The Beachbody Company, Inc.

Total revenue was $49.6 million in Q2 2026, down 22.4% year over year and down 8.6% sequentially. Digital revenue was $31.2 million, down 21.5% year over year, with digital subscribers at 760,000, down 19.1%; Nutrition and other revenue was $18.5 million, down 23.7% year over year, with nutritional subscriptions at approximately 70,000, essentially flat year over year. Consolidated gross margin was 72%, down 30 basis points year over year; Digital gross margin was 87.1%, and Nutrition and Other gross margin was 46.7%. Operating income was $1.7 million versus an operating loss of $4.0 million a year ago, net income was $1.4 million versus a net loss of $5.9 million a year ago, and adjusted EBITDA was $6.7 million versus $4.6 million a year ago. For Q3 2026, management guided to revenue of $44 million to $48 million, net income of negative $3 million to breakeven, and adjusted EBITDA of $3 million to $6 million; gross margin targets were 86% to 88% for Digital, 42% to 45% for Nutrition and Other, and 68% to 71% consolidated.

Carl Daikeler said Q2 was about executing a shift toward a nutrition-first multichannel model now that the company is freed from the old operating structure’s margin and distribution constraints. He framed Shopify, Amazon, retail expansion, and GLP-1-focused marketing as key tools to improve conversion and broaden the customer funnel, while emphasizing that nutrition products are acquiring customers more efficiently than fitness advertising. His tone was constructive and opportunistic, with repeated comments that the company now has more flexibility to test, learn, and reposition the business for growth.

Brad Ramberg highlighted that revenue, net income, and adjusted EBITDA all beat guidance, with adjusted EBITDA margin at 13.4% and consolidated gross margin at 72%, the high end of the company’s estimated range. He said operating expenses fell 32.1% year over year to $34.1 million, reflecting the removal of MLM seller compensation and other efficiencies, while cash ended at $32.4 million and net cash at $8.8 million. For the first six months of 2026, free cash flow was negative $5.7 million, mainly due to inventory purchases for nutrition and retail rollout plus lower deferred revenue; he also noted the amended credit agreement gives the company more flexibility.

Analysts focused on what is driving nutrition momentum, and management said Q2 growth was largely organic rather than driven by retail, because Sprouts reorders and Vitamin Shoppe launches were only partially reflected in the quarter. Questions on Shopify centered on how quickly website changes can improve conversion ahead of holiday demand; management said the platform is already revealing friction points and enabling faster iteration on landing pages, pricing displays, bundles, and Shop Pay. Analysts also pressed on free cash flow and the new credit covenant, and management responded that cash usage was tied to inventory build and that the amended covenant package provides roughly $7 million more cushion before tests would occur.