Group 1: Company Performance - The Beachbody Company, Inc. (BODI) has gained approximately 22.9% year-to-date, significantly outperforming the average return of -15.1% for Consumer Discretionary companies [4] - The Zacks Consensus Estimate for BODI's full-year earnings has increased by 57.8% over the past quarter, indicating improving analyst sentiment and a positive earnings outlook [3] - BODI is part of the Consumer Services - Miscellaneous industry, which has seen an average loss of 18.7% this year, further highlighting BODI's strong performance relative to its peers [5] Group 2: Industry Context - The Consumer Discretionary sector, which includes BODI, ranks 11 among 16 sector groups according to the Zacks Sector Rank [2] - The Leisure and Recreation Products industry, to which PLBY Group, Inc. belongs, is currently ranked 91 and has declined by 7.7% this year [6] - The overall performance of the Consumer Discretionary sector has been challenging, but BODI and PLBY Group, Inc. have shown resilience and potential for continued solid performance [6]

Core Viewpoint - The Beachbody Company, Inc. (BODI) shows potential for significant upside, with a mean price target of $10.75 indicating an 82.5% increase from its current price of $5.89 [1] Price Targets and Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $3.88, suggesting variability among analysts [2] - The lowest estimate of $6.50 indicates a 10.4% increase, while the highest estimate of $15.50 suggests a potential surge of 163.2% [2] - A low standard deviation indicates a strong agreement among analysts regarding the stock's price movement [9] Analyst Sentiment and Earnings Estimates - Analysts show growing optimism about BODI's earnings prospects, as indicated by a positive trend in earnings estimate revisions [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 20.3%, with one estimate moving higher and no negative revisions [12] - BODI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are often sought after, they can mislead investors, and reliance solely on them may lead to poor investment decisions [3][7][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: The Beachbody Company, Inc. (BODI) - BODI has shown a four-week price change of 2.4%, indicating growing investor interest [3] - Over the past 12 weeks, BODI's stock gained 14.6%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - BODI has a beta of 1.23, suggesting it moves 23% higher than the market in either direction [4] - The stock has a Momentum Score of A, indicating a favorable entry point for investors [5] Group 3: Earnings Estimates and Valuation - BODI has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - The stock is trading at a Price-to-Sales ratio of 0.15, meaning investors pay 15 cents for each dollar of sales, indicating a reasonable valuation [6] - BODI appears to have significant potential for growth at a fast pace [7] Group 4: Additional Investment Opportunities - Besides BODI, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in stock selection [8]

分组1 - The Beachbody Company reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of a loss of $0.54 per share, and showing a significant improvement from a loss of $1.75 per share a year ago, resulting in an earnings surprise of +194.44% [1] - The company achieved revenues of $59.89 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 9.08%, although this represents a decline from year-ago revenues of $102.19 million [2] - The Beachbody Company has consistently surpassed consensus EPS estimates over the last four quarters, indicating a positive trend in earnings performance [2] 分组2 - The stock has underperformed the market, losing approximately 18.7% since the beginning of the year, while the S&P 500 has gained 14.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes in these expectations [4] - The current consensus EPS estimate for the upcoming quarter is -$0.55 on revenues of $52.75 million, and for the current fiscal year, it is -$2.76 on revenues of $244 million [7] 分组3 - The Zacks Industry Rank indicates that the Consumer Services - Miscellaneous sector is currently in the bottom 30% of over 250 Zacks industries, which may negatively impact stock performance [8] - The Beachbody Company holds a Zacks Rank of 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - The company achieved net income of $3.6 million in Q3 2025, marking its first net income since going public in 2021, compared to a net loss of $12 million in the prior year [23] - Adjusted EBITDA was $9.5 million, up from $4.6 million in the prior quarter and down from $10.1 million in the prior year [23] - Total revenues were $59.9 million, a decline of 6.3% sequentially and 41.4% year over year, aligning with expectations due to the strategic transition [18] - Gross margins improved to 74.6%, an increase of 230 basis points from the prior quarter and 730 basis points year over year [19] Business Line Data and Key Metrics Changes - Digital revenue decreased 8.3% from the prior quarter to $36.4 million and decreased 32.2% year over year, impacted by a decline in digital subscription counts [19] - Nutrition and other revenue decreased 2.8% from the prior quarter to $23.5 million and fell 50.4% year over year, with nutrition subscriptions remaining flat sequentially at approximately 70,000 [20] Market Data and Key Metrics Changes - The company is transitioning from a multi-level marketing (MLM) model to an omnichannel approach, which has impacted revenue streams and customer acquisition strategies [18][19] - The shift has opened new growth channels that were previously inaccessible, with expectations for a stronger balance sheet and long-term business model [25] Company Strategy and Development Direction - The company plans to launch a comprehensive retail initiative in 2026, introducing products like Shakeology and new nutritional supplements to retail for the first time [5][6] - A new P90X fitness program will be launched, creating cross-marketing opportunities between digital content and retail nutrition products [6] - The focus will be on expanding the total addressable market (TAM) by targeting the 185 million overweight Americans who do not currently engage in regular fitness routines [6][14] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the turnaround progress, achieving eight consecutive quarters of positive adjusted EBITDA and a significant reduction in the revenue break-even point from $900 million to $180 million [4][7] - The company anticipates that 2026 will mark the transition from financial restructuring to capitalizing on new revenue opportunities [5][15] - Management highlighted the importance of leveraging AI and technology to enhance customer experience and drive acquisition [15][16] Other Important Information - The company has generated $13.1 million in free cash flow year-to-date, with $9 million generated in Q3 alone [4] - The cash position stands at $33.9 million, exceeding outstanding debt of $25 million, providing financial flexibility [4] Q&A Session Summary Question: Changes in Customer Base with New Business Model - Management noted that the customer demographic remains similar, focusing on individuals seeking convenience and shorter workout durations [32] Question: New Product Pipeline and Rollout Timing - The company is excited about launching numerous new products in 2026, including affordable nutrition products and fitness programs [38][39] Question: Marketing Spend and Cost Management - Management confirmed that marketing spend is aligned with the new business model, maintaining operational leverage while managing costs effectively [41][62] Question: Retail Launch Visibility - The company is currently coordinating sell-in meetings with major retailers, expecting to appear on shelves by late Q1 to Q2 2026 [59] Question: Nutrition Margin Expectations - Management anticipates a steady state for nutrition margins between 46-52%, with a focus on generating revenue and subscriber growth [74]

Financial Data and Key Metrics Changes - The company achieved net income of $3.6 million in Q3 2025, marking its first net income since going public in 2021, compared to a net loss of $12 million in the prior year [23] - Adjusted EBITDA was $9.5 million, an increase from $4.6 million in the prior quarter and $10.1 million in the prior year, representing eight consecutive quarters of positive adjusted EBITDA [23] - Total revenues for Q3 2025 were $59.9 million, a decline of 6.3% sequentially and 41.4% year over year, in line with expectations due to the strategic transition [18] Business Line Data and Key Metrics Changes - Digital revenue decreased 8.3% from the prior quarter to $36.4 million and decreased 32.2% year over year, impacted by a decline in digital subscription counts [19] - Nutrition and other revenue decreased 2.8% from the prior quarter to $23.5 million and decreased 50.4% year over year, with nutrition subscriptions remaining flat sequentially at approximately 70,000 [20] - Consolidated gross margins improved to 74.6%, an increase of 230 basis points over the prior quarter and 730 basis points compared to the prior year [19] Market Data and Key Metrics Changes - The company is transitioning from a multi-level marketing (MLM) model to an omnichannel approach, which has impacted revenue streams and customer acquisition strategies [18][19] - The shift has opened new growth channels, with expectations for a stronger balance sheet and a more viable long-term business model [25] Company Strategy and Development Direction - The company plans to launch a comprehensive retail initiative in 2026, introducing products like Shakeology and new nutritional supplements to retail for the first time [5][6] - A new P90X fitness program will be launched, creating cross-marketing opportunities between digital content and retail nutrition products [6] - The focus will be on expanding the total addressable market (TAM) by reaching underserved segments, particularly the 185 million overweight Americans [6][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround progress, noting that the financial restructuring has been completed ahead of schedule [84] - The company anticipates significant growth opportunities in 2026 and beyond, driven by new product launches and an expanded retail presence [5][6][84] - The management highlighted the importance of maintaining operational leverage and disciplined spending as the company transitions to its new business model [43][45] Other Important Information - The company generated $13.1 million in free cash flow year-to-date, with $9 million generated in Q3 alone [4] - The cash position stands at $33.9 million, exceeding outstanding debt of $25 million, providing financial flexibility [4] Q&A Session Summary Question: Changes in customer base with the new business model - Management noted that the customer demographic remains similar, focusing on individuals seeking convenient home workouts [32] Question: Details on the new product pipeline - The company is excited about launching numerous new products in 2026, including affordable nutrition options and fitness programs [38] Question: Anticipated marketing spend around retail rollout - Marketing spend will align with wholesale orders and revenue, with a focus on the new P90X program launching in Q1 [79]

Financial Data and Key Metrics Changes - The company achieved net income of $3.6 million in Q3 2025, marking its first net income since going public in 2021, compared to a net loss of $12 million in the prior year [25] - Total revenues for Q3 2025 were $59.9 million, a decline of 6.3% sequentially and 41.4% year over year, aligning with expectations due to the strategic transition [19] - Adjusted EBITDA was $9.5 million, compared to $4.6 million in the prior quarter and $10.1 million in the prior year, marking the eighth consecutive quarter of positive adjusted EBITDA [25] Business Line Data and Key Metrics Changes - Digital revenue decreased 8.3% from the prior quarter to $36.4 million and decreased 32.2% year over year, impacted by a decline in digital subscription counts [20][21] - Nutrition and other revenue decreased 2.8% from the prior quarter to $23.5 million and decreased 50.4% year over year, with nutrition subscriptions remaining flat sequentially at approximately 70,000 [22] Market Data and Key Metrics Changes - The company is transitioning from a multi-level marketing (MLM) model to an omnichannel approach, which has impacted revenue streams and customer acquisition strategies [19][21] - The shift has opened new growth channels that were previously inaccessible, with expectations for a stronger balance sheet and a more viable long-term business model [27] Company Strategy and Development Direction - The company plans to launch a comprehensive retail initiative in 2026, introducing products like Shakeology and new nutritional supplements to retail for the first time [5][6] - A new P90X fitness program will be launched, creating cross-marketing opportunities between digital content and retail nutrition products [6][15] - The focus will be on expanding the total addressable market (TAM) by targeting the 185 million overweight Americans who do not currently engage in regular fitness routines [6][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround progress, noting that the financial restructuring has largely been completed ahead of schedule [87] - The company anticipates significant growth opportunities in 2026, supported by a robust innovation pipeline and the transition to Shopify Plus for improved order conversion [17][29] - Management highlighted the importance of maintaining operational leverage while expanding product offerings at more competitive price points [45][58] Other Important Information - The company has maintained strong gross margins, with consolidated gross margins at 74.6%, an increase of 230 basis points over the prior quarter [20] - Operating expenses for the quarter declined 21% sequentially and 51.5% year over year, reflecting the pivot away from the MLM model [23] Q&A Session Summary Question: Changes in customer base with the new business model - Management noted that the customer demographic remains similar, focusing on individuals seeking convenience and shorter workout durations [34] Question: Details on the new product pipeline - The company is excited about launching numerous new products in 2026, including lower-priced nutritional offerings and the P90X line of supplements [40][41] Question: Anticipated marketing spend around retail rollout - Marketing spend will align with wholesale orders and revenue projections, with a focus on maintaining a normalized advertising-to-sales ratio [82] Question: Nutrition side performance and promotional activities - The company is conducting price testing and introducing lower-priced SKUs, which have shown good demand [53][58] Question: Margin expectations with new product rollouts - Management anticipates a steady state for nutrition margins between 46-52%, with adjustments based on retail experience and unit sales [76]

Revenue Performance - Total revenue for the three months ended September 30, 2025, was $59.9 million, a 41% decrease compared to the same period in 2024[151]. - Digital revenue decreased by 32% to $36.4 million, while nutrition and other revenue saw a 50% decrease to $23.5 million[151]. - For the three months ended September 30, 2025, total revenue decreased by 41% to $59,887,000 compared to $102,193,000 for the same period in 2024[172]. - Digital revenue for the three months ended September 30, 2025, decreased by 32% to $36,390,000, primarily due to a $10.8 million decrease in revenue from digital streaming services and 19% fewer subscriptions[172]. - Nutrition and other revenue for the three months ended September 30, 2025, decreased by 50% to $23,497,000, mainly due to a $20.8 million decrease in revenue from nutritional products and 45% fewer subscriptions[173]. - For the nine months ended September 30, 2025, total revenue decreased by 41% to $196,191,000 compared to $332,422,000 for the same period in 2024[175]. - Digital revenue for the nine months ended September 30, 2025, decreased by 32% to $118,994,000, primarily due to a $37.8 million decrease in revenue from digital streaming services[175]. - Nutrition and other revenue for the nine months ended September 30, 2025, decreased by 50% to $76,322,000, largely due to a $59.6 million decrease in revenue from nutritional products[176]. Profitability and Income - The company achieved a net income of $3.6 million, marking its first quarterly net income since going public, compared to a net loss of $12.0 million in the prior year[151]. - Adjusted EBITDA for the three months was $9.5 million, slightly down from $10.1 million in the same quarter of 2024[151]. - Adjusted EBITDA for the three months ended September 30, 2025, was $9,544,000, compared to $10,136,000 for the same period in 2024[168]. - The net income for the three months ended September 30, 2025, was $3,569,000, a significant improvement from a net loss of $12,003,000 in the same period in 2024[170]. Cost Management - Gross margin increased by 730 basis points to 74.6%, with operating expenses reduced to $39.7 million from $81.8 million[151]. - For the three months ended September 30, 2025, total cost of revenue decreased by $18,144,000 (54%) compared to the same period in 2024, totaling $15,238,000[181]. - Selling and marketing expenses for the three months ended September 30, 2025, were $19,130,000, a decrease of $26,462,000 (58%) from $45,592,000 in 2024[190]. - General and administrative expenses for the three months ended September 30, 2025, decreased by $1.621 million (14%) to $10.139 million compared to $11.760 million in the same period of 2024[202]. - For the nine months ended September 30, 2025, general and administrative expenses decreased by $4.264 million (11%) to $33.367 million from $37.631 million in 2024[204]. Restructuring and Workforce - The company executed a restructuring that reduced headcount by approximately 70 employees, or 22% of its workforce, resulting in costs of approximately $2.5 million[155]. - Restructuring charges for the three months ended September 30, 2025, were $(12,000), a decrease of $5.099 million compared to $5.087 million in 2024, indicating a significant reduction in restructuring costs[207]. Financing and Cash Flow - The company entered into a $35.0 million asset-based lending facility, borrowing $25.0 million at inception, with a maturity date of May 13, 2028[152]. - Net cash provided by operating activities increased to $16.8 million for the nine months ended September 30, 2025, compared to $9.3 million in 2024, primarily due to a decrease in net loss of $29.0 million[224]. - Net cash used in investing activities was $(3.7) million for the nine months ended September 30, 2025, compared to $1.6 million in 2024, with the increase attributed to the prior year's proceeds from the sale of the Van Nuys facility of $5.6 million[225]. - Net cash provided by financing activities was $0.5 million for the nine months ended September 30, 2025, a significant improvement from $(11.8) million in 2024, mainly due to the repayment of the Term Loan and a $25.0 million borrowing on the ABL Facility[226]. - The company plans to explore additional debt or equity financing to strengthen its financial position, although the terms and form are currently unknown[231]. Foreign Currency and Exchange Rates - Approximately 8% of the company's revenue for the nine months ended September 30, 2025, was in foreign currencies, down from 10% in 2024, primarily in Canadian dollars and British pounds[234]. - A hypothetical 10% change in exchange rates would result in an approximate $1.3 million increase or decrease in cost of revenue and operating expenses[237].

Financial Performance - Total revenue for Q3 2025 was $59.9 million, a decrease of 41.4% compared to $102.2 million in the prior year period[5] - Net income was reported at $3.6 million, marking the company's first net income since going public, compared to a net loss of $12.0 million in the prior year[5] - Adjusted EBITDA was $9.5 million, slightly down from $10.1 million in the prior year period[5] - Gross margin improved to 74.6%, up from 67.3% in the prior year, reflecting a 730 basis points increase[5] - Digital revenue decreased by 32.2% to $36.4 million, while nutrition and other revenue fell by 50.4% to $23.5 million[6] - Total subscriptions decreased to 0.97 million, down 21.2% from 1.24 million in the prior year[6] - The company achieved its first operating income of $5.0 million, compared to an operating loss of $13.0 million in the prior year[5] - Total revenue for the three months ended September 30, 2025, was $59,887,000, a decrease of 41.2% compared to $102,193,000 for the same period in 2024[20] - Digital revenue for the nine months ended September 30, 2025, was $118,994,000, down 31.6% from $173,979,000 in 2024[20] - Net loss for the nine months ended September 30, 2025, was $8,079,000, an improvement from a net loss of $37,084,000 in 2024[22] - Adjusted EBITDA for the nine months ended September 30, 2025, was $17,889,000, compared to $19,618,000 in 2024, reflecting a decrease of 9.3%[26] - The company reported a gross profit of $142,436,000 for the nine months ended September 30, 2025, compared to $226,469,000 in 2024, a decrease of 37.2%[20] Cash Flow and Expenses - Cash provided by operating activities for the nine months ended September 30, 2025, was $16.8 million, up from $9.3 million in the prior year[5] - Cash and cash equivalents at the end of the period on September 30, 2025, were $33,949,000, an increase from $20,187,000 at the beginning of the period[32] - The net cash position as of September 30, 2025, was $10,489,000, significantly improved from $1,019,000 at the end of 2024[32] - Total operating expenses for the nine months ended September 30, 2025, were $145,088,000, down from $259,784,000 in 2024, indicating a reduction of 44%[20] - Free cash flow for the nine months ended September 30, 2025, was $13,069,000, compared to $5,317,000 for the same period in 2024, representing an increase of 146.5%[34] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $16,767,000, up from $9,291,000 in 2024, indicating an increase of 80.5%[34] - Cash used for the purchase of property and equipment decreased slightly from $3,974,000 in 2024 to $3,698,000 in 2025, a reduction of 6.9%[34] - The company incurred $1,056,000 in interest expense for the three months ended September 30, 2025, down from $1,646,000 in 2024[26] Future Outlook - The outlook for Q4 2025 projects revenue between $50 million and $57 million, with adjusted EBITDA expected to range from $5 million to $9 million[8] - The company has maintained eight consecutive quarters of positive adjusted EBITDA, indicating a solid operational foundation[2]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: The Beachbody Company, Inc. (BODI) - BODI has shown a price increase of 7.5% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, BODI's stock has gained 40.9%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - BODI has a beta of 1.22, suggesting it moves 22% higher than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of B, suggesting it is an opportune time to invest [6] - BODI has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest [7] - The stock is trading at a Price-to-Sales ratio of 0.13, indicating it is relatively cheap at 13 cents for each dollar of sales, providing room for growth [7] Group 3: Additional Investment Opportunities - Besides BODI, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]