Is Beachbody Company (NASDAQ:BODI) Weighed On By Its Debt Load?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We can see that The Beachbody Company, Inc. (NASDAQ:BODI) does use debt in its business. But the more important question is: how much risk is that debt creating?

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When Is Debt A Problem?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. If things get really bad, the lenders can take control of the business. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.

What Is Beachbody Company's Debt?

You can click the graphic below for the historical numbers, but it shows that as of June 2025 Beachbody Company had US$23.9m of debt, an increase on US$21.5m, over one year. However, its balance sheet shows it holds US$25.5m in cash, so it actually has US$1.56m net cash.

How Healthy Is Beachbody Company's Balance Sheet?

The latest balance sheet data shows that Beachbody Company had liabilities of US$96.1m due within a year, and liabilities of US$29.6m falling due after that. Offsetting these obligations, it had cash of US$25.5m as well as receivables valued at US$1.85m due within 12 months. So its liabilities total US$98.4m more than the combination of its cash and short-term receivables.

The deficiency here weighs heavily on the US$35.5m company itself, as if a child were struggling under the weight of an enormous back-pack full of books, his sports gear, and a trumpet. So we definitely think shareholders need to watch this one closely. At the end of the day, Beachbody Company would probably need a major re-capitalization if its creditors were to demand repayment. Given that Beachbody Company has more cash than debt, we're pretty confident it can handle its debt, despite the fact that it has a lot of liabilities in total. There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if Beachbody Company can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.

See our latest analysis for Beachbody Company

In the last year Beachbody Company had a loss before interest and tax, and actually shrunk its revenue by 32%, to US$325m. To be frank that doesn't bode well.

So How Risky Is Beachbody Company?

Statistically speaking companies that lose money are riskier than those that make money. And the fact is that over the last twelve months Beachbody Company lost money at the earnings before interest and tax (EBIT) line. Indeed, in that time it burnt through US$3.2m of cash and made a loss of US$58m. But the saving grace is the US$1.56m on the balance sheet. That kitty means the company can keep spending for growth for at least two years, at current rates. Overall, we'd say the stock is a bit risky, and we're usually very cautious until we see positive free cash flow. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. To that end, you should learn about the 3 warning signs we've spotted with Beachbody Company (including 1 which is concerning) .

If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.