How is Beachbody making profits from shrinking sales?

Sonal Goyal

28 October 2026 04:59 PM AEDT

How is Beachbody making profits from shrinking sales?

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Key Highlights

Beachbody's second-quarter 2026 Revenue was $49.6m, down 22.4%, yet Net Income was $1.4m against a $5.9m loss a year earlier.
Total subscribers were 0.83 million at 30 June 2026, down 17.8% from 1.01 million.
Third-quarter guidance is for revenue of $44m to $48m and adjusted EBITDA of $3m to $6m.

Profit alongside falling revenue

The Beachbody Company, Inc. (NASDAQ:BODI), which trades as BODi on Nasdaq, reported second-quarter 2026 results on 10 August 2026. Revenue was $49.6m, down 22.4% from $63.9m a year earlier. Digital revenue fell 21.5% to $31.2m, and Nutrition and Other revenue fell 23.7% to $18.5m. Six-month revenue was $103.9m, down 23.8%.

Despite that, the company reported net income of $1.4m, compared with a net loss of $5.9m in the second quarter of 2025. Operating Income was $1.7m against an operating loss of $4.0m. Diluted Earnings per Share were $0.11, against a loss of $0.85 a year earlier. Adjusted EBITDA rose 45.7% to $6.7m.

Across the first six months, net income was $3.7m, compared with a loss of $11.6m a year earlier, and adjusted EBITDA was $14.6m against $8.3m. The company moved to profit as its sales contracted by almost a quarter, which suggests cost reductions rather than growth as the driver.

Subscribers and engagement

Total subscribers were 0.83 million at 30 June 2026, down 17.8% from 1.01 million. Digital subscribers fell 19.1% to 0.76 million, while nutritional subscribers were flat at 0.07 million. Average digital retention was 96.1%, against 96.7%, and total streams fell 15.6% to 15.2 million.

These figures suggest the revenue decline reflects a smaller subscriber base rather than a sharp deterioration in retention, though the slight retention dip is worth monitoring. The share count is small, with 4,554,406 Class A shares and 2,729,003 Class X shares outstanding at 30 June 2026, so per-share figures can move sharply on modest changes in profit. Gross Margin held at 72.0%, compared with 72.3%, so lower sales did not erode unit Economics in the quarter.

Cash, Debt and cash flow

Cash and cash equivalents were $32.4m at 30 June 2026, down from $39.0m at the end of 2025. The term Loan stood at $23.6m, leaving a net cash position of $8.8m compared with $15.4m at the year end. Six-month operating Cash Flow was an outflow of $4.3m, against an inflow of $6.6m a year earlier, and free cash flow was an outflow of $5.7m against an inflow of $4.1m.

That contrast matters. Reported profit has improved while cash flow has weakened, so the sustainability of profitability depends on the factors behind that divergence, which the headline figures alone do not explain. The Credit agreement was amended on 3 August 2026 to a more flexible covenant structure, according to executive chairman Mark Goldston.

Guidance and management's message

Guidance is a forecast rather than a result. For the third quarter, ending 30 September 2026, Beachbody expects revenue of $44m to $48m, net income between a loss of $3m and break-even, and adjusted EBITDA of $3m to $6m.

Chief executive Carl Daikeler said the quarter was the fourth consecutive with net and operating income and pointed to expansion of omni-channel nutrition, including bringing P90X and Shakeology to retail. Mr Goldston described the eleventh straight quarter of positive adjusted EBITDA. These are management characterisations.

What to watch

Points to follow include whether the third-quarter result lands within the guided range, how quickly subscriber losses slow, and whether retail expansion in nutrition offsets the fall in digital revenue. Cash flow recovery and the headroom under the amended credit agreement are further measures of the quality of the profit improvement.

FAQs

Q: What were Beachbody's second-quarter 2026 results?

A: Revenue was $49.6m, down 22.4% from $63.9m, while net income was $1.4m compared with a $5.9m loss a year earlier. Adjusted EBITDA rose 45.7% to $6.7m.

Q: How many subscribers does Beachbody have?

A: Total subscribers were 0.83 million at 30 June 2026, down 17.8% from 1.01 million. Digital subscribers fell 19.1% to 0.76 million, while nutritional subscribers were flat at 0.07 million.

Q: What is Beachbody's third-quarter guidance?

A: It expects revenue of $44m to $48m, net income between a loss of $3m and break-even, and adjusted EBITDA of $3m to $6m.

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