Beachbody (NYSE:BODI), a company known for its digital fitness and nutrition platform, published its results for the second quarter of fiscal 2025 on August 5, 2025. The standout news from the release: revenue (GAAP) came in at $63.9 million, Revenue of $63.9 million exceeded analyst expectations by $6.3 million, or 10.9% (GAAP). However, the company’s loss per share (GAAP) was reported at $0.85, which was substantially better than last year’s result, though a net loss of $5.90 per share (GAAP) far missed analyst projections. Year on year, GAAP revenue contracted sharply, and digital and nutrition subscriptions saw major declines. Overall, the quarter highlighted continued operational improvement but also showed persistent challenges in stabilizing the company’s core subscriptions and revenue base.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.85) | ($0.97) | ($1.59) | N/A |
| Revenue | $63.9 million | $57.6 million | $110.2 million | (42.0%) |
| Adjusted EBITDA | $4.6 million | $4.9 million | (6.1%) | |
| Digital Subscriptions (millions) | 0.94 | 1.15 | (18.3%) | |
| Nutritional Subscriptions (millions) | 0.07 | 0.14 | (52.1%) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About Beachbody and Its Business Model
Beachbody specializes in health and wellness through a combination of digital fitness content, nutritional supplements, and mindset programs. Its core platform, BODi, offers streaming workouts, nutrition guides, and related products both directly to consumers and through affiliates. Over more than twenty years, it has become known for programs such as P90X, Insanity, and Shakeology nutrition shakes.
Recently, Beachbody shifted from a multi-level marketing sales approach to a single-level affiliate model and e-commerce-first retail. This strategic pivot aims to simplify operations, control costs, and expand the potential reach of its product lines beyond its historical network of direct sellers. The success of this transition now hinges on digital subscriber retention, growth in new channels, and effective product innovation in nutrition and fitness.
Q2 2025: Operational Update and Financial Performance
This quarter marks Beachbody’s continued push through its transition, as it further distances itself from the legacy network marketing model. Total revenue (GAAP), while above guidance and estimates, decreased 42.0% year over year, underscoring the effect of the business model change and ongoing subscriber declines. Digital revenue (GAAP) was $39.7 million, contracting 32.5% from the prior year. Nutrition and other product revenue (GAAP), another legacy mainstay, dropped 51.8% year over year to $24.2 million, reflecting both lost subscription sales and a growing shift toward one-time buyers and promotional efforts rather than recurring orders.
Digital subscriptions fell 18.3% compared to the same period last year, landing at 0.94 million. Nutrition subscriptions dropped even more steeply—down 52.1% to 0.07 million. The company’s digital subscription retention rate remained high at 96.7%, a sign that existing users continue to find value, but the underlying user base is shrinking. Engagement indicators such as streams and daily active user/monthly active user ratios (DAU/MAU) also moved lower compared to Q2 2024, with total streaming activity down 20.4% to 18.0 million streams, and DAU/MAU down to 31.4%.
Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) was $4.6 million, marking the seventh consecutive quarter of positive adjusted EBITDA. However, this figure was down 6.1% from a year ago. While the net loss of $5.9 million (GAAP) was within the company’s forecast, bottom-line results (GAAP EPS) fell far short of analyst expectations
Gross margin improved to 72%, up three percentage points year over year. The increase is attributed to more disciplined digital content production and reduced amortization. However, management expects nutrition gross margin to settle between 47% and 50% over the long term, compared to recent blended levels above 53 %, due to heavier reliance on one-time retail and promotional sales.
Product Families and Changes in Consumer Engagement
The company’s digital content, comprising on-demand streaming programs like P90X and the recently launched 25 Minute Speed Train, is still the bedrock of Beachbody’s ecosystem. While digital retention remains high (96.7%), overall engagement continues to trend down—both in terms of user numbers (digital subscriptions declined 18.3% year-over-year to 0.94 million) and usage (total streams declined 20.4% year-over-year to 18.0 million). CEO Carl Daikeler acknowledged that while existing loyalists are staying, attracting fresh subscribers remains difficult amid the transition away from direct selling and in a competitive digital fitness landscape.
Nutritional offerings, including Shakeology and new products such as Belle Vitale (a hormone health program), saw their recurring subscriber base collapse by more than half. The company now pursues more one-time nutrition buyers, with a strategy to convert those buyers into subscribers over time. A major upcoming change is the planned retail rollout of Shakeology and P90X-branded nutrition lines, set for late 2025 and into 2026. This move aims to broaden the buying audience but comes with lower gross margins.
The connected fitness segment, which included hardware such as at-home exercise bikes, contributed only $0.1 million in revenue (GAAP). Management made clear it will not develop or sell new fitness hardware, and instead will maintain digital content support for past customers and explore licensing deals for its workout library content.
During the period, Beachbody’s affiliated selling system underwent further simplification. An easier-to-use platform launched in mid-June to make it simpler for any user to become an affiliate, a move designed to increase grassroots selling and engagement. Early results are pending, but this change aligns with other efforts to boost direct-to-consumer sales and reach outside the company’s historical network base.
Looking Ahead: Management Guidance and Key Watchpoints
Beachbody projects revenue in the range of $51 million to $58 million for Q3 FY2025, with expected adjusted EBITDA between $2 million and $6 million. These figures suggest management does not expect the revenue or subscription base to stabilize this year.
Management did not declare a dividend. Investors will be closely tracking several factors over the coming quarters: the pace at which digital subscriber declines slow, traction of new retail and affiliate sales strategies, margins as one-time and promotional sales grow, and cash flow, as management targets positive free cash flow for the full year 2025 for the first time since 2020. Beachbody’s progress toward broader distribution, including major launches and a transition to more widely accessible products, will shape its outlook through late 2025 and beyond.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
