Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase ...

Financial Data and Key Metrics Changes - North American system-wide sales reached $467 million, an 18% increase year over year [6][17] - Quarterly run rate average unit volumes in North America increased by 8% year over year to $659,000 [7][17] - Total members at the end of the quarter stood at 865,000, up 12% year over year, with same-store sales increasing by 4% [8][17] - Consolidated revenue for the quarter was $76.9 million, down 4% from $79.7 million in the prior year [17] - Adjusted EBITDA for the quarter was $27.3 million, down 9% compared to $29.9 million in the prior year [27] Business Line Data and Key Metrics Changes - Franchise revenue for the quarter was $43.9 million, up 5% year over year, driven by increased royalty revenue [18] - Equipment revenue declined by 20% year over year to $11.1 million, primarily due to a 22% decrease in North American installations [19] - Merchandise revenue decreased by 25% year over year to $6.3 million, attributed to lower sales volumes and price discounts [19] - Franchise marketing fund revenue increased by 18% year over year to $9.3 million, supported by growth in system-wide sales [20] Market Data and Key Metrics Changes - The company opened 116 new studios globally during Q1, with 93 in North America and 23 internationally [14] - The total number of global open studios reached 3,298, with an annualized closure rate of 6% [14] - The company sold 21 licenses during Q1, all internationally, primarily in Club Pilates [15] Company Strategy and Development Direction - The company is focusing on optimizing operations and franchisee health while preparing for long-term success [6][12] - A new field operations function is being launched, with plans to have 12 field managers in place across North America by quarter end [10][11] - The company is actively selling in the majority of the 14 registration states under FDD registration or exemption [11] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2025 will be a year of stabilization, with no degradation in the overall financial health of the business [38][39] - The company is lowering guidance on global net new studio openings while reiterating guidance for system-wide sales and total revenue [29][30] - Management expressed confidence in the health of the franchisee and the execution of operational improvements [39] Other Important Information - The company is undergoing a transformation from an aggressive sales focus to building a foundation of efficiency and effectiveness [35] - Legal judgments and settlements have increased SG&A expenses significantly, with an additional accrual of $15 million recorded [22][23] Q&A Session Summary Question: What are the overarching themes for the next few months? - Management emphasized the transformation towards efficiency and effectiveness, focusing on franchisee support and operational audits [35][36] Question: What is the outlook for studio openings? - Club Pilates is expected to account for over half of the new openings this year, with strong performance anticipated in Yoga Six and Pure Barre [40][44] Question: What is driving the increase in closure rates? - Closures are primarily concentrated in Cycle Bar and StretchLab, with expectations for similar distribution throughout the year [48] Question: How will the new field operations team impact the business? - The field ops team will focus on supporting struggling franchisees and ensuring adherence to operational standards [55][100] Question: What is the impact of tariffs on the business? - The direct impact of tariffs is minimal, affecting only 20% of revenue, with ongoing efforts to mitigate costs [85][86] Question: What changes were made in the franchise disclosure documents? - The company has made adjustments to build-out costs, which have been positively received by franchisees [94][95]

Financial Data and Key Metrics Changes - Total revenue increased by 18.3% to $706 million, driven by a 17.9% increase in membership dues and enrollment fees and an 18.7% increase in in-center revenue [5][10] - Net income rose by 206% to $76.1 million, while adjusted net income increased by 189% to $88.1 million [10] - Adjusted EBITDA grew by 31.2% to $191.6 million, with an adjusted EBITDA margin of 27.1%, up 260 basis points year-over-year [10][11] - Net cash provided by operating activities increased by approximately 103% to $184 million compared to the same quarter last year [11] Business Line Data and Key Metrics Changes - Comparable center revenue increased by 12.9%, up from 11.1% in the prior year period, attributed to higher membership dues and strong performance in in-center businesses [6][10] - Average monthly dues grew by 11.8% year-over-year to $208, with average revenue per center membership increasing by 13.3% to $844 [9][10] - Memberships increased by 3% year-over-year, ending the quarter with over 826,000 memberships, and total memberships, including on-hold memberships, reached approximately 880,000 [8][9] Market Data and Key Metrics Changes - The company continues to see strong revenue growth in clubs opened within the last twelve months, which are outperforming anticipated revenue plans [5] - Visits in comparable centers increased by 4.7% compared to the first quarter of last year, indicating higher member engagement [14] Company Strategy and Development Direction - The company raised its guidance for comparable center revenue growth to between 8.5% and 9.5% for the full year, reflecting confidence in long-term revenue growth targets [8][10] - The focus remains on maintaining a strong balance sheet and positive free cash flow while growing the business, with plans to open 10 to 12 clubs per year [14][15] - The company is also expanding into three additional growth areas, including LT Digital, which has over 2 million subscribers, and Miura [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong performance in the first quarter but acknowledged macroeconomic uncertainties, leading to a modest increase in revenue and adjusted EBITDA guidance [13][14] - The company is monitoring customer behavior closely, noting that while retention rates are high, new member sign-ups may be slightly softer due to economic conditions [41][62] Other Important Information - The company has signed a letter of intent for a sale-leaseback of three properties for approximately $150 million, expected to close in the second quarter [11] - Management indicated that tariff exposure is minimal, with no significant impact expected from current tariff policies [12][45] Q&A Session Summary Question: How broad now how many clubs have wait lists? - Management confirmed that many clubs are using waitlists to manage capacity and ensure member experience, focusing on full dues-paying customers [18][20] Question: What's the organization's capacity to open more clubs? - Management stated that while they plan to open 10 to 12 clubs, they have the capacity to do more if economic conditions allow [24][26] Question: How is pricing strategy evolving? - Management confirmed that no significant legacy price increases were taken in Q1, with plans to implement them in Q2 [31][34] Question: How is member activity as the pool season approaches? - Management indicated it is too early to assess member activity for the pool season, but in-center performance remains strong [37] Question: What is the impact of macroeconomic conditions on membership? - Management noted that while there is some customer hesitance in joining, it is a small part of the overall business and retention remains strong [42][64] Question: How is LT Health performing? - Management reported significant growth in LT Health, with a 40% month-over-month increase in March, and plans for continued expansion [87][90]

Core Viewpoint - The Beachbody Company, Inc. (BODI) is expected to report a year-over-year increase in earnings despite lower revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The company is projected to post a quarterly loss of $1.33 per share, reflecting a year-over-year change of +30.7% [3]. - Revenues are anticipated to be $63.1 million, down 47.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 11.01% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have shown a nearly 70% success rate in delivering positive surprises [8]. Historical Performance - In the last reported quarter, the company was expected to post a loss of $2.88 per share but delivered a loss of $1.89, resulting in a surprise of +34.38% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - The Beachbody Company does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered for investment decisions [16].