The Beachbody pany(BODY) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Results Overview Highlights and CEO Commentary BODi reported better-than-expected Q2 2025 results, achieving its seventh consecutive quarter of positive Adjusted EBITDA and positive H1 2025 free cash flow, with full-year positive free cash flow in sight - Revenues were better than guidance, Gross Margin increased by 300bps over the prior year, Net Loss was within guidance, and Adjusted EBITDA was better than guidance, marking the seventh consecutive quarter of positive Adjusted EBITDA[1] - The company generated free cash flow for the first half of 2025 and has a line of sight to achieving positive free cash flow for the full year 2025 for the first time since 2020[2] - Strategic decisions during the company's transformation are working, leading to significantly reduced breakeven levels and improved cost structure[2] Key Financial and Operational Metrics (Q2 2025) Q2 2025 revenue and segment revenues declined significantly due to a business model pivot, yet operating and net losses improved, and Adjusted EBITDA slightly decreased - The prior year periods do not reflect the impact of the business model pivot announced on September 30, 2024, and executed in Q4 2024, making results not directly comparable with prior periods[4] Second Quarter 2025 Key Financial Results (YoY Comparison) | Metric (in millions) | Q2 2025 | Q2 2024 | Change (%) | | :-------------------- | :------ | :------ | :--------- | | Total Revenue | $63.9 | $110.2 | (42.0%) | | Digital Revenue | $39.7 | $58.8 | (32.5%) | | Nutrition & Other Revenue | $24.2 | $50.1 | (51.8%) | | Connected Fitness Revenue | $0.1 | $1.3 | (94.2%) | | Total Operating Expenses | $50.2 | $85.9 | (41.5%) | | Operating Loss | ($4.0) | ($9.5) | 57.9% | | Net Loss | ($5.9) | ($10.9) | 45.7% | | Adjusted EBITDA | $4.6 | $4.9 | (6.1%) | Second Quarter 2025 Key Operational Metrics (YoY Comparison) | Metric (in millions) | Q2 2025 | Q2 2024 | Change (%) | | :------------------- | :------ | :------ | :--------- | | Digital Subscriptions | 0.94 | 1.15 | (18.3%) | | Nutritional Subscriptions | 0.07 | 0.14 | (52.1%) | | Total Subscriptions | 1.01 | 1.30 | (22.0%) | | Average Digital Retention | 96.7% | 96.5% | 20bps | | Total Streams | 18.0 | 22.7 | (20.4%) | | DAU/MAU | 31.4% | 31.9% | -50bps | | Connected Fitness Units Delivered (in thousands) | 0.0 | 1.6 | (98.9%) | Third Quarter 2025 Outlook BODi provided guidance for the third quarter ending September 30, 2025, projecting revenues between $51 million and $58 million, a net loss between ($4) million and $0 million, and Adjusted EBITDA between $2 million and $6 million Third Quarter 2025 Financial Outlook (in millions) | Metric | Low | High | | :------------ | :---- | :---- | | Revenue | $51 | $58 | | Net Loss | ($4) | $0 | | Adjusted EBITDA | $2 | $6 | Company Information About BODi and The Beachbody Company, Inc. BODi, formerly Beachbody, is a fitness and nutrition company with 25 years of experience, known for structured home fitness programs and nutrition supplements, serving over 30 million customers - BODi (originally Beachbody) has been innovating structured step-by-step home fitness and nutrition programs for 25 years[12] - Key offerings include programs like P90X, Insanity, and 21-Day Fix, and the superfood nutrition supplement Shakeology[12] - Since 1999, BODi has helped over 30 million customers achieve health goals, building a community focused on healthy weight loss, improved strength, energy, and mental/physical well-being[12] Conference Call and Webcast Information BODi will host a conference call and webcast on August 5, 2025, at 5:00 PM ET to discuss its financial results and future guidance - A conference call and live webcast will be held on Tuesday, August 5, 2025, at 5:00 PM ET[10] - Dial-in information: (833) 470-1428 (U.S. & Canada), Conference ID: 327708. Webcast available at **https://investors.thebeachbodycompany.com/**[10](index=10&type=chunk) - A replay of the call will be available until August 12, 2025, by dialing (866) 813-9403 (U.S & Canada), Passcode: 843571[11] Safe Harbor Statement This section serves as a standard disclaimer regarding forward-looking statements, indicating that projections about future performance and strategy are subject to various risks and uncertainties - The press release contains forward-looking statements regarding future performance, market opportunity, business strategy, plans, objectives, and future operations[13] - Actual results could differ materially due to various factors, including competition in fitness and nutrition, ability to acquire/integrate operations, reliance on key products, market conditions, and intellectual property rights protection[14] - Readers should not rely on forward-looking statements as predictions of future events and are referred to the 'Risk Factors' section of SEC filings (Form 10-K, 10-Q, 8-K) for more information[14][15] Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets As of June 30, 2025, total assets decreased to $145.9 million from $174.6 million, driven by reductions in current assets, while total liabilities also decreased to $125.7 million from $146.4 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :---------------------- | :------------ | :----------- | | Cash and cash equivalents | $25,561 | $20,187 | | Inventory | $11,406 | $16,303 | | Total current assets | $57,295 | $78,685 | | Total assets | $145,894 | $174,556 | | Accounts payable | $4,970 | $9,534 | | Deferred revenue | $66,640 | $77,273 | | Current portion of Term Loan | — | $9,500 | | Term Loan | $23,300 | $9,668 | | Total liabilities | $125,736 | $146,386 | | Total stockholders' equity | $20,158 | $28,170 | Unaudited Condensed Consolidated Statements of Operations For Q2 2025, total revenue decreased by 42.0% to $63.9 million, but operating loss improved to ($4.0) million and net loss to ($5.9) million, primarily due to a 41.5% reduction in total operating expenses Unaudited Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------- | :---------- | :---------- | :---------- | :---------- | | Digital Revenue | $39,693 | $58,771 | $82,604 | $120,277 | | Nutrition and other Revenue | $24,172 | $50,101 | $52,825 | $105,613 | | Connected fitness Revenue | $76 | $1,311 | $875 | $4,339 | | Total revenue | $63,941 | $110,183 | $136,304 | $230,229 | | Total cost of