Beachbody at Canaccord Conference: Strategic Turnaround Insights

On Tuesday, 12 August 2025, The Beachbody Company (BZ:BODY), now known as BODi, presented its strategic transformation at Canaccord Genuity’s 45th Annual Growth Conference. The company outlined a robust turnaround plan, highlighting both achievements and challenges. While BODi has successfully reduced its breakeven point and improved its financial health, it continues to face the challenge of expanding its consumer base in a competitive market.

Key Takeaways

• Beachbody has reduced its revenue breakeven point from $900 million to $200 million.
• The company achieved seven consecutive quarters of positive adjusted EBITDA, totaling nearly $40 million.
• A strategic shift from a multi-level marketing model to direct-to-consumer is underway.
• Plans to launch a retail line in 2026, featuring popular brands like P90X and Shakeology.
• The company is targeting free cash flow positivity for the year.

Financial Results

• Revenue breakeven has been dramatically lowered from $900 million to $200 million.
• Gross margin has increased by over 1,000 basis points.
• BODi has reported seven consecutive quarters of positive adjusted EBITDA, amounting to almost $40 million.
• Debt refinancing has led to a 40% reduction in interest rates, with $25 million in cash on the balance sheet.
• The company is aiming for free cash flow positivity by year-end.

Operational Updates

• BODi has transitioned from a multi-level marketing model to a direct-to-consumer approach in Q4 of the previous year.
• Workforce reduction from over 1,100 to around 300 employees has improved financial agility.
• The company plans to introduce a retail line in 2026, featuring products like P90X, Insanity, and Shakeology.
• New programs are scheduled for release in June, August, October, and November 2024 to boost customer acquisition.

Future Outlook

• BODi aims to expand its focus to overall health and wellness, addressing issues such as diabetes and cardiovascular disease.
• The company sees potential in the GLP-1 phenomenon, emphasizing the importance of exercise to counteract muscle loss.
• Plans to leverage brand awareness to introduce innovative supplement formulas.
• New Shakeology flavors are expected to launch in 2025.

Nutrition and Digital Business

• Cross-selling nutrition products to digital fitness subscribers presents a significant opportunity, with only 10% currently purchasing nutritionals.
• Shakeology has sold over one billion servings, generating $4 billion in cumulative revenue without retail presence.
• The digital business boasts a gross margin between 87% and 89%, while the nutrition business ranges from 46% to 52%.

Competitive Landscape and Market Positioning

• Beachbody positions itself as the "Netflix of fitness" with an extensive content library of 135 programs.
• The company aims to assist 185 million overweight and 75 million obese individuals in America through its fitness programs.
• BODi’s focus on content rather than equipment is seen as a competitive advantage.

For a detailed understanding of Beachbody’s strategic direction, readers are encouraged to refer to the full transcript below.

Full transcript - Canaccord Genuity’s 45th Annual Growth Conference:

Susan Anderson, Analyst, Canaccord: Okay. Good afternoon, everyone, and thank you for joining us. I’m Susan Anderson, one of Canaccord’s analysts in the consumer space, and we’re very excited to have Beachbody here, and in particular, Carl Deckler, cofounder and CEO Mark Goldson, executive chairman and Brad Ramberg, CFO. So Mark, first, I’ll turn it over to you to maybe talk a give a little overview of Beachbody, where the company has come from, the transformation that took place and then also how you see the company going forward.

Mark Goldson, Executive Chairman, Beachbody: Yes. Thanks, Susan. The Beachbody Company is sort of a legend of the fitness business. It’s been around for more than a quarter of a century. The company that invented all the famous programs like p 90 x, Insanity, etcetera, which this gentleman to my left was the pioneer of that industry.

I joined a little over two years ago. I spent most of my career doing corporate turnarounds. I was the chairman and CEO of United Online, Net Zero, and run a whole bunch of other companies and wrote a book on turnarounds. And the thing that attracted me to come to this company was the fact that it had this massive asset base and a ridiculously undervalued stock. And it was obvious to me that the market just didn’t see what I saw.

So a company was in need of a financial turnaround. It had gone public as part of a despec in ’21, and, it was losing money. And we came in and had a company that essentially needed to do $900,000,000 of revenue to cash breakeven. And we’ve gone over the last two years and re architected this thing, and I saw an opportunity myself to come in and be part of something that had a great asset base, completely misunderstood story with a very inflated cost structure. So we’ve taken the company from a $900,000,000 breakeven to a $200,000,000 breakeven.

We’ve gone up over a thousand basis points in gross margin, and we’ve now had seven consecutive quarters of positive adjusted EBITDA, cumulatively almost $40,000,000 after not having had positive EBITDA since 2020 prior to these seven quarters. So the opportunity here for an investor or an analyst is to see a story that right now has really not been told, which is we’re two years into a tremendous draconian financial restructuring and we’ve now positioned this company for growth. And all of those initiatives will start occurring late this year and into 2026. And when that happens, the operating leverage that we’ve built into this p and l, which we’ve already shown what we have, but when the top line starts to grow with all the new initiatives that we’ve got, this turnaround will have been complete and will probably take us the third year. We’re we’re through two.

Now we’re just going to start the third year in ’26. And that’s essentially when when we think we’re going to hit the end zone. So it’s an exciting time for people who are potential or current investors, and it’s a really exciting time for those of us that are in the company.

Susan Anderson, Analyst, Canaccord: Great. Thank you. Excuse me here. Maybe you can talk about just kind of a next leg of growth as we look forward, you know, where do you see that growth being driven from? How you transition the company from a MLM to the current state that it’s in?

Mark Goldson, Executive Chairman, Beachbody: Well, yes. So we were an MLM and we did some research and found that 90% of the people who said they wouldn’t buy something from an MLM didn’t want to be part of one. So we extinguished that in the fourth quarter of last year. So we are no longer an MLM. We are a direct to consumer company and we sell fitness, we sell nutrition, we sell meal programs.

So we have the entire package. And historically, this business, as you know, has been about six pack abs and big muscles. Nothing wrong with that, but we’re very focused now on health span, Exercise, as you know, if it was a drug, would be a trillion dollar drug. And that story really doesn’t get told, that’s a big part of what body is all about. So we’re gonna be doing a retail line in 2026 where we’re taking p 90 x, Insanity, and our Shakeology brand, which was the original super food protein shake, and we’re taking them into retail.

So into food, drug, mass merchant, club store with a brand new line of products under those brand names, and then we will be creating new programs that will coincide with the retail product launch. So we got a lot of exciting stuff going on.

Carl Daikeler, Cofounder and CEO, Beachbody: I think, Mark, if I can jump in, just what’s exciting about it is with Mark’s entry, we took a company that was really working sort of the bottom of the barrel marketing channels, infomercials and multilevel marketing. My parents were so proud. And, but we still have this incredible asset base, 140 different fitness and nutrition programs, P90X, Insanity, twenty one Day Fix, some of the most recognized brands in fitness. And Shakeology, which in this these marketing channels has sold over 1,000,000,000 servings and never seen a store shelf. So with Mark’s background, with his both turnarounds and his retail experience, we have the ability to take this incredible asset, which has really never seen the light of day except for these other marketing channels, and take it into mainstream.

By pulling down the cost basis so that we can operate with agility and refine the brand, I think now we have a real opportunity to take advantage of what I call the great dislocation of home fitness that happened during the pandemic. Everybody got enamored of connected fitness and what they forgot is content and results are where the magic happens. And that’s what this company has specialized in for twenty six years. So, really excited for this next chapter of growth.

Susan Anderson, Analyst, Canaccord: And you guys have been rolling out some new content. Maybe if you could talk about the new content that you have coming out and how you’re gonna match it with the nutritional side as well, particularly as it starts to go out into retail and you can kinda use that as a marketing engine.

Carl Daikeler, Cofounder and CEO, Beachbody: Yeah. So, well, we just launched in June a program called twenty five minute speed train, an eight week program. We had over 10,000 people come into a dedicated group to do that program, and it reached a million views in our platform faster than the last three releases that we’ve had. So we’re excited about that. Coming up at the August, we have a program called Track Pilates, which makes Pilates like you would do on a Reformer that costs $4,000 or a Cadillac, machine, like costs $10,000 it makes it accessible for every woman.

There’s a contraption she can put on the door or attach to the wall, cost less than a $100. We’re giving it away free for people when they buy an annual subscription. That launches at the August. Then we have a new program, that we’re licensing from Tony Horton, p 90 x fame. That comes out in October.

And then a new program from Shaun T at the November. And then the big release of 2026 is a brand new P90X Generation Next with a new trainer, and that will intersect with Mark’s plan to take P90X supplements out to retail. So for the first time in retail history, you’ll be able to buy, let’s say, a thirty day container of a P90X protein supplement with a special X factor that makes that protein a little bit more bioactive or fast acting. But when you get it, there will be a QR code somewhere on the packaging that will give you access to thirty days of the p90x program just for buying that tub. That value add doesn’t exist at retail right now.

So these are the kind of things that now with this additional agility, going into mass market, I think there’s a real opportunity for the business.

Susan Anderson, Analyst, Canaccord: Yeah. And then can you talk about maybe the overlap between the customers, between the digital business and the nutritional business? Is there a lot of opportunity there to convert either way?

Carl Daikeler, Cofounder and CEO, Beachbody: Of course. I mean there’s really two big opportunities there. Obviously, we have the existing subscriber file and we’re constantly making special offers or new flavors of Shakeology. We have some new flavors coming out this in the 2025. So we’re always cross marketing.

We use the content as the initial gateway to bring people in and then upsell them into the nutritionals. The Belle Vetel program, it’s a women’s hormone health program we released last year, but it’s going into the member library, in September, which means that it’ll be available now for the first time to our digital subscribers. That will come with a free thirty day supply of the supplements that go with it, but puts them in a continuity so that they’ll get those shipments every thirty days to do with the program. So there’s these triggers that we’ve been using in direct marketing for the last twenty five years now with these more sophisticated programs. And as Mark mentioned, you know, the the population is thinking more about my overall longevity and quality of life versus just how ripped am I.

And our supplements, particularly Shakeology, really fit in well into that mindset. I like to consider Shakeology sort of my nutrition insurance, right? If I have that, here we are traveling, it’s the one thing I know is going to give me the nutrition that I need. It’s going to be healthier than whatever fast food I can pick up. So we think that’s why it’s sold over 1,000,000,000 servings.

And when it goes out into retail end of this year, beginning of next year, we think it’ll be it’ll be really distinct on the store.

Mark Goldson, Executive Chairman, Beachbody: You know, Susan, one of the big opportunities is that we have, if you look at the, you know, close to a million subscribers we’ve got who are doing digital fitness, we have maybe a, you know, a tenth of those are actually buying the nutrition. So you say, well, why is that? Because a lot of those people are buying nutritional supplements. For whatever reason, they didn’t go for the protein shake. They didn’t so we’re gonna now have products, p 90 x, Insanity, and the new or improved Shakeology.

Mhmm. So we can not only go to the general public, which you’ll see in a Kroger store or a Target store or a Sam’s Club, but we’ll be able to go to the large digital subscriber base Mhmm. And say, we’ve now got this brand new line of p ninety x supplements. And say and they’re gonna be well priced, innovative formulas. And so whereas previously, our major thing that we had to sell, even though we made other products, was Shakeology.

Uh-huh. But if you’re not a shake person for whatever reason, but you’re taking, you know, energy sticks, you’re taking energy drinks, you wanna take pre and post work, we’re gonna have all of that under a brand name that has over 60% awareness before we’ve ever entered the supplement market. Our market research show we have more than 60% awareness of a p ninety x supplement line that doesn’t exist. So we’re walking out not like a normal packaged goods company Yeah. That would have to create a brand new name and start building awareness.

We’re walking in the door. Yeah. And, you know, Shakeology has had over 10,000,000 people have used it. $4,000,000,000 of cumulative revenue, a billion servings and it has never sat on a retail shelf. So we will walk out there with an installed base of people who knew it or used to use it.

So we’re really excited. ’26 and ’27 for this company should be really exciting and you know, regardless of where the equity trades today, I think this is a situation where we’ve got to get the story out. You heard this story and you saw the financial architecture that we’ve created with the company, anybody could look at this and see that it’s a it’s a, you know, it’s a stock that’s ready to realize its value over the next twelve to twenty four months.

Susan Anderson, Analyst, Canaccord: Yeah. Okay. Great. And maybe too, if you could just talk about that path that you had to profitability and how the breakeven is so much lower now than what it was. And I guess just, you know, you guys aren’t exposed to tariffs.

So Right. Maybe just put that out.

Mark Goldson, Executive Chairman, Beachbody: It’s basically company had in excess of 1,100 people. It’s now got probably close to 300 people. When you walk into a company and it takes you close to a billion dollars

Susan Anderson, Analyst, Canaccord: Mhmm.

Mark Goldson, Executive Chairman, Beachbody: Just to break even.

Susan Anderson, Analyst, Canaccord: Mhmm.

Mark Goldson, Executive Chairman, Beachbody: That is an albatross around your neck. With a $200,000,000 break even, we are a speedboat right now. We were a big tanker before. We’re a speedboat, and the thing that’s amazing about this is we have the same cargo. We had this massively valuable library that Carl built that if you wanted to go out and recreate the body library, the 135 probably cost you half a billion dollars just to build it.

Yeah. So you’re looking at a company with a market cap of $30,000,000. It’s only got 25,000,000 of debt that we just refinanced. Mhmm. Saved 40% on our interest rate.

We’ve got 25,000,000 of cash on the balance sheet. We’ve had seven consecutive quarters of positive EBITDA, and we have a line of sight for the year to be free cash flow positive. Mhmm. And we have a library that’s probably worth several $100,000,000. So, I mean, that’s why I came to the company.

Yeah. Seeing this vision of getting the financial architecture where it is and then getting to the growth was always the plan and it was always going to happen in the third year. And January ’26 will be the beginning of essentially the third year.

Carl Daikeler, Cofounder and CEO, Beachbody: I love hearing Mark talk about it because here’s a guy who’s he didn’t need a job. He’s like he’s run companies. He’s been incredibly successful. And as we were talking and he’s he’s like scratching his head, wait, you got all this, what’s the market cap again?

Mark Goldson, Executive Chairman, Beachbody: Like, and

Carl Daikeler, Cofounder and CEO, Beachbody: you just need to fix this and you change that and what’s the market cap again?

Mark Goldson, Executive Chairman, Beachbody: Like if we went out and sold this library for the market cap of the company, which is what, we would be drawn and quartered. I mean, would be ridiculous. You would never sell the library for that. So somehow, someway, there’s a disconnect between the true value of the company and what’s being realized. That’s why I came.

Yeah. That’s the I mean, when I was at United Online, when we merged Net Zero and Juno together, we had a dollar 6 stock. One year later, we were $16. A year after that, we were $35. People who were there in the beginning did incredibly well.

The people who waited, they missed the run. Mhmm. So to me, I wanna be part of the run up, and that’s what we’re doing here.

Brad Ramberg, CFO, Beachbody: You you mentioned tariffs. Yeah. The the impact of tariffs to us has been minimal to date. We’re watching it closely as is everybody else, but the impact to us has been minimal. Yeah.

Susan Anderson, Analyst, Canaccord: Okay. And then, Brad, maybe two, just for the audience, if you could talk about the gross margin differences between the nutrition segment and the digital business and the total company as well?

Brad Ramberg, CFO, Beachbody: Sure. Two very different businesses. Obviously, a digital product doesn’t have a physical product that you’re shipping. And the gross margin on our digital business right now is we’re guiding between 70 between 8789%, which is a healthy improvement over where it had been pre the pivot that we talked about as we moved away from the MLM business. On the nutrition business, you’re actually shipping a good.

There’s cost of goods. There’s packaging they’re shipping. The gross margin on that business is between 4652%.

Susan Anderson, Analyst, Canaccord: Okay.

Brad Ramberg, CFO, Beachbody: I’ll tell you importantly, since we made this pivot, the blended gross margin of the company over the last year has improved from 69% to 72%.

Susan Anderson, Analyst, Canaccord: Okay.

Brad Ramberg, CFO, Beachbody: And it continues to improve, and we we we are forecasting continued improvement over the rest of the year.

Susan Anderson, Analyst, Canaccord: Okay. Great. And then, I guess, just looking at the consumer spending environment, I guess, historically, how has Beachbody performed when maybe the macro is a little bit weaker? Is it an area that consumers still find important to them? And I I would think that Beachbody, you know, is better positioned than some other expensive

Mark Goldson, Executive Chairman, Beachbody: Oh, yeah. I mean care subscription or health health care. I mean, this is crazy to think about. The subscription to body is less than 50¢ a day. Yeah.

So the the real pitch is is your health and your wellness or frankly your vanity Mhmm. Worth 50¢ a day. Mhmm. And so in bad economic times, those are the kinds of companies that are sort of counter cyclical. Mhmm.

If you rationalize it and when we’re on promotion, it’s probably 33¢ a day. Mhmm. And so we don’t have a cost issue. We have to just get the value message out. So if you’re not a person who cares about looking, you know, great in a bathing suit or whatever Yeah.

But you’ve got diabetes.

Susan Anderson, Analyst, Canaccord: Mhmm.

Mark Goldson, Executive Chairman, Beachbody: You got high blood pressure. Mhmm. You got early cardiovascular disease. You got sleep apnea. You have all of these issues that frankly can mostly be solved by pharmaceuticals, which a lot of people don’t wanna take, but a lot of people probably should.

Yeah. But if you were to use our programs and exercise Mhmm. Anyone’s exercise Mhmm. You could solve a lot of those issues. Mhmm.

So this is not a pitch about don’t take pharmaceuticals. It’s if you take control of your life, not only will you look better Yeah. But you will get healthier. Yeah. And if we can help you to do that, that is opposed to getting you, Susan, into an exercise program so you can get into the dress for your daughter’s wedding.

Mhmm. It now becomes be around for your grandkids, be around for your children, be around for your life. Yeah. And that’s the messaging that we’re gonna start to promote. Sure.

The byproduct is you’ll look great. Yeah. But if you think of the old TV show, the biggest loser Mhmm. Yeah. It was about losing the weight, but these people were in massive health problems.

Susan Anderson, Analyst, Canaccord: Mhmm.

Mark Goldson, Executive Chairman, Beachbody: And the exercise took a lot of that away. Yeah. We and no one in our industry has really spent any time pitching that. So Yeah. Now that we’ve got the the structure down till we can make a bunch of dough Mhmm.

With a fraction of the revenue we used to have, And we’ve got the Netflix of fitness library. So there is no content that we’re lacking, as you know. Yeah. We have every genre. So I think we’re in a great position and take somebody with a little vision to be able to see what we’ve done and where we can go.

Carl Daikeler, Cofounder and CEO, Beachbody: And we’re toggling between two names here. Beachbody was the original name, but as we move from the pure vanity positioning, we took the acronym Beachbody On Demand Interactive, B O D I, and got the URL, b0di.com. Gotta love a four letter URL. Yep. And so we repositioned the company so that we can expand the TAM and frankly have a customer who’s looking for more than a sixty or ninety day transformation, but who wants to transform and live a healthy fulfilling life.

And, and I think that really has expanded the opportunity.

Mark Goldson, Executive Chairman, Beachbody: You know, it’s an it’s a it’s a funny industry, as you know. I mean, you’ve got the health clubs, you’ve got the people who make the equipment. Yeah. But we’re really the only company that has this Netflix of fitness library of content. You know, there’s people on YouTube and tick they’ll do their own videos, but that’s completely this is high production value quality product.

And, boy, if we’re in a position now where we can expand our aperture Yeah. Because remember, there’s 30,000,000 people in America who exercise. Yeah. But there’s two hundred and forty million adults. A hundred and eighty five million people are overweight Mhmm.

And seventy five million are clinically obese. The TAM is enormous. Yeah. So if we can be the the helpful assistant to bringing your health in line and addressing the obesity, the overweight, and the the medical issues Yeah.

Great. And you’ll look better in the process. Yeah. So that’s the messaging. We don’t really have a competitor Yeah.

In that space.

Susan Anderson, Analyst, Canaccord: And so I guess with that too, maybe it reminds me, so the GLP one, you know, phenomenon, I guess how has that if at all, or maybe it’s helped your business?

Mark Goldson, Executive Chairman, Beachbody: It should be a shot in the arm, no pun intended. Shot in the belly. Mean, the biggest thing on if you lose 20 pounds on a regular diet Yeah. 15 of it is fat, five pounds muscle. Mhmm.

If you lose 20 pounds on a GLP one, fifteen is muscle Mhmm. Five is fat. So losing lean muscle mass, sarcopenia, big issue. So everybody who takes the GLP one should be doing exercise Mhmm. And to build muscle mass, and we are the perfect adjunct to doing that.

So I think the bigger that gets, the better we get.

Susan Anderson, Analyst, Canaccord: Okay. Great. And then you mentioned the competitive landscape a little bit. You know, it just seemed to explode during COVID and a little bit afterwards, contracted. So I guess where do you where do you see that at this point?

You guys feel like, you know, you are one of the few out there with a library that you have.

Mark Goldson, Executive Chairman, Beachbody: Yeah.

Susan Anderson, Analyst, Canaccord: Do you think the competitive landscape has improved at all since COVID?

Carl Daikeler, Cofounder and CEO, Beachbody: Carl? Well, for sure. I mean, first off, the reason we feel so good is we’ve got this incredible agility now because we don’t have to try to maneuver the business around equipment and all those logistics and the tariffs and all that stuff. We’re a cleaner play, which is how the company started. We first started looking at Bowflex saying, I can do the same thing as a Bowflex machine can do for $120 instead of $1,500 It’s the same thing now.

Instead of Connected Fitness for a $2,000 machine or a rower that’s going to take up space in the living room, I’m going to do it with content that’s going to have I’m going to have refreshed content every quarter or so. So that gives us incredible agility and the ability to go into these different niches like Pilates, like Yoga, like Extreme Fitness with the new P90X. And I think we get to be opportunistic and take advantage of what we’re, observing in the marketplace without having to tool up and spin up giant logistical organizations around equipment. That’s our competitive advantage.

Mark Goldson, Executive Chairman, Beachbody: And everybody sort of missed the broader it’s funny, you know, insurance companies have a program that if you join a health club, you know, they’ll pay you whether and even ever a senior, silver sneaker, But they’re gonna pay you to go work. Why are they doing that? Yeah. They’re not doing that so you’re gonna look better. Yeah.

They’re doing that to improve your health. Right? Yeah. So all of the fitness companies, all of them, all the gyms Yeah. All the equipment companies are all going after the people who wanna get more muscular and look fit.

Mhmm. Yeah. Insurance companies are saying, great. Let’s get your health in line. Yeah.

So if we can be the guy who does that Mhmm. Nobody can really follow us because to Carl’s point, if you had a half a billion dollars Mhmm. Who has a 135 program ideas Yeah. With with ten thousand hours of video? Yeah.

So we have this massive asset, and we’re just gonna repurpose it

Susan Anderson, Analyst, Canaccord: Mhmm.

Mark Goldson, Executive Chairman, Beachbody: To go after the larger TAM.

Susan Anderson, Analyst, Canaccord: Okay. Great. And even nowadays, sometimes health care companies or employers will give a monthly stipend to

Mark Goldson, Executive Chairman, Beachbody: Correct.

Susan Anderson, Analyst, Canaccord: For a gym or membership. Is that something that you guys are looking We’re gonna

Mark Goldson, Executive Chairman, Beachbody: the talk companies and the insurance companies and say, look, if you’re gonna re if you’re gonna reimburse somebody for going to a health club, how about they can do it at home or on the road? Like, here, we’re in our hotel. CNN named us the number one fitness app in the world. If you’re in your hotel room and the hotel doesn’t have a gym and you don’t feel like going down to it, you open up our app, you can work out in your room for twenty five minutes. And we just launched twenty five Minute Speed Train with Joel Freeman.

This program is incredible in twenty five minutes and people look like they’ve transformed themselves.

Carl Daikeler, Cofounder and CEO, Beachbody: Well, you, Mark.

Mark Goldson, Executive Chairman, Beachbody: Yeah. I mean Carl’s been Carl’s been doing it for twenty three of the twenty five days. That’s right. Yeah. So we’re really we’re really excited about this.

And and our enthusiasm is buoyed by the fact that we now have a company that financially has fixed its problems. Mhmm. So we don’t even need to worry about that aspect anymore. Now it’s all about getting top line growth.

Susan Anderson, Analyst, Canaccord: Sales. Yep. Okay. Well, great. Thank you so much for telling the story today.

Mark Goldson, Executive Chairman, Beachbody: Thank you,

Susan Anderson, Analyst, Canaccord: Thanks for joining us here.

Mark Goldson, Executive Chairman, Beachbody: Appreciate it, Thank you. Thanks, everyone. Thank you.

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