The Beachbody pany(BODY) - 2025 Q3 - Quarterly Results

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] - Operating income improved to $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] - Gross profit for the three months ended September 30, 2025, was $44,649,000, compared to $68,811,000 in 2024, reflecting a decline of 35.2%[20] - Operating income for the three months ended September 30, 2025, was $4,986,000, compared to a loss of $13,010,000 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 three months ended September 30, 2025, was $9,544,000, compared to $10,136,000 in 2024, a decrease of 5.8%[26] Revenue Breakdown - Digital revenue decreased by 32.2% to $36.4 million, while nutrition and other revenue fell by 50.4% to $23.5 million[6] - Digital revenue for the nine months ended September 30, 2025, was $118,994,000, down 31.6% from $173,979,000 in 2024[20] - Total subscriptions decreased by 21.2% to 0.97 million, with digital subscriptions down 18.8% to 0.90 million[6] 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, up 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 on December 31, 2024[32] - Total operating expenses for the nine months ended September 30, 2025, were $145,088,000, down from $259,784,000 in 2024, a reduction of 44%[20] - Free cash flow for the nine months ended September 30, 2025, was $13,069,000, an increase from $5,317,000 in the same period of 2024, representing a growth of 146%[34] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $16,767,000, compared to $9,291,000 in 2024, indicating a year-over-year increase of 80%[34] - Cash used for the purchase of property and equipment decreased slightly from $3,974,000 in 2024 to $3,698,000 in 2025, reflecting a reduction of approximately 7%[34] Future Guidance - The company expects Q4 2025 revenue guidance between $50 million and $57 million, with adjusted EBITDA projected between $5 million and $9 million[8] - The company has achieved eight consecutive quarters of positive adjusted EBITDA, indicating a strong operational turnaround[2] Debt and Losses - The company reported a loss on debt extinguishment of $2,166,000 for the nine months ended September 30, 2025[26]