Beachbody Company, Inc.
For the period ended Sep 30, 2025. Filed Nov 10, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 10, 2025
BODI$4.25-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0000950170-25-104245
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001193125-25-274344
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 154 previous paragraphs and 162 current paragraphs.
86 unchanged; 53 reworded; 19 added; 14 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
Gross margin was 74.6%, an increase of 730 basis points ("bps");
Current report
Operating expenses was $39.7 million, compared to $81.8 million;
Current report
Net income was $3.6 million, the Company's first quarterly net income since going public, compared to a net loss of $12.0 million; and
Current report
Adjusted EBITDA was $9.5 million, compared to $10.1 million.
Current report
For the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024:
Current report
Gross margin was 72.6%, an increase of 450 bps;
Current report
Operating expenses was $145.1 million, compared to $259.8 million;
Current report
Adjusted EBITDA was $17.9 million, compared to $19.6 million.
Current report
Includes accelerated depreciation expense of $2.9 million for the three and nine months ended September 30, 2024 related to certain long-lived assets that due to the Pivot were not used by the Company after December 31, 2024.
Current report
Includes (a) restructuring expense and personnel costs associated with the Pivot of $5.1 million during the three and nine months ended September 30, 2024 and (b) adjustments recorded to nutrition and other inventory of $0.2 million due to the Pivot and adjustments recorded to connected fitness inventory of $1.2 million due to the decision to cease the sale of connected fitness inventory in early 2025, in the three and nine months ended September 30, 2024.
Current report
The decrease in connected fitness revenue for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was due to management's decision to cease the sale of bike inventory in the first quarter of 2025.
Current report
Enterprise technology and development expense as a percentage of total revenue decreased by 160 bps primarily as a result of the decrease in expenses as noted above.
Current report
Income Tax Benefit (Provision)
Current report
Liquidity Considerations
Current report
We were in compliance with the financial covenants under our ABL Facility as of September 30, 2025. However, the Company currently anticipates a violation of the minimum digital subscriptions financial covenant at December 31, 2025 and a violation of the minimum billings financial covenant in the first quarter of 2026. Based on this, the Company has begun discussions with the lender to amend these financial covenants with management's belief that this can be executed by February 28, 2026, however, there can be no assurance that we will be able to finalize the amendment of the covenants on the ABL Facility. Further, as noted above, if the ABL Facility is not amended as anticipated, and if such covenant violations were to occur, this could result in the lender accelerating the maturity date of the ABL Facility into the first quarter of 2026, impacting the Company’s liquidity and potentially impacting its ability to continue to operate in the normal course. Given the finalization of the amendment of the covenants in the ABL Facility is not within the control of the Company, the Company has concluded that the anticipated violation of the debt covenants is a condition that raises substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued.
Current report
While the Company believes it will be able to enter into the amendment of the covenants in the ABL Facility by February 28, 2026, in the event the Company is unable to obtain the amendment of the covenants in the ABL Facility as anticipated, the Company has a number of actions under its control that will enable the Company to satisfy its obligations under the outstanding ABL Facility if called in the event of a covenant violation and sustain its normal course of business operations, including reducing the liquidity needs of the business over the next twelve months through a combination of deferrals of voluntary cash expenditures and operating cost reductions. Management has determined that such actions are within its control and would mitigate the condition and alleviate the substantial doubt surrounding the ability to continue as a going concern by providing liquidity sufficient to both fully satisfy the ABL Facility and continue to operate its business in the normal course.
Current report
As a result, the Company believes it will have adequate cash flows to support its ongoing operations for at least one year following the date that these condensed consolidated financial statements are issued.
Current report
Cash Flows
Current report
For the nine months ended September 30, 2025 and 2024, our net cash flows were as follows:
Removed paragraphs (14)
Previous report
Total revenue was $63.9 million, a 42% decrease;
Previous report
Nutrition and other revenue was $24.2 million, a 52% decrease;
Previous report
Connected fitness revenue was $0.1 million, a 94% decrease;
Previous report
Operating expenses was $50.2 million, compared to $85.9 million;
Previous report
Adjusted EBITDA was $4.6 million, compared to $4.9 million.
Previous report
For the six months ended June 30, 2025, as compared to the six months ended June 30, 2024:
Previous report
Digital revenue was $82.6 million, a 31% decrease;
Previous report
Operating expenses was $105.4 million, compared to $178.0 million;
Previous report
Net loss was $11.6 million, compared to a net loss of $25.1 million; and
Previous report
Adjusted EBITDA was $8.3 million, compared to $9.5 million.
Previous report
The decrease in connected fitness revenue for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily due to management's decision to cease the sale of bike inventory in the first quarter of 2025.
Previous report
Income Tax Provision
Previous report
We were in compliance with the financial covenants as of June 30, 2025. Unexpected weakness in the demand for our products may interfere with our ability to remain in compliance with the financial covenants, in particular the minimum billings financial covenant and the minimum digital subscriptions financial covenant. Failure to comply with the financial and other covenants under the ABL Facility, would constitute a condition of default and would allow Tiger to accelerate the maturity of all indebtedness under the ABL
Previous report
Facility. If such acceleration were to occur, we would likely have to seek an amendment and/or waiver of the impacted financial covenant or repay the debt with proceeds from the issuance of new debt or equity, or asset sales, if necessary. We may be unable to amend the ABL Facility or raise sufficient capital to repay such obligations in the event the maturity is accelerated.
Reworded paragraphs (53)
Previous wording
Total revenue was $136.3 million, a 41% decrease;
Current wording
Total revenue was $59.9 million, a 41% decrease;
Previous wording
Digital revenue was $39.7 million, a 32% decrease;
Current wording
Digital revenue was $36.4 million, a 32% decrease;
Previous wording
Nutrition and other revenue was $52.8 million, a 50% decrease;
Current wording
Nutrition and other revenue was $23.5 million, a 50% decrease;
Previous wording
Connected fitness revenue was $0.9 million, an 80% decrease;
Current wording
Connected fitness revenue was $0.9 million, an 84% decrease, there was no connected fitness revenue in the three months ended September 30, 2025;
Previous wording
Net loss was $5.9 million, compared to a net loss of $10.9 million; and
Current wording
Net loss was $8.1 million, compared to a net loss of $37.1 million; and
Previous wording
See “Non-GAAP Information” below for information regarding our use of Adjusted EBITDA and a reconciliation of net loss to Adjusted EBITDA.
Current wording
See “Non-GAAP Information” below for information regarding our use of Adjusted EBITDA and a reconciliation of net income (loss) to Adjusted EBITDA.
Previous wording
The Company used the proceeds from the ABL Facility to repay in full its existing Term Loan (as defined below) on May 13, 2025 (outstanding principal balance of $17.3 million as of the date of repayment) along with the repayment of the outstanding paid in kind of $0.5 million, a prepayment premium of $0.3 million and outstanding accrued interest of $0.2 million. The repayment of the Term Loan was accounted for as a debt extinguishment and the Company wrote off the remaining amount of unamortized debt discount and debt issuance costs as of the repayment date ($1.7 million) which in addition to the prepayment premium ($0.3 million) and certain legal expenses, was recorded as a loss on debt extinguishment of $2.2 million in the three and six months ended June 30, 2025.
Current wording
The Company used the proceeds from the ABL Facility to repay in full its existing Term Loan (as defined below) on May 13, 2025 (outstanding principal balance of $17.3 million as of the date of repayment) along with the repayment of the outstanding paid in kind of $0.5 million, a prepayment premium of $0.3 million and outstanding accrued interest of $0.2 million. The repayment of the Term Loan was accounted for as a debt extinguishment and the Company wrote off the remaining amount of unamortized debt discount and debt issuance costs as of the repayment date ($1.7 million) which in addition to the prepayment premium ($0.3 million) and certain legal expenses, was recorded as a loss on debt extinguishment of $2.2 million in the three months ended June 30, 2025.
Previous wording
On June 26, 2025, the Company executed a post Pivot restructuring (the "Restructuring") which will reduce the Company's headcount by approximately 70 employees (approximately 22% of the Company’s workforce on that date) in the third quarter of 2025. The actions associated with the Restructuring are expected to result in approximately $2.6 million in costs, with approximately $2.5 million recorded in the Company's unaudited condensed consolidated statement of operations in the three and six months ended June 30, 2025, with approximately $0.1 million expected to be recorded in the three months ended September 30, 2025.
Current wording
On June 26, 2025, the Company executed a post Pivot restructuring (the "Restructuring") which reduced the Company's headcount by approximately 70 employees (approximately 22% of the Company’s workforce on that date) in the third quarter of 2025. The actions associated with the Restructuring resulted in approximately $2.5 million in costs, with approximately $2.5 million recorded in the Company's unaudited condensed consolidated statement of operations in the three months ended June 30, 2025 and approximately zero recorded in the three months ended September 30, 2025.
Previous wording
(1) Please see “Non-GAAP Information” below for a reconciliation of net loss to Adjusted EBITDA and an explanation for why we consider Adjusted EBITDA to be a helpful metric for investors.
Current wording
(1) Please see “Non-GAAP Information” below for a reconciliation of net income (loss) to Adjusted EBITDA and an explanation for why we consider Adjusted EBITDA to be a helpful metric for investors.
Previous wording
Our ability to expand the number of digital subscriptions is an indicator of our market penetration and growth. Digital subscriptions from our BODi platform. Digital subscriptions include paid and free-to-pay subscriptions, with free-to-pay subscriptions representing less than 1% of total digital subscriptions on average. Digital subscriptions are inclusive of all billing plans, currently for annual, semi-annual, quarterly and monthly billing intervals. In addition, we also have promotional offers which at times include membership options for greater than one year or the ability to buy a subscription for one year and get the second year free.
Current wording
Our ability to expand the number of digital subscriptions is an indicator of our market penetration and growth. Digital subscriptions from our BODi platform include paid and free-to-pay subscriptions, with free-to-pay subscriptions representing less than 1% of total digital subscriptions on average. Digital subscriptions are inclusive of all billing plans, currently for annual, semi-annual, quarterly and monthly billing intervals. In addition, we also have promotional offers which at times include membership options for greater than one year or the ability to buy a subscription for one year and get the second year free.
Previous wording
Nutritional subscriptions include monthly subscriptions for nutritional products such as Shakeology, Beachbody Performance and BEACHBAR. We also package and bundle the content experience of digital subscriptions with nutritional subscriptions to optimize customer results.
Current wording
Nutritional subscriptions include monthly subscriptions for nutritional products such as Shakeology and Beachbody Performance. We also package and bundle the content experience of digital subscriptions with nutritional subscriptions to optimize customer results.
Previous wording
The table below presents our Adjusted EBITDA reconciled to our net loss, the closest GAAP measure, for the periods indicated:
Current wording
The table below presents our Adjusted EBITDA reconciled to our net income (loss), the closest GAAP measure, for the periods indicated:
Previous wording
The three and six months ended June 30, 2025 represents the loss related to the $17.3 million debt extinguishment that the Company made on May 13, 2025. The three and six months ended June 30, 2024 represents the loss related to the $1.0 million, $5.5 million and $4.0 million partial debt prepayments that the Company made on January 9, 2024, February 29, 2024 and April 5, 2024, respectively.
Current wording
The nine months ended September 30, 2025 represents the loss related to the $17.3 million debt extinguishment that the Company made on May 13, 2025. The nine months ended September 30, 2024 represents the loss related to the $1.0 million, $5.5 million and $4.0 million partial debt prepayments that the Company made on January 9, 2024, February 29, 2024 and April 5, 2024, respectively.
Previous wording
Includes benefits due to the modification of stock awards of approximately zero and $0.9 million for the three and six months ended June 30, 2025, respectively, and approximately zero and $0.5 million for the three and six months ended June 30, 2024, respectively.
Current wording
Includes benefits due to the modification of stock awards of approximately zero and $0.9 million for the three and nine months ended September 30, 2025, respectively, and $0.3 million and $0.8 million for the three and nine months ended September 30, 2024, respectively.
Previous wording
Includes post-Pivot Restructuring expenses, primarily termination benefits, of $2.5 million for the three and six months ended June 30, 2025. Includes restructuring expense and personnel costs associated with key initiatives of approximately zero and $1.6 million during the three and six months ended June 30, 2024, respectively.
Current wording
Includes post-Pivot Restructuring expenses, primarily termination benefits, of approximately zero and $2.5 million for the three and nine months ended September 30, 2025. Includes restructuring expense and personnel costs associated with key initiatives of approximately zero and $1.6 million during the three and nine months ended September 30, 2024, respectively.
Previous wording
Revenue includes digital subscriptions, digital program sales, nutritional supplement subscriptions, one-time nutritional sales, connected fitness products, access to our online Partner business management platform (prior to November 1, 2024), preferred customer program memberships (prior to November 1, 2024), and other fitness-related products, which we sell through our multi-channel network. We often sell bundled products that combine digital subscriptions, nutritional products, and/or other fitness products. We consider these sales to be revenue arrangements with multiple performance obligations and allocate the transaction price to each performance obligation based on its relative stand-alone selling price. We defer revenue when we receive payments in advance of delivery of products or the performance of services. Digital subscription revenue is recognized ratably over the subscription period of up to 38 months.
Current wording
Revenue includes digital subscriptions, digital program sales, nutritional supplement subscriptions, one-time nutritional sales, connected fitness products (management ceased the sale of bike inventory in the first quarter of 2025), access to our online Partner business management platform (prior to November 1, 2024), preferred customer program memberships (prior to November 1, 2024), and other fitness-related products, which we sell through our multi-channel network. We often sell bundled products that combine digital subscriptions, nutritional products, and/or other fitness products. We consider these sales to be revenue arrangements with multiple performance obligations and allocate the transaction price to each performance obligation based on its relative stand-alone selling price. We defer revenue when we receive payments in advance of delivery of products or the performance of services. Digital subscription revenue is recognized ratably over the subscription period which at September 30, 2025 had an average life of approximately 13 months.
Previous wording
The decrease in digital revenue for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was primarily attributable to a $13.2 million decrease in revenue from our digital streaming services due to 18% fewer subscriptions in the current quarter as compared to the prior year on lower demand, a decrease of $2.9 million in fees from Partners due to the Pivot (there are no fees from Partners after November 1, 2024) and a decrease in digital program sales of $2.9 million.
Current wording
The decrease in digital revenue for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, was primarily attributable to a $10.8 million decrease in revenue from our digital streaming services due to 19% fewer subscriptions in the current quarter as compared to the prior year as the result of lower demand, a decrease in digital program sales of $3.6 million, and a decrease of $2.7 million in fees from Partners due to the Pivot (there are no fees from Partners after November 1, 2024).
Previous wording
The decrease in nutrition and other revenue for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was primarily attributable to a $20.7 million decrease in revenue from nutritional products due to 49% fewer nutritional subscriptions in the current quarter as compared to the prior year on lower demand, a $4.1 million decrease in revenue generated from our preferred customer fees due to the Pivot (there are no preferred customer fees after November 1, 2024) and a $1.8 million decrease in shipping revenue due to the decrease in nutritional products sold, partially offset by a $1.5 million increase in Amazon sales.
Current wording
The decrease in nutrition and other revenue for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, was primarily attributable to a $20.8 million decrease in revenue from nutritional products due to 45% fewer nutritional subscriptions in the current quarter as compared to the prior year as the result of lower demand, a $3.9 million decrease in revenue generated from our preferred customer fees due to the Pivot (there are no preferred customer fees after November 1, 2024) and a $1.4 million decrease in shipping revenue due to the decrease in nutritional products sold, partially offset by a $2.0 million increase in Amazon sales.
Previous wording
The decrease in connected fitness revenue for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was primarily due to management's decision to cease the sale of bike inventory in the first quarter of 2025.
Current wording
The decrease in connected fitness revenue for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, was due to management's decision to cease the sale of bike inventory in the first quarter of 2025.
Previous wording
The decrease in digital revenue for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily attributable to a $26.9 million decrease in revenue from our digital streaming services due to 18% fewer subscriptions in the current year as compared to the prior year on lower demand, a decrease of $6.0 million in fees from Partners due to the Pivot (there are no fees from Partners after November 1, 2024) and a decrease in digital program sales of $4.2 million.
Current wording
The decrease in digital revenue for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was primarily attributable to a $37.8 million decrease in revenue from our digital streaming services due to 18% fewer subscriptions in the current year as compared to the prior year as the result of lower demand, a decrease of $8.6 million in fees from Partners due to the Pivot (there are no fees from Partners after November 1, 2024), and a decrease in digital program sales of $7.9 million.
Previous wording
The decrease in nutrition and other revenue for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily attributable to a $38.8 million decrease in revenue from nutritional products due to 50% fewer nutritional subscriptions in the current year as compared to the prior year on lower demand, a $8.5 million decrease in revenue generated from our preferred customer fees due to the Pivot (there are no preferred customer fees after November 1, 2024), a $3.3 million decrease in shipping revenue due to the decrease in nutritional products sold and a $2.6 million decrease in event ticket sales (there were no events in the six months ended June 30, 2025 due to the Pivot), partially offset by a $2.4 million increase in Amazon sales.
Current wording
The decrease in nutrition and other revenue for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was primarily attributable to a $59.6 million decrease in revenue from nutritional products due to 49% fewer nutritional subscriptions in the current year as compared to the prior year as the result of lower demand, a $12.4 million decrease in revenue generated from our preferred customer fees due to the Pivot (there are no preferred customer fees after November 1, 2024), a $4.8 million decrease in shipping revenue due to the decrease in nutritional products sold, and a $2.6 million decrease in event ticket sales (there were no events in the nine months ended September 30, 2025 due to the Pivot), partially offset by a $4.4 million increase in Amazon sales.
Previous wording
Digital cost of revenue includes costs associated with digital content creation including amortization and revision of content assets, depreciation of streaming platforms and digital streaming costs. It also includes customer service costs, payment processing fees, depreciation of production equipment, live trainer costs, facilities, and related personnel expenses.
Current wording
Digital cost of revenue includes costs associated with digital content creation including amortization and revision of content assets, depreciation of streaming platforms and digital streaming costs. It also includes customer service costs, payment processing fees, depreciation of production equipment, facilities, and related personnel expenses.
Previous wording
The decrease in digital cost of revenue for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was primarily due to a $1.8 million decrease in digital content amortization as the result of lower production spend, a $1.8 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year, a $1.4 million decrease in depreciation expense as a result of the end of the useful life of certain fixed assets, and a $0.8 million decrease in customer service expense due to a decrease in the volume of contacts related to digital revenue. The increase in digital gross margin for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily as a result of the decrease in expenses as noted above.
Current wording
The decrease in digital cost of revenue for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, was primarily due to a $1.9 million decrease in digital content amortization as the result of lower production spend, a $1.7 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year, a $1.2 million decrease in depreciation expense as a result of the end of the useful life of certain fixed assets, and a $0.8 million decrease in customer service expense due to a decrease in the volume of contacts related to digital revenue. The increase in digital gross margin for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily as a result of the decrease in expenses as noted above.
Previous wording
The decrease in nutrition and other cost of revenue for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was primarily due to a $3.9 million decrease in product costs due to a decrease in the volume of products sold and a $2.4 million decrease in fulfillment, freight and shipping expenses related to the decrease in nutrition and other revenue. The decrease in nutrition and other gross margin for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to the elimination of preferred customer fees, which did not carry any cost of revenue, in the current period and a higher level of promotional offerings in the current period.
Current wording
The decrease in nutrition and other cost of revenue for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, was primarily due to a $3.7 million decrease in product costs due to a decrease in the volume of products sold, a $2.9 million decrease in logistics expenses related to the decrease in nutrition and other revenue and a $1.1 million decrease in personnel-related expense due to lower headcount primarily related to the restructuring activities that occurred in the past year. The decrease in nutrition and other gross margin for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily due to the elimination of preferred customer fees, which did not carry any cost of revenue, in the current period, a higher level of inventory adjustments, and a higher level of promotional offerings in the current period.
Previous wording
The decrease in connected fitness cost of revenue for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was driven by a $1.0 million decrease in freight, fulfillment and shipping expenses and a $0.6 million decrease in product costs, primarily due to management's decision to cease the sale of bike inventory in the first quarter of 2025.
Current wording
The decrease in connected fitness cost of revenue for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, was driven by a $1.7 million decrease in logistics expenses and lower inventory adjustments of $1.2 million, primarily due to management's decision to cease the sale of bike inventory in the first quarter of 2025.
Previous wording
The decrease in digital cost of revenue for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was due to a $3.6 million decrease in digital content amortization as a result of lower production spend, a $3.6 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year, a $2.0 million decrease in depreciation expense as a result of the end of the useful life of certain fixed assets, a $1.8 million decrease in customer service expense due to a decrease in the volume of contacts related to digital revenue, and a $1.1 million decrease in digital content revisions. The increase in digital gross margin for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily as a result of the decrease in expenses as noted above.
Current wording
The decrease in digital cost of revenue for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was due to a $5.6 million decrease in digital content amortization as a result of lower production spend, a $5.3 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year, a $3.2 million decrease in depreciation expense as a result of the end of the useful life of certain fixed assets, a $2.7 million decrease in customer service expense due to a decrease in the volume of contacts related to digital revenue, and a $1.2 million decrease in digital content revisions. The increase in digital gross margin for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily as a result of the decrease in expenses as noted above.
Previous wording
The decrease in nutrition and other cost of revenue for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily due to a $8.4 million decrease in product costs due to a decrease in the volume of products sold, a $4.9 million decrease in fulfillment, freight and shipping expenses related to the decrease in nutrition and other revenue, a $1.7 million decrease in customer service expense due to a decrease in the volume of contacts related to nutrition and other revenue, and a $1.4 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year. Nutrition and other gross margin decreased for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily as a result of the elimination of preferred customer fees, which did not carry any cost of revenues, in the current year and a higher level of promotional offerings in the current year.
Current wording
The decrease in nutrition and other cost of revenue for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was primarily due to a $12.1 million decrease in product costs due to a decrease in the volume of products sold, a $7.8 million decrease in logistics expenses related to the decrease in nutrition and other revenue, a $2.5 million decrease in customer service expense due to a decrease in the volume of contacts related to nutrition and other revenue, and a $2.5 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year. Nutrition and other gross margin decreased for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily as a result of the elimination of preferred customer fees, which did not carry any cost of revenues, in the current year, a higher level of inventory adjustments, and a higher level of promotional offerings in the current year.
Previous wording
The decrease in connected fitness cost of revenue for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was driven by a $1.5 million decrease in freight, fulfillment, and shipping expenses, lower inventory adjustments of $1.2 million and a $1.0 million decrease in product costs, primarily due to management's decision to cease the sale of bike inventory in the first quarter of 2025.
Current wording
The decrease in connected fitness cost of revenue for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was driven by a $3.2 million decrease in logistics expenses, lower inventory adjustments of $2.5 million and a $0.7 million decrease in product costs, primarily due to management's decision to cease the sale of bike inventory in the first quarter of 2025.
Previous wording
The decrease in selling and marketing expense for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was primarily due to a $24.4 million decrease in Partner compensation due to the Pivot (as we no longer have Partner compensation on new sales after November 1, 2024 and the Partner Compensation recorded in the current quarter was the amortization of Partner compensation that was deferred in prior periods), a $5.5 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year, and a $3.4 million decrease in event expenses due primarily to no events in the three months ended June 30, 2025 due to the Pivot, partially offset by a $3.4 million increase in media expense due to increased advertising spend with the Pivot transition and a $0.7 million increase in affiliated compensation which did not exist in the prior year period. With the Pivot and the transition from the MLM model to an affiliate model the Company expects a significant decrease in Partner compensation in 2025 and does not expect to record any Partner compensation in 2025 other than the amortization of deferred Partner compensation. The Company will significantly reduce the number and length of events for Partners and these event expenses are expected to be reduced significantly in 2025.
Current wording
The decrease in selling and marketing expense for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, was primarily due to a $24.9 million decrease in Partner compensation due to the Pivot (as we no longer have Partner compensation on new sales after November 1, 2024 and the Partner Compensation recorded in the current quarter was the amortization of Partner compensation that was deferred in prior periods) and a $5.7 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year, partially offset by a $3.4 million increase in media expense due to increased advertising spend with the Pivot transition and a $0.7 million increase in affiliate compensation which did not exist in the prior year period.
Previous wording
Selling and marketing expense as a percentage of total revenue decreased by 880 bps primarily due to the Pivot and transition from the MLM model to an affiliate model which significantly reduced Partner compensation.
Current wording
Selling and marketing expense as a percentage of total revenue decreased by 1,270 bps primarily due to the Pivot and transition from the MLM model to an affiliate model which significantly reduced Partner compensation.
Previous wording
The decrease in selling and marketing expense for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily due to a $46.3 million decrease in Partner compensation due to the Pivot (as we no longer have Partner compensation on new sales after November 1, 2024 and the Partner compensation recorded in the current year was the amortization of Partner compensation that was deferred in prior periods), a $12.6 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year, and a $5.9 million decrease in event expenses due primarily to no events in the current year, partially offset by a $7.2 million increase in media expense due to increased advertising spend with the Pivot transition and a $1.6 million increase in affiliated compensation, which did not exist in the prior year period.
Current wording
The decrease in selling and marketing expense for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was primarily due to a $71.2 million decrease in Partner compensation due to the Pivot (as we no longer have Partner compensation on new sales after November 1, 2024 and the Partner compensation recorded in the current year was the amortization of Partner compensation that was deferred in prior periods), a $18.3 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year, and a $5.7 million decrease in event expenses due primarily to no events in the current year, partially offset by a $10.6 million increase in media expense due to increased advertising spend with the Pivot transition and a $2.3 million increase in affiliate compensation, which did not exist in the prior year period.
Previous wording
Selling and marketing expense as a percentage of total revenue decreased by 1,120 basis points ("bps") primarily due to the Pivot and transition from the MLM model to an affiliate model which significantly reduced Partner compensation.
Current wording
Selling and marketing expense as a percentage of total revenue decreased by 1,000 bps primarily due to the Pivot and transition from the MLM model to an affiliate model which significantly reduced Partner compensation.
Previous wording
The decrease in enterprise technology and development expenses for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was primarily due to a $4.5 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year and a $1.9 million decrease in depreciation expense as a result of certain long-lived assets that were fully depreciated as of December 31, 2024 due to the Pivot. With the Pivot and the transition from the MLM model to an affiliate model, the Company expects a decrease in personnel-related expenses in 2025, due to the headcount reductions associated with the Pivot, and a significant decrease in depreciation expense in 2025 due to the long-lived assets impacted by Pivot which were fully depreciated by December 31, 2024.
Current wording
The decrease in enterprise technology and development expenses for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, was primarily due to a $4.9 million decrease in depreciation expense primarily due to $2.9 million of accelerated depreciation recorded in the prior year period due to the Pivot as well as a result of certain long-lived assets that were fully depreciated as of December 31, 2024 and a $4.1 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year.
Previous wording
The decrease in enterprise technology and development expenses for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily due to a $7.6 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year and a $3.9 million decrease in depreciation expense as a result of certain long-lived assets that were fully depreciated as of December 31, 2024 due to the Pivot.
Current wording
The decrease in enterprise technology and development expenses for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was primarily due to a $11.7 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that occurred in the past year and a $8.8 million decrease in depreciation expense as a result of certain long-lived assets that were fully depreciated as of December 31, 2024 and due to $2.9 million of accelerated deprecation recorded in the prior year period due to the Pivot.
Previous wording
Enterprise technology and development expense as a percentage of total revenue increased by 100 bps due to a decrease in revenue at a faster pace than the reduction in enterprise technology and development expenses.
Current wording
Enterprise technology and development expense as a percentage of total revenue increased by 80 bps due to a decrease in revenue at a faster pace than the reduction in enterprise technology and development expenses.
Previous wording
The decrease in general and administrative expenses for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was primarily due to a $0.9 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that have occurred in the past year. With the Pivot and the transition from the MLM model to an affiliate model, the Company expects a decrease in personnel-related expenses in 2025.
Current wording
The decrease in general and administrative expenses for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, was primarily due to a $0.9 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that have occurred in the past year and a $0.3 million decrease in rent expense due to a decrease in leased space.
Previous wording
General and administrative expenses as a percentage of total revenue increased by 690 bps due to a decrease in revenue at a faster pace than the reduction in general and administrative expenses.
Current wording
General and administrative expenses as a percentage of total revenue increased by 540 bps due to a decrease in revenue at a faster pace than the reduction in general and administrative expenses.
Previous wording
The decrease in general and administrative expenses for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily due to a $3.7 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that have occurred in the past year, a $0.8 million gain on the sale of the Van Nuys facility which was recorded as a reduction of general and administrative expenses in the three months ended March 31, 2024, and a $0.8 million decrease in rent due to a decrease in leased space, partially offset by an increase in professional related expenses of $2.2 million.
Current wording
The decrease in general and administrative expenses for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was primarily due to a $4.6 million decrease in personnel-related expenses due to lower headcount primarily related to the restructuring activities that have occurred in the past year, a $1.1 million decrease in rent expense due to a decrease in leased space, and a $0.9 million decrease in insurance expense as some of our insurance is based on the level of the Company's revenues or the number of employees, which both have declined in the current period compared to the prior period, partially offset by an increase in professional related expenses of $2.1 million and a $0.8 million gain on the sale of the Van Nuys facility which was recorded as a reduction of general and administrative expenses in the three months ended March 31, 2024.
Previous wording
General and administrative expenses as a percentage of total revenue increased by 580 bps due to a decrease in revenue at a faster pace than the reduction in general and administrative expenses.
Current wording
General and administrative expenses as a percentage of total revenue increased by 570 bps due to a decrease in revenue at a faster pace than the reduction in general and administrative expenses.
Previous wording
In 2025 restructuring charges primarily related to additional post Pivot headcount reductions. In 2024, restructuring charges primarily relate to the Company's key initiatives. The charges incurred primarily consist of employee termination costs.
Current wording
In 2025 restructuring charges primarily related to additional post Pivot headcount reductions. In 2024, restructuring charges primarily related to the Pivot which was announced by the Company on September 30, 2024 (see Note 13, Restructuring, for more information on the Pivot) and key initiatives. The charges incurred primarily consist of employee termination costs.
Showing the first 40 of 53 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Total revenue was $196.2 million, a 41% decrease;
Current report — wording carried from elsewhere
Digital revenue was $119.0 million, a 32% decrease;
Current report — wording carried from elsewhere
Nutrition and other revenue was $76.3 million, a 50% decrease;
Current report — wording carried from elsewhere
On August 8, 2022, the Company, Beachbody, LLC, a Delaware limited liability company and wholly-owned direct subsidiary of the Company (the “Borrower”), and certain subsidiaries of the Company (together with the Company, the “Guarantors”), entered into a financing agreement (as amended, the “Financing Agreement”) with the lenders party thereto and Blue Torch Finance, LLC, ("Blue
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Enterprise technology and development expense as a percentage of total revenue increased by 190 bps due to a decrease in revenue at a faster pace than the reduction in enterprise technology and development expenses.