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]

Group 1 - The Beachbody Company, Inc. (BODI) is a notable stock in the Consumer Discretionary sector, currently outperforming its peers with a year-to-date return of 18.5% compared to the sector average of 10.2% [4] - BODI has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for BODI's full-year earnings has increased by 49.1% in the past quarter, reflecting improving analyst sentiment [4] Group 2 - The Beachbody Company, Inc. is part of the Consumer Services - Miscellaneous industry, which has an average loss of 7.4% this year, highlighting BODI's strong performance within this group [6] - In contrast, Betterware de Mexico SAPI de C (BWMX), another stock in the Consumer Discretionary sector, has a year-to-date return of 20.9% and also holds a Zacks Rank of 2 (Buy) [5] - The Consumer Products - Discretionary industry, which includes BWMX, has seen a decline of 12.8% this year, further emphasizing the relative strength of BODI [7]

Core Viewpoint - The Beachbody Company, Inc. (BODI) has shown a significant stock price increase of 40.9% over the past four weeks, with a mean price target of $10.83 indicating a potential upside of 96.6% from its current price of $5.51 [1] Price Targets and Analyst Consensus - The average price target for BODI ranges from a low of $4.00 to a high of $15.50, with a standard deviation of $6.05, indicating variability in analyst estimates [2] - The lowest estimate suggests a decline of 27.4%, while the highest points to an upside of 181.3% [2] - A low standard deviation indicates a strong agreement among analysts regarding the stock's price movement direction [9] Earnings Estimates and Analyst Optimism - Analysts have shown growing optimism regarding BODI's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 49.1%, with 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 - Solely relying on price targets for investment decisions may not be prudent, as analysts' ability to set accurate targets has been questioned [3][10] - Analysts often set optimistic price targets due to business incentives, which can lead to inflated estimates [8]

Summary of The Beachbody Company (BODI) Conference Call - August 20, 2025 Company Overview - The Beachbody Company, now rebranded as Body, is undergoing a significant turnaround after facing financial challenges. The company has a vast library of over 135 fitness programs, totaling more than 9,000 hours of video content, including popular programs like P90X and Insanity [2][3][4]. Financial Turnaround - The company has successfully reduced its cash breakeven point from $900 million to less than $200 million, achieving a reduction of over $700 million [7][8]. - Body has reported seven consecutive quarters of positive adjusted EBITDA, totaling approximately $39.5 million, and has achieved positive free cash flow of $4.1 million for the first half of 2025 [8][10][58]. - The company's debt has been significantly reduced from $50 million to under $20 million, with a refinancing that lowered the cost of capital by nearly 40% [9][10][54]. - The marketing expense as a percentage of revenue has decreased from 51.1% to 39.5%, with a target to reduce it further below 35% [18][19]. Future Growth Initiatives - In 2026, Body plans to launch its products into the retail market, including nutritional supplements under the P90X and Insanity brands, leveraging its established brand recognition [12][13][14]. - The company aims to cross-promote fitness programs with nutritional products, offering consumers incentives such as free access to exercise programs with supplement purchases [13][14]. - Body is transitioning to a virtual consumer packaged goods (CPG) model, outsourcing production and logistics while keeping product development and marketing in-house [39][40][41]. Market Opportunity - The company is targeting a broader market, addressing health issues such as obesity and lifestyle diseases, with a potential customer base of approximately 230 million adults in the U.S. [31][32][35]. - Body's extensive library of fitness content positions it as a unique player in the market, akin to a "Netflix of fitness," appealing to a wide range of consumers [33][34]. Strategic Positioning - The transition to NASDAQ is seen as a strategic move to align with a platform that supports emerging technologies and innovative companies [50][51]. - Body has a strong balance sheet with more cash than debt and significant net operating losses (NOLs) that can be utilized for future growth and acquisitions [55][56]. Investor Value Proposition - The company is currently undervalued with a market cap of approximately $40 million, despite being cash flow positive and having a strong asset base [15][16][64]. - The management believes that the financial turnaround has been successfully executed, and the company is poised for significant growth with new product launches and market expansion [66][67]. Conclusion - Body is positioned for a promising future with a solid financial foundation, innovative product strategies, and a commitment to addressing significant health challenges in the market. The management encourages potential investors to consider the company's growth trajectory as it embarks on this new phase [66][67].

Group 1 - The Beachbody Company, Inc. (BODI) shares have increased by 27.3% in the past four weeks, closing at $5.04, with a mean price target of $10.83 indicating a potential upside of 114.9% [1] - The average price targets range from a low of $4.00 to a high of $15.50, with a standard deviation of $6.05, suggesting variability in analyst estimates [2] - Analysts show a consensus that BODI will report better earnings than previously estimated, which historically correlates with stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for BODI's current year earnings has risen by 49.1% over the past month, indicating positive sentiment among analysts [12] - BODI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for upside [13] - While consensus price targets may not be entirely reliable, the implied direction of price movement appears to be a useful guide for investors [14]

Industry Overview - The health and fitness industry has transformed into a significant market, driven by a cultural shift towards healthier living, with consumers actively seeking better nutrition and structured fitness plans [2] - The global health and wellness market is projected to reach $11 trillion by 2034, growing at a compound annual growth rate (CAGR) of 5.4% from 2025 [4] - Major tech companies like Apple and Amazon are reshaping consumer engagement in wellness through innovative products and services [3] Company Highlights Peloton Interactive - Peloton has developed a connected fitness platform that combines advanced equipment with immersive digital content, creating an interactive fitness experience [7] - The company has shifted its business model to a balanced mix of product and subscription revenues, with subscription services becoming a key driver of recurring income [8] - Peloton continues to innovate and expand its market reach through partnerships and international expansion, positioning itself for long-term growth in the fitness sector [10] Sprouts Farmers Market - Sprouts operates as a health-focused grocery retailer, offering a wide selection of fresh, natural, and organic products, with its private-label brand representing about 24% of total sales [11][12] - The company has embraced digital transformation, with online sales accounting for roughly 15% of total revenues, and has invested in community well-being initiatives [13] - Sprouts has expanded its store locations and created a proprietary distribution network to enhance product freshness and supply chain efficiency [12] SunOpta - SunOpta focuses on plant-based and fruit-based products, catering to the growing demand for health and wellness options [14] - The company has evolved into a high-growth platform centered on scalable, high-margin categories, particularly in oat-based beverages and fruit-based foods [15] - SunOpta integrates sustainability into its product development, enhancing its alignment with health and fitness values [16] The Beachbody Company - Beachbody has built a comprehensive health and fitness ecosystem that combines digital workouts, nutrition, and mindset coaching through its BODi platform [17] - The company has shifted its business model to a direct-to-consumer sales approach, enhancing flexibility in content access and reducing operating expenses [19] - Beachbody is expanding into physical retail and innovating with targeted wellness solutions, aligning with evolving health trends [20]

Summary of The Beachbody Company (BODI) FY Conference Call - August 12, 2025 Company Overview - The Beachbody Company has been a significant player in the fitness industry for over 25 years, known for popular programs like P90X and Insanity [2][3] - The company underwent a financial turnaround after going public in 2021, transitioning from a multi-level marketing (MLM) model to a direct-to-consumer approach [4][7] Financial Performance - The breakeven revenue requirement was reduced from $900 million to $200 million, indicating a significant improvement in financial health [4][5] - Gross margin increased by over 1,000 basis points, with seven consecutive quarters of positive adjusted EBITDA totaling nearly $40 million [5][32] - The company has a market cap of $30 million with $25 million in debt and $25 million in cash, positioning it for future growth [32][25] Growth Strategy - The company plans to launch a retail line in 2026, introducing products like P90X and Shakeology into mainstream retail channels [8][9] - New fitness programs are being developed to coincide with retail product launches, enhancing the overall offering [9][15] - The company aims to leverage its existing subscriber base to cross-sell nutritional products, with a focus on health and longevity rather than just aesthetics [17][19] Market Position and Opportunities - The fitness market is seen as counter-cyclical, with the subscription cost being less than $0.50 a day, making it an attractive option even in weaker economic conditions [43][44] - The company is positioned to address broader health issues, targeting a large total addressable market (TAM) of overweight and obese individuals [56][67] - The introduction of new nutritional products is expected to capitalize on existing brand awareness, with over 60% recognition of the P90X supplement line before its launch [23][24] Competitive Landscape - The company differentiates itself by offering a vast library of high-quality fitness content, which is not easily replicable by competitors [55][67] - The shift from equipment-based fitness solutions to content-driven offerings provides agility and flexibility in responding to market trends [64][66] Future Outlook - The company anticipates significant growth in 2026 and 2027, with a focus on expanding its market presence and improving financial performance [25][32] - The management emphasizes the importance of communicating the company's value proposition to potential investors and consumers [25][52] Additional Insights - The impact of GLP-1 medications on weight loss is seen as an opportunity for the company, as users will need to maintain muscle mass through exercise [59][60] - The company is exploring partnerships with health insurance companies to promote at-home fitness solutions as an alternative to gym memberships [70][71]

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 potential candidates [3] Group 2: The Beachbody Company, Inc. (BODI) - BODI has shown a price increase of 15% over the past four weeks, indicating growing investor interest [4] - The stock has gained 17.9% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - BODI has a beta of 1.2, suggesting it moves 20% higher than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of A, 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 investors [7] - The stock is trading at a Price-to-Sales ratio of 0.10, indicating it is relatively cheap at present [7] Group 3: Investment Opportunities - BODI appears to have significant potential for growth, and there are other stocks that meet the criteria of fast-paced momentum at a bargain [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]