Beachbody Reports 41% Revenue Decline in Q3 2025, Achieves First Quarterly Net Income

The Beachbody Company, Inc. reported a significant decline in financial performance for the third quarter of 2025, with total revenue of $59.9 million, a 41% decrease compared to $102.2 million in the same period last year. The decline was driven by a 32% drop in digital revenue, which totaled $36.4 million, and a 50% decrease in nutrition and other revenue, which amounted to $23.5 million. The company also recorded its first quarterly net income since going public, achieving a net income of $3.6 million, compared to a net loss of $12.0 million in the prior year.

For the nine months ended September 30, 2025, total revenue was $196.2 million, down 41% from $332.4 million in the same period of 2024. Digital revenue and nutrition revenue both saw similar declines of 32% and 50%, respectively. The company’s gross margin improved to 72.6%, up from 68.1% in the previous year, attributed to reduced costs in both digital and nutrition segments. Operating expenses also decreased significantly, totaling $145.1 million compared to $259.8 million in the prior year, reflecting the company's restructuring efforts.

In terms of strategic developments, Beachbody has undergone a significant organizational shift, transitioning from a multi-level marketing model to a single-level affiliate model, referred to as the "Pivot." This change, announced in September 2024, resulted in a workforce reduction of approximately 170 employees, or 33% of its staff. In June 2025, the company executed further restructuring, reducing its workforce by an additional 70 employees, which contributed to the reduction in operating expenses.

Operationally, Beachbody reported a decrease in customer engagement metrics, with total digital subscriptions declining by 19% year-over-year. The company also noted a significant drop in connected fitness revenue, which fell 84% to $0.9 million, as management ceased the sale of connected fitness products. Despite these challenges, the company maintained a gross profit of $142.4 million for the nine months ended September 30, 2025, although this was down from $226.5 million in the prior year.

Looking ahead, Beachbody anticipates potential violations of financial covenants related to its asset-based lending facility by the end of 2025. The company is currently in discussions with its lender to amend these covenants, with management expressing confidence in their ability to secure the necessary amendments. However, the anticipated violations raise concerns about the company's liquidity and ability to continue operations as planned. The company believes it will have sufficient cash flows to support ongoing operations for at least the next year, contingent on successful negotiations with lenders and continued cost management efforts.