The Beachbody 2025 Q2 Earnings Narrows Losses, Exceeds Guidance

The Beachbody (BODI) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025. The company exceeded guidance by narrowing its net loss and achieving the seventh consecutive quarter of positive adjusted EBITDA, despite a 42% year-over-year revenue decline. Management remains optimistic about long-term success, citing cost discipline and strategic transformation progress.

Revenue
Total revenue for The Beachbody in 2025 Q2 decreased by 42.0% to $63.94 million from $110.18 million in the same period a year ago. The digital segment contributed $39.69 million, representing a 32.5% decline from $58.8 million in the prior year. Nutrition and other revenue came in at $24.17 million, a 51.8% drop from $50.1 million. The connected fitness segment generated $76,000, down 94.2% from $1.3 million in 2024 Q2 due to the cessation of bike inventory sales in early 2025. These trends reflect a broad contraction in revenue across all business lines.

Earnings/Net Income
The company narrowed its losses to $0.85 per share in 2025 Q2 from $1.59 per share in 2024 Q2, representing a 46.5% improvement. The net loss was reduced to $-5.90 million compared to $-10.87 million a year ago, a 45.7% reduction. The narrowing of the loss indicates progress in cost management and strategic initiatives, though the company continues to report losses for the fifth consecutive year in this fiscal quarter.

Price Action
Following the earnings report, The Beachbody stock price experienced a downturn. It dropped 5.21% in the latest trading day, 15.11% in the most recent full trading week, and 9.48% month-to-date. The negative price action reflects investor concern despite the company's improved financial performance.

Post Earnings Price Action Review
The investment strategy of purchasing The Beachbody shares after a revenue increase quarter-over-quarter on the earnings report date and holding for 30 days underperformed significantly. The strategy generated a return of -68.15%, while the benchmark achieved 48.38%, resulting in an excess return of -116.52%. Over a 3-year period, the CAGR for this strategy was -49.58%. The strategy's volatility was 99.45%, and its Sharpe ratio of -0.50 highlighted its high-risk profile, with a maximum drawdown of 0.00% reported.

CEO Commentary
Carl Daikeler, Co-Founder and CEO of The Beachbody Company, Inc., expressed optimism about the company’s performance in the second quarter, which exceeded expectations. The CEO emphasized the success of strategic transformation efforts, including significantly reduced breakeven levels and the generation of free cash flow in the first half of 2025. Daikeler highlighted the company's seven consecutive quarters of positive adjusted EBITDA and its evolving marketing and distribution models as key factors in expanding market opportunities. The CEO is confident in the company's ability to achieve positive full-year 2025 free cash flow for the first time since 2020 and remains focused on disciplined execution for long-term success.

Guidance
The Company provided forward-looking guidance for the third quarter of 2025, projecting revenue in the range of $51–$58 million. The net loss is expected to be between $4 million and break-even. This guidance reflects ongoing strategic execution and cost management initiatives.

Additional News
The Beachbody (BODi) announced second-quarter financial results on August 5, 2025, showing revenues of $63.9 million, a decrease from $110.2 million in the prior year. The gross margin was reported at 72%, up 300 basis points year-over-year. Net loss was within guidance, and adjusted EBITDA was reported as better than guidance. This marked the seventh consecutive quarter of positive adjusted EBITDA. The press release was issued from El Segundo, California, and included CEO Carl Daikeler’s comments on the strategic decisions leading to improved breakeven levels and free cash flow. The conference call details and webcast information were also provided, allowing stakeholders to engage directly with the company’s leadership.