The Beachbody Company(US:BODI)2026-03-10 20:08Revenue Performance - Total revenue for Q4 2025 was $55.5 million, a decrease of 35.7% compared to $86.4 million in Q4 2024[5] - Digital revenue in Q4 2025 was $34.3 million, down 31.9% from $50.4 million in the prior year[9] - Nutrition and Other revenue for Q4 2025 was $21.2 million, a decline of 39.0% compared to $34.8 million in Q4 2024[9] - Total revenue for the year ended December 31, 2025, was $251.7 million, a decrease of 40% compared to $418.8 million in 2024[22] - Digital revenue for Q4 2025 was $34.3 million, down 32% from $50.4 million in Q4 2024[22] Profitability Metrics - Gross margin improved to 74.5% in Q4 2025, up from 70.5% in the prior year[5] - Operating income for Q4 2025 was $8.2 million, compared to an operating loss of $32.9 million in Q4 2024[5] - Net income for Q4 2025 was $5.2 million, a significant improvement from a net loss of $34.6 million in the prior year[5] - Adjusted EBITDA for Q4 2025 was $12.9 million, an increase of 48.0% from $8.7 million in Q4 2024[9] - Gross profit for the year ended December 31, 2025, was $183.8 million, representing a gross margin of approximately 73%[22] - Adjusted EBITDA for Q4 2025 was $12,878,000, compared to $8,699,000 in Q4 2024, representing a 48.5% increase year-over-year[28] - Net income for Q4 2025 was $5,219,000, a significant improvement from a net loss of $34,558,000 in Q4 2024[28] - Adjusted net income for Q4 2025 was $7,211,000, compared to an adjusted net loss of $(4,713,000) in Q4 2024[37] Cash Flow and Liquidity - The company generated positive free cash flow of $17.4 million for the full year 2025, compared to a negative free cash flow of $(2.0) million in the prior year[8] - Cash and cash equivalents increased to $39.0 million as of December 31, 2025, from $20.2 million in 2024[24] - The company reported a net cash provided by operating activities of $21.8 million for the year ended December 31, 2025, compared to $2.6 million in 2024[24] - The company reported a net cash position of $15,391,000 as of December 31, 2025, up from $1,019,000 in 2024, indicating improved liquidity[43] - Free cash flow for the year ended December 31, 2025 was $17,351,000, compared to a negative free cash flow of $(1,980,000) in 2024[45] Future Outlook - The outlook for Q1 2026 projects revenue between $49 million and $54 million, with expected net income ranging from $(2) million to $1 million[10] - The company plans to continue focusing on digital and nutrition segments to drive future growth[22] Restructuring and Costs - The company incurred $9.3 million in restructuring costs during Q4 2024 as part of the Pivot, which transitioned to a single-level affiliate model[46] - Total restructuring costs for the year ended December 31, 2024 amounted to $18.5 million, reflecting the impact of the Pivot[46] - The company recorded a loss on debt extinguishment of $2,166,000 for the year ended December 31, 2025, related to a $17.3 million debt extinguishment[34] Other Financial Metrics - Total subscriptions decreased to 0.95 million in Q4 2025, down 18.1% from 1.16 million in Q4 2024[9] - Total current liabilities decreased to $86.6 million in 2025, down from $127.6 million in 2024[22] - Depreciation and amortization expenses were $1,891,000 for Q4 2025, down from $12,683,000 in Q4 2024, indicating improved asset utilization[28]