The Beachbody Company, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $45.2 million, a 24.5% decrease from $59.9 million in the prior year period.
• Digital revenue was $27.8 million, down 23.5% year-over-year, while Nutrition and Other revenue was $17.4 million, down 26.1%.
• Gross margin was 70.7%, compared to 74.6% in the prior year period.
• Total operating expenses were $30.7 million, a decrease from $39.7 million in the prior year period.
• Operating income was $1.3 million, down from $5.0 million in the prior year period; this marked the fifth consecutive quarter of operating income.
• Net income was $3.3 million, down from $3.6 million in the prior year period, marking the fifth consecutive quarter of net income.
• Adjusted EBITDA was $6.4 million, down from $9.5 million in the prior year period, representing the twelfth consecutive quarter of positive Adjusted EBITDA and the fifth consecutive quarter of double-digit Adjusted EBITDA margins.
• Adjusted net income was $0.6 million, down from $4.3 million in the prior year period.
• Cash used in operating activities for the nine months ended September 30, 2026, was $10.1 million, compared to cash provided of $16.8 million in the prior year period.
• Free cash flow was $(12.1) million for the nine months ended September 30, 2026, compared to $13.1 million in the prior year period.
• Deferred revenue decreased to $42.962 million at September 30, 2026, from $56.866 million at December 31, 2025.
• Total debt (current and long-term) was $22.893 million at September 30, 2026, compared to $23.626 million at December 31, 2025.
• Net cash position was $4.636 million at September 30, 2026, down from $15.391 million at December 31, 2025.

Guidance and Future Outlook:

• Revenue for the fourth quarter of 2026 is expected to be between $38 million and $42 million.
• Net income (loss) for the fourth quarter of 2026 is expected to be between $(2) million and $1 million.
• Adjusted net income for the fourth quarter of 2026 is expected to be between $1 million and $4 million.
• Adjusted EBITDA for the fourth quarter of 2026 is expected to be between $6 million and $9 million.
• The outlook includes a $3 million restructuring expense adjustment for the fourth quarter of 2026.
• Management expects to continue benefiting from digital fitness content and premium nutritional products as consumers focus on complete wellness solutions.
• The company is expanding its multi-channel distribution strategy across retail, DTC, and Amazon.

Business Segments and Product Lines:

• Digital subscriptions totaled 0.69 million in the third quarter, down from 0.90 million in the prior year period.
• Nutritional subscriptions totaled 0.06 million in the third quarter, down from 0.07 million in the prior year period.
• Total subscriptions decreased 22.7% year-over-year to 0.75 million.
• Total streams were 13.3 million in the third quarter, a 24.4% decrease from 17.6 million in the prior year period.
• Average digital retention was 95.4% in the third quarter, down from 96.9% in the prior year period.
• Connected Fitness Units Delivered were zero for the third quarter and nine months ended September 30, 2026, compared to 1.5 million units delivered in the nine-month period of the prior year.
• The company is executing an omni-channel strategy to place iconic brands wherever shoppers are.

Market and Competitive Landscape:

• The company focuses on the wellness category under the BODi Wellness umbrella to broaden its total addressable market.
• Management notes intense competition and competitive pressures in the fitness and nutrition industries.
• The company relies on a few key products and faces risks related to market conditions and global economic factors.

Risks and Challenges:

• Risks include the ability to effectively compete in the fitness and nutrition industries, successfully acquire and integrate new operations, and reliance on key products.
• Market conditions, global economic factors, and litigation regarding intellectual property rights are identified as potential risks.
• The change in fair value of warrant liabilities is significantly impacted by stock price changes and cannot be reasonably forecasted.
• Impairment of goodwill is identified as a potential non-recurring operating activity that cannot be reasonably forecasted.

Management Commentary and Tone:

• Carl Daikeler, CEO, stated that net income and adjusted EBITDA exceeded the high end of guidance and revenue met expectations as the company transforms its business model.
• Mark Goldston, Executive Chairman, highlighted the operating discipline built into the company, noting additional cost efficiencies are lowering the breakeven point.
• Management expressed confidence in the multi-channel distribution strategy gaining traction with new partners and expanded retail, DTC, and Amazon rollouts.
• The tone reflects confidence in the innovation pipeline and the ability to capitalize on the massive opportunity in the wellness category.

Other Key Points:

• The company reported a $3 million restructuring expense expected in the fourth quarter of 2026.
• The company has achieved five consecutive quarters of operating income and net income.
• The company has achieved twelve consecutive quarters of positive Adjusted EBITDA.
• The company is formerly known as Beachbody and has evolved into a comprehensive health and fitness ecosystem.
• Since inception, the company has supported more than 30 million customers.
• The company holds nearly three decades of experience in the industry.
• The company's stock trades on the NASDAQ under the ticker BODi.