The Beachbody Company (BODY) Q3 2025 earnings summary

Executive summary

• Achieved first quarterly net income since going public in 2021, with $3.6 million in Q3 2025 versus a $12 million loss in Q3 2024, marking a major milestone in the turnaround effort.

• Delivered eight consecutive quarters of positive Adjusted EBITDA and strong free cash flow, with $13.1 million generated year-to-date and $9 million in Q3 alone.

• Completed a strategic shift from an MLM-dependent model to a diversified omnichannel and affiliate approach, focusing on direct-to-consumer and upcoming retail initiatives.

• Operating expenses and headcount were significantly reduced, supporting improved profitability and operating leverage at lower revenue levels.

• Positioned for growth in 2026 with a robust innovation pipeline and expansion into retail and new product lines.

Financial highlights

• Q3 2025 revenue was $59.9 million, down 41.4% year-over-year and 6.3% sequentially, reflecting the ongoing business model transition.

• Consolidated gross margin reached 74.6%, up 730 basis points year-over-year and 230 basis points sequentially.

• Digital revenue was $36.4 million (down 32.2% year-over-year); nutrition and other revenue was $23.5 million (down 50.4% year-over-year); digital subscriptions at 0.90 million, nutrition at 0.07 million.

• Net income for Q3 was $3.6 million; Adjusted EBITDA was $9.5 million.

• Cash and cash equivalents at September 30, 2025 were $33.9 million, exceeding outstanding debt principal.

Outlook and guidance

• Q4 2025 revenue expected between $50 million and $57 million; net income guidance ranges from negative $1 million to positive $3 million; Adjusted EBITDA expected between $5 million and $9 million.

• Long-term gross margin targets: digital 87-89%, nutrition 46-52%, total 70-75%.

• Management anticipates potential violation of ABL Facility covenants in Q4 2025 and Q1 2026, raising substantial doubt about going concern if amendments are not secured.

• Anticipates majority of new retail revenue to materialize in Q2-Q4 2026, with immediate DTC and Amazon launches for new products in January.

• Management expects positive free cash flow for the full year and plans to expand distribution into new channels.