Beachbody Reports 42% Revenue Decline in Q2 2025, Restructuring Underway

The Beachbody Company, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenue falling to $63.9 million, a 42% decrease compared to $110.2 million in the same period last year. The decline was driven by reductions in digital revenue, which decreased by 32% to $39.7 million, and nutrition and other revenue, which fell by 52% to $24.2 million. The company also experienced a 94% drop in connected fitness revenue, bringing it down to just $76,000. Despite the revenue drop, Beachbody's net loss narrowed to $5.9 million from $10.9 million in the prior year, reflecting a reduction in operating expenses from $85.9 million to $50.2 million.

In the first half of 2025, total revenue was $136.3 million, down 41% from $230.2 million in the same period of 2024. Digital revenue for the six months decreased by 31% to $82.6 million, while nutrition and other revenue fell by 50% to $52.8 million. The company attributed these declines to lower demand and a significant reduction in nutritional subscriptions, which dropped by 49%. Operating expenses also decreased significantly, leading to a reduced net loss of $11.6 million compared to $25.1 million in the previous year.

Strategically, Beachbody has undergone a major restructuring, transitioning from a multi-level marketing model to a single-level affiliate model, which was announced in September 2024. This shift has resulted in a reduction of approximately 70 employees, or 22% of its workforce, and is expected to incur costs of about $2.6 million. The company has also entered into a $35 million asset-based lending facility, which it used to repay its existing term loan, thus improving its liquidity position.

Operationally, Beachbody reported a decrease in digital subscriptions, with an average retention rate of 96.7%. The total number of streams for its fitness programs also declined, indicating reduced customer engagement. The company has focused on cost control measures, which have contributed to a decrease in selling and marketing expenses by 55% in the second quarter. The gross margin improved to 72.3%, up from 69.3% in the prior year, primarily due to lower costs associated with digital content and nutrition products.

Looking ahead, Beachbody's management remains cautious about the future, emphasizing the need to navigate market conditions and consumer demand effectively. The company is committed to maintaining liquidity and exploring additional financing options to support its operations and strategic initiatives. The ongoing restructuring efforts are expected to position Beachbody for improved performance in the long term, although the immediate outlook remains challenging due to the significant revenue declines experienced in recent quarters.