnel efficiency, positioning the business for accelerated growth in 2027.

    Highlights

    5

    • Total revenue of $49.6 million exceeded the midpoint of guidance.

    • Achieved fourth consecutive quarter of positive operating income and net income, with net income at $1.4 million, above guidance.

    • Recorded 11th consecutive quarter of positive adjusted EBITDA at $6.7 million, above the high end of guidance, with 13.4% margin.

    • Ended the quarter with a net cash position of $8.8 million, with a more flexible credit agreement.

    • Expanded retail footprint for Shakeology into 131 Sprouts stores and 481 Vitamin Shoppe locations, with P90X supplements launched on Amazon.

    Concerns

    4

    • Total revenue decreased 8.6% sequentially and 22.4% year-over-year, impacted by the shift from MLM to omnichannel model.

    • Digital subscribers decreased 6.2% sequentially to 760,000 and 19.1% year-over-year due to churn from the legacy file.

    • Free cash flow was negative $5.7 million for the 6 months ended June 30, 2026, primarily due to inventory investments for retail expansion and deferred revenue decline.

    • Q3 FY26 revenue guidance of $44 million to $48 million implies a sequential decrease.

    Guidance & targets

    10
    CategoryTargetConfidence
    Total Revenue
    $44 million to $48 million
    high materiality
    Medium
    Net Income
    negative $3 million to breakeven
    high materiality
    Medium
    Adjusted EBITDA
    $3 million to $6 million
    high materiality
    Medium
    Revenue Mix (Digital)
    approximately 60%
    medium materiality
    Medium
    Revenue Mix (Nutrition and Other)
    approximately 40%
    medium materiality
    Medium
    Revenue Mix Shift
    larger percentage of our business being in Nutrition
    high materiality
    High
    Digital Gross Margin
    86% to 88%
    medium materiality
    Medium
    Nutrition and Other Gross Margin
    42% to 45%
    medium materiality
    Medium
    Total Gross Margin
    68% to 71%
    medium materiality
    Medium
    Retail Distribution Growth
    accelerated growth
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Digital
    Digital revenues reflect continued pressure on digital subscriptions, impacted by churn from the legacy file, though new subscribers increased over the prior year. Gross margin was in line with target.
    Subscribers: 760,000Subscribers QoQ change: decreased 6.2%Subscribers YoY change: decreased 19.1%Gross Margin QoQ change: decreased 30 bpsGross Margin YoY change: decreased 60 bps
    		$31.2 milliondecreased 21.5%decreased 7.2%87.1%
    Nutrition and Other
    Nutrition subscriptions increased sequentially. Gross margin was in line with target, considering volume expectations and promotional efforts. The subscription metric will become less relevant as the business evolves into a multichannel model with higher one-time and retail sales.
    Subscriptions: 70,000Subscriptions QoQ change: increased 16.7%Subscriptions YoY change: essentially flatGross Margin QoQ change: flatGross Margin YoY change: decreased 470 bps
    		$18.5 milliondecreased 23.7%decreased 10.9%46.7%

    Operational metrics

    19
    Total revenue
    decreased 8.6%sequentially
    Q2 FY26

    Sequential decrease in total revenue.

    Operating expenses
    $34.1 milliondecreased 5% sequentially and decreased 32.1% year-over-year
    Q2 FY26

    Operating expenses for the quarter.

    Selling and marketing expense
    31.5%decreased approximately 310 basis points sequentially
    Q2 FY26

    Selling and marketing expense as a percentage of revenue.

    Enterprise technology and development expense
    19.9%increased approximately 260 basis points sequentially
    Q2 FY26

    Enterprise technology and development expense as a percentage of revenue.

    G&A
    17.3%increased approximately 310 basis points sequentially
    Q2 FY26

    General and administrative expense as a percentage of revenue.

    Adjusted net income
    $0.9 millioncompared to $2.5 million in the prior quarter and an adjusted net loss of $2.8 million in the prior year period
    Q2 FY26

    Adjusted net income for the quarter.

    Adjusted EBITDA margin
    13.4%
    Q2 FY26

    Adjusted EBITDA margin for the quarter.

    Cash used in operating activities
    $4.3 millioncompared to cash provided by operating activities of $6.6 million in the prior year period
    6 months ended June 30, 2026

    Cash used in operating activities for the six-month period.

    Cash used in investing activities
    $1.4 millioncompared to $2.5 million in the prior year period
    6 months ended June 30, 2026

    Cash used in investing activities for the six-month period.

    Shakeology 7-serve bag price
    $34.99
    current

    New pricing for Shakeology 7-serve bag on Amazon.

    P90X supplement line price range
    $15 to $39.95
    current

    Price range for P90X supplement products on Amazon.

    Nutrition companies Amazon revenue share
    25% to 30%
    general

    Typical revenue contribution from Amazon for nutrition companies.

    Sprouts store expansion
    45%increase
    Q2 FY26

    Expansion of Shakeology distribution within Sprouts Farmers Market stores.

    Credit agreement cash threshold
    $22.5 millionlowered by almost $7 million
    current

    Revised cash threshold in the amended credit agreement to avoid covenant testing.

    Credit agreement minimum liquidity
    $18 million
    current

    Minimum liquidity requirement in the amended credit agreement.

    Pending planogram decisions
    12
    Q3-Q4 FY26

    Number of pending decisions for retailer shelf set planogram updates.

    Vitamin Shoppe store count
    481
    Q3 FY26

    Number of Vitamin Shoppe locations where Shakeology was launched.

    Total retail doors
    ~710
    Q3 FY26

    Combined retail presence including Sprouts, Vitamin Shoppe, and other accounts.

    Shakeology 30-serve bag Amazon price (old)
    $149 to $169normal price $129.95
    prior

    Previous Amazon pricing for the 30-serve Shakeology bag, which was higher than the normal DTC price due to MLM constraints.

    Industry KPIs

    7
    MetricValueDetails
    Revenue$49.6 millionUSD
    Net income$1.4 millionUSD
    Gross margin72%%
    Sg a OPEX ratio31.5%% of revenue
    Adjusted EBITDA ebita$6.7 millionUSD
    Operating income EBIT$1.7 millionUSD
    Cash investments balance$32.4 millionUSD

    Product announcements

    5
    ProductTypeDetails
    P90X supplement linelaunch
    Energy drink lineup (Insanity liquid shock, P90X energy drinks)launch
    30-day Booty Boost programlaunch
    Max Builtlaunch
    Insanity Unhingedlaunch

    Deals & partnerships

    5
    Tiger FinanceModified lending agreement

    Amended credit agreement on August 3, providing a more flexible covenant structure and reflecting lender confidence in the business's long-term trajectory.

    KeHEDistribution partnership

    Continued to build on relationship with one of the two largest distributors of natural and organic products in the country.

    UNFIDistribution partnership

    Recently added an account that will open up the UNFI distribution network, the other major distributor of consumer goods to the grocery channel.

    Top beverage distribution companyDistribution for energy drink test market

    Hired one of the top beverage distribution companies in the country to represent BODi in the Southern California test market for its new energy drink lineup.

    TruemedHSA/FSA partnership

    The shift to Shopify unlocks the ability to improve the HSA/FSA partnership with industry leader Truemed.

    Risks & headwinds

    5
    Revenue impact from business model shiftNear term

    Total revenue decreased 8.6% sequentially and 22.4% year-over-year

    Mitigation: Shift from a multilevel marketing platform to a nutrition-first, multichannel omnichannel model is ongoing, with Q3 FY26 being the first quarter for direct year-over-year comparison of the new model.

    Digital subscriber churn from legacy fileOngoing

    Digital subscriptions decreased 6.2% sequentially to 760,000 and decreased 19.1% year-over-year

    Mitigation: Number of new subscribers has increased over the prior year period; focusing on nutrition advertising to drive traffic and conversion to digital subscriptions.

    Negative free cash flowH1 FY26

    Negative $5.7 million for the 6 months ended June 30, 2026

    Mitigation: Primarily due to cash used for inventory purchases for nutrition and retail rollout, and a continued decline in deferred revenue. Expect working capital to normalize as retail expansion progresses.

    Retailer shelf set planogram timingOngoing

    6- to 12-month process

    Mitigation: Actively participating with strong distribution partners; modest distribution build expected in 2026 with accelerated growth in 2027 as products integrate into planograms. Leveraging existing retail success (Sprouts, Vitamin Shoppe) to influence other retailers.

    Market dynamics and media efficiency for Q3 revenueQ3 FY26

    Q3 revenue guidance of $44 million to $48 million

    Mitigation: Pursuing profitable revenue, balancing efficiency of media and retail sell-through. Cautiously optimistic about new launches and marketing efforts, focusing on efficient media spend.

    What to watch in Q3 FY26

    5

    Retail Distribution Expansion

    Q3/Q4 2026 and into Q1 2027
    Current131 Sprouts stores, 481 Vitamin Shoppe stores, P90X on Amazon
    TargetBroader distribution footprint, positive sell-through and replenishment

    Why it matters

    Retail expansion is key to the nutrition-first multichannel strategy and future growth.

    we expect to modestly build distribution this year with the expectation for accelerated growth in 2027 as we become more integrated into retailers' planograms.

    Q&A highlights

    8

    Is the nutrition segment growth driven by retail rollout or increased marketing? What's the future marketing plan?

    The Q2 nutrition traction was organic, driven by increased nutritional marketing spend, not retail, as Sprouts reorders and Vitamin Shoppe launch are Q3 events. Amazon and other marketplaces will become bigger factors going forward, with broader distribution expected in late 2026/early 2027.

    “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.”

    asked by Susan Anderson · answered by Mark Goldston

    2 min read7 chapters

    Detailed Narrative

    01

    Turnaround Progress and Financial Discipline

    BODi reported its fourth consecutive quarter of positive operating income and net income, and its eleventh consecutive quarter of positive adjusted EBITDA, demonstrating the durability of its operational discipline. The company's financial performance exceeded its own guidance for revenue, net income, and adjusted EBITDA in Q2 FY26, highlighting effective execution against its three-year turnaround strategy.

    02

    Strategic Shift to Nutrition-First Multichannel Model

    The company is actively transitioning its business model from a legacy multilevel marketing structure to a nutrition-first, multichannel approach. This involves significant retail expansion for Shakeology and P90X supplements into stores like Sprouts and Vitamin Shoppe, as well as e-commerce platforms like Amazon. This strategy aims to acquire customers more efficiently and leverage the larger nutritional supplement market.

    03

    Retail Expansion and Distribution Network

    Shakeology has expanded its footprint into 131 Sprouts stores and launched in 481 Vitamin Shoppe locations. Partnerships with distributors like KeHE and the upcoming UNFI integration are expected to significantly broaden grocery channel access. The P90X supplement line recently launched on Amazon, and energy drink lineups (Insanity liquid shock, P90X energy drinks) are preparing for a Southern California test market rollout in late Q3/Q4.

    04

    Digital Platform Optimization with Shopify

    The transition to Shopify was completed efficiently, providing enhanced visibility into the sales funnel. Aggressive adjustments to landing pages and promotions are underway to improve order conversion, engagement, and reduce bounce rates. This optimization is a top priority for Q3, aiming to maximize benefits for the prime health and fitness season in Q1 2027, and also unlocks improved HSA/FSA partnership capabilities with Truemed.

    05

    Innovation in Digital Fitness and GLP-1 Focus

    BODi continues to expand its digital fitness catalog with initiatives like the 10-Minute BODi microdose workouts, which now comprise over 400 short-form workouts. This content is specifically appealing to GLP-1 users, who are statistically underexercising. The company is also leveraging Shakeology's demand from the GLP-1 audience in its advertising, creating a synergistic approach between nutrition and digital fitness.

    06

    New Content and Marketing Strategy

    Recent and upcoming content launches include the 30-day Booty Boost program, Shaun T's Max Built lifting program, and the Insanity Unhinged program featuring Hunter McIntyre, timed for holiday promotions and Q1 2027. The company has inverted its media allocation towards nutrition advertising, recognizing its lower customer acquisition cost, which also indirectly supports retail presence.

    07

    Strengthened Financial Position and Flexibility

    The company ended Q2 with $32.4 million in cash and a net cash position of $8.8 million. A modified lending agreement with Tiger Finance provides a more flexible covenant structure, reducing the cash threshold required to avoid covenant testing by almost $7 million to $22.5 million, giving BODi more operational room for growth initiatives.

    AI-generated summary of the company’s earnings call. Not investment advice.