The Beachbody pany(US:BODY)2025-11-10 21:25Financial 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]. - 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]. - 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 digital streaming services revenue from 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 nutritional products revenue from 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]. Cost and Expenses - For the three months ended September 30, 2025, total cost of revenue decreased by $18,144,000 (54%) to $15,238,000 compared to $33,382,000 in the same period of 2024[181]. - Digital gross profit for the three months ended September 30, 2025 was $32,042,000, down $11,209,000 (26%) from $43,251,000 in 2024[181]. - Nutrition and other gross profit decreased by $15,156,000 (55%) to $12,607,000 for the three months ended September 30, 2025 compared to $27,763,000 in 2024[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]. - For the nine months ended September 30, 2025, total cost of revenue decreased by $52,198,000 (49%) to $53,755,000 compared to $105,953,000 in 2024[186]. - Digital gross profit for the nine months ended September 30, 2025 was $103,542,000, down $35,648,000 (26%) from $139,190,000 in 2024[186]. - Enterprise technology and development expenses for the three months ended September 30, 2025 were $10,406,000, a decrease of $8,976,000 (46%) from $19,382,000 in 2024[196]. - 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]. - General and administrative expenses as a percentage of total revenue increased by 540 basis points due to a faster decrease in revenue than in expenses[203]. - 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 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]. Cash Flow and Financing - 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, reflecting 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, primarily due 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, compared to $(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]. - As of September 30, 2025, the company had cash and cash equivalents totaling $33.9 million[223]. - The company reported a loss on debt extinguishment of $2,166,000 for the nine months ended September 30, 2025[170]. - The loss on debt extinguishment for the nine months ended September 30, 2025, was $2.166 million, primarily due to the full repayment of the Term Loan amounting to $17.3 million[210]. - The ABL Facility, established on May 13, 2025, is a $35 million facility with an effective interest rate of 15.21% and a cash interest rate of 13.41%[214]. - The Company anticipates a violation of the minimum digital subscriptions financial covenant by December 31, 2025, and is in discussions with the lender to amend these covenants[219]. - The Company believes it will have adequate cash flows to support its ongoing operations for at least one year following the issuance of the condensed consolidated financial statements[222]. - The company may explore additional debt or equity financing to strengthen its financial position, but there are no assurances of raising additional capital on acceptable terms[231]. Market and Operational Insights - Digital subscriptions decreased to 0.90 million from 1.11 million year-over-year, indicating a decline in market penetration[158]. - Average digital retention rate was 96.9% for the three months ended September 30, 2025, slightly down from 97.3% in the previous year[159]. - Total streams decreased to 17.6 million for the three months ended September 30, 2025, down from 20.9 million in the previous year[159]. - The company ceased the sale of connected fitness bike inventory in the first quarter of 2025, contributing to a 100% decrease in connected fitness revenue for the three months ended September 30, 2025[174]. - 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]. - The company has $12.6 million of lease obligations and purchase commitments as of September 30, 2025, associated with enforceable contracts[229]. - Future capital requirements may vary and will depend on revenue growth and economic conditions, with existing cash and cost control initiatives expected to meet anticipated cash needs for the next twelve months[230].