The Beachbody Company, a health and fitness company, amended certain financial covenants and other terms of its original $50 million term loan with Blue Torch Capital.
“To more effectively synchronize our loan agreement with our profitability and free cash flow targets, we concluded that it was more strategically aligned with our priorities to adjust the conditions of our revenue covenant with Blue Torch Capital. The modified terms decrease the quarterly revenue floor to $100 million per quarter until Dec. 31, 2024, and then to $110 million per quarter for the subsequent periods. These revisions are possible because of our ability to generate positive free cash flow at a much lower revenue threshold,” Carl Daikeler, co-founder and CEO of The Beachbody Company, said.
As part of the amendment, The Beachbody Company is paying down $4 million in debt, reducing the outstanding balance to $25.5 million. The minimum liquidity covenant will be reduced by the same amount, from $22 million to $18 million.
“The cornerstone of our turnaround initiative is our updated business strategy, which focuses on expanding sales channels of our rich fitness content and nutritional supplements to optimize profitability and cash generation from our asset base,” Mark Goldston, BODi’s executive chairman of The Beachbody Company, said. “We have successfully reduced our revenue breakeven from over $900 million in 2022 to less than $500 million in 2024 through a comprehensive rearchitecting of the business. The Blue Torch team has been exceptional in acknowledging the progress we have made in executing our turnaround plan, demonstrating their support of our overall strategy by collaborating with us to modify the terms of our agreement.”
