Body at Sidoti Micro Cap Virtual Conference: Strategic Turnaround in Focus

On Wednesday, 20 August 2025, Body (BZ:BODY) presented at the Sidoti Micro Cap Virtual Conference, highlighting a remarkable financial turnaround over the past two years. The company, previously known as The Beachbody Company, showcased its transition from financial struggles to a cash flow positive state, setting the stage for growth in 2026. While the company is optimistic about its future, challenges remain as it navigates a competitive market.

Key Takeaways

• Body reduced its cash breakeven point from $900 million to under $200 million.
• Achieved seven consecutive quarters of positive adjusted EBITDA, totaling $39.5 million.
• Reduced headcount from over 1,300 to less than 300, streamlining operations.
• Plans to launch fitness brands like P90X and Insanity into the retail market in 2026.
• Transitioned to a multi-channel sales approach, moving away from multilevel marketing.

Financial Results

• Body increased its gross margins by over 1,000 basis points.
• Generated $4.1 million in positive free cash flow in the first half of 2025.
• Reduced debt from $50 million to below $20 million, refinancing with a $25 million three-year facility.
• Lowered the cost of capital from nearly 28% to the mid-15% range.

Operational Updates

• Body transitioned from a multilevel marketing model to a multi-channel sales approach with five distinct channels.
• Streamlined operations, significantly reducing its workforce.
• Outsourced production and shipping to become a virtual consumer packaged goods company.
• Partnered with a major brokerage for retail distribution.

Future Outlook

• Plans to launch P90X, Insanity, and Shakeology into the retail market in 2026.
• New exercise programs to be introduced to cross-promote with retail products.
• Aims to leverage its CRM database of 8 million former members for growth.
• Potential consolidation of strategic assets to benefit from substantial federal and state NOLs.

Q&A Highlights

• Body plans regional rollouts in grocery, drugstores, mass merchants, club stores, and convenience stores.
• Transitioned to a capital-efficient business model, with cash now exceeding debt.
• Moved to NASDAQ to align with cutting-edge technology and attract investors.

Body’s leadership is confident about the company’s future, citing its strong asset base and improved financial performance as key drivers for potential growth. For further insights, readers are encouraged to refer to the full transcript below.

Full transcript - Sidoti Micro Cap Virtual Conference:

Alex, Unidentified role: Ticker b o d I. During the presentation, please feel welcome to submit questions using the Zoom q and a interface at the bottom of your screen. And after the fireside chat, we’ll open to your questions. With that, Mark, I’ll turn it over to you.

Mark, Unidentified role: Thank you, Alex. And I wanna thank everybody for attending today. It’s a pleasure. I wanna give you a little bit of a background on the Beachbody Company, now known as Body, talk about the journey that we’ve been on with the turnaround and all the exciting news that we’ve got in front of us. So I’ve been with the company, just over two years.

I have a long background of running major public companies. And I was attracted to this company, one, because I do turnarounds, and two, because of the tremendous asset base that exists here. This company has the most impressive library of fitness programs in the world, over a 135 of these programs with over nine thousand hours of video. And some of the greatest names in the history of fitness, p ninety x, Insanity, twenty one day fix, that’s all part of our library. So we’ve got that.

We have a nutrition business, and the lion’s share of that is the Shakeology business, which is the world’s first super food protein shake. That product’s been around about fifteen years and has sold cumulatively $4,000,000,000 worth of product, 1,000,000,000 servings, and it’s never been sold in a retail store. It’s only been sold direct to the consumer. So the company went public several years ago on a despact, then got itself into a turnaround situation. That’s when I joined in June ’23.

So let me let me tell you basically what’s going on. And and by the way, we have Carl Dykkers with us today. Carl is our cofounder and CEO. Carl is the pioneer of what you would know as the at home fitness industry. He’s been with the company the entire twenty seven years.

So all of the famous infomercials that you used to buy videos and DVDs from was all pioneered by Carl and his team at the Beachbody Company. And then Brad Ramberg, who’s our CFO, he’s been at the company close to twenty years and was previously the CFO for the company’s run from eighty five million in revenue to north of a billion in revenue. And a little anecdotal tidbit, when I was the first chairman and CEO of a startup called NetZero, which became the huge United Online Internet conglomerate, Brad was the CFO of IdeaLab, which was our first net zero investor. So this is kind of a kismet of us all coming back together. So my joining in June 2023, the the goal was to embark upon a three year turnaround plan.

The first two years would be a complete financial rearchitecture of the company. And then the third year, which will be 2026, would be the year where we will focus on top line growth and new products. So what have we done? It’s kind of remarkable. We have lowered the overhead in the company such that the breakeven, which was $900,000,000 previously, the cash breakeven level, has now been lowered to less than 200,000,000.

So we’ve lowered the cash breakeven requirement from a revenue standpoint by over $700,000,000. We’ve increased our gross margins well in excess of a thousand basis points. The company had not previously been cash flow positive, EBITDA positive. We’ve now had seven consecutive quarters of positive adjusted EBITDA totaling a cumulative $39,500,000 We are free cash flow positive for the 2025, first time that’s happened in many years. We made 4,100,000 of positive free cash flow, and we publicly articulated on our earnings call last week that we have a line of sight to being free cash flow positive for the full year of 2025, which would be the final leg of the turnaround financial turnaround stool.

So we also had a $50,000,000 debt level when I joined with a company called Blue Torch Capital. We lowered that dramatically to a sub 20,000,000. It had a term that was coming due in February ’26. We’ve refinanced that facility with Tiger Finance and SG Capital for a $25,000,000 three year facility. And in so doing, we lowered our cost of capital by almost 40% from almost 28% to the mid 15% range.

And we have a one year moratorium on principal repayment. So we have done a complete and total restructuring of the company, massive lowering the breakeven, EBITDA positivity for seven quarters totaling 39 and a half million dollars of cumulative adjusted EBITDA. Free cash flow positive for the first half of the year at 4,100,000.0, line of sight to free cash flow positive for the entire year. We reduced our headcount from over 1,300 people to now less than 300 people. We streamlined all of the operations of the company.

And what we’re about to embark upon in 2026 is a very exciting new initiative where we will become a virtual consumer packaged goods company. And we’re taking our billion dollar brand names, which is p ninety x, Insanity, and Shakeology, and we’re gonna launch them into the retail market in the supplement business. So we’ve created an entire line of p ninety x nutritional supplements with beautiful packaging. They will be launched in probably ’26 into food stores, drug stores, mass merchants, club stores. We’re taking our Shakeology brand, which has done $4,000,000,000 a cumulative sales and has had over a billion servings, and we’re taking it retail with brand new packaging and a much smaller form factor so that we can have an attractive retail price point.

And then in the 2026, we’re taking our massive brand name Insanity, which has over 40,000,000 qualified views on the Insanity exercise program, we’re launching a line of nutritional supplements, energy drinks, etcetera, under the Insanity branding. What makes this really compelling is that we’re gonna do for the first time in a decade a brand new p 90 x exercise program. The biggest fitness, extreme fitness program in the history of the fitness industry will be coming out in Q1 coincident to the launch of the P90X nutritional supplement line, which will give us the opportunity to be the only company to ever have the ability to cross promote both a fitness program and a nutritional supplement at retail at the same time. And it will feature a QR coded based promotional activity that will allow a consumer who buys a p 90 x nutritional supplement to get a one month p 90 x exercise program for free, which is a $35 value, which basically makes it like they’re buying the nutritional supplement for nothing. And then we’ll do the same thing in the back ’26 when we launch Insanity nutritional supplements and energy drinks into the retail market.

We’ll do the same thing with a new Insanity exercise program. So what you will see from us in 2026 is the third year of the turnaround. The first two years were the financial turnaround. I’ve just told you all the impressive things that we’ve done. And then the third year will be where we focus on trying to grow our digital subscriber base, grow our nutrition business, expand into retail for the first time ever, cross market and cross pollinate our our retail products with our digital fitness products, and take our CRM base of 8,000,000 former members, many of whom were Shakeology, Insanity, and P90X users, and now be able to go to them with a new p 90 x and insanity exercise program, a brand new line of supplements from these brands, and a new form factor for Shakeology packaged form factor that carries a lower price, lower overall dosage in the packaging.

So that’s a 26. So where we are today, and this is why I joined the company, we’ve got a library of a 135 titles that cost us close to a half a billion dollars to produce. It’s an incredible asset base and competitive moat. The company’s market cap is roughly $40,000,000. We have more cash than we have debt on our balance sheet today.

We have this half a billion dollar library. We’re cash flow positive. We’ve been EBITDA positive on an adjusted EBITDA basis for seven consecutive quarters totaling almost $40,000,000, and yet the overall market cap of the company is only $40,000,000. So to say that this is an opportunity, in my opinion, since I’m here putting my time, effort, and reputation on the line, is an understatement. Carl is a legend in this industry.

That’s why I joined the company. I believed in him. I believe in what he created, and I believe in all the millions of people who have used this company’s products for all of these years. What it needed was a rearchitecture of its balance sheet, its p and l, and its manpower base. It was never a product issue, and we’ve done all of that.

And so today, we’ve taken our cost down so that our marketing expense is 39 and a half percent of our revenue. It was 51.1%, and we have a line of sight to have that be sub 35 of revenue. And that $1 of that reduction came out of the actual marketing spend. It was all out of the infrastructural spend that was part of that p and l line item. So we’re actually investing more from a marketing standpoint, but our percentage of sales has gone from 51% cost down to 39% cost on its way down to sub 35.

So that’s essentially the overview of the company. It has been a stunning financial turnaround to to be to be quite accurate with you, and that was the heavy lifting. And now that a lot of that’s behind us, and we do have a line of sight towards being free cash flow positive, now the focus is on all these new major initiatives to come out in 2026, which we previously called our innovation pipeline, which is now ready to start bearing fruit. So, Alex, that, I’m gonna turn it over to you.

Alex, Unidentified role: Perfect. Well, thank you very much for the background. Mark, maybe we could start, you know, a couple of questions on team and then go into products and distribution and then financials. And on the team, you know, just to start with you, I know you mentioned having a background in turnarounds, but I believe you you wrote, you know, a very popular book on the subject Yes. And it’s used, you know, in classrooms.

So maybe we could talk a little bit about your background and and some of the success you’ve had with turnarounds given, you know, the progress you mentioned for Body so far.

Mark, Unidentified role: Thank you. Yeah. I’ve I’ve been a public CEO for many decades going all the way back to the eighties where I was the CEO of Faberge. Elizabeth Arden, Reebok was the first chairman and CEO of Einstein Brothers, took it public, Einstein Brothers Bagels, ran LA gear, invented lighted shoes, all of that. Then I started as the first chairman and CEO of this Ross startup called NetZero, which became a huge Internet company, which we morphed into United Online.

And we owned FTD Flowers, classmates.com, Juno, NetZero. We made $1,800,000,000 of EBITDA, returned $400,000,000 of cash to our investors, public investors as dividend. I wrote the book on turnarounds when I was an odyssey partner back in the late eighties. We invented the prepackaged bankruptcy at the time when we would buy busted LBOs, and we would go in and fix them and then take them public. So I wrote a book called the turnaround prescription, which is a blueprint on how to reposition and rearchitect troubled companies.

And so I’ve been using that blueprint, you know, successfully, not, like, for decades. And and Beachbody, now called BODY, which is an acronym for Beachbody On Demand Interactive, Beachbody was a classic candidate to apply that those disciplines to, which is what we’re doing.

Alex, Unidentified role: Perfect. Thank you. And, Carl, you know, I I know Mark mentioned you are, you know, one of the pioneers in this space. And even today, I think you have, you know, hundreds of thousands of personal followers, and you make content yourself. So I was curious if you could talk a little bit about, you know, how you use that background to keep Body at the forefront of content creation today.

Carl Dykkers, Cofounder and CEO, Body (formerly The Beachbody Company): Well, it’s always about solving people’s problems. That’s what it’s been about since day one, really, paying attention to what direction is the market headed. And that’s really what’s exciting about this whole turnaround process and this particular stage of it. The problem of obesity, but even more acute lifestyle disease, heart disease, type two diabetes, like, these are running rampant. They’re, as bad as any pandemic, and we have the content and proven programs with our new agility that we can reach that massive market with this newly invented or restructured multichannel sales approach.

So where we were quite successful with the multilevel marketing business, but that really was like limiting yourself to just the 10% of the population according to surveys that would buy from an MLM. So now we get to take this massive asset of, programs that are proven. Obviously, big brand names like p ninety x insanity, twenty one day fix, morning meltdown one hundred, eighty day obsession, and we get to sell them everywhere in every channel. And as Marcus said, with his expertise launching into retail, this is a massive opportunity for us to take the power of these brands, leverage that those that that brand awareness and both create sales at retail, but also the prospect that people will come back and leverage or or use their redeem their coupon codes that are on the package to access the digital content. So this is really an exciting period for the business.

Obviously, what we’re the most proud of are the lives that have been changed, the health that’s been changed for people. That’s what I specialize in is paying attention to how do you get people engaged and influence them to to make a change. And and obviously, I saw one of the questions was, you know, with the rise of connected fitness, you know, where do we sort of live in that? And have we looked at the possibility of of wearables or or creating something that would help people, understand their their biometrics? And frankly, the real opportunity for us with this massive library and this new agility is to work with all the connected companies and all of the wearable companies because we have the solution.

Let them measure it. We’re gonna provide access to tens of millions of people, hopefully, to this refined and, efficient platform, and that’s my job is to make sure that the product is great and gets people the results that they expect.

Mark, Unidentified role: You know, Alex, some interesting numbers for your audience. There’s about two hundred and thirty million adult in America. About a hundred and eighty five million of them, I know this is gonna sound shocking, are overweight. One hundred and eighty five million. Seventy five million people are categorized as clinically obese.

So the reason why we have all of this rampant high blood pressure, high diabetes levels, cardiovascular sleep apnea, that’s the reason. There’s about thirty five million people in America who are true exercisers out of the two thirty million adults. So what we’re about to do is take this aperture. This is why the company is called Body, not just the Beachbody company anymore. It’s not just about six pack abs and big muscles.

It’s about making your body healthier so you can live longer because longevity is huge. And some people are interested in finding non pharmaceutical solutions to their medical issues so they don’t have to take a drug for the rest their life. Not that there’s anything wrong with that, but there’s a lot of people who are reluctant to do that. There are natural ways to address these health issues that nobody has really addressed largely because they don’t have the size of a library. We have the Netflix of fitness.

So whether you’re a ranked beginner or someone like me who trains two and a half hours a day, that entire continuum is covered by our library. So our ability to go out and tell people that this will help them, their families, be around for their kids, improve their overall health, improve their energy and by the way, while you’re doing that, you will lose weight. You will look better. You will be stronger. But it versus it just being a vanity play or a fitness fanatic play, we’ll certainly get those people.

But now we have a improve your health and lifestyle and well-being play. So now that TAM has gone from 35,000,000 people who are the exercisers to the 230,000,000 people who draw a breath as an adult every day in this country, and that’s where we’re going. And while we do that, we’re gonna be in retail stores in front of millions of people with the p ninety x, Shakeology, and then Insanity brand names cross marketing back to our portfolio. We have a super powerful growth engine here waiting to occur in ’26 and ’27, none of which could have been started, Alex, until the financial turnaround was completed, which in our view, it now is.

Alex, Unidentified role: That’s great. Yeah. It’s it’s a it’s a great story, I think, that you’ve done so far, and it’s a great segue into talking a little bit more about products and distribution. So we have a couple of questions from the audience about retail, and maybe we could talk a little bit about, you know, what people should expect. Are we talking distribution to large retailers, small retailers?

Mark, Unidentified role: Okay.

Alex, Unidentified role: Online, offline? Great question. Yeah. Are there any retailers, you know, that you’re you’re ready to talk about and name, or is that to be announced?

Mark, Unidentified role: To be announced. So let me explain how we’re doing this. This is a great question. Having spent a bunch of my time running consumer packaged goods companies, we are building a virtual CPG. So just like the world is being taken over by AI and how that’s gonna change the world, we believe, and I strongly believe, that the way to build a consumer packaged goods company in today’s world, if you’re not Procter, you’re not Unilever, you’re not Johnson and Johnson, is to outsource commodity functions and keep in house proprietary functions.

So what is proprietary? Product development, r and d, marketing. That’s in house. That’s proprietary. That’s our special sauce.

So we designed all of these products. We engineered them, and we’re building them. However, the production of those products, the selling in of those products, and the ultimate shipping of those products, those are commodity functions best served by world class partners who can do that. So we’ve signed up the biggest world class selling partner, brokerage partner in America. They’re gonna sell us into grocery, drugstores, mass merchants, the Targets and Walmarts of the world, club stores, Costco, Sam’s Club, etcetera, and convenience stores.

That’s what they’re going to do. We have a third party logistics company which will handle all of the shipping, and we’re partnering with one or two major outside product development companies who produce all of these ingredients and produce these formulas. And we’re gonna rely upon them for not only that, but also helping us with research and development so that we can always be cutting edge. So we don’t have any of that burden on the p and l, Alex. We’ve basically taken what has formerly been a high fixed cost industry and turned it into a variable cost industry because all of this is outsourced.

So you can turn it up or you can turn it down, but you don’t have a high intransigent internal burden to cover. So the big message at our company has been we’ve created massive operating leverage in our p and l. And so we’re gonna continue that with the retail launch. So you’ll see us in big chains, but we will slowly roll it out. We’re not gonna go to all the chains at once.

You’ll see us do regional rollouts, prove our market share worth, and then you’ll see a much bigger rollout back half of ’26 into ’27. And the company that we run that does that will be a fully functioning CPG unit but built in a virtual fashion, which is very much a ’20 late 2020s into 2030s business model.

Alex, Unidentified role: That’s great. Yeah. The transition I think you’ve had from your old business model to more of a capital efficient one is is very interesting.

Mark, Unidentified role: Yeah. And the extinguishing of the MLM I mean, let’s face it. A lot of people out there looked at a company that was a multilevel marketing company and said, I either don’t wanna buy products on them or I don’t wanna invest in them. So we got rid of that at the 2024. So we are the reason why you can’t do year over year or quarter over quarter comparisons is we’re a brand new company started January 1.

We are no longer anything close to what we were before. We now have five channels, essentially, where we sell our products inclusive of direct to consumer. We have an affiliate network of people, which is like a a better version of a refer a friend. We have Amazon and marketplaces. We will have retail, and we’ve got our own website, which previously, you couldn’t buy even our nutrition products.

On our website, you had to buy it from one of our members of our network no longer. Now you can buy anything you want from our website. So I think we’re gonna be in a great situation. And the the gold mine opportunity as well is that we’ve got over 8,000,000 people in a CRM basket who are former p ninety x Insanity Shakeology members. Mhmm.

And we’ve yet to figure out the best way to reengage them or reignite them. When we have a p 90 x Insanity line of nutritional products at a popular price point with a newly redesigned Shakeology package and a new p 90 x and new Insanity exercise program, we can now go to those people who probably cost us a billion plus dollars to acquire at one point, and we can now go back to them with brand names they’re familiar with with brand new versions and new products that they could never buy from us before. That’s a big idea.

Alex, Unidentified role: Absolutely. Yeah. These integrated products, I think, position you pretty well.

Mark, Unidentified role: Yes.

Alex, Unidentified role: So, you know, I think we’re we’re in the last five minutes. Maybe we’ll switch gears into financials. And I’d love to start. I I think while we’ve been on, the company announced the transition from the New York Stock Exchange to a NASDAQ listing. Could you share a little bit more about that and and sort of, you know, how that positions you for success?

Brad Ramberg, CFO, Body (formerly The Beachbody Company): Brad? Sure. We’re very excited to become a a a Nasdaq company. Nasdaq is one of the the leading exchange with cutting edge emerging technologies, game changing companies. And we just think that is the absolute right platform for the body company, Beachbody company going forward.

It really has the technology we need. It tracks the kind of investors that we believe are right for the company, and we are very, very excited about about this change.

Alex, Unidentified role: Great. Thank you. And I think, you know, we’ve spoken a little bit about the company’s progress towards free cash flow positivity. Maybe we could connect the dots to that and, you know, sort of the current capitalization and whether, know, you feel sort of anything needs to change in order to get to free cash flow positivity? Let let’s maybe talk about that a little bit.

Mark, Unidentified role: Well, the cap structure of the company you’re talking about the cap structure of the company Yes. On a forward basis? Yes. Look. The the company has historically, in the last couple of years, been sort of cash starved, and it had this debt that we had to deal with.

So when I came in two years ago, the debt was $50,000,000. That debt has now been cut in half. The interest effective interest has been cut by 40%. And for the first time in a long time, our cash exceeds our debt. So the way the place is structured, we have a great balance sheet right now.

We have a really good cap structure. When our equity starts to be aligned with the true value of the company, we will have an incredibly valuable, right now, unknown latent instrument where we’ve got a $380,000,000 federal NOL and a $400,000,000 state NOL. So that means that when our equity is properly valued, which it will be now that the turnaround’s in progress, and with virtually very little debt on the balance sheet, we will be in a position to potentially consolidate key strategic assets that we can not only tuck in, but we can protect the profit because we have this massive NOL that lasts for, you know, twenty years and isn’t gonna burn off. And so if you just took the net present value, Alex, of a $400,000,000 NOL, what’s that worth? More than the market cap of our company, that’s for sure.

So the exciting thing for us is that we’ve gotten the cap structure. It looks great. Balance sheet’s strong. Unused NOLs from a company that is going to be positive cash flow and profitable. And an industry that has lacked consolidation, which desperately needs it, if we haven’t proven anything, we’ve proven that we’re brilliant operators who have taken a breakeven down from 900,000,000 to less than 200.

So if we were to become a consolidator, we would do it in a very efficient way with a lot of operating leverage. And so that’s the exciting part of the 2026 to 2028 horizon.

Brad Ramberg, CFO, Body (formerly The Beachbody Company): And now, obviously, our free cash flow in the first half of this year is $4,200,000 or $4,100,000. Mean, that’s the first time we’ve had positive free cash flow since 2020. Right. That is just a phenomenal turnaround for the for the company and the team and the business.

Mark, Unidentified role: And and being candid, I mean, when I joined in June ’23, we embarked upon a turnaround plan. If if I would have told you that I mean, if you would have told me then that we were gonna have seven consecutive quarters of positive EBITDA and make almost $40,000,000 and be cash flow positive in the 2025, I would have said slow your roll. We’re gonna get there. I’m not sure we’re gonna get there that quickly, but we’re going to get there. Well, we did.

So we are ahead of schedule on the financial turnaround. And the exciting part of that is we’d always plan to launch these new products in 2026. We just didn’t realize that the financial part of the turnaround would largely be behind us when all that new exciting news was about to come out.

Alex, Unidentified role: Absolutely. Okay. Great. Well, we are almost at time. So maybe as the last question, if we could just sum up the value proposition for investors, you know, who may be looking across fitness and nutrition tech, and they’re newer to your name, you know, just to kind of close this out?

Mark, Unidentified role: Well, all I can say is is I I have as I said, I’ve been to this movie before. When I merged NetZero and Juno together to create Net Online after the Internet bubble had burst, I had a dollar 6 stock and traded by appointment. You know the drill. And people got into it because they believe the story. A lot of people set aside.

So one year later, stock was $16. We’re number one stock in the Nasdaq. One year later, it was 35. So I believe this. I you cannot compare the asset base of what we have here versus what that was.

So if I’m an investor, I’m looking at coverage. I’m saying if a company is worth $40,000,000, you know, it’s it’s probably trading today at, you know, 20% of its revenue. I’ve never I’ve never seen that. Normally, a company like that would be trading that way because it has a billion dollars of debt. Well, actually, we only have 25,000,000, and we have more cash than debt.

Well, maybe they’re not profitable. Well, we are EBITDA positive, and we are cash flow. So I don’t really understand the dislocation, but that’s for the market to figure out. But if I was going to take a bet on a company, I would say, I’m gonna wait until the financial turnaround has proven its worth. Well, we’ve done that.

And this company has a brilliant history of launching incredible new products and being very successful. That has never been in question. The only thing that was in question was the balance sheet and the p and l, and that’s been solved. So from my perspective, that’s why I’m here. I didn’t need to come and do this.

I did this because I believed in Carl and what he built and the products that are here and the fact that this was a ready made turnaround situation, and and we’ve delivered. And so if people wanna join this journey, hopefully, it will be a great ride. This is the time to get in.

Alex, Unidentified role: Great. Well, thank you very much for, you know, the introduction and fireside chat and for taking q and a. And, Mark, Carl, and Brad, you know, thanks for joining us today as well as thanks everybody for tuning in.

Mark, Unidentified role: Thank you, Alex. Always a pleasure. I really appreciate you pulling these guys together for us. Absolutely. Hey, guys.

Thank you.

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