The Beachbody Company Inc. Class A Common Stock (BODI)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Generates $22 million in annual free cash flow (20.6% yield on market cap)
• Solid return on equity of 17.7% above cost of capital

Concerns

• Trades significantly above Graham Number ($8) with negative 73% margin of safety—limited downside protection
• Revenue declining at 35.7% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of -5.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

The Beachbody Company Inc. Class A Common Stock is a micro-cap communication services company valued at $105 million. The business generates $234 million in annual revenue with a 2.2% net margin and $22 million in free cash flow. From a quality standpoint, The shows distressed Altman Z-Score of -5.2 warrants caution and adequate 18% ROE. On valuation, the stock is reasonably priced at 17.3x earnings, with trades above its Graham Number with a negative 73% margin. Growth dynamics show revenue growing at -35.7% and profit growth of 115.1%. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $22 million in annual free cash flow (20.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the communication services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer