Net Income Reported for Second Consecutive Quarter
Net Income and Adjusted EBITDA Better Than Guidance
Revenues Above Mid-Point of Guidance
Ninth Consecutive Quarter of Positive Adjusted EBITDA
Full Year Operating Income Reported for First Time Since Going Public in 2021
Positive Free Cash Flow For the Full Year
EL SEGUNDO, Calif.--(BUSINESS WIRE)--March 10, 2026--
The Beachbody Company, Inc. (NASDAQ: BODi) ("BODi" or the "Company"), a leading fitness and nutrition company, today announced financial results for its fourth quarter ended December 31, 2025.
"Over the past two years, we have taken bold steps to completely transform our company and our 4th quarter results are indicative of our successful efforts," said Carl Daikleler, co-founder and BODi's Chief Executive Officer. "Looking ahead, our strengthened financial position along with our innovation pipeline, launching in early 2026, will leverage the brand equity we have built in P90X, Insanity, and Shakeology across new channels and price points which fundamentally broadens our addressable market while maintaining the operational discipline that delivered this turnaround."
"This was the second consecutive quarter of net income and the ninth consecutive quarter of positive adjusted EBITDA. In addition, the company generated positive free cash flow for the year and our cash position is strong with over $39 million of cash on the balance sheet," said Mark Goldston, BODi's Executive Chairman. "We've built the operational framework and financial flexibility to capitalize on a massive market opportunity that represents the next phase of our growth strategy."
Fourth Quarter 2025 Results
-- Total revenue was $55.5 million compared to $86.4 million in the prior
year period.
-- Digital revenue was $34.3 million compared to $50.4 million in
the prior year period and digital subscriptions totaled 0.87
million in the fourth quarter.
-- Nutrition and Other revenue was $21.2 million compared to $34.8
million in the prior year period and nutritional subscriptions
totaled 0.08 million in the fourth quarter.
-- Connected Fitness revenue was $0.0 million compared to $1.2
million in the prior year period as we ceased the sale of bike
inventory in the first quarter of 2025.
-- Gross margin was 74.5% compared to 70.5% in the prior year period.
-- Total operating expenses were $33.2 million compared to $93.8 million
in the prior year period, which included a $20.0 million impairment of
goodwill.
-- Operating income improved by $41.1 million to $8.2 million, the
Company's second consecutive quarter of operating income, compared to an
operating loss of $32.9 million in the prior year period. The current
period included a $2.2 million benefit from the reversal of a bonus
accrual that was recorded in the third quarter and the Company did not
record a bonus accrual in the current period.
-- Net income was $5.2 million compared to a net loss of $34.6 million in
the prior year period, which included a $20.0 million impairment of
goodwill.
-- Adjusted EBITDA1 was $12.9 million compared to $8.7 million in the
prior year period.
-- Adjusted net income (loss)1 was income of $7.2 million compared to a
loss of $4.7 million in the prior year period.
Full Year 2025 Results
-- Total revenue was $251.7 million compared to $418.8 million in the
prior year.
-- Digital revenue was $153.3 million compared to $224.3 million in
the prior year.
-- Nutrition and Other revenue was $97.6 million compared to $187.8
million in the prior year.
-- Connected Fitness revenue was $0.9 million compared to $6.6
million in the prior year as we ceased the sale of bike inventory
in the first quarter of 2025.
-- Gross margin was 73.0% compared to 68.6% in the prior year period.
-- Total operating expenses were $178.3 million compared to $353.6 million
in the prior year, which included a $20.0 million impairment of
goodwill.
-- Operating income increased by $71.7 million to $5.5 million, the
Company's first full year operating income since going public, compared
to an operating loss of $66.2 million in the prior year.
-- Net loss was $2.9 million compared to a net loss of $71.6 million in
the prior year, which included a $20.0 million impairment of goodwill.
-- Adjusted EBITDA1 was $30.8 million compared to $28.3 million in the
prior year.
-- Adjusted net income1 was $3.5 million, the Company's first full year
adjusted net income since going public, compared to a loss of $31.2
million in the prior year.
-- Cash provided by operating activities for the year ended December 31,
2025 was $21.8 million compared to cash provided by operating activities
of $2.6 million in the prior year, and cash used in investing activities
was $4.4 million compared to cash provided by investing activities of
$1.1 million in the prior year. Free cash flow1 was $17.4 million
compared to $(2.0) million in the prior year.
(1) Definitions of (1) Adjusted EBITDA, (2) adjusted net income (loss), (3) free cash flow and (4) net cash position, and reconciliations to the comparable GAAP metrics, are at the end of this release.
Key Operational and Business Metrics
As of or for the Three Months Ended As of or for the Year Ended December
December 31, 31,
---------------------------------------- -------------------------------------
Change v
2025 2024 Change v 2024 2025 2024 2024
----------- ------------ ------------- ------------ ----------- ----------
Digital
Subscriptions
(in millions) 0.87 1.07 (18.7%) 0.87 1.07 (18.7%)
Nutritional
Subscriptions
(in millions) 0.08 0.09 (11.1%) 0.08 0.09 (11.1%)
---- ---- ----- ---- ------- ----- ---- ----- --- -----
Total
Subscriptions
(in millions) 0.95 1.16 (18.1%) 0.95 1.16 (18.1%)
Average Digital
Retention 96.9% 97.8% (90bps) 96.9% 96.8% 10bps
Total Streams
(in millions) 16.1 18.2 (11.5%) 72.5 87.4 (17.0%)
10
DAU/MAU 31.3% 30.7% 60bps 31.8% 31.7% bps
Connected
Fitness Units
Delivered (in
thousands) -- 2.7 (100.0%) 1.5 9.0 (83.0%)
Digital $34.3 $ 50.4 (31.9%) $153.3 $224.3 (31.7%)
Nutrition &
Other $21.2 $ 34.8 (39.0%) $ 97.6 $187.8 (48.1%)
Connected
Fitness $ -- $ 1.2 (100.0%) $ 0.9 $ 6.6 (86.8%)
---- ---- ----- ---- ------- ----- ---- ----- --- -----
Revenue (in
millions) $55.5 $ 86.4 (35.7%) $251.7 $418.8 (39.9%)
Net Income
(Loss) (in
millions) $ 5.2 $(34.6) NM $ (2.9) $(71.6) 95.9%
Adjusted Net
Income (Loss)
(in millions) $ 7.2 $ (4.7) NM $ 3.5 $(31.2) NM
Adjusted EBITDA
(in millions) $12.9 $ 8.7 48.0% $ 30.8 $ 28.3 8.8%
---- ---- ----- ---- ------- --- ----- ---- ----- --- -----
NM: Not
Meaningful
Outlook for The First Quarter of 2026
Outlook For Quarter Ending March 31, 2026
---------------------------------------------------
(in millions) Low High
---------------------- ------ -----------------
Revenue $ 49 $ 54
Net Income (Loss)(1) $ (2) $ 1
Adjusted Net Income
(Loss)(1) $ (2) $ 1
--------- ----------- ----- ----- ----------
Adjustments:
Depreciation and
Amortization $ 2 $ 2
Amortization of Content
Assets $ 2 $ 2
Interest Expense $ 1 $ 1
Equity-Based
Compensation $ 1 $ 1
--------- ----------- ------ ----- ----------
Total Adjustments $ 6 $ 6
Adjusted EBITDA $ 4 $ 7
--------- ----------- ------ ----- ----------
(1) A reconciliation between the Outlook of net income (loss) and the
Outlook for adjusted net income (loss) has not been provided given the
inability to forecast certain reconciling items without unreasonable
efforts. In particular the Outlook for net income (loss) and adjusted net
income (loss) does not include the change in fair value of warrant
liabilities as that is significantly impacted by the change in the Company's
stock price which cannot be estimated and other potential reconciling items
such as impairment of goodwill that are not normal, recurring operating activities cannot be reasonably forecasted.
Conference Call and Webcast Information
BODi will host a conference call at 5:00pm ET on Tuesday, March 10, 2026, to discuss its financial results and matters other than past results, such as guidance. To participate in the live call, please dial (833) 470-1428 (U.S. & Canada) and provide the conference identification number: 871093. The conference call will also be available to interested parties through a live webcast at https://investors.thebeachbodycompany.com/.
A replay of the call will be available until March 17, 2026, by dialing (866) 813-9403 (U.S. & Canada). The replay passcode is 989620.
After the conference call, a webcast replay will remain available on the investor relations section of the Company's website for one year.
About BODi and The Beachbody Company, Inc.
BODi, formerly known as Beachbody, has been a pioneer in structured, step-by-step home fitness and nutrition programs for nearly three decades with iconic products such as P90X, Insanity, and 21-Day Fix, plus the original premium superfood nutrition supplement, Shakeology. Since its inception, BODi has helped more than 30 million people reach life-changing results. Today, BODi continues to evolve with a simple mission: help people achieve their goals and lead healthier, more fulfilling lives, especially busy, time-strapped people who want to fit healthy habits into everyday life with proven solutions. The BODi community empowers millions of people to stay motivated and accountable, supporting healthy weight management, improved metabolic function, increased mental, and physical well-being, better sleep, as well as evidence-based habits that enhance health span and longevity. For more information, please visit TheBeachBodyCompany.com.
Safe Harbor Statement
This press release of The Beachbody Company, Inc. ("we," "us," "our," and similar terms) contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are statements other than statements of historical facts and statements in future tense. These statements include but are not limited to, statements regarding our future performance and our market opportunity, including expected financial results for the first quarter, our business strategy, our plans, and our objectives and future operations.
Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date hereof, and are subject to risks and uncertainties. Accordingly, actual results could differ materially due to a variety of factors, including: our ability to effectively compete in the fitness and nutrition industries; our ability to successfully acquire and integrate new operations; our reliance on a few key products; market conditions and global and economic factors beyond our control; intense competition and competitive pressures from other companies worldwide in the industries in which we operate; and litigation and the ability to adequately protect our intellectual property rights. You can identify these statements by the use of terminology such as "believe", "plans", "expect", "will", "should, " "could", "estimate", "anticipate" or similar forward-looking terms. You should not rely on these forward-looking statements as they involve risks and uncertainties that may cause actual results to vary materially from the forward-looking statements. For more information regarding the risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, as well as risks relating to our business in general, we refer you to the "Risk Factors" section of our Securities and Exchange Commission (SEC) filings, including those risks and uncertainties included in the Form 10-K filed with the SEC on March 10, 2026 and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, which are available on the Investor Relations page of our website at https://investors.thebeachbodycompany.com and on the SEC website at www.sec.gov.
All forward-looking statements contained herein are based on information available to us as of the date hereof and you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. Undue reliance should not be placed on forward-looking statements.
The Beachbody Company, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
As of December 31,
------------------------
2025 2024
---------- ------------
Assets
Current assets:
Cash and cash equivalents (restricted
cash of $0.1 million at December 31,
2025 and 2024, respectively) $ 39,017 $ 20,187
Restricted short-term investments 4,250 4,250
Inventory 9,410 16,303
Prepaid expenses 6,823 9,034
Other current assets 4,338 28,911
-------- --------
Total current assets 63,838 78,685
Property and equipment, net 8,523 12,749
Content assets, net 6,292 12,179
Goodwill 65,166 65,166
Right-of-use assets, net 1,625 3,063
Other assets 1,591 2,714
-------- --------
Total assets $ 147,035 $ 174,556
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 5,304 $ 9,534
Accrued expenses 18,408 24,982
Deferred revenue 56,866 77,273
Current portion of lease liabilities 1,036 1,338
Current portion of Term Loan 1,062 9,500
Other current liabilities 3,920 5,011
-------- --------
Total current liabilities 86,596 127,638
Term Loan 22,564 9,668
Long-term lease liabilities, net 738 1,973
Other liabilities 5,817 7,107
-------- --------
Total liabilities 115,715 146,386
-------- --------
Stockholders' equity:
Preferred stock, $0.0001 par value;
100,000,000 shares authorized, none
issued and outstanding as of December
31, 2025 and 2024 -- --
Common stock, $0.0001 par value,
1,900,000,000 shares authorized
(1,600,000,000 Class A, 200,000,000
Class X and 100,000,000 Class C);
Class A: 4,450,721 and 4,218,828
shares issued and outstanding at
December 31, 2025 and 2024,
respectively; 1 1
Class X: 2,729,003 shares issued and
outstanding at December 31, 2025
and 2024, respectively; 1 1
Class C: no shares issued and
outstanding at December 31, 2025
and 2024 -- --
Additional paid-in capital 677,743 671,735
Accumulated deficit (646,378) (643,518)
Accumulated other comprehensive loss (47) (49)
-------- --------
Total stockholders' equity 31,320 28,170
-------- --------
Total liabilities and stockholders'
equity $ 147,035 $ 174,556
======== ========
The Beachbody Company, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended
December 31, Year Ended December 31,
---------------------- -------------------------
2025 2024 2025 2024
----------- --------- ------------ -----------
Revenue:
Digital $34,287 $ 50,356 $153,281 $224,335
Nutrition and
other 21,249 34,806 97,571 187,835
Connected
fitness -- 1,212 875 6,626
------ ------- ------- -------
Total revenue 55,536 86,374 251,727 418,796
Cost of revenue:
Digital 4,355 7,095 19,807 41,884
Nutrition and
other 9,833 16,614 45,914 78,172
Connected
fitness -- 1,790 2,222 11,396
------ ------- ------- -------
Total cost of
revenue 14,188 25,499 67,943 131,452
Gross profit 41,348 60,875 183,784 287,344
Operating
expenses:
Selling and
marketing 17,930 38,984 93,558 200,145
Enterprise
technology and
development 8,698 22,109 42,311 76,370
General and
administrative 6,540 11,559 39,907 49,190
Restructuring -- 1,116 2,480 7,847
Impairment of
goodwill -- 20,000 -- 20,000
------ ------- ------- -------
Total operating
expenses 33,168 93,768 178,256 353,552
------ ------- ------- -------
Operating
income
(loss) 8,180 (32,893) 5,528 (66,208)
Other income
(expense)
Loss on debt
extinguishment -- (451) (2,166) (2,379)
Change in fair
value of
warrant
liabilities (2,087) (189) (1,980) 1,144
Interest expense (1,087) (1,709) (4,976) (6,882)
Other income,
net 241 679 859 2,922
------ ------- ------- -------
Income (loss)
before income
taxes 5,247 (34,563) (2,735) (71,403)
Income tax benefit
(provision) (28) 5 (125) (239)
------ ------- ------- -------
Net income (loss) $ 5,219 $(34,558) $ (2,860) $(71,642)
====== ======= ======= =======
Net income (loss)
per common share,
basic $ 0.74 $ (5.04) $ (0.41) $ (10.51)
====== ======= ======= =======
Net income (loss)
per common share,
diluted $ 0.71 $ (5.04) $ (0.41) $ (10.51)
====== ======= ======= =======
Weighted-average
common shares
outstanding,
basic 7,051 6,857 6,971 6,818
====== ======= ======= =======
Weighted-average
common shares
outstanding,
diluted 7,366 6,857 6,971 6,818
====== ======= ======= =======
The Beachbody Company, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Year Ended December 31,
-------------------------------
2025 2024
----------------- ------------
Cash flows from operating activities:
Net loss $ (2,860) $ (71,642)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Impairment of goodwill -- 20,000
Depreciation and amortization
expense 8,680 31,439
Amortization of content assets 8,874 15,667
Provision for inventory 1,491 4,204
Realized losses on hedging
derivative financial instruments -- 64
Change in fair value of warrant
liabilities 1,980 (1,144)
Equity-based compensation 5,615 17,069
Amortization of debt issuance costs 1,446 2,490
Paid-in-kind interest expense 218 808
Loss on debt extinguishment 2,166 2,379
Change in lease assets 1,439 --
Gain on sale of property and
equipment -- (784)
Changes in operating assets and
liabilities:
Inventory 5,402 4,376
Content assets (2,987) (6,487)
Prepaid expenses 2,211 1,681
Other assets 25,764 17,237
Accounts payable (4,191) (906)
Accrued expenses (6,762) (16,570)
Deferred revenue (24,003) (16,693)
Other liabilities (2,733) (626)
--------- --------
Net cash provided by operating
activities 21,750 2,562
--------- --------
Cash flows from investing activities:
Purchase of property and equipment (4,399) (4,542)
Proceeds from sale of property and
equipment -- 5,600
--------- --------
Net cash (used in) provided by
investing activities (4,399) 1,058
--------- --------
Cash flows from financing activities:
Proceeds from exercise of stock
options 524 --
Debt borrowings 25,000 --
Debt repayments (22,582) (15,877)
Proceeds from issuance of common shares
in the Employee Stock Purchase Plan 143 272
Tax withholdings payments for vesting
of restricted stock (274) (263)
Payment of debt issuance costs (1,781) --
--------- --------
Net cash provided by (used in)
financing activities 1,030 (15,868)
--------- --------
Effect of exchange rates on cash, cash
equivalents and restricted cash 449 (974)
Net increase (decrease) in cash, cash
equivalents and restricted cash 18,830 (13,222)
Cash, cash equivalents and restricted
cash, beginning of year 20,187 33,409
--------- --------
Cash, cash equivalents and restricted
cash, end of year $ 39,017 $ 20,187
========= ========
The Beachbody Company, Inc.
Non GAAP Information
Adjusted EBITDA
We use Adjusted EBITDA, which is a non-GAAP performance measure, to supplement our results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We believe Adjusted EBITDA is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.
We define and calculate Adjusted EBITDA as net income (loss) adjusted for impairment of goodwill, depreciation and amortization, amortization of capitalized cloud computing implementation costs, amortization of content assets, interest expense, income tax provision, equity-based compensation, restructuring costs and other items that are not normal, recurring, operating expenses necessary to operate the Company's business as described in the reconciliation below.
We include this non-GAAP financial measure because it is used by management to evaluate BODi's core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because they are non-cash (for example, in the case of depreciation and amortization, impairment of goodwill and equity-based compensation) or are not related to our underlying business performance (for example, in the case of restructuring costs, interest income and expense).
The table below presents our Adjusted EBITDA reconciled to our net income (loss), the closest GAAP measure, for the periods indicated:
Three months ended Year ended December
December 31, 31,
---------------------- ---------------------
(in thousands) 2025 2024 2025 2024
----------- --------- -------- -----------
Net income (loss) $ 5,219 $(34,558) $(2,860) $(71,642)
Adjusted for:
Impairment of
goodwill -- 20,000 -- 20,000
Loss on debt
extinguishment
(1) -- 451 2,166 2,379
Depreciation and
amortization
(2) 1,891 12,683 8,680 31,439
Amortization of
capitalized
cloud computing
implementation
costs 38 38 150 150
Amortization of
content assets 1,929 3,142 8,874 15,667
Interest expense 1,087 1,709 4,976 6,882
Income tax
provision
(benefit) 28 (5) 125 239
Equity-based
compensation
(3) 871 4,374 5,615 17,069
Pivot
restructuring
(4) -- 1,116 -- 7,647
Restructuring
and platform
consolidation
costs (5) -- -- 2,480 1,644
Change in fair
value of
warrant
liabilities 2,087 189 1,980 (1,144)
Gain on sale of
property and
equipment -- -- -- (784)
Non-operating
(6) (272) (440) (1,419) (1,229)
------ ------- ------ -------
Adjusted EBITDA $12,878 $ 8,699 $30,767 $ 28,317
====== ======= ====== =======
(1) The year ended December 31, 2025 represents the loss related
to the $17.3 million debt extinguishment that the Company made on
May 13, 2025. The year ended December 31, 2024 represents the loss
related to the $1.0 million, $5.5 million, $4.0 million and $3.2
million partial debt prepayments that the Company made on January
9, 2024, February 29, 2024, April 5, 2024 and October 18, 2024,
respectively.
(2) Includes accelerated depreciation expense of $8.2 million and
$11.1 million for the three months and year ended December 31,
2024, respectively, related to certain long-lived assets that due
to the Pivot were not used by the Company after December 31,
2024.
(3) Includes benefits due to the modification of stock awards of
approximately zero and $0.9 million for the three months and year
ended December 31, 2025, respectively, and approximately zero and
$0.8 million for the three months and year ended December 31,
2024, respectively.
(4) Includes (a) restructuring expenses and personnel costs
associated with the Pivot of $1.1 million and $6.2 million during
the three months and year ended December 31, 2024, respectively,
and (b) adjustments recorded to connected fitness inventory of
$1.2 million due to the decision to cease the sale of connected
fitness inventory in early 2025 and adjustments recorded to
nutrition and other inventory of $0.2 million due to the Pivot, in
the year ended December 31, 2024.
(5) Includes post-Pivot restructuring expenses, primarily
termination benefits, of approximately zero and $2.5 million for
the three months and the year ended December 31, 2025,
respectively. Includes restructuring expenses and personnel costs
associated with key initiatives of approximately zero and $1.6
million during the three months and year ended December 31, 2024,
respectively.
(6) Primarily includes interest income.
Adjusted Net Income (Loss)
We use adjusted net income (loss), which is a non-GAAP performance measure, to supplement our results presented in accordance with GAAP. We believe adjusted net income (loss) is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted net income (loss) is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.
We define and calculate adjusted net income (loss) as net income (loss) adjusted for impairment of goodwill, restructuring costs, the change in fair value of warrant liabilities, and other items that are not normal, recurring operating activities necessary to operate the Company's business, and the tax impact of the adjustments as described in the reconciliation below.
We include this non-GAAP financial measure because it is used by management to evaluate BODi's core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted net income (loss) excludes certain expenses that are required in accordance with GAAP because they are non-cash (for example, in the case of impairment of goodwill and the change in fair value of warrant liabilities) or are not related to our underlying business performance (for example, in the case of restructuring costs).
The table below presents our adjusted net income (loss) reconciled to our net income (loss), the closest GAAP measure, for the periods indicated:
Three Months Ended Year Ended December
December 31, 31,
--------------------- ---------------------
(in thousands) 2025 2024 2025 2024
---------- --------- -------- -----------
Net income (loss) $5,219 $(34,558) $(2,860) $(71,642)
Adjusted for:
Impairment of
goodwill -- 20,000 -- 20,000
Loss on debt
extinguishment
(1) -- 451 2,166 2,379
Pivot
Restructuring
(2) -- 9,305 -- 18,464
Restructuring
(3) -- -- 2,480 1,644
Change in fair
value of
warrant
liabilities 2,087 189 1,980 (1,144)
Gain on sale of
property and
equipment -- -- -- (784)
Tax impact of
adjustment (4) (95) (100) (303) (136)
----- ------- ------ -------
Adjusted net income
(loss) $7,211 $ (4,713) $ 3,463 $(31,219)
===== ======= ====== =======
(1) The year ended December 31, 2025 represents the loss related
to the $17.3 million debt extinguishment that the Company made on
May 13, 2025. The year ended December 31, 2024 represents the
loss related to the $1.0 million, $5.5 million, $4.0 million and
$3.2 million partial debt prepayments that the Company made on
January 9, 2024, February 29, 2024, April 5, 2024 and October 18,
2024, respectively.
(2) Pivot restructuring Includes accelerated depreciation expense
of $8.2 million and $11.1 million for the three months and year
ended December 31, 2024, respectively, related to certain
long-lived assets that due to the Pivot were not used by the
Company after December 31, 2024. Also, includes (a) restructuring
expenses and personnel costs associated with the Pivot of $1.1
million and $6.2 million during the three months and year ended
December 31, 2024, respectively, and (b) adjustments recorded to
connected fitness inventory of $1.2 million due to the decision
to cease the sale of connected fitness inventory in early 2025
and adjustments recorded to nutrition and other inventory of $0.2
million due to the Pivot, in the year ended December 31, 2024.
(3) Includes post-Pivot restructuring expenses, primarily
termination benefits, of approximately zero and $2.5 million for
the three months and the year ended December 31, 2025,
respectively. Includes restructuring expenses and personnel costs
associated with key initiatives of approximately zero and $1.6
million during the three months and year ended December 31, 2024,
respectively.
(4) Tax impact calculated using the annual effective tax rate.
Net Cash Position
We use net cash position, which is a non-GAAP liquidity measure, to supplement our liquidity as presented in accordance with GAAP. We believe that net cash position is useful in viewing our liquidity, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing liquidity. Net cash position is not intended to be a substitute for GAAP financial measures and, as calculated may not be comparable to other similarly titled measures of liquidity for other companies in other industries or within the same industry.
The table below presents our net cash position, which is our cash and cash equivalents less the debt on our balance sheet for the periods indicated:
As of December 31,
------------------------
(in thousands) 2025 2024
------------ ----------
Cash and cash equivalents $ 39,017 $ 20,187
Less:
Current portion of Term Loan 1,062 9,500
Term Loan 22,564 9,668
-------- -------
Net cash position $ 15,391 $ 1,019
======== =======
Free Cash Flow
We use free cash flow, which is a non-GAAP liquidity measure, to supplement our cash provided by (used in) operating activities as presented in accordance with GAAP. We believe that free cash flow is useful in evaluating our liquidity, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing liquidity. Free cash flow is not intended to be a substitute for GAAP financial measures and, as calculated may not be comparable to other similarly titled measures of liquidity for other companies in other industries or within the same industry.
The table below presents our free cash flow, which is our net cash provided by operating activities less cash used for the purchase of property and equipment for the periods indicated:
Year Ended December 31,
-----------------------------
(in thousands) 2025 2024
-------------- -------------
Net cash provided by operating
activities $ 21,750 $ 2,562
Less:
Cash used in the purchase of
property and equipment 4,399 4,542
---------- ---------
Free cash flow $ 17,351 $ (1,980)
========== =========
Pivot Restructuring
On September 30, 2024, the Company announced the Pivot which transitioned the Company's MLM model to a single level affiliate model and reduced the employee headcount by approximately 170 employees (33% of the Company's workforce on that date) in the fourth quarter of 2024. The actions associated with the Pivot resulted in approximately $9.3 million and $18.5 million of costs recorded in the three months and year ended December 31, 2024, respectively.
The following table details the costs incurred and benefits realized associated with the Pivot in the three months and year ended December 31, 2024:
Pivot Three Months Ended
Restructuring December 31, Year Ended December 31,
------------------------ --------------------------
(in thousands) 2024 2024
------------------------ --------------------------
Accelerated
depreciation
on long-lived
assets (1) $ 8,189 $ 11,125
Termination and
retention
benefits (2) 1,116 6,203
Incremental
inventory
adjustments
(3) -- 1,444
Modification of
stock awards
(4) -- (308)
----- ----------------- --- -----------------
Total
Restructuring
Costs $ 9,305 $ 18,464
===== ================= === =================
(1) Due to the Pivot, certain long-lived assets with a net book value of
approximately $12.8 million were not used by the Company after December
31, 2024. The Company performed an impairment review for its long-lived
assets, including the long-lived assets that will not be used after
December 31, 2024. The Company performed a test of recoverability and
concluded that the carrying value of its long-lived assets, which are
all in one asset group, were recoverable. The Company decreased the
average remaining useful lives for the long-lived assets that were
impacted by the Pivot from 25 months prior to the Pivot to 3 months
after the Pivot. This resulted in accelerated depreciation expense of
$8.2 million and $11.1 million that was recorded in the Company's
unaudited condensed consolidated statement of operations in the three
months and year ended December 31, 2024, respectively.
(2) Termination and retention benefits which are included in
restructuring expense in the Company's unaudited condensed consolidated
statement of operations of approximately $1.1 million and $6.2 million
were recorded in the three months and year ended December 31, 2024,
respectively.
(3) Consists of (a) inventory adjustments recorded associated with the
decision by management to no longer sell connected fitness inventory in
early 2025, which were recorded in cost of revenue-connected fitness
($1.2 million) and (b) inventory adjustments for nutrition and other
inventory impacted by the Pivot which were recorded in cost of
revenue-nutrition and other ($0.2 million) in the unaudited condensed
consolidated statement of operations in the year ended December 31,
2024.
(4) Modification of stock awards for employees who were impacted by the
Pivot which includes accelerating the vesting of any options or RSU's
that would have vested within six months of the employees termination
date, and all vested options will be available for exercise for a total
of six months after the employees termination date (that is, three month
in addition to the standard three months per original agreement), which
resulted in a decrease to equity based compensation expense of $0.3
million in the Company's unaudited condensed consolidated statement of
operations for the year ended December 31, 2024.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260310780114/en/
CONTACT: Investor Relations
IR@BODi.com
(END) Dow Jones Newswires
March 10, 2026 16:05 ET (20:05 GMT)