Beachbody (NASDAQ:BODI) reported a 24.5% year-over-year decline in third-quarter revenue as its shift from multilevel marketing to a nutrition-focused, multichannel business continued to pressure customer and subscription growth.
Revenue was $45.2 million, within the company’s forecast range, while adjusted EBITDA of $6.4 million exceeded the high end of its guidance. Executive Chairman Mark Goldston said the company’s financial turnaround had progressed better than expected, but its growth turnaround was taking longer, partly because of the timing of retail shelf resets.
“Our rate of attrition has exceeded our rate of addition,” Goldston said, adding that new customers and subscribers were not yet replacing those leaving the legacy business.
Subscriptions decline as Beachbody shifts its focus
Digital revenue fell 23.5% from a year earlier to $27.8 million. Digital subscriptions totaled approximately 690,000, down 23.3%, while average digital retention was 95.4%, Chief Financial Officer Brad Ramberg said.
Nutrition and other revenue declined 26.1% to $17.4 million. Nutritional subscriptions totaled about 60,000, compared with approximately 70,000 in both the preceding quarter and the year-earlier period. Ramberg said that measure would become less relevant as the business moves toward more one-time and retail sales.
Chief Executive Officer Carl Daikeler said returning customers accounted for most third-quarter sales, allowing the company to reduce acquisition costs. But he acknowledged that sustainable growth also requires new customers. Beachbody is refining its marketing and using a new customer database platform to reach former customers more efficiently.
Daikeler said the company is now leading customer acquisition with nutrition products, including Shakeology and supplements under the P90X and INSANITY brands. He said digital fitness remains an important part of the business and described plans for BODi 365, a yearlong program intended to connect daily workouts with nutrition purchases.
Retail rollout and cost reductions
Goldston said Shakeology’s presence at Sprouts Farmers Market had expanded to 181 stores and that the company had received some reorders. The product was also available in 481 Vitamin Shoppe stores. He declined to provide retailer-specific sell-through figures.
Beachbody has launched P90X supplements and energy drinks, as well as a seven-serving Shakeology product, on Amazon. A Southern California test of INSANITY Liquid Shock and P90X energy drinks was in its initial stages. Goldston said the company expected an opportunity to reach its first roughly 100 retail locations in the region over the following 90 days.
Retail expansion has been slower than management hoped because many chains add products during scheduled shelf resets, Goldston said. He added that the company could not yet track whether retail shoppers were new to its brands.
In early October, Beachbody reorganized its operations to reduce costs. Ramberg said the company cut approximately $27 million from anticipated 2027 overhead and identified another $7 million in savings from media efficiencies and a shift toward turnkey manufacturing. He said savings would begin appearing late in the fourth quarter and build over the following year.
The company expects to record about $3 million in fourth-quarter restructuring expenses, primarily for employee termination and retention benefits. Ramberg estimated that the changes reduced Beachbody’s adjusted EBITDA break-even revenue level to approximately $125 million.
Profit, cash flow and outlook
Third-quarter net income was $3.3 million, including a $2.7 million noncash gain from changes in the fair value of warrant liabilities. Adjusted net income was approximately $600,000. Operating income was $1.3 million, and adjusted EBITDA marked the company’s 12th consecutive positive quarter.
Beachbody ended the quarter with $27.5 million in cash and approximately $22.9 million in debt. Ramberg said the company remained above the $22.5 million cash level at which covenants under its amended credit agreement are not tested.
Free cash flow was negative $12.1 million for the first nine months of 2026, compared with positive $13.1 million a year earlier. Ramberg said the prior-year figure included a $22.3 million one-time benefit from discontinuing partner compensation during the dismantling of the multilevel marketing structure.
For the fourth quarter, Beachbody forecast revenue of $38 million to $42 million, net income ranging from a $2 million loss to a $1 million profit, and adjusted EBITDA of $6 million to $9 million. The company expects digital products to account for approximately 64% of revenue and nutrition and other products for 36%.
About Beachbody (NASDAQ:BODI)
Beachbody, operating under the BODi brand, is a digital fitness and wellness company that provides at-home workout programs, nutrition guidance and related products through online and mobile platforms. Its offerings are designed to support exercise, weight management and broader healthy-lifestyle goals. The company’s portfolio has included on-demand workout content led by professional trainers, personalized fitness and nutrition programs, meal-planning resources, supplements and other wellness products.
