Beachbody Conference: Turnaround Hits Net Income Profit, Retail Shakeology Push and New P90X Planned
Beachbody NASDAQ: BODI executives outlined the company’s turnaround progress and upcoming growth initiatives during a recent company update led by CEO and co-founder Carl Daikeler alongside Executive Chairman Mark Goldston and CFO Brad Ramberg.
Business history and asset base
Daikeler said the company was formed in 1998 and began transacting in 1999, built initially on direct marketing through infomercials. Over time, Beachbody created well-known fitness and nutrition brands including P90X, Insanity, and Shakeology. He said the company has accumulated more than 140 proprietary branded programs and more than 11,000 videos on its streaming platform, BODi—an acronym for Beachbody On Demand Interactive.
Daikeler added that the company is “closing in” on a billion views of its content on the platform, not including earlier VHS and DVD sales, which he said totaled “tens of millions.” He also cited 32 million customers since inception and more than $12 billion in cumulative sales over the company’s history.
Why management pursued a turnaround
Daikeler framed the market opportunity as large, citing 2023 estimates that overall wellness represents a $6.5 trillion market, with fitness and nutrition each at $1.1 trillion. He said the company’s sales channels have evolved over time and that weakness in two historic channels—infomercials and multi-level marketing (MLM)—helped drive the need for a turnaround.
Goldston, who said he joined in June 2023, argued the company’s underlying assets were strong, pointing to what he described as an “unparalleled” content library and estimating a “$500-plus million replication cost” to recreate it. He also noted that the company had “22 years of exceptional profitability” before going public via a SPAC transaction in 2021, which he said valued the company at a $3.2 billion market capitalization at the time.
Operational overhaul and financial milestones
Goldston said a major objective was to move away from MLM and build a multi-channel strategy including direct-to-consumer, Amazon/marketplace, affiliates, and retail. He said the MLM channel ended in the fourth quarter of 2024.
According to Goldston and Ramberg, management cited the following turnaround metrics:
- Cash break-even lowered: Goldston said the company reduced its cash break-even revenue level from about $900 million to about $180 million, a $720 million reduction. Ramberg similarly said cash break-even was reduced from $900 million in 2022 to about $180 million “today.”
- Adjusted EBITDA improvements: Goldston said the company has posted eight consecutive quarters of positive adjusted EBITDA, totaling roughly $50 million cumulatively. Ramberg said adjusted EBITDA was negative by just over $86 million in 2021, and positive by about $18 million in the first three quarters of 2025.
- Free cash flow swing: Ramberg said free cash flow was close to negative $300 million in 2021 and positive $13.1 million year-to-date through the first three quarters of 2025.
- Return to net income profitability: Goldston said net income turned positive in the third quarter of 2025. Ramberg said net income was positive by more than $3 million in Q3 2025, the first time since going public.
- Cost structure changes: Goldston said the company reduced headcount from over 1,000 employees to fewer than 300 and re-architected infrastructure to create operating leverage.
- Debt refinancing: Goldston said the company restructured and refinanced debt—originally with Blue Torch Capital and refinanced with Tiger Finance and SG Capital—reducing overall interest expense by 44%.
Goldston also highlighted selling and marketing expense reductions, saying the company brought those costs down to the “low-to-mid-30s” as a percentage of revenue from “over 50%” previously, while increasing media spend by removing MLM-related costs.
As of September 30 (with fourth-quarter results not yet reported), Goldston said the company had $34 million of cash and $25 million of debt, describing cash as exceeding debt. He also cited an average interest rate of about 15.5% “all in,” and about 13.2% “from a cash standpoint.”
Innovation pipeline and retail strategy
With the turnaround ahead of schedule, Goldston said the company is now positioned to launch new initiatives beginning in 2026 and 2027, earlier than management originally expected. He highlighted a new program called 10-Minute Body, which he said was launched “a couple of weeks” prior to the event and includes more than 400 units of 10-minute content aimed at non-exercisers.
Goldston also said the company plans to launch a new program called P90X Generation Next in February, noting it would be the first new P90X program in 15 years. He also mentioned a new P90X spokesperson named Waz.
A key strategic shift discussed was retail distribution. Goldston said the company is preparing a retail line in Q1 and Q2 featuring nutritional supplements under P90X and Insanity branding and expanding Shakeology, which he described as having more than $3 billion in cumulative sales and over a billion servings, into retail for the first time. He said Beachbody hired a large brokerage firm based in St. Louis to sell products into grocery, drug, mass merchant, convenience stores, and club channels.
Goldston said the company intends to use QR codes on retail packaging to offer a free month of the P90X program, which he described as a $35 value, to customers who buy the nutrition product. He also said Shakeology’s current format is predominantly a 30-serve bag priced at $129, and that the company plans to introduce a 7-serve bag priced under $40 for retail and the company’s own website.
Q&A: retail timing, margins, and marketing channels
In response to a question about retail rollout timing, Goldston said retail moves slower due to planograms and shelf resets that typically occur once or twice per year. He said the broker has completed more than 50 sales presentations and the company is awaiting retailer decisions on timing and SKU counts. He added that convenience stores would be a bigger fit for energy drinks than for nutritional supplements due to shelf-space constraints.
Asked about long-term margin structure, Goldston declined to provide projections but said gross margins should normalize in the “low- to mid-70s.” He also described fitness as potentially reaching “high 80s-90%” margins, while nutrition could be in the “mid-40s-50%” range as the retail business scales. He added that with the restructured cost base, a 25% revenue increase could mathematically double EBITDA due to operating leverage.
On marketing channels, Goldston said he does not believe the company has found a single “best” online media platform and noted many companies have leaned heavily on Google and Meta. He said channels such as TikTok require content tailored to the format, and that platform choice depends on audience age, with older audiences less concentrated on TikTok. He also argued that retail shelf presence can provide significant brand exposure.
About Beachbody NASDAQ: BODI
Beachbody is a consumer-oriented health and fitness company based in Santa Monica, California. Founded in 1998 by Carl Daikeler and Jon Congdon, the company originally gained prominence through at-home workout programs distributed on DVD. Over time, Beachbody has transitioned much of its content delivery to a subscription-based digital platform, offering on-demand streaming of exercise routines, meal plans and wellness coaching.
The company’s portfolio includes a range of branded fitness programs—such as P90X, Insanity, 21 Day Fix and Body Beast—alongside nutrition and supplement products marketed under the Beachbody Nutrition brand.
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