Beachbody Revenue Falls 24.5% to $45.2 Million in Third Quarter
Key Facts
Beachbody reported revenue of $45.2 million in the third quarter of 2026, down 24.5% from $59.9 million in the same period of 2025, according to its filing with the U.S. Securities and Exchange Commission. Net income was $3.3 million, compared with $3.6 million a year earlier. Operating income fell to $1.3 million from $5.0 million. The company therefore continued to report net and operating income even as revenue and operating profitability declined year over year. The earnings-per-share figures and analyst estimates in the initial headline could not be verified.
The revenue decline in the third quarter spanned the company’s two main businesses. Digital revenue fell to $27.8 million from $36.4 million in the corresponding period of 2025. Nutrition and other revenue declined to $17.4 million from $23.5 million. Gross margin also fell to 70.7%, from 74.6% a year earlier. Segment and margin figures show that the year-over-year decline covered revenue in both businesses, alongside a lower gross margin.
Weaker revenue coincided with a decline in the subscription base. Digital subscriptions totaled 0.69 million in the third quarter, compared with 0.90 million in the same period a year earlier. Nutrition subscriptions also fell to 0.06 million from 0.07 million. Total subscriptions were 0.75 million, down 22.7% from 0.97 million a year earlier. The decline in digital subscriptions accounted for most of the numerical gap between total subscriptions in the two periods, while nutrition subscriptions also fell.
Despite the drop in operating income, the third quarter marked the fifth consecutive quarter in which the company reported both operating income and net income. Operating income was $1.3 million, down $3.7 million from $5.0 million in the corresponding period a year earlier. Net income was $3.3 million, compared with $3.6 million a year earlier. For the nine months ended September 30, 2026, the company reported revenue of $149.1 million, compared with $196.2 million in the corresponding period of 2025. Adjusted EBITDA, meanwhile, rose to $21.0 million from $17.9 million over the respective periods.
Nine-month data showed a decline in cash flows from a year earlier. The company used $10.1 million in cash in operating activities during the period ended September 30, 2026, after generating $16.8 million in the corresponding period of 2025. Free cash flow turned negative at $12.1 million, compared with positive $13.1 million a year earlier. For the fourth quarter of 2026, the company expects revenue of between $38 million and $42 million. It also expects net income ranging from a loss of $2 million to income of $1 million, and adjusted EBITDA of between $6 million and $9 million.
In the market, the company’s stock closed at $4.51 on November 9, 2026, according to EL7 data. That closing price is for that date and does not reflect a later price following the results announcement. The company’s fourth-quarter revenue outlook is below the third-quarter revenue of $45.2 million. Its net income range spans a loss to a profit, while the company set adjusted EBITDA guidance at between $6 million and $9 million. These expectations are the next disclosed indicator of the company’s performance after revenue and subscriptions continued to decline in the third quarter.