Beachbody's Q1 2025: Unpacking Contradictions in Affiliate Transition, Nutrition Strategy, and Pricing Dynamics

Affiliate model transition, nutrition business strategy, pricing strategy and revenue generation, customer subscription and purchase behavior, and business model transition are the key contradictions discussed in Beachbody's latest 2025Q1 earnings call.



Business Model Transition and Financial Improvement:
- The Beachbody Company, under its new business model, generated positive adjusted EBITDA for the first time since its IPO in 2021, with a cumulative total of $34.8 million across six consecutive quarters.
- The transition from an MLM model to an omni-channel approach significantly reduced debt and improved operating efficiencies.

Nutrition Revenue and Strategy:
- Nutrition revenue decreased by 17.7% from the prior quarter and 48.4% year-over-year.
- The decline is attributed to the shift from an MLM model, where nutrition products were historically exclusively sold through this network, to a more direct-to-consumer approach.

Digital Fitness Subscriber Trends:
- Digital revenue decreased by 14.8% from the prior quarter and 30.2% year-over-year.
- The decline in digital subscriber count, which fell by 5.1% sequentially and 16.6% year-over-year, was primarily due to the transition out of the MLM model.

Affiliate Model and Future Growth:
- The company's affiliate model, while productive, has not met expectations due to the complexity of the existing platform.
- To address this, a new simplified platform will be launched in mid-June, aiming to increase participation and productivity among affiliates, which is expected to drive future growth.