Group 1: Financing Details - Tiger Finance has provided $35 million in financing to The Beachbody Company, Inc., which includes a $25 million term loan and a $10 million uncommitted accordion [1][2] - The financing allows Beachbody to retire $17.3 million of outstanding debt and adds approximately $5 million of capital to its balance sheet [2] Group 2: Strategic Partnership and Business Model Transition - The financing is part of a turnaround strategy to support Beachbody's transition to a new business model focused on digital fitness and nutrition [1][3] - Management believes that this partnership will position Beachbody for greater profitability and long-term growth [3] Group 3: Company Background - The Beachbody Company, originally known as Beachbody, has been innovating home fitness and nutrition programs for 25 years, helping over 30 million customers [5] - The company is known for programs like P90X, Insanity, and Shakeology, and has a community focused on health and wellness [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO Section 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-39735 The Beachbody Company, Inc. (Exact name of registrant as specified in its charter) Delaware 85-3222090 (State or other jurisdiction ...

The Beachbody Company (BODI) Q1 2025 Earnings Call May 14, 2025 05:00 PM ET Company Participants Bruce Williams - Managing DirectorMark Goldston - Executive ChairmanCarl Daikeler - Co-Founder, Chairman and CEOBrad Ramberg - Interim Chief Financial OfficerAlec Legg - Vice President , Equity Research Conference Call Participants George Kelly - Managing Director, Senior Research AnalystChristopher Sakai - Analyst Operator Good afternoon. Thank you for attending today's Beachbody Company Inc. First Quarter twen ...

Financial Data and Key Metrics Changes - The company generated revenue of $72.4 million in Q1 2025, exceeding the guidance range of $60 million to $70 million [25] - Adjusted EBITDA was $3.7 million, significantly above the guidance range of a $2 million loss to $2 million [25] - Total revenues declined 16.2% sequentially and 39.7% year over year, aligning with expectations due to the strategic transition [25][26] - Consolidated gross margins were 71.2%, reflecting an increase of 70 basis points over the prior quarter and an increase of 350 basis points year over year [26] Business Line Data and Key Metrics Changes - Digital revenue decreased 14.8% from the prior quarter to $42.9 million and decreased 30.2% year over year [27] - Nutrition revenue decreased 17.7% from the prior quarter to $28.7 million and fell 48.4% year over year [27] - Digital subscriber count decreased 5.1% sequentially to 1,020,000 and declined 16.6% compared to the same period a year ago [27] Market Data and Key Metrics Changes - The company is transitioning from a multilevel marketing (MLM) model to an omnichannel model, which is expected to provide additional flexibility and revenue growth over the next 24 months [26] - The shift to the new model has impacted nutritional subscribers significantly, as these products were historically sold through the MLM network [27] Company Strategy and Development Direction - The company has eliminated the MLM business model and transitioned to a multichannel approach, emphasizing direct-to-consumer and retail distribution channels [8] - A new lending agreement with Tiger Finance for a $25 million loan facility has been established, allowing the company to retire existing debt and improve its financial position [7][56] - The company plans to launch nutritional products in retail channels, starting with Shakeology in late Q4 2025, followed by P90X and Insanity nutritional lines in 2026 [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting the importance of patience and discipline in executing the new business model [11] - The company anticipates growth as it builds out its retail distribution strategy and launches new products [12][34] - Management acknowledged the challenges faced during the transition but remains optimistic about future performance and profitability [33] Other Important Information - The company has cut its debt by more than 50% to $18 million and reduced its cash breakeven level from over $900 million in 2022 to just under $225 million [6][7] - The company is focusing on performance marketing to improve customer acquisition and retention, with a new digital agency hired to enhance marketing efforts [19][20] Q&A Session Summary Question: How is the transition of sellers from the old model to the new direct affiliate model performing? - Management indicated that while there are strong affiliates, overall performance has not met expectations due to the complexity of the current platform. A simpler model is expected to launch in June [38][39] Question: How is management balancing reinvestment in marketing with the new business model? - Management stated that selling and marketing expenses as a percentage of revenue have decreased, and they plan to reinvest cash generated into marketing to maximize gross profit dollars [40][41] Question: What changes are being made to the new affiliate platform? - The new platform will be user-friendly, allowing subscribers to easily promote programs and earn commissions, which is expected to enhance affiliate participation [44][46] Question: How is the company tracking customer migration from subscriptions to one-time purchases? - Management noted that they are institutionalizing a Subscribe and Save program to rebuild the nutritional subscription file while also focusing on one-time purchases to attract new customers [62][63] Question: Is the Connected Fitness segment being phased out? - Management confirmed that no new bikes will be produced, but they will continue to support existing customers and explore partnerships for content delivery [67][68]

The Beachbody Company Ticker: BODi May 2024 FORWARD-LOOKING STATEMENTS Ticker: BODi § This presentation of The Beachbody Company, Inc. (the "Company") contains "forward-looking" statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which are statements other than historical fact or in the future tense. These statements include but are not limited to statements regarding the Company's future performance and market opportunity, including expected financial ...

Exhibit 99.1 Beachbody (BODi) Reports First Quarter Financial Results and Announces New Three-Year $25 Million Committed Lending Agreement Strengthens Balance Sheet with New Three-Year $25 Million Committed Lending Agreement Revenues and Net Loss Better Than Guidance Gross Margin of 71%-up 350bps over prior year Adjusted EBITDA Better than Guidance Sixth Consecutive Quarter of Positive Adjusted EBITDA El Segundo, Calif. (May 14, 2025) – The Beachbody Company, Inc. (NYSE: BODi) ("BODi" or the "Company"), a l ...

Market Risks - The company faces significant risks related to consumer preferences in the health and fitness industry, which can change rapidly and unpredictably [86]. - The company relies heavily on a few key products for sales, making it vulnerable to market fluctuations and consumer demand shifts [82]. - The company’s revenue is significantly impacted by consumer discretionary spending, which can decline during economic downturns [92]. - The company’s nutritional products, particularly the Shakeology line, are subject to changing consumer perceptions and trends, which could adversely affect demand [91]. - The company faces significant competition in the at-home fitness equipment and nutritional products markets, which is expected to intensify [107]. - The company may experience challenges in attracting and retaining customers, which could materially impact its financial condition [102]. Operational Challenges - The company has initiated cost reduction activities, including a strategic alignment initiative called the Pivot, aimed at streamlining operations and transitioning to a single-level affiliate model [96]. - The company’s operational results may fluctuate due to the seasonal nature of its business [82]. - The company operates with limited control over suppliers and manufacturers, which may lead to risks in product quality and availability [112]. - The company faces risks related to inventory management, which could lead to excess inventory write-downs or shortages affecting sales [126]. - The company relies on high-quality customer service, and any negative experiences could harm its reputation and sales [122]. - The company’s relationships with third-party service providers are crucial, and any failure in their systems could adversely affect operations [182]. Financial Risks - The company’s ability to maintain pricing levels for its products is critical, as failure to do so could significantly reduce revenue and gross margins [88]. - The company’s financing agreements impose restrictions that could adversely affect its operations and ability to engage in certain transactions [80]. - The company may face challenges in maintaining sufficient cash flows from operating activities to meet debt obligations, potentially leading to asset sales or restructuring [142]. - The company may need to raise additional funds through new equity securities or debt due to increased liquidity needs [242]. - The company’s quarterly operating results may fluctuate significantly, making it difficult to predict future performance [243]. - The company’s ability to maintain gross margins and operating margins is critical for its financial health [246]. Regulatory and Compliance Risks - The company is exposed to risks associated with data security and privacy, which could impact its operations if not managed effectively [82]. - The company is subject to stringent data privacy laws, including the CCPA and GDPR, which could increase compliance costs and legal risks [160]. - The enactment of new privacy laws across various states may create a complex regulatory environment for the company [159]. - Non-compliance with FDA regulations could adversely affect the company's business and financial condition [189]. - The company relies on contract manufacturers for compliance with regulatory requirements, which poses risks if they fail to adhere [190]. - The company faces risks related to ACH, credit card, and debit card payments, including potential increases in transaction fees [197]. Legal and Litigation Risks - The company faces potential litigation expenses and loss of rights due to claims of intellectual property infringement, particularly concerning its BODi Bikes products [212]. - The company faces a securities class action suit related to its business combination transaction, which could incur significant expenses and impact stock price [231]. - The company may incur significant legal fees related to securities litigation and stockholder activism, which could divert management's attention [231]. - The company may incur significant costs related to cybersecurity incidents, including potential litigation and regulatory penalties [180]. Governance and Control Risks - The co-founder and CEO, Carl Daikeler, controls over 80% of the voting power through Class X common stock, allowing him to influence major corporate decisions [127]. - The company is classified as a "controlled company," limiting certain corporate governance protections for stockholders [131]. - The company’s internal controls over financial reporting may not be effective, potentially leading to investor confidence issues [232]. International Expansion Risks - Expansion into international markets poses significant risks, including regulatory, economic, and political challenges, which could adversely affect operations [147]. - The company has limited experience with international regulatory environments, which may hinder successful market penetration [148]. - The company’s international business expansion could be adversely affected by inconsistent enforcement of data privacy laws [162]. Market and Stock Risks - The market price of the company's Class A common stock may experience volatility due to various factors, including financial performance and market conditions [219]. - The company may face dilution of its Class A common stock due to future equity offerings or other securities issuances [224]. - The company does not expect to declare cash dividends in the foreseeable future, relying instead on stock price appreciation for returns to investors [229]. Miscellaneous Risks - The company may incur additional costs due to design and manufacturing defects in its products, affecting user experience and market acceptance [119]. - The company anticipates significant additional costs to comply with expanded climate-related disclosures mandated by regulators [187]. - Changes in laws and regulations could increase operating costs and reduce demand for the company's products [191]. - The company’s exposure to interest rate risk is primarily associated with Term Loan borrowings, which are subject to variability in the SOFR rate [405].

Financial Data and Key Metrics Changes - The company generated revenue of $86.4 million in Q4 2024, which was at the high end of the guidance range of $77 million to $87 million [45] - Adjusted EBITDA was $8.7 million, significantly exceeding the guidance range of $2 million to $6 million, marking the fifth consecutive quarter of positive adjusted EBITDA [45][56] - Gross margins improved by 830 basis points year-over-year to 70.5%, the highest quarterly rate since 2020 [15][47] - Cash flow from operations improved dramatically, generating $2.6 million in 2024 compared to a cash use of $22.5 million in 2023, a $25 million improvement [17][56] Business Line Data and Key Metrics Changes - Digital revenue decreased 6.2% sequentially to $50.4 million and decreased 21.4% year-over-year, impacted by a decline in digital subscribers [48] - Nutrition revenue decreased 26.6% sequentially to $34.8 million and decreased 32.8% year-over-year, with nutrition subscriptions declining 29.2% sequentially [49][50] - Digital gross margin was 85.9%, up 540 basis points from the prior quarter, while nutrition gross margin was 52.3%, representing a 630 basis point decline from the prior quarter [50][51] Market Data and Key Metrics Changes - The transition from a multi-level marketing (MLM) model to an omni-channel model has significantly impacted revenue streams, with expectations of a shift towards more direct-to-consumer sales [46][58] - The company is seeing strong growth in its Amazon business and is expanding into Walmart, which is expected to contribute to revenue growth [35][37][113] Company Strategy and Development Direction - The company has restructured into a new business model, phasing out the MLM structure and adopting an omni-channel strategy focused on direct-to-consumer marketing [7][11] - The new strategy aims to enhance revenue streams and empower affiliates with a performance-based compensation structure [11][12] - The company is focused on building profitable revenue and cash flow, with plans to expand into retail and leverage partnerships to enhance product accessibility [25][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that 2025 will be a transition year as the new business model is implemented, with expectations of short-term dislocations but a commitment to long-term growth [18][19] - There is optimism about the growth potential of the new initiatives, particularly in the context of increasing demand for fitness and nutrition products [23][24] - The company expects to see a mix of revenue streams, with approximately 60% from digital and 40% from nutrition moving forward [61] Other Important Information - The company has retained more of its legacy nutrition subscription file than expected during the transition, indicating a positive customer experience [39] - Partnerships with telehealth providers and initiatives to leverage HSA and FSA accounts are being pursued to enhance product accessibility [40][41] Q&A Session Summary Question: Can you provide more color on the movement with affiliates during the transition to the new business model? - Management indicated that the transition was moderate, with some affiliates moving over while new affiliates are being attracted from outside the previous network [66][68] Question: How should we think about the P&L structure moving forward? - The company expects a revenue mix of 60% digital and 40% nutrition, with gross margins of approximately 85% for digital and 50% for nutrition [71][77] Question: Can you clarify the reasons for the sequential revenue decline? - The decline is attributed to the transition from MLM to the new model, with many former affiliates not migrating over [86][88] Question: What are the expectations for the nutrition business, particularly regarding retail? - The nutrition business is seen as a major opportunity, with plans to market products like Shakeology in retail for the first time [93][95] Question: How will the company manage potential cannibalization between direct-to-consumer and affiliate channels? - Management believes the channels are complementary, with direct marketing efforts providing support for affiliate sales [115][118]

The Beachbody Company (BODI) Q4 2024 Earnings Call March 27, 2025 05:00 PM ET Company Participants Bruce Williams - Managing DirectorMark Goldston - Executive ChairmanCarl Daikeler - Co-Founder, Chairman & Chief Executive OfficerBrad Ramberg - Interim Chief Financial OfficerJohn-Paul Wollam - Equity Research Associate Conference Call Participants Susan Anderson - Managing Director & Senior AnalystGowshihan Sriharan - Analyst Operator I would now like to pass the conference over to your host, Bruce Williams, ...

Financial Data and Key Metrics Changes - The company generated revenue of $86.4 million in Q4 2024, which was at the high end of the guidance range of $77 million to $87 million, but represented a 15% sequential decline and a 27% year-over-year decline [31][32] - Adjusted EBITDA for Q4 was $8.7 million, significantly exceeding the guidance range of $2 million to $6 million, marking the fifth consecutive quarter of positive adjusted EBITDA [10][31] - The company achieved a dramatic improvement in cash flow, generating $2.6 million from operations in 2024 compared to a cash use of $22.5 million in 2023, representing a $25.1 million improvement year-over-year [11][38] Business Line Data and Key Metrics Changes - Digital revenue decreased by 6.2% sequentially to $50.4 million and decreased by 21.4% year-over-year, impacted by a decline in digital subscriber count [32][33] - Nutrition revenue decreased by 26.6% sequentially to $34.8 million and decreased by 32.8% year-over-year, with nutrition subscriptions declining by 29.2% sequentially [33][34] - Digital gross margin was 85.9% for the quarter, exceeding the long-term target of 80%, while nutrition gross margin was 52.3%, reflecting a decline due to the discontinuation of preferred customer fees [34][35] Market Data and Key Metrics Changes - The transition from a multi-level marketing (MLM) model to an omnichannel model has significantly impacted revenue streams, particularly in the nutrition segment [32][33] - The company is seeing strong growth in its Amazon business and has launched on Walmart.com, with expectations for significant growth in these channels [23][24][65] Company Strategy and Development Direction - The company has restructured its business model by phasing out the MLM structure and adopting an omnichannel strategy focused on direct-to-consumer marketing [5][6] - The new affiliate model aims to enhance revenue streams and empower affiliates with performance-based compensation, aligning with the company's direct marketing roots [8][17] - The company plans to introduce new products under popular brand names and expand distribution through various channels, including retail [9][26][66] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that 2025 will be a transition year as the company implements its new business model, which is crucial for long-term competitiveness [12][39] - There is optimism about the growth potential ahead, particularly in the nutrition segment, as the company can now market its products outside the former MLM network [10][66] - The management emphasizes the importance of building profitable revenue and cash flow while navigating the challenges of the transition [17][30] Other Important Information - The company reported a net loss of $34.6 million in Q4, which included $20 million in goodwill impairment expenses, but this represents an improvement compared to the same quarter last year [36][37] - The cash balance at the end of the year was $20.2 million, reflecting a reduction in outstanding debt [38] Q&A Session Summary Question: What was the reaction to the transition to the new affiliate model? - Management indicated that the transition was moderately successful, with some affiliates migrating over, but new affiliate acquisition has been slower than desired. Plans are in place to attract more affiliates from both internal and external sources [43][44][46] Question: How should the P&L structure be viewed moving forward? - The company expects revenues to approximate 60% digital and 40% nutrition, with gross margins of approximately 85% for digital and 50% for nutrition [47][48] Question: What factors contributed to the sequential revenue decline? - The decline is attributed primarily to the transition from the MLM model, with many former affiliates not migrating to the new model [57][58] Question: What is the outlook for the nutrition business? - The nutrition segment is seen as a major opportunity, with plans to market products like Shakeology through retail channels for the first time, which is expected to significantly increase revenue [64][66]