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 ...

Core Viewpoint - The Beachbody Company, Inc. (BODI) is expected to report a year-over-year increase in earnings despite lower revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The company is projected to post a quarterly loss of $1.33 per share, reflecting a year-over-year change of +30.7% [3]. - Revenues are anticipated to be $63.1 million, down 47.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 11.01% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have shown a nearly 70% success rate in delivering positive surprises [8]. Historical Performance - In the last reported quarter, the company was expected to post a loss of $2.88 per share but delivered a loss of $1.89, resulting in a surprise of +34.38% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - The Beachbody Company does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered for investment decisions [16].

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]

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 [31] - 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 [10][31] - The company reported a net loss of $34.6 million in Q4 2024, compared to a net loss of $12 million in the prior quarter, which included $20 million of goodwill impairment expenses [36][37] - Cash generated from operations improved to $2.6 million for the year 2024, compared to cash used in operations 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 [32] - Nutrition revenue decreased by 26.6% sequentially to $34.8 million and decreased by 32.8% year over year [33] - Digital subscriber count decreased by 3.4% sequentially to 1.07 million and declined by 19.1% compared to the same period a year ago [32] Market Data and Key Metrics Changes - The transition from a multi-level marketing (MLM) model to an omni-channel model has impacted revenue, particularly in the nutrition segment [32][33] - The company is seeing strong growth in its Amazon business and has launched on Walmart.com, which is expected to grow significantly [23][24][66] Company Strategy and Development Direction - The company has restructured into a single-level affiliate model, phasing out the MLM structure to enhance revenue streams and improve profitability [5][6] - The focus is on an omnichannel strategy that includes direct-to-consumer marketing, Amazon, and conventional retail distribution for nutrition products [7][8] - The company aims to introduce new products under popular brand names like T90X and Insanity within the next twelve months [9] 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, which may involve short-term dislocation [12] - There is optimism about the growth potential ahead, particularly in the nutrition segment, as the company can now market products outside the former MLM network [10][26] - The management emphasizes the importance of building profitable revenue and cash flow while leveraging strategic partnerships and new sales channels [30] Other Important Information - The company has retained more of the legacy nutrition subscription file than expected during the transition, indicating a positive customer experience [26] - Partnerships with telehealth providers and initiatives to leverage HSA and FSA accounts are being pursued to enhance product accessibility [28][29] 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 [44][45] 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 [48][51] Question: What is the outlook for the nutrition business and retail expansion? - The nutrition segment is seen as a major opportunity, with plans to market products like Shakeology in retail for the first time, which could significantly increase revenue [65][66]

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]

Revenue Performance - Total revenue for Q4 2024 was $86.4 million, down 27.4% from $119.0 million in the prior year, and at the high end of guidance[5]. - Full year 2024 total revenue was $418.8 million, down 20.5% from $527.1 million in the prior year[5]. - Total revenue for the year ended December 31, 2024, was $418.8 million, a decrease of 20.6% compared to $527.1 million in 2023[20]. - Digital revenue decreased to $224.3 million in 2024 from $258.4 million in 2023, representing a decline of 13.2%[20]. Digital and Subscription Metrics - Digital revenue decreased by 21.4% to $50.4 million, with digital subscriptions totaling 1.07 million, an 18.1% decline from 1.31 million[5][8]. - Nutrition and Other revenue fell by 32.8% to $34.8 million, with nutritional subscriptions down 44.1% to 0.09 million[5][8]. - The average digital retention rate improved to 97.8%, up from 96.9% in the prior year[8]. Profitability and Loss - Adjusted EBITDA for Q4 2024 was $8.7 million, compared to $2.8 million in the prior year, marking the fifth consecutive quarter of positive adjusted EBITDA[5][8]. - Net loss for Q4 2024 was $34.6 million, a 46.8% improvement from a net loss of $65.0 million in the prior year[5][8]. - Net loss for the year ended December 31, 2024, was $71.6 million, compared to a net loss of $152.6 million in 2023, showing an improvement of 53%[20]. - Operating loss for the year ended December 31, 2024, was $66.2 million, an improvement from an operating loss of $141.0 million in 2023[20]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $20.2 million at the end of 2024 from $33.4 million at the end of 2023, a decline of 39.2%[22]. - Cash flows from operating activities provided $2.6 million in 2024, a significant improvement from cash used of $22.5 million in 2023[22]. - The net cash position as of December 31, 2024, was $1,019 thousand, down from $3,850 thousand as of December 31, 2023[34]. - Free cash flow for the year ended December 31, 2024, was $(1,980) thousand, compared to $(29,113) thousand for the year ended December 31, 2023[37]. Restructuring and Impairment - The company incurred approximately $9.3 million in costs associated with the Pivot restructuring in the three months ended December 31, 2024[38]. - The Pivot restructuring resulted in a reduction of approximately 170 employees, representing 33% of the company's workforce[38]. - Total restructuring costs associated with the Pivot for the year ended December 31, 2024, amounted to $18.5 million[39]. - The company recorded an impairment of goodwill of $20,000 thousand for the year ended December 31, 2024[26]. - The company incurred $20 million in goodwill impairment in 2024, compared to $40 million in 2023[20]. Guidance and Future Outlook - The company expects Q1 2025 revenue guidance between $60 million and $70 million, with a projected net loss between $11 million and $7 million[9].

Financial Data and Key Metrics Changes - The company achieved revenues of $102 million for Q3 2024, which was in line with the midpoint of guidance but represented a 20% year-over-year decline [43][44] - Adjusted EBITDA was $10.1 million, significantly exceeding guidance and marking a $15.9 million improvement from a loss of $5.8 million in Q3 2023 [19][53] - Gross margins improved by 880 basis points year-over-year to 67.3%, although they declined by 200 basis points sequentially [18][45] - The company generated over $5.3 million in positive free cash flow year-to-date, a $25.4 million improvement from a cash burn of $20.1 million in the prior year [20][55] Business Line Data and Key Metrics Changes - Digital revenue decreased by 8.6% sequentially to $53.7 million and declined by 16.5% year-over-year, impacted by a 3.8% decrease in digital subscriber count [46] - Nutrition revenue decreased by 5.4% sequentially to $47.4 million and fell by 19.6% year-over-year, with nutrition subscriptions declining by 11.2% sequentially [47] Market Data and Key Metrics Changes - The company is transitioning from a multilevel marketing (MLM) model to a single-level affiliate model, which is expected to broaden distribution and unlock sales potential [9][47] - The affiliate model began on November 1, 2024, and has already seen a significant number of sign-ups [14][34] Company Strategy and Development Direction - The company has eliminated the MLM structure to adopt a single-level affiliate model, which allows affiliates to keep 100% of their commissions and focuses on performance-based compensation [10][11] - New product launches, including the Belle Vitale program targeting women's hormone health, are planned for December 2024, with a comprehensive marketing strategy to support it [35][76] - The company aims to expand its presence on platforms like Amazon and Walmart.com, enhancing its direct-to-consumer capabilities [30][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for their products and the opportunity for growth, particularly in light of the rise of GLP-1 drugs that require a healthy lifestyle [23][24] - The transition to the affiliate model is seen as a necessary step to modernize sales and improve partner motivation and productivity [28][29] - The company expects Q4 2024 to be a transitional quarter, with revenues projected between $77 million and $87 million, reflecting the shift to the new model [57] Other Important Information - The company has significantly reduced its cash breakeven level and is poised for operating leverage as top-line growth is achieved [17][21] - The outstanding principal balance of debt was $25.3 million as of September 30, 2024, with recent adjustments made to align covenants with the new business model [56] Q&A Session Summary Question: Can you expand on the revenue guidance for Q4? - Management indicated that Q4 is traditionally a softer quarter and this year is a transitional period as the company shifts to the affiliate model [64][65] Question: How will the transition to the affiliate program work? - Existing partners will sign up on the new platform, and the company is marketing the program to a broad database, including current and lapsed subscribers [66][68] Question: What is the status of the Belle Vitale program? - The program has completed testing with positive results and will launch on December 10, 2024, priced at $299 for a comprehensive three-month program [74][76] Question: What features will the new e-commerce platform offer? - The new platform will serve as the primary direct-to-consumer site, allowing for a more robust marketing approach without the constraints of the previous MLM model [80][82] Question: Are there plans for subscription models in digital offerings? - The company currently operates on a digital subscription model and will continue to offer individual programs for purchase [84] Question: What percentage of sales comes from mobile devices? - While specific percentages are not disclosed, it is noted that over 70% of consumers utilize mobile platforms for e-commerce [85]

Revenue Performance - Total revenue for Q3 2024 was $102.2 million, a 20% decrease compared to Q3 2023[141] - For the nine months ended September 30, 2024, total revenue was $332.4 million, a 19% decrease year-over-year[142] - Total revenue for the three months ended September 30, 2024, was $102,193,000, down 20% from $128,250,000 in the same period in 2023[167] - Total revenue for the nine months ended September 30, 2024, was $332,422 thousand, a decrease of 19% compared to $408,099 thousand in the same period of 2023[170] Digital Revenue - Digital revenue decreased by 17% to $53.7 million, while nutrition and other revenue also decreased by 20% to $47.4 million[141] - Digital revenue decreased by $10,637,000 (17%) to $53,702,000, primarily due to a 20% reduction in subscriptions[167] - Digital revenue decreased by $20,347 thousand, or 10%, for the nine months ended September 30, 2024, primarily due to a $19.9 million decrease in revenue from digital streaming services[170] Nutrition and Other Revenue - Nutrition and other revenue fell by $11,565,000 (20%) to $47,416,000, driven by a 27% decrease in nutritional subscriptions[168] - Nutrition and other revenue decreased by $44,700 thousand, or 23%, for the nine months ended September 30, 2024, attributed to a 27% decrease in nutritional subscriptions[171] Connected Fitness Revenue - Connected fitness revenue saw a significant decline of 78%, totaling $1.1 million[141] - Connected fitness revenue decreased by approximately 66% for the nine months ended September 30, 2024, from $16,044 thousand in 2023 to $5,414 thousand in 2024[170] Profit and Loss - The company reported a net loss of $12.0 million for Q3 2024, an improvement from a net loss of $32.7 million in Q3 2023[141] - The company experienced a net loss of $12,003,000 for the three months ended September 30, 2024, compared to a net loss of $32,666,000 for the same period in 2023, representing a significant improvement[160] Adjusted EBITDA - Adjusted EBITDA for Q3 2024 was $10.1 million, compared to a loss of $5.8 million in the same period last year[141] - The company recorded an Adjusted EBITDA of $10,136,000 for the three months ended September 30, 2024, compared to an Adjusted EBITDA loss of $5,833,000 in the same period in 2023[160] Restructuring and Workforce Changes - The company announced a restructuring plan (the "Pivot") that will reduce headcount by approximately 170 employees, representing 33% of the workforce[141] - The Pivot is expected to incur costs of approximately $18.4 million, with $9.2 million recorded in Q3 2024[145] Subscriptions and User Engagement - Digital subscriptions decreased from 1.38 million in September 2023 to 1.11 million in September 2024[150] - Average digital retention improved to 97.3% in September 2024, up from 96.2% in September 2023[151] - Daily Active Users (DAU) to Monthly Active Users (MAU) ratio is used to measure subscriber engagement, indicating how frequently users utilize the service[156] Expenses and Cost Management - Selling and marketing expenses for the three months ended September 30, 2024, were $45,592 thousand, a decrease of 34% from $69,127 thousand in the same period of 2023[184] - Total cost of revenue for the three months ended September 30, 2024, was $33,382,000, down from $53,219,000 in the same period in 2023[164] - Total cost of revenue for the nine months ended September 30, 2024, was $105,953 thousand, a decrease of 33% from $158,984 thousand in 2023[180] Cash Flow and Financing - Net cash provided by operating activities was $9.3 million for the nine months ended September 30, 2024, compared to a net cash used of $(14.6) million in the same period of 2023, reflecting a decrease in net loss and changes in cash flows from various assets[204] - Net cash provided by investing activities was $1.6 million for the nine months ended September 30, 2024, an increase from $(9.7) million in the prior year, attributed to proceeds from the sale of the Van Nuys facility[204] - Net cash used in financing activities decreased to $11.8 million for the nine months ended September 30, 2024, down from $17.7 million in the same period of 2023, primarily due to reduced debt repayments[205] Interest and Tax Provisions - Interest expense for the three months ended September 30, 2024, decreased by $428 thousand (21%) compared to the same period in 2023, attributed to principal prepayments on the Term Loan[198] - The income tax provision increased by $52,000 (83%) for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to changes in valuation allowance and net expense from discrete events[201] Currency and Exchange Rate Impact - Approximately 10% of the company's revenue for the nine months ended September 30, 2024, was in foreign currencies, primarily Canadian dollars and British pounds[221] - A hypothetical 10% change in exchange rates would result in an approximate $2.8 million increase or decrease in cost of revenue and operating expenses[225]

Revenue Performance - Total revenue for Q3 2024 was $102.2 million, a decrease of 20.3% compared to $128.3 million in Q3 2023[3] - Digital revenue was $53.7 million, down 16.5% from $64.3 million in the prior year, with digital subscriptions totaling 1.11 million, a decline of 19.7%[4] - Nutrition and Other revenue was $47.4 million, a decrease of 19.6% from $59.0 million in the prior year, with nutritional subscriptions totaling 0.13 million, down 27.3%[4] - Connected Fitness revenue fell to $1.1 million, down 78.2% from $4.9 million in the prior year, with approximately 1,300 bikes delivered in Q3[4] - The outlook for Q4 2024 projects revenue between $77 million and $87 million[8] - Total revenue for Q3 2024 was $102.2 million, a decrease of 20.3% compared to $128.3 million in Q3 2023[18] - Digital revenue decreased to $53.7 million in Q3 2024 from $64.3 million in Q3 2023, representing a decline of 16.8%[18] - Nutrition and other revenue fell to $47.4 million in Q3 2024, down 19.5% from $59.0 million in Q3 2023[18] Profitability and Loss - Adjusted EBITDA for Q3 2024 was $10.1 million, compared to a loss of $5.8 million in Q3 2023[4] - Net loss for Q3 2024 was $12.0 million, significantly improved from a net loss of $32.7 million in the prior year, including $9.2 million of restructuring costs[4] - Operating loss for Q3 2024 was $13.0 million, an improvement from a loss of $29.0 million in Q3 2023[18] - Net loss for the nine months ended September 30, 2024, was $37.1 million, significantly reduced from $87.6 million in the same period of 2023[19] - The company reported a net loss of $12,003 thousand for the three months ended September 30, 2024, compared to a net loss of $32,666 thousand for the same period in 2023, representing a 63.2% improvement[23] - Adjusted EBITDA for the three months ended September 30, 2024, was $10,136 thousand, compared to an Adjusted EBITDA loss of $5,833 thousand in the same period of 2023, indicating a significant turnaround[23] Operating Expenses and Cash Flow - Total operating expenses decreased to $81.8 million, down from $104.0 million in the prior year[4] - Cash provided by operating activities for the nine months ended September 30, 2024, was $9.3 million, compared to cash used of $14.6 million in the prior year[4] - Cash provided by operating activities for the nine months ended September 30, 2024, was $9.3 million, compared to cash used of $14.6 million in the same period of 2023[19] - Free cash flow for the nine months ended September 30, 2024, was $5,317 thousand, a recovery from a negative free cash flow of $(20,082) thousand in the same period of 2023[28] Strategic Initiatives and Restructuring - The company announced a strategic shift from a multi-level marketing model to a single-level affiliate network, aiming for long-term profitable growth[2] - The company announced a restructuring initiative called the Pivot, which will convert its MLM model to a single-level affiliate model and reduce the workforce by approximately 170 employees, or 33% of its workforce[29] - Total restructuring costs associated with the Pivot are expected to be approximately $18.4 million, with $9.2 million recorded in the three and nine months ended September 30, 2024[29] - Accelerated depreciation expense of $2.9 million was recorded due to the Pivot, impacting certain long-lived assets that will not be used after December 31, 2024[30] - The company expects to record an additional $1.1 million in restructuring expenses in the three months ended December 31, 2024, related to the Pivot[30] - Inventory adjustments of $1.2 million were made due to the decision to cease the sale of connected fitness inventory after December 31, 2024[30] - The company recorded termination and retention benefits of $5,087 thousand as part of the restructuring costs in the three and nine months ended September 30, 2024[30] Cash Position - Cash, cash equivalents, and restricted cash at the end of the period were $32.3 million, down from $38.2 million at the end of the same period in 2023[19] - The net cash position increased to $10,590 thousand as of September 30, 2024, compared to $3,850 thousand at December 31, 2023, reflecting improved liquidity[26]