BEACHBODY CO INC/THE (NASDAQ:BODI) Swings to Profit in Q3 2025, Topping Estimates

The Beachbody Company Inc (NASDAQ:BODI) has released its financial results for the third quarter of 2025, delivering a performance that notably exceeded analyst expectations on profitability, even as the company continues to navigate a significant strategic transformation that has impacted its top-line revenue.

Earnings and Revenue Versus Estimates

The company’s performance this quarter presents a story of profitability triumphing over declining sales. BODI reported a non-GAAP earnings per share (EPS) of $0.51, a substantial beat against the analyst consensus estimate for a loss of $0.46 per share. This positive surprise of $0.97 highlights a dramatic improvement in the company's bottom line.

On the revenue front, the company reported sales of $59.9 million. This also surpassed the analyst estimate of $56.3 million. However, this figure represents a 41.4% decline compared to the $102.2 million reported in the prior year period. This steep drop is a direct result of the company's strategic pivot away from certain business segments.

Key financial results versus estimates include:

• Non-GAAP EPS: Reported $0.51 vs. Estimated -$0.46
• Revenue: Reported $59.9M vs. Estimated $56.3M
• Year-over-Year Revenue Change: -41.4%

Market Reaction

The market responded positively to the earnings beat and the company's improved profitability. Following the release, the stock has experienced significant after-hours momentum. This positive price action suggests that investors are currently placing a higher value on the company's achievement of profitability and its streamlined cost structure than on the contraction of its revenue base, which was largely anticipated given its strategic shift.

Strategic Transformation and Operational Highlights

The third-quarter results are a clear reflection of the strategic overhaul BODI has been undertaking. The company has deliberately exited its connected fitness equipment business, ceasing bike sales entirely, which has contributed to the revenue decline but also to a leaner operation.

The most significant milestone announced was the company's return to profitability on a GAAP basis. BODI reported net income of $3.6 million, marking its first quarterly net income since becoming a public company. This was achieved through aggressive cost-cutting and improved operational efficiency.

Key operational takeaways from the press release:

• Achieved first GAAP net income and operating income since going public.
• Gross margin expanded significantly to 74.6%, up from 67.3% in the prior year.
• Total operating expenses were cut by more than half, falling to $39.7 million from $81.8 million.
• The company generated $16.8 million in cash from operating activities for the first nine months of the year.
• Digital and nutritional subscriptions declined year-over-year, consistent with the company's refined focus.

Fourth Quarter Outlook and Analyst Comparison

Looking ahead, management provided guidance for the fourth quarter of 2025. The company expects revenue to be in the range of $50 million to $57 million. This outlook brackets the analyst consensus sales estimate of $54.6 million, suggesting results could be in line with or slightly above expectations.

For profitability, BODI forecasts a net income range between a loss of $1 million and a profit of $3 million. On an Adjusted EBITDA basis, the company expects between $5 million and $9 million. This forward look indicates management's confidence in maintaining its newfound profitability as it closes the year.

Conclusion

The Beachbody Company's third-quarter report signals a pivotal moment in its corporate turnaround. While the strategic decision to narrow its focus has led to a smaller company in terms of revenue, it has simultaneously created a more profitable and financially stable one. The market's positive reaction underscores approval of this trade-off, rewarding the achievement of GAAP profitability and the strengthened balance sheet. The key challenge moving forward will be to leverage this efficient operating model to eventually re-ignite top-line growth.

For a detailed look at historical earnings and future analyst estimates for BODI, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.