The Beachbody Company (BODY) Q1 2026 earnings summary

Executive summary

• Achieved third consecutive quarter of net and operating income profitability, with net income of $2.3M and operating income of $3.1M, reflecting a transformed omni-channel business model and exceeding guidance.

• Total revenue for Q1 2026 was $54.3M, down 25% year-over-year, with digital revenue at $33.6M (down 21.8%-22%) and nutrition/other revenue at $20.7M (down 27.7%-28%).

• Adjusted EBITDA was $8.0M, more than double the $3.7M reported a year ago, marking the tenth consecutive quarter of positive adjusted EBITDA.

• Transformation to an omni-channel, asset-light model continues, with legacy MLM business nearly cycled out by Q3 2026.

• Strong operational discipline and strategic investments in innovation and retail expansion are enabled by improved financial flexibility.

Financial highlights

• Gross margin improved to 71.8% (up 60 bps year-over-year); digital gross margin 87.4%, nutrition gross margin 46.7%.

• Operating expenses decreased to $35.9M, down 35% year-over-year, driven by lower selling/marketing and G&A costs.

• Net income of $2.3M vs. net loss of $5.7M in Q1 2025; adjusted net income of $2.5M vs. $5.1M adjusted net loss prior year.

• Free cash flow was negative $1.7M, compared to $1.6M in Q1 2025; cash balance of $36.6M and net cash position of $13M as of March 31, 2026.

• Selling and marketing expense was 34.6% of revenue, down 820 bps year-over-year.

Outlook and guidance

• Q2 2026 revenue expected between $46M-$51M; net income guidance ranges from -$3M to $2M; adjusted EBITDA expected between $3M and $6M.

• Anticipate shift to higher nutrition revenue mix by end of 2026; digital gross margin target 86%-88%, nutrition 43%-47%.

• Management expects adequate cash flows to support ongoing operations for at least one year.

• First clean year-over-year comparison of new business model will be Q3 2026.

• Continued focus on cost control and digital subscription retention is anticipated.