The Beachbody Company (BODY) Q4 2024 earnings summary

Executive summary

• Completed a major restructuring in 2024, eliminating the multi-level marketing model in favor of a single-level affiliate and omnichannel approach, reducing headcount by 33%.

• Transitioned to direct-to-consumer, Amazon, and retail distribution for nutrition products, and focused on digital channels for fitness products.

• Achieved fifth consecutive quarter of positive adjusted EBITDA and positive operating cash flow.

• 2025 is positioned as a transition year, with the new business model expected to unlock significant long-term growth opportunities.

• Successfully transitioned active sellers to the new affiliate program and launched new initiatives to drive future growth.

Financial highlights

• Q4 2024 revenue was $86.4 million, at the high end of guidance, but down 27% year-over-year due to the business model transition.

• Full-year 2024 revenue was $418.8 million, down 20.5% from 2023.

• Adjusted EBITDA for Q4 was $8.7 million, exceeding guidance and marking the fifth consecutive quarter of positive adjusted EBITDA.

• Full-year adjusted EBITDA was $28.3 million, a $37 million improvement from the prior year’s $8.7 million loss.

• Q4 net loss was $34.6 million, including $20 million in goodwill impairment; full-year net loss was $71.6 million, improved from $152.6 million loss in 2023.

Outlook and guidance

• Q1 2025 revenue expected between $60 million and $70 million.

• Q1 2025 net loss projected at $11 million–$7 million; adjusted EBITDA guidance is negative $2 million to positive $2 million.

• Anticipated revenue mix: 60% digital, 40% nutrition; digital gross margin target ~85%, nutrition ~50%.

• 2025 is expected to be a transition year, with more accurate quarterly trends emerging by late 2025 or 2026.