When Can We Expect A Profit From The Beachbody Company, Inc. (NASDAQ:BODI)?

The Beachbody Company, Inc. (NASDAQ:BODI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. The Beachbody Company, Inc., together with its subsidiaries, operates as a fitness and nutrition company in the United States, Canada, the United Kingdom, and France. The US$77m market-cap company posted a loss in its most recent financial year of US$72m and a latest trailing-twelve-month loss of US$43m shrinking the gap between loss and breakeven. As path to profitability is the topic on Beachbody Company's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Beachbody Company is bordering on breakeven, according to the 4 American Consumer Services analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$9.0m in 2027. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 126% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Beachbody Company given that this is a high-level summary, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Beachbody Company

One thing we would like to bring into light with Beachbody Company is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Beachbody Company's case is 95%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Beachbody Company, so if you are interested in understanding the company at a deeper level, take a look at Beachbody Company's company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Valuation: What is Beachbody Company worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Beachbody Company is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Beachbody Company’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.