The Beachbody Company, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $72.4 million, a decrease of 40% compared to $120.0 million in the same period of 2024. The company's digital revenue decreased by 30% to $42.9 million, while nutrition and other revenue dropped by 48% to $28.7 million. Connected fitness revenue saw a dramatic decline of 74%, amounting to only $0.8 million. Despite the revenue drop, the company managed to reduce its net loss to $5.7 million from $14.2 million year-over-year, reflecting a more efficient cost structure.
The company's operational metrics indicate a shift in strategy, particularly following the transition from a multi-level marketing model to a single-level affiliate model, which was announced in September 2024. This restructuring led to a reduction in headcount by approximately 170 employees, or 33% of the workforce, and a significant decrease in selling and marketing expenses, which fell by 48% to $31.0 million. The reduction in operating expenses overall was notable, decreasing from $92.1 million in Q1 2024 to $55.2 million in Q1 2025.
In terms of customer engagement, Beachbody reported a decline in digital subscriptions, with average digital retention increasing slightly to 97.0% from 95.7% year-over-year. However, total streams of content decreased to 20.7 million from 25.6 million, indicating a drop in user engagement. The company also noted a decrease in the number of nutritional subscriptions, which fell by 48% compared to the previous year. The geographic revenue breakdown showed that U.S. revenue accounted for $66.9 million, down from $106.8 million, while international revenue also declined.
Looking ahead, Beachbody has secured a $35 million asset-based lending facility, which will provide additional liquidity and allow the company to repay its existing term loan. The new facility is expected to enhance financial flexibility as the company continues to navigate its restructuring efforts. Management expressed optimism about future growth, emphasizing the importance of cost control initiatives and the potential for improved profitability as the new affiliate model takes effect. The company remains focused on expanding its digital content offerings and optimizing its product lines to better meet customer needs.
About Beachbody Company, Inc.
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