The Beachbody Company, Inc.’s adjusted operating loss widened in the second quarter ended June 30 despite sales sliding 25.0 percent. The fitness subscription company said it made progress in restructuring its financial covenants while hiring Mark Goldston to the newly formed role of executive chairman of its Board of Directors in mid-June to support its turnaround efforts.

“We are encouraged by our performance in the second quarter and the progress made towards our company transformation. To that end, I am pleased that Mark Goldston has joined the company as Executive Chairman to work with us to execute on the significant opportunities in front of us. Mark has been running public companies for decades with a focus on turnarounds, and we have already benefited from his expertise.” said company Co-Founder and CEO Carl Daikeler. 

“We have restructured the financial covenants in our financing agreement and paid down our debt level by $15 million to approximately $35 million, which reduces our interest expense and gives additional flexibility to execute our strategies and to develop profitable revenue streams that generate healthy cash-flows. Also, from a cash standpoint, given our third-quarter guidance range, we plan on using less than $5 million in cash from operations as we continue to improve our margins and cost structure. We are excited about the trajectory of BODi’s transformation and are proud of our team’s hard work to get us where we are today,” continued Daikeler.

Second Quarter 2023 Results

  • Total revenue was $134.9 million compared to $179.1 million in the prior year period;
  • Digital revenue was $65.2 million compared to $78.0 million in the prior year period and digital subscriptions totaled 1.53 million in the second quarter;
  • Nutrition and Other revenue was $64.6 million compared to $90.5 million in the prior year period, and nutritional subscriptions totaled 0.20 million in the second quarter;
  • Connected Fitness revenue was $5.1 million compared to $10.6 million in the prior year period, and approximately 5,500 bikes were delivered in the second quarter;
  • Total operating expenses were $106.9 million compared to $131.7 million in the prior year period;
  • Operating loss improved by $20.2 million to $24.2 million compared to an operating loss of $44.4 million in the prior year period;
  • Net loss was $25.7 million compared to a net loss of $41.9 million in the prior year period;
  • Adjusted EBITDA was $(4.8) million compared to $(1.5) million in the prior year period;
  • Cash used in operating activities for the six months ended June 30, 2023, was $14.4 million compared to $33.3 million in the prior year period, and cash used in investing activities was $5.0 million compared to $19.2 million in the prior year period; and
  • Total cash used in operating and investing activities was $19.4 million compared to $52.5 million in the prior year period.

Beachbody is a fitness and media company based in El Segundo, CA. Brands include Beachbody On Demand, Team Beachbody, MYXfitness, and Openfit.

Photo courtesy Beachbody/MYXfitness