The Beachbody Company, Inc.

Good afternoon. Thank you for attending today's Beachbody Company Inc. First Quarter 2026 Earnings Conference Call. My name is Elizabeth and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with the opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, please press star 1 again. I would now like to pass the conference over to your host, Bruce Williams, Managing Director of ICR. You may proceed, Bruce.

Welcome, everyone, and thank you for joining us for our first quarter earnings call. With me on the call today are Mark Goldson, Executive Chairman of the Beachbody Company, our Deichler co-founder and Chief Executive Officer, and Brad Ramberg, Interim Chief Financial Officer. Following the prepared remarks, we'll open the call up for questions. Before we get started, I would like to remind you of the company's safe harbor language. Statements contained in this conference call, which are not historical facts, may be deemed to constitute forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995. Actual future results may differ materially from those suggested by such statements due to a number of risks and uncertainties, all of which are described in the company's filings with the SEC, which includes today's press release. Today's call will include references to non-GAAP financial measures, such as adjusted EBITDA, debt cash, and free cash flow. And a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures is available within the earnings release, which can be found on our website. Now, I would like to turn the call over to Mark.

Thanks very much, Bruce, and good afternoon, everyone. Welcome to the Body Q1 2026 earnings call. Last quarter, we reported our Q4 and full year 25 results, a transformational year where we achieved positive operating income and adjusted net income for the first time since going public. Today, I'm pleased to report the momentum continued in Q1 of 2026. Let me start with the numbers in the Q1 26 financial highlights. Total revenue for Q1 was $54.3 million, which came in above the high end of our guidance. As a reminder, and as we've consistently noted, Q3 2026 will mark the first quarter where we can make direct year-over-year comparisons that fully reflect our new business model, as the legacy MLM business will have completely cycled out of both periods. More importantly, we delivered our third consecutive quarter of net income at 2.3 million, compared to a net loss of 5.7 million in Q1 of 2025. Operating income was $3.1 million, marking our third consecutive quarter of profitability on this metric. We posted our 10th consecutive quarter of positive adjusted EBITDA at $8 million, up from $3.7 million in the prior year. And gross margin remained strong at 71.8% and within our guidance. As of March 31st, our cash balance was 36.6 million against outstanding debt principle of approximately 25 million, providing financial flexibility to execute our growth strategy. The operational discipline that we've built in over the past two plus years is now embedded in how we run the business. We've lowered our EBITDA break even from over 900 million in 2022, to approximately 180 million currently, giving us tremendous operating leverage and the ability to invest strategically in growth initiatives without sacrificing profitability. As we discussed in March, 2026 is the year we're unleashing our innovation pipeline. With our strong balance sheet and substantially improved financial position, we've got the flexibility to fund our retail expansion and the innovation pipeline without compromising the financial discipline that delivered this turnaround. The cornerstone of our growth strategy is a pivot towards a heavier emphasis on nutrition. And that'll be executed through an omni-channel strategy spanning direct-to-consumer to retail distribution. This represents entry into a nutrition products category with a market opportunity that is more than 12 times the size of the digital fitness category. We're bringing iconic brand names like P90X, Insanity, and Shakeology to retail with very high aided brand awareness. Now, we're freed from the MLM commission constraints. And we can price our new nutritional products at dramatically lower price points than we have done in the past. And in the case of Shakeology, we can utilize a much smaller form factor, the seven serving size, which will give us a $34.95 retail price point versus our previous price point, which was $129 for a 30 serve pack. This represents a significant opportunity for us. As many of you may know, in my career, I've got a long history in the consumer products or CPG industry. From my days at Johnson & Johnson and Bristol-Myers, Clairol, Cheeseboro Ponds, Revlon, and as president of Fabergé, which became Fabergé Elizabeth Arden. And I got background at Reebok, LA Gear, and the huge flower company FTD. I've been responsible for the creation and or marketing of billions of dollars worth of some of the most successful consumer products of all time sold through retail distribution. And that's one of our major areas of expansion that I brought to body. The process of submitting samples through our broker sales organization, Advantage Solutions, securing buyer commitments, And then waiting for the retailer shelf set planogram to be updated is about a six to 12 month process with inflexible adherence dates. We're right now in the midst of that process. And over the next 60 to 90 days, we expect to see which retailers will be adding Shakeology and the P90X line of nutritional supplements. Look, I'm sure you've seen the recent spate of acquisitions in the CPG industry, whether it be Huel, Groons, Bloom, Alani Nui, Poppy, and a host of other companies that have sold for between $1 to $2 billion in the past year, with brand names that, while we have great respect for, are not nearly as well-known as the P90X and even Shakeology brand names. So the potential for creating massive brand equity value for shareholders of body within the nutritional supplement and energy drink industry for body is potentially the single largest mid to long-term opportunity that we've got at the company. Speaking of securing retail distribution, last week, we announced that Shakeology will be carried in more than 80 Sprouts farmers market stores around the country, starting in late May, early June. And we just secured a partnership with KEHI Distributors, which is one of the two largest distributors of natural, organic and fresh products to the grocery industry. And this will give us the opportunity to reach the 30,000 grocery, supermarket and online channels that are covered by the KEHI Distribution Network. And in late breaking news, we just announced in a press release yesterday that Shakeology will now be carried by Vitamin Shop across its more than 640 stores all over the USA later this year, with Vitamin Shop taking all five of the Shakeology flavor variants in our new seven-serve, $34.99 retail price packaging. This exciting news, along with the Sprouts Farmer's Market news and the Kihei distribution deal, will mark the first time that Shakeology, which is a $4 billion cumulative sales brand with more than 1 billion cumulative servings, the first time it will be available in retail stores across the USA. On the next quarterly earnings call, we hope to have an update on more exciting retail partners for the Shakeology brand and new retailers signed up to carry the P90X line of supplements and the retail stores who will be carrying the Insanity and P90X energy drinks in the Southern California test market will be running later this summer. You know, one of the truly unique and compelling aspects of the new body retail distribution initiative as a consumer product company is that we fundamentally created a virtual consumer products company. So what do I mean by that? Well, we've outsourced virtually every aspect of our supply chain and distribution infrastructure. Manufacturing is outsourced to best-in-class contract manufacturers. Sales and retail distribution are managed through our outside partner, Advantage Solutions. Fulfillment and logistics of all of the retail orders are handled by a third-party logistics provider or a 3TL. And we're evaluating the use of purchase order financing and accounts receivable factoring to optimize our working capital as relates to the retail project. What we keep in-house are the core competencies that drive our competitive advantage. Those are marketing, brand management, product innovation, and R&D. So this asset light model gives us exceptional financial flexibility, minimal capital requirements, and importantly, the ability to scale rapidly without proportional increases in fixed costs, since this structure moves the majority of those costs to a variable-based cost based on usage and demand. So in conclusion, Our financial turnaround has created massive operating leverage, giving us the ability to invest strategically in high return initiatives while maintaining profitability. We're excited about the opportunities ahead, particularly as we move into the second half of 2026 and then beyond. This year marks the opening of our nutritional innovation pipeline. We are actively in the process of developing new products, securing retail placement, and building market acceptance. While we expect to see initial traction in the second half of 2026, the substantial yield from these initiatives will materialize in 2027 and beyond as our retail presence expands and our multi-channel strategy fully takes hold. We've built a resilient financial foundation that positions us to capitalize on significant growth opportunities in both nutrition and digital fitness. and we're taking a disciplined, methodical approach to ensure we execute this transition successfully. I'll now turn it over to Carl to discuss our operational progress and product innovation strategy.