The Beachbody Company(US:BODI)2025-11-10 21:25Revenue 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]. - 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 revenue from digital streaming services and 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 revenue from nutritional products and 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]. Profitability and Income - 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]. - Adjusted EBITDA for the three months was $9.5 million, slightly down from $10.1 million in the same quarter of 2024[151]. - Adjusted EBITDA for the three months ended September 30, 2025, was $9,544,000, compared to $10,136,000 for the same period in 2024[168]. - The net income for the three months ended September 30, 2025, was $3,569,000, a significant improvement from a net loss of $12,003,000 in the same period in 2024[170]. Cost Management - Gross margin increased by 730 basis points to 74.6%, with operating expenses reduced to $39.7 million from $81.8 million[151]. - For the three months ended September 30, 2025, total cost of revenue decreased by $18,144,000 (54%) compared to the same period in 2024, totaling $15,238,000[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]. - 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]. - 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 and Workforce - The company executed a restructuring that reduced headcount by approximately 70 employees, or 22% of its workforce, resulting in costs of approximately $2.5 million[155]. - 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]. Financing and Cash Flow - The company entered into a $35.0 million asset-based lending facility, borrowing $25.0 million at inception, with a maturity date of May 13, 2028[152]. - 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, primarily due to 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, with the increase attributed 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, a significant improvement from $(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]. - The company plans to explore additional debt or equity financing to strengthen its financial position, although the terms and form are currently unknown[231]. Foreign Currency and Exchange Rates - 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].