The Beachbody Company (BODY) Q1 2026 earnings summary

Executive summary

• Achieved third consecutive quarter of net and operating income, with Q1 2026 net income of $2.3M versus a $5.7M loss in Q1 2025, reflecting a transformed business model.

• Total Q1 2026 revenue was $54.3M, above guidance but down 2.3% sequentially and 25% year-over-year due to transition from MLM to omni-channel.

• Gross margin improved to 71.8%, within target range and up from 71.2% year-over-year; tenth consecutive quarter of positive adjusted EBITDA at $8M, up from $3.7M prior year.

• Strategic pivot to nutrition-first, omni-channel model, leveraging iconic brands and retail expansion.

• Revenues, net income, and adjusted EBITDA exceeded the high end of guidance.

Financial highlights

• Digital revenue for Q1 2026 was $33.6M, down 2.1% sequentially and 21.8% year-over-year; nutrition and other revenue was $20.7M, down 2.5% sequentially and 27.7% year-over-year.

• Digital subscriptions declined 6.9% quarter-over-quarter to 810,000; nutrition subscriptions fell 25% sequentially to 60,000.

• Digital gross margin rose to 87.4%, up 10 bps sequentially and 190 bps year-over-year; nutrition gross margin was 46.7%, down 700 bps sequentially.

• Operating expenses were $35.9M, up 8.2% sequentially but down 35% year-over-year, driven by lower selling/marketing and G&A costs.

• Free cash flow was negative $1.7M, compared to $1.6M in Q1 2025; cash balance at quarter-end was $36.6M, with $25M in debt.

Outlook and guidance

• Q2 2026 revenue expected between $46M-$51M; net income between -$3M and $2M; adjusted EBITDA $3M-$6M.

• Anticipate shift to higher nutrition revenue mix by end of 2026; digital gross margin target 86%-88%, nutrition gross margin 43%-47%, total gross margin 69%-72%.

• Q3 2026 will be first quarter with clean year-over-year comparisons post-MLM exit.

• Management expects adequate cash flows to support ongoing operations for at least one year.

• Continued focus on cost control and digital subscription retention is anticipated.