Beachbody (NASDAQ:BODI) executives used the company’s fourth quarter 2025 earnings call to emphasize that 2025 marked a transition year following the exit from its former multi-level marketing (MLM) model and the buildout of a new omni-channel approach. Management highlighted a return to profitability, a strengthened balance sheet, and a 2026 pipeline focused on new digital fitness offerings and a major expansion into retail nutrition.
Shift to a new business model and “clean” comparisons
Executive Chairman Mark Goldston said the company began 2025 as “a brand new company” after extinguishing the prior MLM structure in favor of a “5-pronged omni-channel model” that includes direct-to-consumer, Amazon/marketplaces, retail distribution (set to begin in 2026), a single-level affiliate program, and a revamped win-back program targeting more than 8 million former customers.
Profitability milestones and balance sheet update
Goldston said the company’s financial turnaround reached key milestones ahead of its prior schedule. He noted Beachbody achieved positive net income in Q3 2025 and again in Q4 2025, along with positive operating income in Q4 and for the full year 2025. He said this marked the first time since 2021 that the company posted both positive operating income and adjusted net income for the full year.
For Q4 2025, management reported:
- Operating income of $8.2 million, versus an operating loss of $32.9 million in Q4 2024.
- Net income of $5.2 million, versus a net loss of $34.6 million in Q4 2024.
- Adjusted EBITDA of $12.9 million, the ninth consecutive quarter of positive adjusted EBITDA, and up from $8.7 million in Q4 2024.
Ramberg added that total Q4 revenue was $55.5 million, down 7.3% sequentially and down 35.7% year-over-year, which he said was in line with expectations given the business-model change. Consolidated gross margin was 74.5%, up 400 basis points year-over-year.
Ramberg said the quarter included a $2.2 million benefit from reversing a bonus accrual recorded in Q3 (with $1.9 million benefiting operating expenses and $300,000 benefiting cost of revenue), plus the elimination of an additional $2.2 million bonus accrual that had been included in guidance. In Q&A, Ramberg confirmed this amounted to a $4.4 million benefit versus the company’s prior expectations.
On liquidity, Goldston said the company amended covenants on its ABL facility in early January 2026. Under the amendment, if Beachbody maintains cash more than $4.6 million above outstanding debt, key covenants will not be tested. Goldston and Ramberg said that as of December 31, 2025, the company had $39 million in cash against $25 million of outstanding debt, a cushion of about $14 million. Ramberg also reported net cash of $15.4 million, full-year operating cash flow of $21.8 million, and free cash flow of $17.4 million.
Digital trends and early response to new fitness offerings
Ramberg reported that Q4 digital revenue declined 5.8% sequentially to $34.3 million. Digital subscriptions fell 3.3% quarter-over-quarter to approximately 870,000. Digital gross margin was 87.3%.
CEO Carl Daikeler said demand during the holiday period benefited from new offers, including Shaun T’s “DIG IN” lifting program bundled with holiday and New Year subscription promotions.
Management also discussed early indicators from “10 Minute BODi,” a micro-workout tier positioned for consumers seeking shorter workouts. Daikeler said about 8% of total platform viewership in recent months has shifted to “ten-minute or less microdose fitness workouts.” He described the offer as a free 10-day trial followed by a $10 per month subscription, with an upsell path to a $19 full subscription. Daikeler said he was “quite pleased” with the rate at which some users level up from the lower-priced tier, while noting the product is still in early days after launching around Christmas.
On P90X, Daikeler said “P90X Generation Next” was launched in early February with an event in New York City and “millions of impressions” in earned and paid media. He said early uptake within the subscriber base has been “solid,” but emphasized it is still early and that success stories over time will help sustain the launch.
Nutrition expansion, retail plans, and pricing strategy
Both Goldston and Daikeler framed nutrition as central to the growth strategy, citing the global nutritional supplement market at $164 billion and noting that, historically, supplements were a substantial portion of the company’s revenue in its peak years. Daikeler said that in a prior peak year with $1.2 billion in annual revenue, fitness represented about 34% (roughly $400 million), while “other revenue,” driven primarily by supplements, accounted for $783 million.
Goldston outlined a 2026 rollout that includes:
- A new P90X line of nutritional supplements.
- A new 7-serve Shakeology product at $34.99 (Shakeology previously sold as a 30-serve, $129 product and had never been sold at retail).
- A Southern California test market for P90X and Insanity branded energy drinks in late Q2/early Q3.
- An Insanity supplement line targeted for late Q3/early Q4.
- A ready-to-drink Shakeology product in the Q3/Q4 timeframe, plus potential protein bars later in 2026.
Management said lower pricing is now possible because the company is no longer constrained by the “40%–50%” sales commission structure under the prior MLM model. Daikeler said the company expects to offer supplements under P90X and Shakeology at $15–$35 price points “with healthy margins,” and described the strategy as a meaningful change in economics and scaling potential.
On retail distribution, Goldston said Shakeology is expected to debut at Sprouts Farmers Market in May 2026 in the new 7-serve format, with additional accounts in discussion through selling partner Advantage Solutions. In Q&A, management said Sprouts will not initially include all 484 stores, but rather a “meaningful component” of them. Goldston also said the company had “dozens” of sample sets out for retailer review and mentioned hearing interest from a “multi-hundred store chain” to carry the full Shakeology line, though he said he could not provide details without written confirmation.
Asked whether Shakeology pricing could come down further over time, Goldston said the company intends to maintain premium positioning given Shakeology’s formulation and differentiation, using promotions rather than structurally lowering the everyday price. Daikeler added that the company has historically resisted pressure to weaken the formulation in order to lower price, arguing that product “potency” is a key differentiator.
Q1 2026 outlook and additional themes
For Q1 2026, Ramberg guided to revenue of $49 million to $54 million, net income of negative $2 million to positive $1 million, and adjusted EBITDA of $4 million to $7 million. He reiterated the guidance should not be compared with Q1 2025 due to legacy MLM-related revenue in that period. The company expects Q1 revenue mix of roughly 63% digital and 37% nutrition and other, while anticipating a “notable shift” toward a larger nutrition contribution by the end of 2026.
In Q&A, management said it plans to keep financial discipline as a priority while reallocating marketing toward newer initiatives, particularly nutrition, which executives said historically carries lower customer acquisition cost and can help migrate customers into digital fitness.
Executives also discussed the Beachbody/BODi brand positioning. Goldston said the company’s well-known program brands—P90X, Insanity, and Shakeology—tend to “carry the day,” while BODi is intended as a broader umbrella better suited to reaching consumers beyond “six-pack abs” messaging. Daikeler shared an anecdote from the P90X launch event, describing interest from younger influencers who said they had seen parents use the program years ago.
On GLP-1 weight loss drugs, management characterized the trend as a tailwind, arguing users may need resistance training and nutrition to address muscle loss risk. Daikeler said the company has produced platform content geared to GLP-1 users and views Shakeology and short-format workouts as complementary to that audience.
About Beachbody (NASDAQ:BODI)
Beachbody is a consumer-oriented health and fitness company based in Santa Monica, California. Founded in 1998 by Carl Daikeler and Jon Congdon, the company originally gained prominence through at-home workout programs distributed on DVD. Over time, Beachbody has transitioned much of its content delivery to a subscription-based digital platform, offering on-demand streaming of exercise routines, meal plans and wellness coaching.
The company’s portfolio includes a range of branded fitness programs—such as P90X, Insanity, 21 Day Fix and Body Beast—alongside nutrition and supplement products marketed under the Beachbody Nutrition brand.
