Contradictions in Focus: The Beachbody Company's 2025Q2 Earnings Call Unveils Pricing, Model Shifts, and Strategic Directions

Nutrition pricing strategy, direct-to-consumer model transition, affiliate model transition and impact, gross margin and operating expense expectations, nutrition product retail strategy are the key contradictions discussed in The Beachbody Company's latest 2025Q2 earnings call.



Revenue and Financial Performance:
- The Beachbody Company reported revenue of $63.9 million for Q2 2025, exceeding guidance with a gross margin of 72.3%, representing a 300 basis point improvement over the prior year.
- The financial turnaround was driven by better-than-expected customer retention during the business model transition, reduced selling and marketing costs, and improved operational efficiencies.

Customer Retention and Digital Growth Strategy:
- Digital revenue decreased by 7.5% from the prior quarter but remained stable with 940,000 subscribers.
- The company is focusing on improving customer retention, digital subscriber growth, and offering compelling new content and offers to drive traffic and conversions.

Nutrition Revenue Decline and Retail Launch Strategy:
- Nutrition revenue declined by 15.6% from the prior quarter, primarily due to the shift from MLM to an omnichannel model.
- The company plans to launch its BODi Brands retail initiative in 2026, starting with the Shakeology brand, aiming to stabilize and grow nutrition revenue.

Adjusted EBITDA and Free Cash Flow:
- The company achieved its seventh consecutive quarter of positive adjusted EBITDA with $4.6 million and generated $4.1 million in positive free cash flow year-to-date.
- This was attributed to reduced costs, improved gross margins, and strategic refinancing efforts.