With me today are Mark Goldston, Executive Chairman, and Brad Ramberg. I'm sorry, I didn't mean to screw up that name. Sorry, Brad. The CFO. The company will provide a brief presentation and we'll allow for a Q&A. If you have questions, please feel free to type them in the chat section, and I will get to as many of those questions as I possibly can. With that, I'll turn it over to Mark.
Thank you very much, Michael, and thanks everybody for attending today. We're going to talk about basically our road to the turnaround that we've had here at The Beachbody Company, now known as BODi. Brad, if you want to put up the forward-looking statement slide, please, just so we can make sure everybody gets a chance to see that. Obviously, everything in here is contained in terms of compliance. Next slide, please. Essentially, The Beachbody Company, which has now been around for 28 years and is now called BODi, our mission as a company is we're just trying to help people achieve their goals to live healthier, more fulfilling lives. We're really the only company that has the entire suite of products to do that. We have the Netflix of fitness.
We have 225 programs in a fitness library across every genre, 11,000 hours of video, and household brand names like P90X, INSANITY, et cetera. We have a nutrition part of our business, spearheaded by our Shakeology business, the original superfood protein shake, which is an amazing brand, and we'll talk more about that. We have a whole line in nutritional supplements as well. We've got a meal plan program as well. If you join BODi, you can not only get fitness programs, cardio, muscle building, et cetera, you get nutritional supplements to augment that training, and then you have a meal plan to keep you on track.
If you happen to be on a GLP-1 product, for example, the biggest risk of GLP-1s as you know is the loss of lean muscle mass, we become the perfect adjunct to any GLP-1 program, both with our exercise and with our Shakeology product, and we'll talk more about that. Next slide, Brad, please. Again, we are the owners of some of the most iconic names in the history of the fitness market. P90X is the best-selling extreme fitness program of all time. Insanity is right up there as well, along with 21 Day Fix and the rest of our 225 programs. It's really a fascinating business because we continue to evolve from a content standpoint, but a lot of our viewership is still viewing programs like P90X and Insanity.
We just launched a new P90X for the first time in 13 years. That was in February of this year. It's called Generation Next. We signed a new spokesperson, Waz Ashayer, who's an amazing trainer. We still have a ton of people who are watching original P90X programs as well, along with the rest of our portfolio. The next slide shows you essentially what this market opportunity is. I don't have to tell you guys that global wellness industry is a $6.5 trillion market. The physical fitness part of that's a little over $1 trillion. Nutrition's another $1 trillion. Like I tell people, these numbers are stratospheric. There's plenty of people in the world that are doing this to be able to power a brand like BODi to reach new heights.
We've had a great history of being the pioneer in this segment and continuing to evolve along that continuum. From our perspective, the green shaded area, it's a $2.2 trillion market opportunity. No complaints from us in terms of the size of the TAM, shall we say. Next slide, Brad. In terms of the turnaround, I came in actually three years ago this week. I'm celebrating my three-year anniversary. This was a company that had gone through a de-SPAC back in 2021. It had had 22 years of positive EBITDA. It reached a peak of over $1.2 billion in revenue and $135 million in EBITDA back in 2015. Post the de-SPAC, the company ran into some issues and clearly became a major turnaround candidate. That's when I entered as Executive Chairman.
I came in to assist our Co-Founder and CEO, Carl Daikeler, who built the company, and the team to turn this company around. Next slide, Brad. Essentially, when I came into the company, I looked at this portfolio and I said, "This is the Netflix of fitness." It's got a library that's been valued from an outside firm, Hilco, at over $500 million. It's some of the best names in the history of the fitness market, and not only a nutritional business with a broad reach, but a brand in Shakeology, which as a nutritional brand had been around for almost 15 years, cumulatively sold $4 billion in revenue, cumulatively did 1 billion servings to over 10 million people, and had never been sold in a retail store. This company was an MLM, a multi-level marketing company. We decided that that business model was no longer relevant.
In December of 2024, we extinguished the MLM, starting in January of 2025, we became a brand-new company. We are now a multi-channel company, which is direct to consumer, Amazon, and marketplaces. Now we've just launched a retail division, and we'll talk more about that. The next slide basically says our goal that we stated in this turnaround was to exit the MLM, create the multi-channel business model, and get out from that burdensome commission structure that plagued ours and other MLMs. What we essentially did was take an airplane in mid-flight and completely change its business model. What we've told people is that in Q3 of 2026, that will be really the Q1 where you can compare us year-on-year, quarter-on-quarter, because the remnants of the MLM and the legacy of that business will have burned off by then.
Next slide please, Brad. Essentially, what I came in to do was to re-architect this company. What we've done is remarkable. We've taken the break even of the company, the EBITDA break even level, from $900 million, that was just to make a dime, down to $180 million. We've reduced the break even in a little over three years by $720 million. We've taken our sales and marketing expenses down to roughly 35% from 53%. What's amazing in that is that we're actually spending more money on media marketing, but we took out all of these extraneous costs that were associated with the former business model, which was the MLM. The $50 million debt that was there when I joined was brought down to $25 million, and since been refinanced. We were able to reduce our overall interest expense by 44% by doing that.
Next slide, Brad. Essentially, if you look at our turnaround, when I joined in June of 2023, you remember this, Michael, we thought by the end of 2026 we would have the financial turnaround done. Turned out we were a year and a half ahead of schedule. We completed the financial turnaround in the middle of 2025. That really set us up for financial success. We've had 10 consecutive quarters, I've been here for Q11 . We've had 10 consecutive quarters of positive adjusted EBITDA. We've made almost $70 million during that time. We reported operating income for the full year in 2025. That was the first time since 2021. We were free cash flow positive. We reported positive net income for the last three consecutive quarters.
Given that we were a year and a half ahead of schedule on a financial turnaround, we were able to take this innovation pipeline that we developed and launch it essentially a year early. 2026 is the year where we're launching a series of these new products and, frankly, new modes of distribution, retail being one of them, DTC, Amazon, marketplaces. We're putting ourselves in a position to launch these products in 2026 throughout the year so that 2027 will give us essentially a full year to reap the benefits of these launches. Next slide, Brad. The turnaround, obviously being ahead of schedule, one of the things that we were able to do with the innovation pipeline was launch some really compelling new products, even in the fitness industry, in addition to nutrition. What we created in December was this 10-Minute Trainer.
There's 185 million people in America, you know, who are overweight. 75 million are clinically obese. You've got over 40 million people on GLP-1 drugs, and the number one risk in a GLP-1 drug, you know, is the loss of lean muscle mass. We created this incredible program called the 10 Minute Body, which is over 400 individual fitness videos designed to get people moving. It's muscle building, core building, cardio, you name it, we've got a 10-minute program for it. $10 a month, 10 minutes a day, and we're going after the people who generally don't exercise, don't want to use a full 45 minute to one-hour program, but just need to get their bodies moving. This is something that we are really passionate about, and we're just starting to get some traction with that.
Then, of course, we followed up in February of this year with the first new P90X program in over a decade. I don't know if you've seen it, but it's remarkable. We have a new trainer. His name is Waz Ashayer, one of the best trainers you've ever seen. This program is designed to get people who are really into fitness to the highest level possible. Brad, next slide. Let's go back. This was Waz. Can you show the slide with Waz, please? Brad?
Yeah.
There you go. This is our new P90X man. He's got a great following, and this program is really remarkable, and we have high hopes over the next year to two years that people will start to experience what we call Generation Next. We've now got a line of nutritional supplements under the P90X brand name, which gives you the opportunity to complete the whole circle of fitness and nutrition. Next slide, please. Essentially, what we're looking at is an innovation pipeline that's got 10-Minute Body programs in it. Got the new P90X. We just launched a new booty program just recently. Of course, we've got the library of the most famous names in the industry that people are constantly utilizing. We're now starting to move ourselves where we position our brand towards being in the wellness business, because that's what we are.
We're a wellness company. You're going to start hearing us use the term BODi Wellness, and that's what we're about. We can get you from your heart, to your musculature, to your flexibility, in shape, both for 10-minute programs and these extended 60- and 90-minute programs. We can augment that with a phenomenal line of affordable, highly efficacious nutritional supplements and a superfood shake, and then give you meal plans to sustain the benefits that you will get from all of the programs that you're using. Next slide. Let's talk about the milepost, because this is really the crux of the whole business right here. This is what's happened since I joined three years ago. Next slide. Back in 2022, we had to do $900 million of revenue to make a dime.
Today we've re-architected the company, so that breakeven is now down at $180 million. I've been doing turnarounds for four decades. I wrote a book called "The Turnaround Prescription." I have been through tons of these. I have never seen something like this in that period of time. Next slide. Our free cash flow, back in 2021, was almost a negative $300 million. As you can see in 2025, we put a positive $17.4. That's a massive turnaround. Q1, which is our most recently reported quarter, you can see our results as well. This is something we're really proud of. Next slide. Adjusted EBITDA, same thing. Back in 2021, we were minus $86.1 million. We put up $30.8 million in 2025.
As the next slide will show, Brad, we've had 10 consecutive quarters of positive adjusted EBITDA in the 11 quarters that I've been here, and cumulatively, we've made $69.8 million. That's a huge turnaround in this business and just shows you we've not only built a profitable business, but one with a ton of operating leverage. With the breakeven down around $180 million, our flow-through on incremental revenue is such that if we were to increase our revenue by 25%, we would double our profit, which is really phenomenal. Next slide. Net income, again, same story. 2021, this company lost $228.4 million, and we've now had three consecutive quarters of positive net income, which is something we are really, really proud of if you look at this history.
The next slide will show you our adjusted net income, which shows it was a loss of $175 million back in 2021. In 2025, we were positive. Q1 we were positive. This is all sort of a roundabout way of saying that this turnaround has been nothing short of magnificent from a financial standpoint. You go to the next slide, Brad. Really what we tend to do is recap for people. This is sort of the bullet points in a nutshell of the turnaround. The cash position was $36.6 million, which is way above our $25 million debt level. We made almost $70 million of EBITDA in the last Q10 . You can see the results. They speak for themselves. We're super proud of them. Now we're able to launch our innovation pipeline of products a year ahead of schedule.
2026, instead of waiting originally as planned, which was 2027. If we go to the next slide, you can see that the innovation pipeline certainly started with the 10 Minute Body program, which is now up to 400 individual sub-segment programs within that 10 Minute Body umbrella. The P90X program, which we said launched a couple of months ago. We just launched at the end of March our P90X nutritional supplement line, which has an energy stick, a hydration, pre-workout creatine, and whey protein. These products are sold for between $15 and $34.99, and for the first time ever, the company is going into the retail market. We've hired Advantage Solutions out of St. Louis, the largest broker company in America. They are selling this into retail as we speak. Same thing with our Shakeology brand.
A $4 billion cumulative sales level, 1 billion servings sold, as you can see across the top of the package, never been sold in a retail store. It will be. We just broke this week in Sprouts. We're in roughly 100 Sprouts stores around the country. In late August, early September, we will be launching in all 640 Vitamin Shoppe stores with the Shakeology seven-serving bag at $34.99. Later this summer, we're going to launch a test market in Southern California of an Insanity line of energy drinks. You can see that on the right. We've just created it. It's called Insanity Liquid Shock. It's a 300 mg, your hair's on fire energy drink.
We're launching a more scientific energy drink, which is on the left side of the screen in P90X, which has got a great list of scientifically backed ingredients to give you not only energy, but to give you boosts for your day, your workout, et cetera. Really excited. That test market will happen late this summer, and hopefully, if it goes well, that you may see in 2027 a national rollout of those energy drinks. Again, you're going to take these products to Amazon and into retail and DTC, and this is essentially the new BODi company, matching our formidable library with some great new content as well, with nutritional supplements that are now state-of-the-art and new distribution channels, which include Amazon Marketplaces and retail stores. With that, I just wanted to summarize the fact that the financial turnaround has been nothing short of magnificent.
This is a company that's been around 28 years. It's had $12.5 billion of cumulative sales. Now we've essentially changed this model, so we're a brand new company. You can compare us year-on-year starting in Q3 of 2026. We're really excited about our future prospects because we've really not only re-engineered the company for success, but we've innovated with products that are really unparalleled in the marketplace. With that, Michael, I'm going to turn it over to you, and we can open it up for some questions.
All right. Thanks, Mark. Well, it's an exciting story. You have said that the nutrition market, I think in a previous presentation, is 12 x larger than the digital fitness business.
Yes
Maybe. Investors historically have viewed BODi as a digital fitness subscription company. At what point should investors begin evaluating the company as a nutrition and wellness platform instead?
What a great question. At the company's peak, Michael, when we did $1.2 billion, we did over $800 million in nutrition and $400 million in digital fitness. Actually, at its peak, the company did more than 2x in nutrition than it did in fitness. All we're really doing is with this new product innovation, is returning to the roots of what made this company successful to begin with. We tended to get away from the nutrition in the 2021, 2022, 2023 period. We realized that we were migrating away, and we had to innovate ourselves into the growth channel part of that business. That's when we went to work on developing P90X, INSANITY, the new Shakeology, Form Factor, et cetera.
Under the aegis of this BODi Wellness, we were the first company that could take the fitness programs, nutritional supplements, and meal plans, and give somebody a holistic solution. That's our unique selling proposition.
Got you. I know that you're just as of today in Sprouts, but I'm fielding a question from out there today. Have there been any early indications of how Shakeology is performing in retail locations? I know, again, they just started today. Could you provide any updates on where you're at in the planogram schedule?
We have 30, 40 sets of samples that have been sent out from P90X and Shakeology to retail buyers. Most planograms are either redone in November or in the spring, and you can't really jump that line. You send out your samples to the retail buyers, and if they like your product and they want to buy it, you have to then get into the planogram cycle before you can get in the store, and that can be a six-nine month process. We've been at this for a couple of months. We are awaiting responses from this whole list of retailers who have our samples to find out if they like them, if they want to add them, when their planograms will be reset, and then when we can be in the store.
That being said, we have managed to get into KeHE, which is one of the largest food wholesale distributors in America. They actually service Sprouts, they've got 30,000 grocer accounts in the KeHE distribution network. Now that we're in KeHE, we are now eligible to be sold to any of those 30,000 doors around the country by the KeHE sales organization, in addition to Advantage Solutions going out and selling retailers on our behalf. This is all part of a process. I spent many years, as you know, running consumer packaged goods companies. I ran Fabergé, Elizabeth Arden. I ran worldwide marketing for Revlon. I was at Clairol, Chesebrough-Pond's.
I lived in this world, and your impatience is something you have to get used to because these are big retail stores with fixed sections that when they add new products, can only happen once or twice a year, and you need to be in the pipeline and at the ready to be able to get that response and react, and that's what we're doing.
Yeah, Mark, I know that the confidence that you have in Shakeology can succeed in the retails because you have this history of cumulative sales and so forth. I was just wondering maybe if you could talk, if there are other reasons that gives you confidence in Shakeology, whereas there are obviously many direct-to-consumer wellness brands have struggled. What early sell-through metrics or retailer feedback are you watching most closely that would give you some more indications of how it will perform?
Well, I'll answer that in three parts. Number one, it's one of the most, if not the most successful shakes of all time. It's been around 15. It was the original superfood protein. If you look at the list of ingredients, Shakeology is a 140-calorie shake that gives you all of your vital nutrients that you need for the whole day in one shake in the morning. Our CEO, Carl, likes to joke, because he helped create it, his words, he says he eats like a child, that he doesn't like to eat healthy. His comment was, "I need something that I can take in the morning, whether it's a tablet, a shake, or whatever the heck it is, that gives me all of my vital nutrients for the day." That's why it was developed.
It has been 10 million people who've bought this product. It just was never sold in a retail store. That's one. Two, the market is on fire. If you see things that have been sold in the past six months, Huel is a protein drink, was sold for over $1 billion. Grüns was sold for over $1 billion. Alani Nu, $1.5 billion. Ghost, $1 billion. The numbers are outrageous, those brands are great, but they don't have the awareness or the user base or the history that Shakeology has. What's Shakeology worth? On its own, a brand that's done $4 billion in cumulative sales with 1 billion servings. We're excited about it because it's unique. There aren't really products in the market like it. It's not just a protein shake.
It's got 17 grams of protein, but it's also got all of these adaptogens and probiotics and prebiotics, and incredible ingredients that other people don't have. I always believe, as a marketer, that you need a unique selling proposition. Our P90X nutritional supplements, Michael, all have an X factor. Each individual product has a unique X factor which increases its efficacy. Same thing in Shakeology, the entire menu of superfoods that are in there, that's our unique selling proposition, and consumers love it. Now they'll be able to buy it at retail. We used to sell it in a 30 serve, $129 bag. Now we've created a seven serve, $34.99 bag, which is right for retail.
Yeah.
We're going to open up the market to many more people to be able to experience Shakeology, without having to pay the $129 price point to get into it.
Right. I know that investors are trying to frame the revenue opportunity here. How should they think about the ultimate revenue opportunity as you're in Sprouts or Vitamin Shoppe? What would you frame as success? What would it look like in the first 12 - 24 months, in your view?
That's a very good question. I would say the following: Our goal is to get distribution presence and representation, and not to get over our skis, and not to stuff a channel and stuff a retailer. That does no one any good. Retailers are focused on one thing and one thing only: sell through. If I sell you 100 units and I sell 10, you have a disaster. If I sold you 12 units and you sold 10, you're the biggest success story in the section. That's retail. You have to meter yourselves and your enthusiasm for volume in the beginning, and you have to subordinate that to getting distribution presence, consumption, and replenishment. Then, and only then, do you then start to chase volume. If you chase volume too soon, not in terms of distribution, but in terms of depth, it never ends well.
I've been to this movie many times. What we want to do is get these products out there, get consumers to see them, buy them, like them, repurchase them, and then we're in a position to expand our facings in the sections, get more depth in terms of inventory, and really in 2027, really start to see growth.
Yeah.
2026 is about trying to get people teed up to either put us in the stores physically or give us commitments that we're going to be in the stores. 2027 is when you start to reap the benefits of that.
Yeah. Maybe this is a question for Brad. With a net cash position and a much lower breakeven threshold, how are you prioritizing investments between retail expansion, product innovation, marketing, shareholder returns, that sort of thing? Can you just talk a little bit about capital allocation?
Sure. We're very comfortable with the amount of capital expenditures we have and with our product development cycle. Literally like many companies, we are investing to maximize long-term shareholder value and long-term shareholder growth. That is our primary goal here, is to stay with our corporate mission of helping people live healthy, fulfilling lives, and to maximize gross profit dollars. We're not looking at maximizing gross profit margin. We're looking at maximizing gross profit and contribution dollars.
Got you. I know that we're running out of time here, but I wanted to ask a question here. In terms of, Mark, you mentioned about some of these drinks and so forth being sold for $1 billion and so forth. What is the biggest misconception investors have about BODi today?
Michael, I've had an expression for 30 years, which is unseen plus untold equals unsold. It related to products, and I think it relates to stocks. When Brad and Carl and I sit with investors and we show people that you've gone from a $900 million breakeven to $180 million, you've gone from a negative $300 million of free cash flow to a positive $17 million, that you've gone from a negative $86 million in EBITDA to 10 quarters, people are like, "This is an incredible story." It's just not out there enough yet. We're a micro-cap stock. There is no reason for a company like this to have a sub $100 million market cap when it's got a library that was valued at a half a billion dollars. It's got a Shakeology brand that who knows what that's worth. We have the best fitness library on the planet.
We have more cash than we've got debt, and we've had 10 consecutive quarters of positive EBITDA and we're net income positive. That does not a sub $100 million market cap compute. That being said, we're playing the long game. When I was running United Online and we merged NetZero and Juno, we had a $1.06 stock in September. A year later, we were $16. A year later, we were $35. I have been to this movie and I've seen it, and that was a great company. This company has hard assets that are worth so much more than what it trades for. We feel great. We got a great company. We now have a great business model. We've been super successful financially. We've needed innovation. We've now got it.
2026 is we're going to pave the road, and 2027 is the year we're going to drive on that road.
I can't think of a better place to stop. I would like to remind everyone that additional information on the Beachbody can be found on channelchek.com. All of my research is available there. Thank you, Mark. Thank you, Brad, for participating today. Appreciate it.
Thank you. We appreciate you guys and Noble as well. Thank you very much.
Thank you, Michael.
Bye.