Executive Summary

Q3 FY25 revenue was $58.44M (+21.1% YoY) driven by robust MindBody GLP-1 demand but came in below S&P Global consensus $60.96M; diluted adjusted EPS was $0.26, beating consensus $0.145 as gross margin expanded 210 bps to 81.0% and adjusted EBITDA margin reached 11.0% . Estimates from S&P Global: Revenue $60.96M*, EPS $0.145*.
Regionally, Americas revenue rose 29.5% (U.S. +31.4%), while Asia/Pacific & Europe declined 7.2% (-4.7% ex-FX), with international GLP-1 rollout starting mid-March and customer access beginning April 25 .
Management reduced FY25 revenue guidance to $228–$235M (from $235–$245M) on international uncertainty, but maintained adjusted EBITDA ($21–$24M) and adjusted EPS ($0.72–$0.88) and expects a 22–24% tax rate, signaling profit discipline despite the top-line trim .
Key near-term catalysts: high subscription attach (≈85% of MindBody new customers on subscription), growing stack adoption with Protandim/Liquid Collagen, and global expansion; stock support could come from profit guidance retention and improving margin trajectory .

What Went Well and What Went Wrong

What Went Well

MindBody GLP-1 momentum: “Third quarter results were strong… reflecting robust demand for our MindBody GLP-1 System,” with U.S. revenue +31% and supply chain stabilization (“out-of-stock and logistic issues… are now behind us”) .
Margin improvement and profitability: Gross margin expanded 210 bps to 81.0% YoY; adjusted EBITDA grew 27% YoY to $6.4M (11% margin), aided by favorable mix and lower obsolescence/variance costs .
Durable behavior: About 85% of MindBody new customers came in on subscription; stack purchases rising (≈55% MindBody standalone, 45% with another product) supporting ARPA and retention .

What Went Wrong

Top-line vs estimates and international softness: Revenue missed consensus ($58.44M vs $60.96M*), and Asia/Pacific & Europe declined 7.2% YoY (≈4.7% cc), with management citing lingering uncertainty around international ramp . Estimates from S&P Global.
Sequential active account dip in Americas: Americas active accounts fell to 109k in March from 115k in December, attributed to stock-out/backlog dynamics impacting customer attrition .
Incentive intensity still elevated YoY: Commissions and incentives were 44.8% of revenue (up from 40.9% YoY), though improved sequentially by 320 bps vs Q2; adjusted SG&A also increased YoY with higher variable/stock comp .

Financial Results

Quarterly P&L and Margin Metrics

Metric	Q1 FY25	Q2 FY25	Q3 FY25
Revenue ($M)	$47.214	$67.8	$58.440
YoY Revenue Growth	(8.1%)	31.3%	21.1%
Adjusted Diluted EPS ($)	$0.15	$0.22	$0.26
Gross Margin (%)	79.9%	80.5%	81.0%
Adjusted EBITDA ($M)	$4.428	$6.5	$6.427
Adjusted EBITDA Margin (%)	9.4%	9.6%	11.0%
Commissions & Incentives (% Rev)	43.0%	48.0%	44.8%
Adjusted SG&A (% Rev)	31.1%	26.7%	29.1%

Estimates vs Actuals (Q3 FY25)

Metric	Consensus	Actual	Surprise
Revenue ($M)	$60.9565*	$58.440	—2.5M (miss)
Primary EPS ($)	$0.145*	$0.26	+$0.115 (beat)
# Estimates (Rev / EPS)	2 / 2*	—	—

Values with asterisks (*) retrieved from S&P Global.

Segment (Region) Revenue

Region ($M)	Q1 FY25	Q2 FY25	Q3 FY25
Americas	$36.892	$57.2	$48.201
Asia/Pacific & Europe	$10.322	$10.6	$10.239
Total	$47.214	$67.8	$58.440

KPIs (Engagement and Accounts)

KPI	Q3 FY25	YoY Change
Active Independent Consultants (Total)	52,000	+3,000 (+6.1%)
- Americas	35,000 (67%)	+4,000 (+12.9%)
- APAC & Europe	17,000 (33%)	(1,000) (−5.6%)
Active Customers (Total)	88,000	+10,000 (+12.8%)
- Americas	74,000 (84%)	+12,000 (+19.4%)
- APAC & Europe	14,000 (16%)	(2,000) (−12.5%)
Total Active Accounts	140,000	+13,000 (+10.2%)

Sequential Americas active accounts: Q1 92,000 → Q2 115,000 → Q3 109,000 (sequential downtick tied to prior stock-outs) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY25	$235M–$245M	$228M–$235M	Lowered
Adjusted EBITDA	FY25	$21M–$24M	$21M–$24M	Maintained
Adjusted EPS	FY25	$0.72–$0.88	$0.72–$0.88	Maintained
Tax Rate	FY25	≈22%–24%	≈22%–24%	Maintained
Dividend	Next pay date	$0.04/sh declared for Mar 17, 2025	$0.045/sh payable Jun 13, 2025	Raised QoQ

Management cited international ramp uncertainty (timing/magnitude) as the reason for lowering revenue while keeping profit guardrails intact .

Earnings Call Themes & Trends

Topic	Q1 FY25 (prev-2)	Q2 FY25 (prev-1)	Q3 FY25 (current)	Trend
MindBody GLP-1 product	Launch with 140% avg GLP-1 increase; record demand; sold out; pricing monthly bundles	Demand sustained; backlog cleared mid-Dec; capacity improved	Core growth driver; 200%+ avg GLP-1 in latest clinical; U.S. +31%	Strengthening
Supply chain	Initial sell-outs/backorders	Inventory stabilized; capacity up	“Issues… resolved and behind us”	Improving
International rollout	Plan Mar/Apr launches	Preparing for Mar launch	MB launched Mar 15 to JP (cust/consultants), consultants in other markets; customers live Apr 25	Progressing
Subscriptions & stacks	Positioned as lifestyle monthly system	Subscriptions >70% overall; MindBody higher; >50% new joiners on subscription	~85% of MindBody new customers on subscription; 45% paired with Protandim/Collagen	Increasing
Incentives/commissions	43.0% of revenue	48.0% (elevated)	44.8%, down 320 bps seq.	Normalizing
Active accounts	Total 123k; down YoY	Americas +25% seq.; 115k in Dec	Total 140k; Americas 109k seq. dip on stock-out dynamics	Volatile seq., up YoY
Brand/digital/influencers	EVOLVE plan enhancements	Social sellers/brand awareness push	Global Convention, Drive ERA incentives	Expanding

Management Commentary

“Third quarter results were strong… reflecting robust demand for our MindBody GLP-1 System™… international expansion was a key focus… launch of MB System™ into Japan… and consultants in Australia, New Zealand, Europe, the UK, Mexico, and Thailand” — Steve Fife, CEO .
“Gross margin was 81%… improvement due to product mix… lower inventory obsolescence and variance expenses… Commissions… 44.8%… down 320 bps sequentially” — Carl Aure, CFO .
“About 85% of the people coming in on MindBody… were on a subscription… positioning as a lifestyle product… not a magic pill” — Steve Fife .
“Stack revenue… 55% MindBody standalone, 45% with another product (Protandim Nrf2 or Liquid Collagen)… helps ARPA and stickiness” — Steve Fife .
“We anticipate FY25 revenue $228–$235M… reiterating adjusted EBITDA $21–$24M and adjusted EPS $0.72–$0.88” — Carl Aure .

Q&A Highlights

Subscriptions and sequential active accounts: Despite a slight sequential dip in active accounts, subscription rates increased; ~85% of new MindBody purchasers were on subscription, supporting durability .
Mix shift toward stacks: ~45% of MindBody purchases included another product (Protandim or Collagen), boosting ARPA and retention .
Guidance trim rationale: Revenue guidance was reduced due to remaining “chop and uncertainty” in international markets; supply chain “noise… behind us,” bookings stabilized in Q3 .
Americas active accounts: Dropped to 109k from 115k sequentially, driven mainly by customer attrition linked to prior stock-outs; consultants were flat sequentially .
Education/messaging: Field pivoting from “quick weight loss” to sustainable, lifestyle framing; updated clinical shows 200%+ GLP-1 increase (U.S. and international formulas) underpinning positioning .

Estimates Context

EPS beat: $0.26 vs $0.145*; Revenue miss: $58.44M vs $60.96M* (two estimates for both metrics). Adjusted profitability remained in-line to better despite top-line softness relative to estimates . Values with asterisks (*) retrieved from S&P Global.

Implications: Street likely lifts FY25 profit mix assumptions (margin resilience) but trims revenue trajectory pending evidence of international GLP-1 uptake and continued subscription conversion.

Key Takeaways for Investors

MindBody GLP-1 is driving double-digit growth and mix upgrades; U.S. +31% with margins expanding to 81.0% gross and 11% adjusted EBITDA, supporting a profit-led narrative even as sales normalize post-launch .
High-quality revenue mix: ~85% of MindBody new customers on subscription and rising stack attach should sustain LTV and lower churn, a supportive setup for medium-term multiple expansion .
Guidance recalibration is top-line focused; maintaining adjusted EBITDA/EPS points to disciplined OpEx and incentive normalization (commissions down 320 bps sequentially), limiting downside to earnings power .
International is the swing factor: launches began late Q3 with broader customer access from April 25; near-term uncertainty remains, but early Japan constant-currency growth (+2.7%) is a constructive datapoint .
Capital returns intact: dividend increased to $0.045/share with $19.3M remaining on repurchase authorization, supported by $22.5M cash and no debt at quarter-end .
Watch KPIs: Americas active accounts sequential dip tied to stock-out/backlog timing; monitoring Q4 re-acceleration will be critical to validate subscription-led compounding .
Trading setup: Expect debate to center on international ramp and sustainability of elevated subscription/stack metrics; retention and repeat rate disclosures (plus Q4 momentum) are likely stock movers .