The Beachbody Company, Inc.

Hello everyone, thank you for joining us and welcome to the Beachbody Company, Inc. second quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Bruce Williams, Managing Director of ICR. Bruce, please go ahead.

Welcome, everyone, and thank you for joining us for our second quarter earnings call. With me on the call today are Mark Goldston, executive chairman of the Beachbody Company, Carl 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 hardware 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 Securities 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, net 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's second quarter 2026 earnings call. I'm pleased to report the body delivered another quarter of consistent execution against the turnaround we've been building for three years now. Total revenue for the second quarter was $49.6 million, above the midpoint of our guidance range of $46 to $51 million. More importantly, this was our fourth consecutive quarter of both operating income and net income. And it was our 11th consecutive quarter of positive adjusted EBITDA, which came in at 6.7 million, which was above the high end of our guidance range of 3 to 6 million. That also marks our fourth consecutive quarter of double digit adjusted EBITDA margins, which tells you that the operational discipline that we've built into this business over the past three years is durable. Net income for the quarter was $1.4 million, also above the high end of our guidance range of a loss of $3 million to break even. So across the board, revenue, net income, and adjusted EBITDA, we either met or exceeded our own guidance again this quarter. Let's turn to the balance sheet. We ended the quarter with $32.4 million of cash. That's against the total debt of approximately $23.6 million. So we had a net cash position of $8.8 million. I'm pleased that we modified our lending agreement with Tiger Finance, and we now have a much less restrictive covenant package. Our new agreement demonstrates the conviction and confidence that our partners have in our long-term strategic initiatives. Let me give you an update on the retail expansion, which continues to build momentum. Shakeology is off to a great start at Sprouts Farmers Market Stores, and they've now expanded our footprint into 131 Sprouts stores nationwide. And importantly, we're already seeing stores coming back for reorders on Shakeology. This quarter, in fact, right now, we've brought Shakeology into 481 vitamin shop locations around the country. We've also continued to build our relationship with KEHI, one of the two largest distributors of natural and organic products in the country. And this gives us a path into their network of grocery accounts. And just recently, we added an account which will open up the UNFI distribution network. That'll happen in November of this year. And UNFI is the other major distributor of consumer goods to the grocery channel. As we've previously discussed, waiting for the retailer's shelf-set planogram to be updated is a six to 12-month process. While we continue to actively participate in that process with strong distribution partners, we expect to modestly build distribution this year with the expectation for accelerated growth in 2027 as we become more integrated into retailers' planograms. On the nutrition innovation side, our P90X supplement line, which is pre-workout, hydration, creatine, recovery protein, and fast-acting energy, that just became available on Amazon, which opens up an important channel for us to build brand awareness and drive trial. We're also in the process of preparing for the Southern California test market for our new energy drink lineup. We've hired one of the top beverage distribution companies in the country to represent us in the market, and both our Insanity Liquid Shock and our P90X energy drinks are in production and will soon be ready to ship. We expect the test market rollout to begin in late Q3 or into Q4, and we will continue that rollout throughout the end of the year. I'm very pleased with our packaging and the flavors, and they really distinguish us from the competition. You know, the digital fitness category is a $13 billion market, and the nutritional supplement category is a $164 billion market. That's like a lake versus an ocean. So by leading with nutrition, which is exactly what we've done with P90X and Shakeology this year, We're acquiring customers more efficiently, and a meaningful share of those nutrition customers are actually converting into our digital fitness subscriptions as well. So that combination, what we call the total solution, is what has always driven this company's best results. And it's exactly what's fueling our direct-to-consumer expansion today. With that, let me turn the call over to Carl.