Core Insights - AIBotics has launched the Phill Robot™ in Miami's Rule Fitness, targeting the multi-billion-dollar markets in massage equipment, robotics, and artificial intelligence [1][4] - The global massage equipment market is projected to grow from $24.3 billion in 2024 to approximately $42.5 billion by 2032, while the AI industrial robotics market is expected to reach $66.5 billion by 2030 with a CAGR of about 25% [4] Company Overview - AIBotics is a developer of AI- and robotics-enhanced technologies, with its flagship product being the Phill Robot™, which offers AI-powered massage therapy [6][7] - The company aims to integrate AI precision with user convenience in both professional and home wellness settings [5] Product Features - The Phill Robot™ features a patented foldable arm with a 35-inch range and 15-pound massage force, providing a tailored massage experience without the need for specialized attire [3] - It serves dual purposes as a massage device and a nightstand when not in use, enhancing its utility [3] Market Positioning - AIBotics is positioning itself as a leader in personal robotics, healthcare, wellness, and hospitality, with plans for e-commerce distribution and pilot programs for the Phill Robot™ [7] - The partnership with Rule Fitness is seen as a strategic move to demonstrate the benefits of AI-powered massage for high-performance clients [4]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify potential candidates [3] Group 2: The Beachbody Company, Inc. (BODI) - BODI has shown a price increase of 15% over the past four weeks, indicating growing investor interest [4] - The stock has gained 17.9% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - BODI has a beta of 1.2, suggesting it moves 20% higher than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [6] - BODI has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.10, indicating it is relatively cheap at present [7] Group 3: Investment Opportunities - BODI appears to have significant potential for growth, and there are other stocks that meet the criteria of fast-paced momentum at a bargain [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]

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].