Beachbody (NASDAQ:BODI) executives outlined what they described as a broad restructuring of the fitness and nutrition company, highlighting reduced costs, improved profitability metrics and a shift away from its former multi-level marketing model toward direct-to-consumer, Amazon affiliate and retail channels.
Executive Chairman Mark Goldston said he joined the company nearly three years ago and that “the company’s mission hasn’t changed,” but “the way in which we operate and execute has changed.” He said BODi continues to focus on helping customers lead healthier lives through fitness programming and nutrition products, including P90X, Insanity and Shakeology.
Company Says Break-Even Level Has Fallen Sharply
“We’ve dropped our break even by $720 million,” Goldston said. He also said sales and marketing expenses declined from 53.5% of revenue to 34.5%, while the company is spending more on media than it did previously.
CFO Brad Ramberg said the company has recorded 10 consecutive quarters of positive adjusted EBITDA, generating a cumulative $69.8 million over that period. He said adjusted EBITDA was about $30 million in each of the past two years, and the company reported $8 million of positive adjusted EBITDA in the first quarter of 2026.
Ramberg also highlighted free cash flow improvement, saying the company went from losing nearly $300 million of free cash flow in 2021 to generating $17.4 million of positive free cash flow in 2025. He said net income improved from a loss of $228 million in 2021 to a loss of $2.9 million in 2025, and that Beachbody has posted three consecutive quarters of positive net income.
Debt Reduced, Cash Exceeds Debt
Goldston said the company had $50 million of debt when he joined and has since reduced that figure to $25 million following a refinancing with Tiger Finance. He said the refinancing lowered the company’s effective interest rate and reduced annual interest expense by about 44%.
Goldston said Beachbody’s cash position is $36.6 million, compared with $25 million of debt, adding that cash exceeds debt “for the first time in a long time.” In response to an analyst question, he said the company has 7.2 million shares outstanding and described the current market capitalization as “kind of ridiculous” relative to the company’s assets and profitability metrics.
Shift Away From MLM and Toward Retail
Goldston said a key part of the turnaround was exiting the multi-level marketing structure, which he said was disbanded in December 2024. He said the previous model carried commissions of 40% to 55% on sales “in perpetuity,” calling it a financial burden on the business.
The company is now pursuing a multi-channel model that includes direct-to-consumer sales, Amazon affiliate sales and a newly launched retail division. Goldston said Beachbody has built what he called a “virtual packaged goods company,” with marketing and research and development kept in-house while logistics, production and sales are outsourced. He said Advantage Solutions is handling retail sales efforts.
Goldston said Shakeology is expected to enter Sprouts in about two weeks and Vitamin Shoppe’s 640 stores by late August or early September. He also said the company is launching a P90X-branded nutrition line and testing Insanity- and P90X-branded energy drinks in Southern California this summer.
Innovation Pipeline Includes P90X, Insanity and Shakeology Extensions
Goldston said the company has created a new “innovation pipeline” intended to support growth after the cost restructuring. He pointed to the launch of Ten Minute Body, a collection of more than 400 short exercise programs aimed at people who may be intimidated by traditional workouts or gym settings. He also said the company has an adjunct program for people using GLP-1 medications.
Beachbody also recently launched P90X Generation Next, the first new P90X program in 13 years, featuring trainer Waz Ashayer. Goldston said the timing was intended to coincide with the P90X supplement launch to create what he called a “Total-Solution Pack” combining fitness programming, supplements and nutrition plans.
For Shakeology, Goldston said the company has created a seven-serving retail format priced at $34.99, compared with the existing 30-serving bag that had been priced at $130. He said future products under development include ready-to-drink Shakeology products, Shakeology bars, Insanity supplements and protein bars under the P90X and Insanity brands.
Subscriber Counts and Marketing Strategy
In response to an analyst question, Ramberg said Beachbody has 810,000 digital subscribers and 60,000 nutrition subscribers. He noted that nutrition subscriber counts may become a less useful metric as the company moves more toward one-time purchases and retail sales.
Goldston said Beachbody spends more than $30 million annually on marketing and has a major presence across Meta properties, Instagram, Facebook, Google and TikTok. He said QR codes on P90X retail supplement packaging will offer buyers one free month of BODi, a value he described as $20.
Goldston said the next major milestone for the turnaround will be showing year-over-year or quarter-over-quarter revenue growth. He said the first “clean” year-over-year comparison, after removing the remaining effects of the former MLM model, will be in the third quarter 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.
