The Beachbody Company Stock Earnings Reports

Key points for investors: 1) Strong profitability momentum: Q1 2026 revenue was $54.3M (above guidance). The company reported its third consecutive quarter of net income ($2.3M), third consecutive quarter of operating income ($3.1M), and its 10th consecutive quarter of positive adjusted EBITDA ($8.0M). Gross margin remained healthy at 71.8%. 2) Improved financial flexibility and operating leverage: cash of $36.6M vs. ~$25M debt principal; management highlights a materially reduced EBITDA breakeven (from >$900M in 2022 to ~ $180M today). 3) Strategic pivot to nutrition + omnichannel retail: management is prioritizing nutrition (much larger TAM vs. digital fitness) and pursuing DTC, ecommerce (Shopify), distributor networks and retail placement. Recent retail/distribution wins include Sprouts (~80 stores), Kahi (access to ~30,000 grocers via distributor network), and a planned chain-wide Shakeology listing at Vitamin Shoppe (~640+ stores) later this year. 4) Product & go-to-market progress: P90X Generation Next launched (new P90X supplement SKUs and RTD energy drinks) and the 10-Minute Body micro-workout line continues to scale; Shopify migration is improving conversion and checkout experience. 5) Near-term revenue dynamics and cadence: revenue is still impacted by the unwind of legacy MLM remnant revenue; management expects Q3 2026 to be the first quarter providing a clean year-over-year comparison of the new business model. Q2 2026 guidance: revenues $46M–$51M, net income (loss) between ($3M) and breakeven, adjusted EBITDA $3M–$6M; mix approx. 60% digital / 40% nutrition & other for Q2. 6) Margins & unit economics: digital gross margin targeted ~86%–88%; nutrition gross margin targeted ~43%–47% (management expects wholesale nutrition to sit in the mid-40s as retail scales), and management is focused on growing gross profit dollars as nutrition volume increases. 7) Risks / timeline: execution risk around retailer planogram cycles (6–12 month timelines), retail rollout timing (some tests this summer; broader national placements spring 2027), early-stage retail execution and inventory/promotional impacts (Q1 nutrition margin decline included inventory adjustments). Management reiterates this is an early-stage omnichannel transformation where material retail yield is expected to ramp in H2 2026 and more meaningfully in 2027 and beyond.