All right. Thank you so much everyone for being here. I'm very excited to introduce you to Mark Goldston and Brad Ramberg. Mark Goldston is the Executive Chair, and Brad Ramberg is the CFO. Take it away.
Thank you. Thank you very much. Thank you. Good afternoon, everybody. Thank you for attending. We're gonna take you through a presentation on the incredible turnaround that we've conducted at BODi. I joined the company, it'll be three years next month, and I came in, I spent most of my career doing turnarounds. I've been running companies since 1986 when I was the President of Fabergé–Elizabeth and Arden back then. Basically our entire business model has changed in the course of the last three years. This was a de-SPAC that occurred back in 2021, and we'll take you through, but I wanna show you the forward-looking statements 'cause I wanna make sure we check that box, and everybody can take a look at this. Essentially, the company's mission hasn't changed.
The way in which we operate and execute has changed. The mission of this company was and is that we're gonna help people achieve their goals and lead a healthier, more fulfilling life, and that's everything that we do at this company. We've got legendary brand names like P90X, which is the greatest selling fitness program of all time, Insanity, and Shakeology, which was the world's first superfood protein shake, which came out over 15 years ago. We are essentially like the Netflix of fitness. We have over 225 streamed programs, 11,500 individual videos. We've got over a billion qualified views, and the company since inception has done over $12.5 billion. We also have 10 nutrition brands, and we're gonna talk about them.
The market that we compete in is enormous, $6.5 trillion, and you have the combination of nutrition and physical fitness and activity. This is really something that we've honed in on because the nutrition part of the market where we compete is $164 billion. Digital fitness is about $13 billion, the nutrition market's 12 times the size, we're gonna talk more about that as we go through this. Company had 22 years of positive adjusted EBITDA, reached a peak of $1.2 billion in revenue, made $135 million. That was back in 2015. It started out as an infomercial-based company. Our Co-Founder and CEO, Carl Daikeler, was the man who pioneered all of that. Then we transitioned to becoming a multi-level marketing company in 2008, hundreds of thousands of people direct selling our products.
As I said, went public in the de-SPAC in 2021, had a peak valuation of $3.2 billion. Then the company after COVID started encountering some really serious problems, and we'll talk about that. I came in, as I said, it'll be three years ago next month. I've been a CEO since 1985. I wrote a book called "The Turnaround Prescription" on how to turn around public and private companies. I ran Fabergé, Reebok. I created the Reebok Pump. I ran L.A. Gear and patented lighted shoes for children. Was the original chairman and CEO of NetZero, which became a huge internet conglomerate called United Online, which was probably one of the most profitable internet companies of all time. Started Einstein Bros. Bagels and took it public. I've been doing this a long time, and I was attracted to the assets of this company.
The fitness library of this company was Hilco valued at over $500 million, just the fitness library alone, and we have obviously amazing programs in there. In the nutrition business, Shakeology is the linchpin of the business. It was the first superfood protein shake in the world. It's been around over 15 years, sold over $3.7 billion, over a billion servings to 10 million people, and has never been sold in a retail store. It was only sold direct to consumer. The goal of this turnaround was to re-architect this entire company and create a new multi-channel business and get out of the MLM structure. That was job one, and we did that in December of 2024. That business model had a 40%-55% commission on everything that got sold in perpetuity, so it was the proverbial financial anvil around your neck.
We disbanded that in December of 2024, and we went back to becoming a direct-to-consumer company, we sell DTC, Amazon affiliate, and most recently, we're just launching a retail division. We've created a virtual CPG company. I have a lot of background in that, so that's something that I brought in here, and we're gonna talk about how we're gonna do that. The re-architecture of this company, I mean, truthfully, I've been doing turnarounds for 40 years. I've never seen something turn around in this manner. We are one year ahead of schedule. We told people originally it would take us till the end of 2026, early 2027. We actually did it by late 2025. The company's adjusted EBITDA break-even level when I joined, just before I joined, was $900 million. Company had to do $900 million of revenue to break even.
We've got it down to $180 million. We've dropped our break even by $720 million. Our sales and marketing expenses have gone from 53.5% down to 34.5%. Really what's important about that is we're spending more money on media now than we spent when it was at 53.5%. We had $50 million of debt when I joined. We refinanced that most recently with Tiger Finance. It's down to $25 million. We raised, we changed our effective interest rate such that we've saved about 44% on our annual interest expense. As I said, we're a year ahead of schedule. I've been here 11 quarters. The first quarter, I was figuring out, you know, where everything was. By the second quarter, we were able to start being profitable again.
We've now had 10 consecutive quarters of positive EBITDA and made a cumulative $69.8 million, which is really quite remarkable given where we came from. We also reported full-year operating income in 2025. That was the first time since the company went public. In 2021, we were free cash flow positive. In 2025, we had positive net income for three quarters in a row. This has really given us the impetus to say we're gonna accelerate this move to this multi-channel model that we're gonna talk about.
One of the things that I really was focused on was creating an innovation pipeline, so that once we got this company turned around financially and we've generated all of this operating leverage in this P&L, evidenced by its profitability, we've now got the company to the point where if we can increase the revenue of the company by 25%, we can double the profit. That's how prolific the operating leverage is that we built into the company. To do that, you have to have an innovation pipeline. One of the things we did was we launched for the 185 million people who don't exercise and are overweight, 75 million of which are clinically obese, we created something called the Ten Minute Body.
It's a series of over 400 individual programs that give you 10 minutes of concentrated exercise per day, it's got everything from cardio to muscle building, booty. You name it, we do it. It's a way of taking people who are intimidated by exercise or going to a gym and getting them moving. We also have an adjunct program for people who are on GLP-1s. The next phase of innovation is I'm bringing a consumer packaged goods focus to the company. We have the best-known brand name in the history of fitness in P90X, probably the second best-known brand name in Insanity, and we have Shakeology, which is the $3.7 billion brand.
None of these products have ever existed in a retail environment, so we invented a line in nutritional supplements carrying the P90X brand name. Every product has an X factor which makes it a unique selling proposition. That's being sold into retailers as we speak. This summer, we're running a test market in Southern California of an Insanity-branded energy drink called Liquid Shock and a P90X energy drink. Shakeology is gonna enter in Sprouts in about two weeks, and we are gonna be in Vitamin Shoppe, all 640 of those stores, by the end of August, early September. This is the product lineup. Now, this did not exist a year ago.
You can see the P90X nutritional line, Insanity and P90X energy drinks, and then a rebranded, repackaged Shakeology, which is going retail, and it says at the top of the package, "Over 1 billion servings sold." We've had over 10 million people use that product, but they'd never been able to buy it in a store. What we've essentially done is built a virtual packaged goods company. What do I mean by that? Marketing and R&D is in-house. We farmed out logistics to a 3PL. We farmed out all production, and we farmed out sales to the largest sales broker company in America, Advantage Solutions, out of St. Louis, and they're the ones that are selling our product for us. What have we done?
We've taken a business that would normally have high fixed costs, and we've taken 60%+ of it and turned it into variable costs, which plays into the operating leverage message. We also launched for the first time in 13 years a new P90X program with a new P90X man, Waz Ashayer, who's an amazing trainer. The program's called P90X Generation Next, just launched a month ago, the idea was to have it come out coincident to the launch of the P90X supplement line so we have a Total-Solution Pack for you. This is really an exciting shot in the arm for the company. Tons of other programs in the pipeline I'm gonna show you a little bit later that are gonna happen in the second half of 2026 and into 2027. This multi-channel strategy that we're doing is gonna give us tremendous brand exposure.
Most people have to spend $200 million-$300 million to build a brand-new brand name with awareness. We come in with the number one brand name in the history of the fitness market, which has a 62% unaided awareness level in P90X, and Insanity, which is incredibly well-known, and Shakeology, which has had 10 million users. When we walk into a retail store, people will know these brand names. In addition, we're focusing BODi as the BODi wellness company. What we think is everything today is focused on self-health, self-diagnosis, nutritional longevity. We're right in the sweet spot of that with what we do because we have the Total-Solution Pack. We've got the exercise, we've got the nutritional supplements, and we have the meal plans, and nobody else does that. That's what makes us unique.
With that, I'm going to turn it over to Brad Ramberg, our CFO, who will show you these remarkable financial mileposts that we've hit. Brad.
Thanks, Mark. I'll just run through some of the highlights of our financial turnaround. As Mark mentioned, literally in 2022, we had to do $900 million of revenue to earn $0.01 of EBITDA. Our revenue break even now is $180 million, so that's a $720 million improvement in the amount of revenue we need to do to make to EBITDA positive. Our free cash flow is one of my favorite slides. Literally in 2021, we lost almost $300 million of free cash flow. That is not my favorite part. In 2025, we were $17.4 million cash flow positive, over a $300 million swing to cash flow positivity. Adjusted EBITDA. Our adjusted EBITDA, 2021, we were negative $86 million.
We've now had two years in a row of about $30 million of EBITDA. Our Q1 of this year, we had $8 million of positive adjusted EBITDA. We've had 10 consecutive quarters of positive adjusted EBITDA. We've earned $69.8 million. Net income. We've taken our net income from 2021 of - $228 million to - $2.9 million in 2025. Importantly, we've now had three consecutive quarters of positive net income. We've had net income, bottom line net income positive for the past three quarters. We also have positive operating income. On an adjusted net income basis, we had positive adjusted net income in 2025 and positive adjusted net income in Q1 of 2026.
That highlights the magnitude of the transformation that The Beachbody Company, that BODi has undergone since Mark joined us and since 2021.
Okay. Thank you, Brad. This is just a summary for you guys of what we've accomplished. You know, our cash position is $36.6 million. Our debt's only $25. It's the first time in a long time where cash exceeds debt. You've seen the quarters of profitability. I mean, this has really been a remarkable experience for everybody involved, and we've created a company with really strong financial foundation, and most importantly, with a tremendous amount of operating leverage. The next milestone for us to complete the turnaround will be getting to the point where we can show year-over-year or quarter-over-quarter growth. It's been a long time since that occurred.
The first quarter where we can show clean year-over-year comparison so that we got all the remnant of the MLM, multi-level marketing, out of the business will be Q3 of 2026. However we do in Q3, you'll be able to directly compare that clean on clean year-over-year. This is the thing I'm incredibly proud of, and not that I'm not super proud of what we did from a turnaround standpoint, but the lifeblood of any company is its ability to grow, and this innovation pipeline is quite remarkable. We talked about the Ten Minute Body. We talked about the new P90X program. We talked about we just launched a couple of weeks ago on DTC, the P90X nutrition line, which will be in retail in the next several months.
Shakeology, which had been a $130 30-serve bag, we've created a seven serving size for $34.99. That's what's going retail. We're launching these incredible energy drinks this summer, which are really unique and compelling, we're using the best distributor in the country to do that in L.A. Libations. The second half of 2026, we'll have a lot of new Shakeology products we're working on are ready to drink. We'll have special sort of shake in a bar. We'll have Insanity nutritional supplements like we do on P90X. Insanity will then have an exercise program, energy drink, nutritional supplements. P90X, same thing, exercise program, nutritional supplements, energy drink. We'll have protein bars that we'll do under P90X and Insanity, unique and different. Shakeology, which will basically put that formula in a bar.
Really exciting stuff coming down the pike. Having this retail presence will dramatically increase our brand awareness, obviously, and will help us really sell the Total-Solution Pack. One of the things we're doing that's totally unique is on all of our P90X retail products that we're selling the supplements, we put a QR code on the front of every package, and if you buy the product and scan the code, you get a month of BODi for free. It's a $20 value. We're only selling the products for $15-$34.99. When you get to the cash register, you have a $20 value in terms of that. It's an incredible value proposition. With that, I'm gonna open it up to any questions you guys might have. Anybody got any questions? How about those Cubs? No.
Sorry, yeah.
How about shares, outstanding shares?
$7.2 million.
Total?
Our market cap is kind of ridiculous. Like we have an $80 million market cap in a company that's got a library that was valued by Hilco at $500 million. We have $11 million more cash than we have debt, we've got unbelievable brand names, we've made almost $70 million. If you look at the multiple, whether it's a revenue multiple, which in our case, we're probably trading at about a 0.4 or 0.3 revenue multiple, on an EBITDA basis, we're probably trading at about 2.5x EBITDA. I've rarely ever seen this. Hey, it's good news, I guess, because we are gonna create long-term value here. The fundamentals of this business, as you can see, are super strong. Is there another question in the back? Yes.
How do you plan to market the business specifically? Are you relying heavily on the QR codes, or is there a lot of advertising going on for it?
Great question. The question was, how do we plan to market the business? We spend, you know, in excess of $30+ million a year on marketing. We're a major marketer. You see us all over all the Meta properties, IG, Facebook, Google, TikTok, you name it. We are sort of a marketing machine. This is just an adjunct to what we do, the QR coding, but we're a major DTC marketing presence. Yeah.
Can you give us a divide on subscriptions?
Yeah. In terms of what our subscriber counts are?
Yeah.
Yeah. Brad, you wanna take that?
Sure. We have 810,000 digital subscribers, and we have 60,000 nutrition subscribers. I Nutrition subscribers isn't really the best way to look at that metric, because we are moving sort of more into one-time purchases, and certainly as we have more of a retail presence, you don't have any subscribers in a nutrition business. We do have 810,000 digital subs right now.
Yep. It's interesting. When the company was at its peak, of about $1.3 billion in revenue, $900 million was nutrition. $400 million was digital fitness. There is a track record there of showing that we can have a very large nutrition business, and that, again, was without any retail distribution. You know, it's 504,000 retail outlets in the country that whether it's food, drug, mass merchant, club stores, and c- stores. It's a lot of opportunity there. Any other questions? Okay.
Thank you.
Well, we thank you very much for attending.