The Beachbody Company, Inc. (BODi) saw sales slump 25 percent in the first quarter due to a shift from a multi-level marketing (MLM) structure to a single-level affiliate model, but saw profitability improve and top guidance for the third straight quarter.

“Q1 marks our third consecutive quarter of profitability on both net income and operating income, validating the strength of our transformed business model,” said Carl Daikeler, co-founder and CEO of the El Segundo, CA-based fitness and nutrition company. “We’re now deploying this efficient platform to capitalize on a major market opportunity in nutrition, a massive global category that’s more than 12 times the size of digital fitness. With attractively priced supplements under iconic brands like P90X and Shakeology, we can acquire nutrition customers and seamlessly migrate them to our digital fitness platform, delivering the Total Solution that has always driven our best customer results.”

“Our strong balance sheet and substantially improved financial position provide the flexibility to fund our retail expansion and innovation pipeline,” said Mark Goldston, BODi’s executive chairman. “With ten consecutive quarters of positive adjusted EBITDA and a dramatically lowered breakeven point that creates massive operating leverage, we’ve built a resilient financial foundation that positions us to capitalize on significant growth opportunities in both nutrition and digital fitness.”

First Quarter 2026 Results

  • Total revenue was $54.3 million compared to $72.4 million in the prior year period. Guidance was between $49 million and $54 million.
  • Digital revenue was $33.6 million compared to $42.9 million in the prior year period and digital subscriptions totaled 0.81 million in the first quarter.
  • Nutrition and other revenue was $20.7 million compared to $28.7 million in the prior year period and nutritional subscriptions totaled 0.06 million in the first quarter.
  • Connected Fitness revenue was $0.0 million compared to $0.8 million in the prior year period as BODi ceased the sale of bike inventory in the first quarter of 2025.
  • Gross margin was 71.8 percent compared to 71.2 percent in the prior year period.
  • Total operating expenses were $35.9 million compared to $55.2 million in the prior year period.
  • Operating income improved by $6.8 million to $3.1 million, the company’s third consecutive quarter of operating income, compared to an operating loss of $3.7 million in the prior year period.
  • Net income was $2.3 million, the company’s third consecutive quarter of net income, compared to a net loss of $5.7 million in the prior year period.
  • Adjusted EBITDA was $8.0 million compared to $3.7 million in the prior year period.
  • Adjusted net income was $2.5 million compared to a loss of $5.1 million in the prior year period. Adjusted earnings were expected to be between a loss of $2 million and a profit of $1 million.
  • Cash used in operating activities for the three months ended March 31, 2026 was $1.0 million compared to cash provided by operating activities of $2.3 million in the prior year period, and cash used in investing activities was $0.7 million compared to cash used in investing activities of $0.7 million in the prior year period. Free cash flow was $(1.7) million compared to $1.6 million in the prior year period.

Image and chart courtesy Beachbody