service equity research analyst here at Sidoti & Company. Today, we're pleased to be in conversation with Chairman Mark Goldston and CFO Brad Ramberg of The Beachbody Company, ticker BODi. During the presentation, please feel welcome to submit questions using the Zoom Q&A interface at the bottom of your screen. After the presentation, we'll open to your questions. With that, Mark, turn it over to you.
Thank you, Alex. I want to thank everybody for attending this presentation for us today. What we're going to talk about is the amazing turnaround that we've managed to conduct at The Beachbody Company, now called BODi, over the past three years. I joined the company as its Executive Chairman to do the turnaround three years ago this week, actually. The original plan was for this turnaround to take four years financially, three to four years financially, and then go into growth mode after that. I'm happy to announce that it took us way less time than that. We did it in about two and a half, two years, a little over two years.
Middle of 2025 is when the turnaround financially was really complete, and we're going to show you the numbers that we've put up and talk to you about our innovation pipeline that we have in place to help grow the company. Obviously, all of this is subject to the forward-looking statement language that's presented here on screen that everyone can see. With that, let's launch into the presentation. As a company, we've been around for 28 years. We are the best-known name in the fitness industry, and we are a company that essentially combines fitness, nutrition, and healthy eating, so that what we have essentially is the full wellness solution for people seeking a better, healthier, more active lifestyle. That's really what we've been trying to do. We have some of the best-known brand names in the history of marketing.
P90X is the biggest-selling extreme fitness program of all time. It's a brand with an over 62% awareness level. INSANITY, which is a huge exercise program. Shakeology is another huge brand of ours, which was the original superfood protein shake launched 15 years ago and has done over $3.5 billion of revenue and over a billion servings. The next slide will show you essentially, if you look at our origins as a company, we build iconic brands. That's what we do. We have been called the Netflix of fitness. We have over 225 individual structured programs, 11,500 streaming videos. We have had over a billion qualified views. We've done $12.5 billion of revenue since inception, and we have both a formidable nutrition business and digital fitness business. Next slide. Market opportunity is enormous.
The segment of the $6.5 trillion global wellness business that we compete in is worth $2.2 trillion. Half of that's in fitness, half that's in nutrition. Suffice it to say that TAM is certainly not an issue that we have to worry about at BODi. In terms of the turnaround, the company had 22 years of positive EBITDA. We reached a peak of $1.2 billion in revenue and $135 million in adjusted EBITDA back in 2015. By the way, when we did $1.2 billion in revenue, $800 million was in nutrition, $400 million was in fitness. That's an interesting thing to note. It was founded as an infomercial-based company. It turned into a multi-level marketing company in 2008. There were hundreds of thousands of people selling this product. It went public as a de-SPAC in 2021, had a peak value of over $3.2 billion.
Post-COVID, the company started to really encounter some serious headwinds. It needed to be turned around to survive, that's when I was brought in three years ago this month. My background is I've spent almost 40 years as a public CEO. I was first president of Fabergé Elizabeth Arden back in the mid-1980s in New York. I've done everything from Reebok to L.A. Gear, NetZero, United Online, rolled out Einstein Bros. Bagels, created the Reebok Pump. I've created lighted shoes. As you can see behind me, I'm one of the largest patented inventors in the world. I have over 135 U.S. and foreign patents on all kinds of things you can imagine. I looked at this and said, "Look, I do turnarounds. I've been in consumer my whole life.
This is a company with massive asset value." It's got a library of fitness that was valued by Hilco at over $500 million. It is unparalleled in terms of the genres and the depth of content. The nutrition business with brands like Shakeology and Energize, now we've just created a new line of products for nutrition using the P90X brand name. We've got some of the best-known brand names in the world, this is really part of our future growth strategy. The turnaround itself, the goal was to create a multi-channel business model and get out of the multi-level marketing business, which we did. MLM was killed in December of 2024 as a business model. It had 40%-55% cash commissions that were paid on every sale that was made, it's an industry in general between companies like Avon and Tupperware, et cetera.
Really, nobody has found a way to make multi-level marketing in today's market work. We got out of that and decided to go to a multi-channel approach, which is direct-to-consumer, Amazon marketplaces, affiliates, which get paid a commission if they sell product, now, for the first time ever, a brick-and-mortar retail distribution strategy, which we'll talk more about Since 2022, this company has completely re-architected itself. We used to have well over 1,000 people. We today have under 300. We reduced our breakeven from $900 million before I joined to now it's $180 million. It's a $720 million reduction in breakeven. Our selling and marketing expenses, we've dropped them dramatically from the mid-50s to the mid-30s. We still spend more money on media today than we spent when we were in the mid-50s because we've gotten rid of all these MLM costs.
When I came in, we had $50 million of debt. We were paying approximately 28% interest on that debt. We've cut that debt down to $25 million, and we're paying about 14.8% all in, so 47% reduction in interest, paying a little over $3 million a year on $25 million of debt. Next slide, Brad. As I said, the turnaround is a year to a year and a half ahead of schedule. I've been here 11 quarters, now 12. We've had 10 consecutive quarters of positive EBITDA, totaling $69.8 million. We reported full-year operating income in 2025 for the first time since the company went public in 2021. We were free cash flow positive. We reported positive net income for the last three consecutive quarters, first time since 2021.
Now that this turnaround is way ahead of schedule from a financial standpoint, and we've got this multi-channel model, now we can turn to the innovation pipeline that we've created, which was originally scheduled for 2027, and we can start rolling that out, which we're doing in 2026. Essentially, one of the first things that came out of the pipeline was we looked at the 185 million people in America who are overweight and largely do not exercise. What we decided to do is to create something called the 10 Minute Body. This is a program with over 400 individual exercise programs, from cardio to muscle building, you name it, core strength. It is designed to get people moving for 10 minutes a day and $10 a month.
This is sort of a revolutionary way to approach the non-exerciser world so that we can help improve their health span. The next innovation, in late February, we came out with the first new P90X program in over 13 years called P90X Generation Next, which is a great new exercise program. We've taken the P90X brand name and the INSANITY brand name from exercise and now put them into the nutritional supplement category. We just launched a line of P90X supplements in March. INSANITY will come later in the year. These are going to be sold into grocery, drug, mass merchant clubs, you name it, through Advantage Solutions, which is one of the largest sales brokerage companies in America, out of St. Louis. Next slide, Brad. The Shakeology brand, which was our original superfood protein shake, has been around, call it 15 years.
It's generated $3.7 billion in sales and over a billion servings, and it has never been sold in a retail store. Now, for the first time, it will be. It's now in Sprouts as of two weeks ago. This fall, we will be rolling out into multi-hundred The Vitamin Shoppe stores with Shakeology, and we've created a new seven-serving size, so it's priced at $34.99. Right across the top of the package, as you can see, it says over a billion servings sold. The rest of the products you see on this page are the new P90X nutritional supplements in the middle. In the lower left is the new P90X energy drink that will be test marketed in Southern California later this summer, a science-backed energy drink. All the P90X products, by the way, have a special X factor ingredient.
On the right side of this slide, you see those Insanity cans. We're launching a line of energy drinks into test market this summer in Southern California called Insanity Liquid Shock, which, as the name suggests, is a 300-milligram caffeine, your hair is on fire energy drink, and we're really excited about that. Everything you see here is brand new. This is part of the innovation pipeline. In terms of the new P90X program I just referred to that came out in February, it is the most successful exercise program of all time. It did more than $1 billion in sales, millions and millions of users, and this was our first new P90X in 13 years, and it's an amazing program, and we're really excited about it.
Our innovation pipeline, as I suggested, which was originally designed to be a 2027 rollout, has now been pushed into 2026. You will see that we're going down the line of our multi-channel strategy with products that are both in fitness and in nutrition. We've done a pivot three months ago where more of our marketing is focused on nutrition than fitness because the market is 12 times the size of the digital fitness market. We're really talking about our company now as being body wellness. We are a wellness company that can combine fitness with nutrition and healthy eating meal plans, and we're the only people who can do that. The TAM is enormous from a body standpoint, no pun intended, with the number of people, and it's enormous in that it's got $6 trillion, $6.5 trillion in the wellness category of market value.
The next slide will show you, these really are the mileposts of the turnaround, and we're very proud of these. The first one is the showing of the breakeven. Before I joined the company, this company had a $900 million breakeven level just to make a dime of EBITDA. We've lowered that by $720 million down to $180 million. Totally lean company with massive operating leverage, such that if we increased our revenue by only 25% over the next year or two, we would double our profit. The next slide is remarkable. We've had a $310.6 million improvement in free cash flow. We've gone from -$293.2 million in 2021 to a positive $17 million in 2025. Again, I've been doing turnarounds for my whole career.
I wrote a book called "The Turnaround Prescription," which was a blueprint for turning around companies, I've never seen this happen in this period of time. The next slide shows you our adjusted EBITDA. We've had $116.9 million improvement in adjusted EBITDA. In 2021, the company lost -$86.1 million. In 2024, it made $28.3 million. It made $30.8 million in 2025. As the next slide shows, we've had 10 consecutive quarters of positive adjusted EBITDA. We made $69.8 million after losing tens of millions of dollars in the previous years. In terms of net income, we've had a $225.5 million improvement. We've gone from a net loss of -$228.4 million to now we've had the last three quarters combined, we've made over $11 million of positive net income, which is really an important milestone for this company.
The next slide shows you our adjusted net income, which went from a minus $175.3 million to a positive $3.5 million in 2025. Again, very proud of that. This is the summary, essentially, of what we've done. Now we have a company that at the end of last quarter had $36.6 million in cash, only $25 million of debt. We've had 10 consecutive quarters of EBITDA totaling almost $70 million. Put up a great first quarter. Our annual debt on the $25 million, our annual debt service is only $3.1 million. Like I said, taking a breakeven from $900 million down to $180 million has given us tremendous operating leverage in the company. With that, we're now able to take the innovation pipeline and move it one year earlier into 2026 instead of 2027, as it was originally intended to be.
We talked about the 10 Minute Body, we talked about the new P90X program, we talked about the new P90X nutrition line. Shakeology 7 serving, which is a $34.95 product. We previously only sold Shakeology in a 30-serve bag for $129, this is big. We'll have the test market in Southern California in the second half of this year of our P90X and Insanity energy drinks. We have a whole bunch of other new products coming out by the end of the year. This is all brand new. The real story of the company is this is an epic financial turnaround the likes of which most people will never see. The question is that you're a new company, when will you be able to show top-line growth?
What we've told people is that with the burn-off of the MLM business, which we retired in December of 2024, the first quarter where you can compare revenues year-over-year cleanly is in Q3 of this year, because all of the former MLM remnant will have burned off by then. From that point forward, Q3 forward, I think what the world would like to see is in the new company, in its new construct with its new revenue base and its new financial structure and its new products, can it return to top-line growth? Because if we can show up and show quarter-over-quarter growth in any quarter in the future, that will be the first time outside of COVID in almost a decade that that will happen.
At that point, then you'll have a full financial turnaround with a full restructuring and potentially have top-line revenue growth from your innovations that you're launching throughout 2026, which will largely show up from a revenue standpoint in any meaningful fashion in 2027. With that, in summary, 28 years in business, $12.5 billion of cumulative sales, amazing innovation pipeline. We are the total fitness and nutrition solution. From a financial standpoint, we've put ourselves in a position to be very profitable and such that if we only increase our revenue by 25%, we would double our already formidable profit. With that, I'm going to turn it over to Alex, and he can moderate some Q&A for us.
Great. Thanks, Mark, for the presentation. I know you've spoken about the innovation pipeline. We have some questions from the audience. On the content side, how do you guys make sure that you stay more competitive than other digital offerings, including free offerings? On the nutrition side, how did you sort of prototype some of your formulations and develop the brand into nutrition further?
I'll take the first part of the question, which is how do we keep ourselves relevant and compelling on the content side? The best analogy I could give you is the free content that you see on the Internet, and there's a lot of it, is really user-generated content. A lot of times, these are people shooting things in their living room to take you through a 30-minute exercise. We're like a full-featured movie. It's the difference between going to a movie theater and watching a movie or watching somebody who created at-home user-generated content. Both are good, there's no comparison in terms of what they are.
What we do are $2 million-$3.5 million productions of new programs that we put out to a member base that's paying us a subscription fee because they want access to highly credible, high optic, beautifully shot, production quality exercise videos. That's what we do. Nobody does it like us, nobody does it better than us, which is why we're the Netflix of fitness. In terms of your nutrition part of the question, how do we do these formulations? How do we maintain a competitive advantage versus somebody else in the marketplace? Remember, we've been in the nutrition business now for over 15 years, we have in-house formulation. We work closely with an outside vendor who produces for us, what we try to do is to create proprietary elements to these commodity formulas. For example, creatine or Energize or hydration. We had P90X.
We've put an X factor in every one of those formulas, which is a unique additive ingredient that enhances the efficacy of the functional aspect of that product in the category in which it competes. Shakeology, we are the original superfood protein drink. You can buy protein all over the marketplace today, you're not going to buy something that's a superfood plus a protein in one. That's our unique selling proposition, that's why we've been able to do $3.7 billion of cumulative revenue on a billion servings to 10 million people. Our bar, Alex, is very high in terms of whether we'll make a new fitness program. Is it unique? Is it compelling? Is it additive to the mix? It's the exact same benchmark that we use on the nutrition side of the business. We don't want to make commoditized me-too products.
Great. I think you spoke about historically, nutrition was actually the biggest part of the business.
Yes.
Could you talk a little bit about not just where you are now in terms of nutrition, but your ability to expand? I know we've spoken about planograms and getting into the store planning process.
Yes
maybe expansion in retail and also direct to consumer.
In terms of retail, we've hired Advantage Solutions out of St. Louis. They're probably the largest broker company in America, so they do work for people like Unilever, PepsiCo, Procter & Gamble, et cetera. They've got thousands of people who actually go out and call on the hundreds of thousands of retail doors that are out there. What we've done, Alex, is we've built a virtual consumer products company. Most consumer packaged goods companies, which I've spent a lot of my life running, have big, intransigent infrastructure burden. What we've done is taken high fixed cost structure and turned it into variable cost structure. We farm out commodity functions, and we keep in-house proprietary functions, which has been how I built NetZero, how I built Fabergé, same strategy. What do we do? In-house is R&D. In-house is marketing. What do we outsource?
Sales, production, third-party logistics, AR collectibles. We've created a virtual CPG model, we're going to be at retail. We have 30, 40 sets of samples that are sitting in buyers' offices today, waiting for them to decide whether they do or don't want to add these products. If they do, as you know, the retail community only resets their section, it's called a planogram, once or twice a year, usually in November and April. If I see your product today and I love it, and I say, "I want to add this to my store," you won't be in my store before November, at minimum, and possibly April if you miss the first window. That's just the way it is. You really can't jump the line.
In the case of Sprouts, because Shakeology had been such a powerful brand never sold at retail, they were so excited about it, they put it in Sprouts right away, and we just got in there two weeks ago on shelf. Vitamin Shoppe was another one. Instead of waiting for a reset, Vitamin Shoppe said, "This fall, we're putting you in several hundred Vitamin Shoppe stores for Shakeology." The other retailers, whether it would be a Kroger or an Albertsons, a Target, you name them, they all work on a planogram cycle, and we have to live within that, and that's what we're doing. It's really more of a 2027 revenue play, a 2026 distribution play.
It's great context. Thank you.
Sure.
We have a question on the marketing strategy for the new beverage products and basically how they'll be priced relative to competitors, and maybe I'll add if there's any sort of synergies between beverage and nutrition products and digital subscriptions.
Great question. We, in line with our branding, will be in the upper end of the market, not at the very tip-top, but in the upper end of the market with the energy drinks. In the case of P90X, this is a chock-full, science-backed formula, which has an X factor in it, which is an ATP product, an adenosine triphosphate. It really gives you an enhancement to just a pure energy drink itself. From INSANITY, which we're calling Insanity Liquid Shock, as the name suggests, we will be pushing the limit with 300 mg of caffeine and other ingredients in there to give somebody the real boost and jolt that they're looking for.
That will be for more of a younger, more male, more irreverent market, where the P90X line will be more science-backed, both of which will be priced near the upper tier of that marketplace. There will absolutely be a crossover, Alex, with regard to the P90X supplement line because, as you know, the energy drink market is huge and exploding. This will be a test market in SoCal in the end of the summer, but if that SoCal test market goes the way we hope, 2027, you would see a national rollout of one or both of these energy drinks. That will help feed the nutritional supplement business and vice versa. As we get to DTC, which is Amazon and our own website, we have a total solution that we can sell you, which is both our fitness and our nutrition.
In fact, our retail packages on P90X carry with it a QR code to give you a free month of BODi Fitness so that you can start to experience this cross-pollinization of us being the holistic solution.
Great context. We have another question from the audience about engagement levels and how they're trending among newer subscribers and some of the newer innovative digital offerings versus legacy. I'll also add, maybe you can talk about legacy retargeting as well.
Yes, really great question. We don't really see a big difference in terms of engagement level on a newer person versus someone who's been around. What's interesting, to show you the value of this library, is of our top 25 programs, probably 18 - 20 of them are circa 2020 and earlier. These are timeless programs. They're not dated in the least, and it allows us to really have every genre represented. What we try to do, Alex, is if you sign up for 80 Day Obsession or you pick a program, what we try to do is, as you're coming to completion, to prompt you to say, "Since you have a one-year membership and you just completed two months or three months," or whatever the program was, "this is what you probably should go to next.
Here's your sort of suite of potential things that would be related." We try to keep people on a commitment continuum so that they sign up, they do it, they see results, they stay with it. We can augment their effort with supplements. We can augment their supplements with healthy meal plans. We become your total solution to wellness, which is why we want to be known more as BODi Wellness.
Got it. Mark, speaking of seeing results, I know some people are turning to fitness and nutrition. Others might be doing that, but also mixing in a GLP-1 or just using a GLP-1 and thinking about adding-
Yeah
fitness. Can you talk a little bit about how GLP-1s have affected the business?
GLP-1s, I think today there's probably close to 40 million Americans who are using some form of it. As you know, the number one issue that people face is the loss of lean muscle mass. That is the number one byproduct of a GLP-1. You could argue if you're 50, 70 pounds overweight, you're much better off getting thinner and dealing with your muscle mass loss than maintaining obesity and all the health problems that you would incur. That being said, you must exercise if you're taking GLP-1 drugs at some level. You must do some level of resistance training. You must do your cardio. We've actually created, Alex, specific programs targeted at the GLP-1 crowd.
We have a GLP-1 module within the 10 Minute Body. We have GLP-1 specific programs, both that were tailored for the drugs and programs that we already have that would be suitable for people taking them. That will be part, it is now and will be part of our future marketing. We also do this, Alex, for Shakeology. Shakeology, think about this, it's all the vital nutrients somebody needs for an entire day. It's 140 calories, you've got superfoods and protein, all the nutrients you need for a day.
If you're on a GLP-1 and you're on a caloric restricted diet, for example, you can get the nutritional value that's inherent in 140-calorie shake that's not only got 17 g of protein, but has all of these adaptogens and other superfoods, that becomes a great supplement, no pun intended, to a GLP-1 program. We are essentially the total solution outside of the drug itself to anybody who's on that regimen.
Understood. Maybe on the finance side, we have a couple of questions. I know you've spoken about the turnaround and achieving positive EBITDA and free cash flow and operating leverage. Could you talk about some of the key drivers to keep improving the company's financial profile and how well-capitalized you are for the innovation pipeline that you've mentioned?
The key drivers are top line. When you take your overhead down as much as we have, and you've lowered your break even from $900 million to $180 million, and you've built all this operating leverage in, you have the construct there to be both very profitable today, which we are, and be very profitable if you can increase your top-line revenue. The thing to focus on is the flow-through that you're getting from any incremental revenue that you generate, taking advantage of the lowered break even of the company, because you don't have to account for the burden twice. Once the burden's accounted for in the first $180, everything that you start to do above that has a very high flow-through to the bottom line. Those are the key drivers.
We're much more focused on gross profit than gross margin, although we have amazing gross margin. If we were to grow the business, it would have more of a nutritional bent versus digital fitness. Nutrition's in the mid-40s-50%. Digital fitness is in the high 80s-90%, that's okay because what we want are large gross profit dollars, which is where your profit comes from. Your operating leverage kicks in if you're on nutrition. It also kicks in if you're on digital fitness. The mix may shift, the function of that P&L and the levers in that P&L have already been tightened. There really isn't a lot more room to change that. I gave this analogy before to somebody.
You're training for the NFL draft, your body fat's down to 5%, you're running a 4.4 40, you can bench press 225 40x . The question is, can you get drafted and can you make the Pro Bowl in the NFL? That is top-line growth from your innovation pipeline, because there's no question that the athlete, or the company in this case, is in world-class physical shape. It needs to show that it can grow, that's the plan.
Great plan. Maybe as we come up on time, we can just zoom out a little bit. For folks who are newer to The Beachbody Company or even new to the fitness and nutrition space, but they're looking at you for the first time, what would you say to them as why now is a great investment opportunity?
Well, I would just say that we have 7.1 million shares outstanding. You're talking about a company that has a market cap of $60 million, which is approximately 0.25 to 0.3 on revenues. You have a company that made $30 million of EBITDA last year, you're trading at two times EBITDA. You've got a library worth a half a billion dollars, according to a Hilco analysis. You've got, the replenishment aspect of the business that we're in from a nutritional standpoint means you're not just selling one-and-done's. You've got a library of fitness. You've got incredible nutrition brands. You've got high amounts of profitability. You've got a structure that has now been put in place to get you tremendous leverage as you go forward. To me, it makes absolutely no sense.
If you look at what's been sold in the last 18 months in the CPG industry, Alex, whether it's Huel, Grüns, Alani Nu, Ghost, go down the list, these are billion to $2 billion transactions on brand names that are great, but we've probably got higher awareness with Shakeology and P90X. What is that business worth? What is a Shakeology brand with $4 billion of cumulative revenue and $1 billion cumulative servings, what's that brand itself even worth in a market where people are trading billion-dollar CPG transactions for brands with less awareness? I would say it takes somebody with some foresight to see that this is sort of the earliest stage of the final era of the turnaround, which is growth.
Don't know when that's going to happen, and I'm not projecting when it's going to happen, but that will be the seminal event because we've proven without a shadow of a doubt that we've done a massive financial turnaround of the business and a restructuring. We've also proven that we've got a very fertile innovation pipeline with some incredibly unique products. Now the proof will be in the pudding. Do all of them work? Do some of them work? You're talking to somebody who's been in marketing his whole life. I got 135 patents from everything from lighted shoes to targeted internet advertising. My CEO and the Co-Founder, Carl Daikeler, is an idea machine. Between us and the marketing team at the company, we will never be lacking for new ideas. The goal is get them developed so they're unique, they're compelling.
Make sure we have the right capital structure to be able to fuel them with our cash base. We think we do. With our margin structure, we think we do. Then we got to go out and prove it.
Great answer. Well, with that, we are at time. I'd like to thank you, Mark and Brad,
Great
for sharing the BODi story with us, also thank everybody listening for spending time with us today.
No, we want to thank you and Sidoti and the audience because it's a great story, and unfortunately, I have an expression of unseen plus untold equals unsold, and the same thing happens with a stock, and you really need to be in front of the right people telling your story, or they really have no reason to look you up and find out how you've done. We really appreciate you guys giving us the platform to do this.