Beachbody Shapes Up and Reports Fourth Consecutive Quarter of Positive Adjusted EBITDA

The Beachbody Co (BODI) announced Q3 financial results reporting revenues of $102M, in line with the midpoint of their guidance range. Gross margins improved significantly, increasing 880 basis points year-over-year to 67.3%. Adjusted EBITDA was $10.1M, substantially exceeding the guidance range of $2M to $6M. This marks the company’s fourth consecutive quarter of positive adjusted EBITDA.

As for its outlook, Beachbody expects Q4 revenues in the range of $77M to $87M. They expect a net loss in the range of $21M to $17M, which includes an estimated $9M in pivot-related charges while adjusted EBITDA is expected to be in the range of $2M to $6M. The Q4 revenue guidance represents a step down from Q3, which the company attributes to the transition period as the affiliate model is implemented. The company expects Q4 to be a “transition trough” quarter.

The company completed the first phase of its turnaround, which focused on lowering infrastructure costs and re-architecting the financial model. They are now entering the next phase, which is focused on unlocking top-line potential through the transition to a single-level affiliate model and new product launches, such as the Belle Vitale program.

The transition to the new affiliate model is going well, with many former network partners signing up as affiliates and the company seeing strong interest. Beachbody is also looking to attract new affiliates through platforms like Impact.com. The new Belle Vitale program, a comprehensive women’s hormone health program, is generating a lot of excitement and pre-orders. The program includes innovative fitness, nutrition, and supplement components.

The company did not provide much detail on the specific features and capabilities of the new centralized e-commerce platform at bodi.com, beyond noting it will now be the primary direct-to-consumer channel for all products.