Overview of BODi

BODi is a leading fitness and nutrition company that focuses primarily on digital content, supplements, connected fitness, and consumer health and fitness. The company is the creator of popular fitness programs like P90X, Insanity, and 21 Day Fix, which have transformed the at-home fitness market. BODi also offers nutrition-focused programs like Portion Fix and 2B Mindset, as well as nutritional products such as Shakeology shakes, Beachbody Performance supplements, and BEACHBAR snack bars.

BODi’s revenue is generated through direct response advertising, affiliates, social media marketing, and e-commerce channels. Prior to a recent restructuring, an additional source of revenue was the company’s network of Partners. Revenue comes from recurring digital subscriptions, digital program sales, and the sale of nutritional and other products.

In September 2024, BODi announced a major restructuring, the “Pivot”, which converted the company’s multi-level marketing model to a single-level affiliate model and reduced the workforce by 33%.

Financial Performance

For the three months ended March 31, 2025, BODi reported the following financial results compared to the same period in 2024:

The significant declines across all revenue streams were the primary drivers of the 40% decrease in total revenue. Digital revenue fell 30% due to a 17% decline in digital subscriptions. Nutrition and other revenue dropped 48% due to a 48% decrease in nutritional subscriptions and the elimination of preferred customer fees. Connected fitness revenue plummeted 74% as the company decided to stop selling connected fitness equipment.

Despite the revenue declines, BODi was able to reduce operating expenses by 40%, primarily through lower personnel costs, content amortization, and customer service expenses. This helped narrow the net loss by 60% and maintain positive Adjusted EBITDA, though Adjusted EBITDA still declined 20% year-over-year.

Strengths and Weaknesses

Strengths:

• Leading brand and content in the at-home fitness and nutrition market
• Diversified revenue streams across digital, nutrition, and connected fitness
• Ability to reduce costs and maintain profitability amid revenue declines

Weaknesses:

• Significant declines across all major revenue streams, indicating broader demand challenges
• Heavy reliance on digital subscriptions, which are susceptible to churn
• Inability to offset revenue declines with new growth initiatives
• Ongoing restructuring and transition costs associated with the Pivot

The company’s core strengths lie in its strong brand recognition and diverse product portfolio in the fitness and nutrition space. BODi has demonstrated the ability to quickly reduce costs in response to revenue headwinds. However, the substantial declines across all revenue segments suggest broader demand challenges that the company has struggled to overcome. The heavy dependence on digital subscriptions, which are prone to churn, is also a weakness. Overall, BODi appears to be in a transitional period as it works to adapt its business model and find new avenues for growth.

Outlook and Future Prospects

Looking ahead, BODi faces a number of uncertainties and challenges as it navigates the aftermath of the Pivot restructuring:

• The transition from a multi-level marketing model to an affiliate model is expected to significantly reduce Partner compensation and event expenses in 2025, but the long-term impact on sales and customer acquisition is unclear.
• The company plans to further reduce personnel and technology costs in 2025, but must balance these cuts with the need to invest in new product development and marketing.
• Demand headwinds across digital, nutrition, and connected fitness may persist, putting pressure on revenue and profitability.
• The new $35 million asset-based lending facility provides additional liquidity, but the company will need to carefully manage its debt load and covenants.

Overall, BODi appears to be in a transitional period as it works to adapt its business model and find new avenues for growth. The Pivot restructuring was a necessary step, but the long-term impacts remain uncertain. The company’s ability to stabilize revenue, control costs, and develop new compelling offerings will be critical to its future success. Investors will be closely watching BODi’s progress in navigating these challenges in the coming year.