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Beachbody Company Inc (BODI)
:BODI
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Beachbody Company
(NYSE:BODI)
Rating:40Underperform
Price Target:
$3.50
▼( -4.11% Downside)
Positive Factors
Business Model
The Beachbody Company's switch from a direct-selling MLM model to a single-level affiliate marketing model is expected to reduce selling-related expenses significantly.
Earnings
BODI reported 1Q results ahead of guidance with sales down -39.7% YOY to $72.4M, beating Street estimate of $60.9M/$63.3M and guidance of $60M to $70M.
Innovation
BODI showcases innovation with expansion into women's health.
Negative Factors
Sales Deleverage
Initial expectations are for gross margins to deleverage due to sales deleverage as MLM sellers leave the BODI platform and move to a different MLM model.
Subscription Decline
Nutrition subscriptions were down -46.7% YOY or -11.1% QoQ to 80k subscribers, as the Nutrition business historically has been more reliant on MLM-related sales.
Beachbody Company (BODI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.57M
Dividend YieldN/A
Average Volume (3M)29.47K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-26.11%
EPS Growth57.68%
CountryUS
Employees355
SectorCommunication Services
Sector Strength89
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.84
Shares Outstanding4,276,212
10 Day Avg. Volume38,456
30 Day Avg. Volume29,467
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.81
Price to Sales (P/S)0.00
P/FCF Ratio-13.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.00Price Target Upside173.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Beachbody Company Business Overview & Revenue Model
Company DescriptionBeachbody Company (BODI) is a leading health and wellness platform that offers a comprehensive range of fitness, nutrition, and lifestyle solutions. The company operates in the digital streaming sector with its BODI interactive platform, providing on-demand and live workout programs. Core products include home fitness programs, nutritional supplements, and fitness accessories, all designed to support an active and healthy lifestyle.
How the Company Makes MoneyBeachbody Company generates revenue primarily through its subscription-based digital platform, where users pay for access to a wide array of fitness programs and live classes. The company also earns income from the sale of nutritional supplements and fitness equipment. Additionally, Beachbody benefits from a network of independent coaches who promote and sell its products, earning commissions that help drive sales. Strategic partnerships and brand collaborations further enhance its market reach and contribute to revenue growth.
Beachbody Company Financial Statement Overview
Summary
Beachbody Company faces significant financial challenges, with declining revenues and ongoing net losses impacting profitability. The balance sheet shows reduced leverage but remains burdened by liabilities. Cash flow generation is insufficient to support operations and investments, posing sustainability risks.Income Statement
The company has experienced a significant decline in revenue over recent years, with a revenue decrease of 20.54% from 2023 to 2024. Gross profit margins remain relatively stable at 68.6% in 2024. However, the net profit margin is negative due to consistent net losses, indicating ongoing profitability challenges. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.42
Neutral
Balance Sheet
The company's debt-to-equity ratio improved to 0.45 in 2024, reflecting lower leverage compared to previous years. However, the return on equity remains negative due to net losses. The equity ratio stands at 16.1%, indicating a high level of liabilities relative to assets, suggesting potential financial instability.55
Neutral
Cash Flow
Cash flow from operations turned positive in 2024, but free cash flow remains negative, indicating insufficient cash generation to cover capital expenditures. The operating cash flow to net income ratio is positive due to net losses, but the free cash flow to net income ratio remains negative, highlighting cash flow challenges.38
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 451.43M | 418.80M | 527.11M | 692.20M | 873.64M | 863.58M | Gross Profit |
| 297.12M | 287.34M | 323.09M | 369.57M | 544.98M | 613.88M | EBIT |
| -86.95M | -38.36M | -140.99M | -203.16M | -297.32M | -6.30M | EBITDA |
| -47.94M | -38.36M | -80.40M | -94.75M | -168.92M | 46.08M | Net Income Common Stockholders |
| -102.12M | -71.64M | -152.64M | -194.19M | -228.38M | -21.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 41.56M | 20.19M | 40.10M | 80.09M | 104.05M | 56.83M | Total Assets |
| 291.11M | 174.56M | 276.84M | 443.39M | 637.61M | 356.25M | Total Debt |
| 39.05M | 12.81M | 32.82M | 46.45M | 7.13M | 41.62M | Net Debt |
| -2.51M | -7.38M | -490.00K | -33.64M | -96.92M | -15.20M | Total Liabilities |
| 203.71M | 146.39M | 194.08M | 231.85M | 252.23M | 257.00M | Stockholders Equity |
| 87.40M | 28.17M | 82.76M | 211.54M | 385.38M | 99.26M |
| Cash Flow | Free Cash Flow | ||||
| -3.71M | -1.98M | -29.11M | -73.67M | -293.16M | 23.50M | Operating Cash Flow |
| 1.34M | 2.56M | -22.54M | -47.17M | -215.25M | 61.43M | Investing Cash Flow |
| 549.00K | 1.06M | -10.83M | -26.49M | -125.19M | -46.69M | Financing Cash Flow |
| -7.80M | -15.87M | -13.72M | 47.56M | 390.65M | 165.00K |
Beachbody Company Technical Analysis
Negative
3.65
Price Trends
5.29
Negative
6.17
Negative
6.31
Negative
Market Momentum
-0.35
Positive
37.07
Neutral
8.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BODI, the sentiment is Negative. The current price of 3.65 is below the 20-day moving average (MA) of 4.30, below the 50-day MA of 5.29, and below the 200-day MA of 6.31, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 37.07 is Neutral, neither overbought nor oversold. The STOCH value of 8.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BODI.
Beachbody Company Risk Analysis
Beachbody Company disclosed 76 risk factors in its most recent earnings report. Beachbody Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The price of shares of our Class A common stock may experience volatility. Q4, 2023
2.
You may experience future dilution as a result of future equity offerings or other equity issuances. Q4, 2023
3.
The number of shares of our Class A common stock available for future issuance or resale could adversely affect the market price of our Class A common stock. Q4, 2023
Beachbody Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $14.12B | 6.43 | -3.56% | 3.69% | 2.49% | -35.43% | |
60 Neutral | $110.82M | ― | -6.03% | ― | 12.18% | 5.88% | |
58 Neutral | $73.47M | ― | 154.70% | ― | 11.43% | 26.78% | |
56 Neutral | $31.54M | ― | -60.26% | ― | 345.36% | -650.95% | |
49 Neutral | $73.97M | ― | -28.67% | ― | -36.56% | 72.58% | |
46 Neutral | $12.06M | ― | -98.74% | ― | 0.31% | 27.47% | |
40 Underperform | $25.57M | ― | -130.56% | ― | -26.11% | 57.68% |
* Communication Services Sector Average
Performance Comparison
BODI
Beachbody Company
3.65
-4.99
-57.75%
GAIA
Gaia
4.42
-0.10
-2.21%
LVO
LiveOne
0.76
-0.94
-55.29%
DLPN
Dolphin Entertainment
1.08
-1.16
-51.79%
MNY
MoneyHero Limited
0.73
-1.28
-63.68%
BZFD
BuzzFeed
1.92
-1.08
-36.00%
Beachbody Company Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -22.51%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. The company achieved positive adjusted EBITDA for the sixth consecutive quarter and made significant debt reductions, alongside plans for retail expansion and a transition to a new business model. However, there were notable challenges, including a significant revenue decline, subscriber decreases, and continued net losses. The transition away from MLM is causing short-term financial impacts, but management remains optimistic about long-term growth prospects.Q1-2025 Updates
Positive Updates
Positive Adjusted EBITDA
The company reported positive adjusted EBITDA for the sixth consecutive quarter, delivering $3.7 million in Q1 2025, exceeding guidance and bringing the cumulative total to $34.8 million.
Debt Reduction
The company has successfully reduced its debt by more than 50% from $50 million to $18 million.
New Lending Agreement
BODi entered into a new $25 million loan facility with Tiger Finance, retiring existing debt and providing approximately $5 million of additional capital.
Gross Margin Improvement
Consolidated gross margins were 71.2%, an increase from previous levels and exceeding the long-term target of 65% to 70%.
Retail Expansion Plans
The company plans to roll out major retail distribution strategies, launching Shakeology and other products into retail channels starting late Q4 2025.
Affiliate Model Transition
Transitioned from MLM to a direct-to-consumer and affiliate model, which is expected to improve profitability and broaden the customer base.
Negative Updates
Revenue Decline
Q1 2025 revenue was $72.4 million, declining 16.2% sequentially and 39.7% year-over-year due to the transition away from MLM.
Digital Subscriber Decrease
Digital subscribers decreased by 5.1% sequentially to 1.02 million and declined 16.6% year-over-year.
Nutrition Revenue and Subscription Decline
Nutrition revenue decreased 48.4% year-over-year, with nutrition subscriptions declining 47.7%.
Net Loss
The company reported a net loss of $5.7 million for Q1 2025, although this was an improvement from the previous year.
Connected Fitness Revenue Decline
Connected fitness revenue fell 74% year-over-year, with a strategic shift away from producing new equipment.
Temporary Revenue Reduction
The company anticipates a temporary reduction in revenue in 2025 due to the dismantling of the MLM model.
Company Guidance
In the earnings call for BODi's first quarter of fiscal year 2025, numerous metrics were highlighted to illustrate the company's financial turnaround and future strategies. The company reported a positive adjusted EBITDA of $3.7 million, marking the sixth consecutive quarter of positive adjusted EBITDA and bringing the cumulative total for these quarters to $34.8 million. The debt was reduced by more than 50% to $18 million, and the cash breakeven level lowered significantly from over $900 million in 2022 to just under $225 million in 2025. Revenue for Q1 was $72.4 million, exceeding the guidance range of $60 million to $70 million, while consolidated gross margins were at 71.2%. Digital revenue saw a decline with a subscriber base of 1.02 million, and nutrition subscriptions fell to 80,000. The company anticipates a temporary revenue reduction due to the dismantling of the MLM model but expects growth through new retail distribution strategies and a revamped affiliate model. BODi also secured a new $25 million loan facility with Tiger Finance, adding approximately $5 million to the balance sheet after retiring previous debt.Beachbody Company Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Beachbody Faces NYSE Non-Compliance Notice
Negative
Apr 11, 2025
On April 10, 2025, The Beachbody Company, Inc. received a notice from the New York Stock Exchange indicating non-compliance with the requirement to maintain an average market capitalization and stockholders’ equity of at least $50 million over a consecutive 30 trading-day period. The company is required to submit a business plan within 45 days to demonstrate how it will return to compliance within 18 months. This notice does not currently affect the listing of the company’s securities, as long as other listing requirements are met, and the company plans to submit a compliance plan as required.
Executive/Board Changes
Beachbody Company Announces COO Kathy Vrabeck’s Retirement
Neutral
Apr 4, 2025
On February 14, 2025, The Beachbody Company, Inc. announced the retirement of Kathy Vrabeck from her role as Chief Operating Officer, effective April 1, 2025. As part of her departure, Ms. Vrabeck received 12 months of accelerated vesting for her equity awards, and her options’ exercise period was extended to 180 days, reflecting the company’s commitment to honoring executive agreements.
Executive/Board Changes
Beachbody Company Announces CFO Severance Agreement
Neutral
Feb 28, 2025
On February 24, 2025, Beachbody Company announced an additional severance letter agreement for Brad Ramberg, Interim Chief Financial Officer, recognizing his increased role and 18-year tenure. The agreement outlines severance payments and benefits if his employment is terminated without cause or due to resignation for good reason, impacting company operations and potentially influencing stakeholder perceptions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.