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The Beachbody Company Inc. Class A (BODI+3.27%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing reports total revenue of $418.8 million, a decrease of 21% from $527.1 million in the previous year. The decline is attributed to lower demand across digital, nutrition, and connected fitness segments.
Digital revenue fell by 13% to $224.3 million, primarily due to a 25% decrease in average digital subscriptions, despite the transition to higher-priced BODi subscriptions.
Nutrition and other revenue decreased by 25% to $187.8 million, impacted by a reduction in nutritional subscriptions and the discontinuation of preferred customer fees as part of the company's strategic Pivot.
Connected fitness revenue dropped by 66% to $6.6 million, reflecting a 57% decrease in the number of bikes delivered and a decision to cease selling connected fitness equipment in early 2025.
Operating expenses were reduced to $353.6 million from $464.1 million, with significant decreases in selling and marketing expenses due to lower Partner compensation and event costs.
The company reported a net loss of $71.6 million, an improvement from the $152.6 million loss in the previous year, and an Adjusted EBITDA of $28.3 million, compared to a loss of $8.7 million in 2023.
The Pivot restructuring, announced on September 30, 2024, involved transitioning from a multi-level marketing model to a single-level affiliate model and resulted in $18.5 million in restructuring costs, including accelerated depreciation and termination benefits.
The company recognized a goodwill impairment of $20.0 million for the year ended December 31, 2024, following a sustained decline in stock price and revenue.
The filing also notes the company's ongoing discussions for an asset-based lending facility to refinance its term loan, which matures on February 8, 2026, and the potential impact on liquidity if financial covenants are violated.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the The Beachbody Company Inc. Class A annual 10-K report dated March 28, 2025. To report an error, please email earnings@qz.com.