Beachbody (NASDAQ:BODI) reported second-quarter 2026 revenue of $49.6 million, exceeding the midpoint of its guidance range, while extending its streak of positive operating income, net income and adjusted EBITDA as the company continues shifting toward a nutrition-led, multi-channel model.
Executive Chairman Mark Goldston said revenue was above the company’s guided range midpoint of $46 million to $51 million. Adjusted EBITDA totaled $6.7 million, above the high end of guidance, while net income reached $1.4 million compared with the company’s projected range of a $3 million loss to breakeven.
Revenue Declines Continue During Business Model Transition
Despite exceeding its outlook, total revenue declined 8.6% sequentially and 22.4% year over year. Interim Chief Financial Officer Brad Ramberg said results remain affected by the company’s transition away from its former multi-level marketing model to an omni-channel business.
Digital revenue declined 7.2% from the prior quarter to $31.2 million and fell 21.5% from a year earlier. Digital subscriptions fell 6.2% sequentially to 760,000 and declined 19.1% year over year, which Ramberg attributed in part to continuing churn from the company’s legacy customer file. However, he said the number of new subscribers increased from the prior-year period.
Nutrition and other revenue decreased 10.9% sequentially to $18.5 million and was down 23.7% year over year. Nutrition subscriptions rose about 16.7% from the first quarter to approximately 70,000 and were essentially flat from a year earlier. Ramberg noted that subscription counts will become a less relevant measure as one-time and retail nutrition sales expand.
Consolidated gross margin was 72%, up 20 basis points sequentially and down 30 basis points from the prior-year quarter. Digital gross margin was 87.1%, while nutrition and other gross margin was 46.7%.
Operating expenses fell 5% sequentially and 32.1% year over year to $34.1 million. Selling and marketing expense represented 31.5% of revenue, reflecting the removal of multi-level marketing seller compensation following Beachbody’s exit from that channel at the end of 2024.
Retail Distribution and Amazon Expansion
Management highlighted progress in expanding Shakeology and P90X nutrition products through retail and online marketplaces. Goldston said Shakeology has expanded to 131 Sprouts Farmers Market stores, with the distributor KeHE reordering inventory after running low on initial supply. He said the store count had increased from an initial 90 locations.
The company also began selling Shakeology in 481 The Vitamin Shoppe locations during the third quarter. Goldston said the rollout arrived several weeks earlier than expected and that the retailer has been supportive of the opportunity.
Beachbody expects distribution growth to remain modest this year because new products must wait for retailer planogram resets, a process management said can take six to 12 months. The company has 12 retail decisions pending between mid-September and late November, according to Goldston. Management expects broader distribution growth in 2027 as products become more integrated into retailer shelf plans.
The company is also expanding its distributor relationships. KeHE provides a path into grocery accounts, while a new account is expected to open access to the UNFI distribution network in November.
P90X supplements, including pre-workout, hydration, creatine, recovery protein and energy products, recently became available on Amazon. Goldston said the company has also begun offering a seven-serving Shakeology package for about $35 on Amazon, compared with a previously emphasized 30-serving product that carried a substantially higher price point. He said the revised price points and product formats create a larger opportunity for Amazon sales.
Nutrition-First Marketing and Digital Programs
Chief Executive Officer Carl Daikeler said Beachbody has found that acquiring customers through nutrition advertising is “substantially lower” in cost than acquiring customers through advertising for fitness programs. In response, the company has shifted more media spending toward products such as Shakeology and P90X.
Daikeler said the strategy is increasing website traffic and can support both direct-to-consumer growth and retail visibility. Nutrition customers who subscribe receive a 30-day trial of the company’s digital service, which provides access to its fitness-program library.
The company completed its migration to the Shopify e-commerce platform at the end of the first quarter without business interruption. Daikeler said Shopify has provided greater visibility into conversion rates, customer engagement and website bounce rates, while enabling faster checkout through Shop Pay and more flexibility for bundles and subscription offers.
Beachbody is working with a Shopify-focused company to refine landing pages and consolidate website traffic onto the platform. Daikeler said management expects the changes to support promotions during Black Friday and Cyber Monday and into the first quarter of 2027.
On the digital side, the company continues to promote its 10-Minute Body catalog, which includes more than 400 workouts lasting five to 10 minutes. Daikeler said the programs have been particularly relevant for users of GLP-1 weight-loss medications, an audience the company is targeting with both fitness and Shakeology marketing.
Beachbody launched its 30 Day Booty Boost program in June with trainer Chace Collett and plans to introduce Shaun T’s MAX BUILT strength program in early September. The company is also preparing an Insanity Unhinged program, led by HYROX World Champion Hunter McIntyre, for November promotions alongside a new Insanity pre-workout supplement.
Cash Position and Third-Quarter Outlook
Beachbody ended the quarter with $32.4 million in cash and approximately $23.6 million in debt, for net cash of $8.8 million. The company amended its Tiger Finance credit agreement on Aug. 3, adopting a less restrictive covenant structure.
For the first six months of 2026, free cash flow was negative $5.7 million, compared with $4.1 million generated in the prior-year period. Ramberg said the change primarily reflected inventory purchases for nutrition and retail expansion, as well as a decline in deferred revenue.
For the third quarter, Beachbody forecast revenue of $44 million to $48 million, net income ranging from a $3 million loss to breakeven, and adjusted EBITDA of $3 million to $6 million. Management expects revenue during the period to be approximately 60% digital and 40% nutrition and other, though it anticipates nutrition will represent a larger share of the business by the end of 2026.
About Beachbody (NASDAQ:BODI)
Beachbody is a consumer-oriented health and fitness company based in Santa Monica, California. Founded in 1998 by Carl Daikeler and Jon Congdon, the company originally gained prominence through at-home workout programs distributed on DVD. Over time, Beachbody has transitioned much of its content delivery to a subscription-based digital platform, offering on-demand streaming of exercise routines, meal plans and wellness coaching.
The company’s portfolio includes a range of branded fitness programs—such as P90X, Insanity, 21 Day Fix and Body Beast—alongside nutrition and supplement products marketed under the Beachbody Nutrition brand.
