Executive Summary

Q2 2024 revenue was $110.2M, above the midpoint of prior guidance ($103–$113M), with the company delivering its third consecutive quarter of positive adjusted EBITDA ($4.9M). Overall gross margin reached 69% (best since 2021), and net loss improved to $(10.9)M, the lowest since going public .
Management reiterated a strategic pivot to the larger nutrition market and highlighted operational efficiency gains that reduced the adjusted-EBITDA breakeven revenue level by >40% to under $500M, positioning the business for sustainable cash flows .
Q3 2024 outlook: revenue $97–$107M, net loss $(13)M to $(9)M, adjusted EBITDA $2–$6M; focus remains on margin discipline and cash generation while executing nutrition-led growth initiatives .
S&P Global consensus EPS/revenue estimates were unavailable due to a CIQ mapping issue; comparisons vs Wall Street consensus could not be made this quarter (we attempted retrieval; mapping missing).*

What Went Well and What Went Wrong

Strong profitability trajectory: adjusted EBITDA positive ($4.9M) and above guidance, with operating loss improving by $14.7M YoY to $(9.5)M; net loss improved to $(10.9)M, lowest since public listing .
Gross margin strength: overall gross margin reached 69%, the highest since 2021, supported by lower cost of revenue and improved mix/efficiency .
Strategic clarity and execution: management emphasized pivoting to the $164B nutrition market and lowered revenue breakeven for adjusted EBITDA to under $500M, underpinning sustainable cash flow ambitions. “We are implementing multiple new strategies to recapture a significant portion of the vast nutrition market opportunity…” .

Revenue declined 18.4% YoY to $110.2M, with pressure across Nutrition & Other (down 22.5% YoY) and Connected Fitness (down 74.3% YoY), reflecting ongoing demand challenges and portfolio shifts .
Subscriber contraction: digital subscriptions fell to 1.15M (−24.9% YoY) and nutritional subscriptions to 0.14M (−26.2% YoY), weighing on recurring revenue, despite retention improvements .
Top-line pressure in Connected Fitness persisted (approx. 1,600 bikes delivered vs 5,500 YoY), limiting scale and operating leverage from hardware .

Metric	Q4 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$119.0	$120.0	$110.2
Gross Profit ($USD Millions)	$74.0	$81.3	$76.4
Operating Loss ($USD Millions)	$(60.4)	$(10.8)	$(9.5)
Net Loss ($USD Millions)	$(65.0)	$(14.2)	$(10.9)
Diluted EPS ($)	$(10.31)	$(2.10)	$(1.59)
Adjusted EBITDA ($USD Millions)	$2.8	$4.6	$4.9

Notes: Gross margin was cited at 69% in Q2 2024 (best since 2021) .

Segment Revenue ($USD Millions)	Q4 2023	Q1 2024	Q2 2024
Digital	$64.0	$61.5	$58.8
Nutrition & Other	$51.8	$55.5	$50.1
Connected Fitness	$3.2	$3.0	$1.3
Total Revenue	$119.0	$120.0	$110.2

KPI	Q4 2023	Q1 2024	Q2 2024
Digital Subscriptions (M)	1.31	1.22	1.15
Nutritional Subscriptions (M)	0.16	0.15	0.14
Total Streams (M)	20.4	25.6	22.7
DAU/MAU (%)	30.3%	33.2%	31.9%
Connected Fitness Units Delivered (K)	4.1	3.5	1.6

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q2 2024 (Actual vs Guide)	$103–$113	Actual: $110.2	Beat midpoint; within range
Net Loss ($USD Millions)	Q2 2024 (Actual vs Guide)	$(20) to $(14)	Actual: $(10.9)	Better than guide (less negative)
Adjusted EBITDA ($USD Millions)	Q2 2024 (Actual vs Guide)	$(3) to $3	Actual: $4.9	Beat (above high end)
Revenue ($USD Millions)	Q3 2024 Outlook	N/A (first issuance)	$97–$107	N/A
Net Loss ($USD Millions)	Q3 2024 Outlook	N/A	$(13) to $(9)	N/A
Adjusted EBITDA ($USD Millions)	Q3 2024 Outlook	N/A	$2–$6	N/A

Topic	Previous Mentions (Q4 2023, Q1 2024)	Current Period (Q2 2024)	Trend
Nutrition-led strategy/pivot	Refocus on reshaping nutrition; foundation for 2024 turnaround	CEO emphasizes $164B nutrition market, multiple strategies to recapture share; high-margin profile	Strengthening focus
Operating efficiency & breakeven	Cost structure reset; projected ~$200M savings vs 2021	Revenue breakeven for adjusted EBITDA reduced >40% to < $500M	Improved efficiency
Gross margin discipline	Gross margin improvement began in FY23	69% overall gross margin (best since 2021)	Improving
Subscriptions/retention	DAU/MAU and retention healthy despite subscriber declines	Digital retention improved; subscriptions down YoY	Mixed (retention up, subs down)
Connected fitness demand	Lower units, inventory rationalization	Units delivered down sharply YoY (1.6K vs 5.5K)	Continued pressure
Liquidity/cash flow	Q1 guided to positive operating cash flow/free cash flow	1H24 operating cash flow $8.2M; FCF $5.3M	Positive trajectory

Call transcript sources: Seeking Alpha and Marketscreener hosted full transcripts .

“Our focus is on returning to growth, particularly by focusing on the $164 billion nutrition market… Nutrition was once an $800 million product line for us…” .
“We have significantly improved our operations and efficiency, reducing our revenue breakeven point by more than 40% from over $900 million to under $500 million. This positions us well to generate sustainable cash flows…” .
“Overall gross margin of 69% – best since 2021” and “Third consecutive quarter of positive adjusted EBITDA” underscore execution progress .

Analysts probed details of the nutrition-focused growth plan, the sustainability of margin improvements, and the drivers behind the reduced breakeven revenue level; management emphasized strategy execution and cost discipline .
Clarifications around subscriber trends and retention vs acquisition trade-offs were discussed, with management pointing to improved retention but ongoing subscriber pressure .
Q3 guidance cadence and adjusted EBITDA drivers were addressed, with management reiterating focus on margins and cash flow .

Wall Street consensus (S&P Global Capital IQ) EPS/revenue estimates for BODY/BODi were unavailable due to a CIQ mapping issue; we attempted retrieval but no mapping existed for the ticker at the time, preventing comparison to consensus.*
Implication: Sell-side models may need to incorporate stronger-than-guided adjusted EBITDA in Q2 and margin improvements, but near-term revenue trajectory remains pressured; Q3 guide suggests continued margin discipline .

Profitability inflection sustained: third straight positive adjusted EBITDA and best gross margin since 2021; operating and net losses improved materially YoY .
Strategy shift to nutrition: management is prioritizing the larger, higher-margin nutrition market to drive growth and cash flow; execution progress should be tracked via nutritional subscription trends and segment revenue stabilization .
Cost structure reset: breakeven revenue for adjusted EBITDA now under $500M, enhancing resilience to top-line pressure; monitor SG&A and cost of revenue discipline .
Near-term: watch Q3 revenue cadence ($97–$107M) and adjusted EBITDA delivery ($2–$6M); any beat on adjusted EBITDA would reinforce cash generation narrative .
Medium-term: subscription rebuild and nutrition product momentum are key to restoring scale; connected fitness remains a headwind and likely a smaller contributor ahead .
Data tracking: with SPGI consensus unavailable this quarter, anchor on company guidance and internal KPIs (DAU/MAU, retention) to gauge trajectory until mapping is resolved.*

Additional sources: Q2 2024 press release on Business Wire confirms the same results and guidance .

*Estimates disclaimer: S&P Global consensus was not retrievable due to ticker mapping unavailability at the time.