Beachbody Co (NYSE:BODI) held its first-quarter earnings conference call on Tuesday. Below is the complete transcript from the call.
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View the webcast at https://events.q4inc.com/attendee/684011158
Summary
Beachbody Company Inc reported Q1 2026 total revenue of $54.3 million, exceeding guidance, and achieved a net income of $2.3 million, marking the third consecutive quarter of profitability.
The company is pivoting towards a nutrition-focused business model, emphasizing an omni-channel strategy including direct-to-consumer and retail distribution, leveraging brands like P90X, Insanity, and Shakeology.
Beachbody Company Inc announced retail partnerships with Sprouts Farmers Market and Vitamin Shoppe, along with Kahe Distributors, to expand Shakeology’s reach.
Gross margins remained strong at 71.8%, and the company has reduced its EBITDA break-even point significantly, allowing strategic investments in growth initiatives.
Management expressed optimism about the long-term potential of the nutrition and energy drink markets, projecting substantial growth opportunities in 2027 and beyond.
Full Transcript
OPERATOR
Good afternoon. Thank you for attending today’s Beachbody Co. Inc. First quarter 2026 earnings conference call. My name is Elizabeth and I’ll be your moderator for today’s call. All lines will be muted during the presentation portion of the call with the opportunity for questions and answers at the end. If you would like to ask a question, please press Star one on your telephone keypad. To withdraw your question, please press Star one again. I would now like to pass the conference over to your host, Bruce Williams, Managing Director of ICR. You may proceed, Bruce welcome everyone and thank you for joining us for our first quarter earnings call. With me on the call today are Mark Goldson, Executive Chairman of the Beachbody Company Carl Daikeler, Co Founder and Chief Executive Officer and Brad Ramberg, Interim Chief Financial Officer. Following the prepared remarks, we’ll open the call up for questions. Before we get started, I would like to remind you of the Company’s safe harbor language. Statements contained in this conference call, which are not historical facts, may be deemed to constitute forward looking statements within the meaning of the Private Security Litigation Reform act of 1995. Actual future results may differ materially from those suggested by such statements due to a number of risks and uncertainties, all of which are described in the Company’s filings with the SEC, which includes today’s press release. Today’s call will include references to non GAAP financial measures such as adjusted EBITDA, net cash and free cash flow and a reconciliation of these non GAAP financial measures to the most comparable GAAP financial measures is available within the earnings release which can be found on our website. Now I would like to turn the call over to Mark.
Mark Goldson
Thanks very much Bruce and good afternoon everyone. Welcome to the BODI Q1 2026 earnings call. Last quarter we reported our Q4 and full year 25 results. A transformational year where we achieved positive operating income and adjusted net income for the first time since going public today. I’m pleased to report the Momentum continued in Q1 of 2026. Let me start with the numbers in the Q1 26 financial highlights. Total revenue for Q1 was 54.3 million, which came in above the high end of our guidance. As a reminder and as we’ve consistently noted, Q3 2026 will mark the first quarter where we can make direct year over year comparisons that fully reflect our new business model as the legacy MLM business will have completely cycled out of both periods. More importantly, we delivered our third consecutive quarter of net income at 2.3 million compared to a net loss of 5.7 million in Q1 of 2025, operating income was 3.1 million, marking our third consecutive quarter of profitability on this metric. We posted our 10th consecutive quarter of positive adjusted EBITDA at $8 million, up from 3.7 million in the prior year and gross margin remains strong at 71.8%. And within our guidance, as of March 31st our cash balance was 36.6 million against outstanding debt principal of approximately 25 million providing financial Flexibility to Execute our Growth Strategy the operational discipline that we’ve built in over the past two plus years is now embedded in how we run the business. We’ve lowered our EBITDA break even from over 900 million in 2022 to approximately 180 million currently, giving us tremendous operating leverage and the ability to invest strategically in growth initiatives without sacrificing profitability. As we discussed in, March 2026 is the year we’re unleashing our Innovation pipeline. With our strong balance sheet and substantially improved financial position, we’ve got the flexibility to fund our retail exp and the Innovation pipeline without compromising the financial discipline that delivered this turnaround. The cornerstone of our growth strategy is a pivot towards a heavier emphasis on nutrition and that will be executed through an Omni Channel strategy spanning direct to consumer to retail distribution. This represents entry into a nutrition products category with a market opportunity that is more than 12 times the size of the digital fitness category. We’re bringing iconic brand names like P90X, Insanity and Shakeology to retail with very high aided brand awareness. Now we’re freed from the MLM commission constraints and we can price our new nutritional products at dramatically lower price points than we have done in the past. And in the case of Shakeology we can utilize a much smaller form factor, the 7 serving size which will give us a 3495 retail price point versus our previous price point which was $129 for a 30 serve pack. This represents a significant opportunity for us. As many of you may know, in my career I’ve got a long history in the consumer products or CPG industry. From my days at Johnson and Johnson and Bristol Myers, Clairol, Cheeseboro, Ponds, Revlon and as president of Faberge which became Faberge Elizabeth Arden and I got background at Reebok, Louisiana Gear and the huge flower company FTD, I’ve been responsible for the creation and or marketing of billions of dollars worth of some of the most successful consumer products of all time sold through retail distribution. And that’s one of our major areas of expansion that I brought to Bodi. The process of submitting samples through our broker sales organization, Advantage Solutions, securing buyer commitments and then waiting for the retailer shelf set planogram to be updated is about a 6 to 12 month process with inflexible adherence dates. We’re right now in the midst of that process and over the next 60 to 90 days we expect to see which retailers will be adding shakeology and the P90X line of nutritional supplements. Look, I’m sure you’ve seen the recent spate of acquisitions in the CPG industry, whether it be Huell, Gruins, Bloom, Aulani, Nui, Poppy and a host of other companies that have sold for between 1 to 2 billion dollars in the past year with brand names that while we have great respect for, are not nearly as well known as the P90X and even Shakeology brand names. So the potential for creating massive brand equity value for shareholders of Bodi within the nutritional supplement and energy drink industry for Bodi is potentially the single largest mid to long term opportunity that we’ve got at the company. Speaking of securing retail distribution, last week we announced that Shakeology will be carried in more than 80 sprouts farmers market stores around the country starting in late May early June. And we just secured a partnership with Kahe Distributors which is one of the two largest distributors of natural, organic and fresh products to the grocery industry. And this will give us the opportunity to reach the 30,000 grocery, supermarket and online channels that are covered by the Kihi distribution network. And in late breaking news, we just announced in a press release yesterday that Shakeology will now be carried by Vitamin Shop across its more than 640 stores all over the USA later this year, with Vitamin Shop taking all five of the Shakeology flavor variants in our new seven serve $34.99 retail price packaging. This exciting news, along with the Sprouts farmers market news and the Kihe distribution deal, will mark the first time that Shakeology, which is a $4 billion cumulative sales brand with more than 1 billion cumulative servings, the first time it will be available in retail stores across the usa. On the next quarterly earnings call, we hope to have an update on more exciting retail partners for the Shakeology brand and new retailers signed up to carry the P90X line of supplements and the retail stores who will be carrying the insanity and P90X energy drinks in the Southern California test market will be running later this summer. You know, one of the truly unique and compelling aspects of the new Bodi retail distribution initiative as a consumer product company is that we fundamentally created a virtual consumer products company. So what do I mean by that? Well, we’ve outsourced virtually every aspect of our supply chain and distribution infrastructure. Manufacturing is outsourced to best in class contract manufacturers. Sales and retail distribution are managed through our outside partner Advantage Solutions. Fulfillment and logistics of all of the retail orders are handled by a third party logistics provider or a three plus. And we’re evaluating the use of purchase order financing and accounts receivable factoring to optimize our working capital as relates to the retail project. What we keep in house are the core competencies that drive our competitive advantage. Those are marketing, brand management, product innovation and R and D. So this asset light model gives us exceptional financial flexibility, minimal capital requirements, and importantly the ability to scale rapidly without proportional increases in fixed costs since this structure moves the majority of those costs to a variable based cost based on usage and demand. So in conclusion, our financial turnaround has created massive operating leverage, giving us the ability to invest strategically and high return initiatives while maintaining profitability. We’re excited about the opportunities ahead, particularly as we move into the second half of 2026 and then beyond. This year marks the opening of our nutritional innovation pipeline. We are actively in the process of developing new products, securing retail placement and building market acceptance. While we expect to see initial traction in the second half of 2026, the substantial yield from these initiatives will materialize in 2027 and beyond as our retail presence expands and our multi channel strategy fully takes hold. We’ve built a resilient financial foundation that positions us to capitalize on significant growth opportunities in both nutrition and digital fitness, and we’re taking a discipline methodical approach to ensure we execute this transition successfully. I’ll now turn it over to Carl to discuss our operational progress and product innovation strategy.
Carl Daikeler (Co-Founder and Chief Executive Officer)
Carl thanks Mark. Our Q1 results demonstrate the operational momentum we’ve been building throughout 2025 and into early 2026. The financial discipline we’ve established has created an extremely efficient platform with leverage to execute against a compelling innovation pipeline across multiple sales. P90X Generation Next launched in early February to a packed house of media and influencers in New York City, generating millions of impressions in both earned and paid media. Early response from our subscriber base has been very enthusiastic and we’re now gathering the success stories from the first wave of participants. That’s especially important as we launched our branded nutritional line extensions into P90X supplements which will be sold direct to consumer on Amazon TikTok shops. As Mark mentioned at retail, including an entire Ready to drink line of P90X energy drinks. This is a really big deal with very special formulations which live up to the reputation of the best selling extreme home fitness program of all time. We’ve launched a P90X pre workout, P90X hydration, P90X creatine, P90X recovery protein and P90X fast acting energy that can be used to fuel longer training sessions or in my case for a midday boost of energy. Each SKU in the line has something called a P90X Factor, a proprietary aspect of the formulation which makes it fast acting, potent and effective so you get the performance benefits as promised. The P90X supplement line launched with our long overdue transition over to the Shopify Equipment Commerce platform which will make it easier for us to offer special bundle configurations, subscribe and save discounts and improve AOV using Shopify’s Add to Cart recommendation engine. Combine these entire new product lines with the new ease of shopping and thousands of success stories coming in from the first wave of P90X generation next users. We expect that to propel momentum of the fitness program and the P90X supplement line in every channel over the next 12 months. Meanwhile, the 10 Minute Body initiative continues to gain traction. The category of Microdose Fitness, which we launched under the 10 Minute Body brand just before Christmas, continues to be a very popular program on the platform. Since our last call, we’ve expanded the catalog with three new targeted programs. 10 minute speed train by Joel Freeman 10 minute active aging led by Debbie Siebers for those 60 and older. He’ll recognize Debbie from her recent appearance on ABC’s Golden Bachelor. She is also one of the first super trainers to help us launch the company. We also just launched the 10 minute GLP1 fitness formula specifically designed to help people on GLP1 medications to build and preserve muscle mass. The platform now features over 400 science backed 10 minute workouts and this high volume low price subscription at $10 a month is successfully opening up our addressable market to the over 185 million Americans who are overweight or obese and may be intimidated by longer workout programs. Ok, looking ahead to the summer, we have a new super trainer joining us, Chase Collette with The brand new 30 day Booty Boost program launching in June. This has been one of the most requested additions to the catalog by subscribers and prospects and we’ll integrate the P90X supplement line to help people get the maximum gains from the program where it counts using the pre workout P90X creatine and P90X protein. And that’s exactly how nutrition has been fundamental to our success since we founded the company, helping people get the best results from their effort. And Shakeology, the world’s first superfood protein shake, which we launched in 2009, probably our most significant nutrition innovation in the company’s history. To put that in perspective, during our peak revenue years, fitness programs accounted for roughly one third of total revenue, while Nutrition drove about 2/3, largely driven by Shakeology. Now that we’re freed from the margin and distribution constraints of the network marketing model, we can offer all our supplements, Whether it’s Shakeology, B90X or other brands, all …
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