BODI · The Beachbody Company, Inc.

The Beachbody Company, Inc. (BODi) delivered its third consecutive quarter of GAAP profitability in Q1 2026, with operating income of $3.1 million and net income of $2.3 million, a stark improvement from the prior year's operating loss of $3.7 million and net loss of $5.7 million. Total revenue declined 25% year-over-year to $54.3 million, reflecting 21.8% drop in digital revenue to $33.6 million and 27.7% decline in nutrition and other revenue to $20.7 million, alongside the complete cessation of connected fitness revenue. Despite revenue contraction, gross margin edged up to 71.8% from 71.2%, supported by a favorable mix shift. Operating expenses were sharply reduced by 35% to $35.9 million, primarily from cuts in selling and marketing (down to $18.8 million from $31.0 million) and general and administrative expenses, enabling the profitability turnaround. CEO Carl Daikeler highlighted the transformed business model's strength, emphasizing expansion into the larger nutrition market with brands like P90X and Shakeology to acquire customers and migrate them to digital fitness. Executive Chairman Mark Goldston noted the strong balance sheet, ten consecutive quarters of positive Adjusted EBITDA ($8.0 million, exceeding guidance high-end), and lowered breakeven point for operating leverage. Digital subscriptions fell 20.6% to 0.81 million, with retention dipping to 95.9%, but DAU/MAU improved slightly to 33.1%. Cash used in operations was $1.0 million, with ending cash at $36.6 million. Q2 guidance projects revenue of $46-51 million and Adjusted EBITDA of $3-6 million, signaling continued focus on efficiency amid revenue normalization post-connected fitness exit.