Beachbody Company, Inc. 8-K

What Happened The Beachbody Company, Inc. announced it entered into Amendment No. 1 to its Credit Agreement effective January 7, 2026, amending the prior credit agreement dated May 13, 2025. The amendment changes several financial covenants and interest terms and was disclosed by press release on January 8, 2026. Tiger Finance, LLC remains the administrative and collateral agent under the amended facility.

Key Details

• Minimum liquidity requirement increased from $12,000,000 to $15,000,000.
• The maximum capital expenditure covenant was eliminated.
• Digital subscription covenant threshold reduced from 850,000 to 700,000; minimum total billings and minimum digital subscriptions are not tested unless a "Covenant Testing Period" is triggered.
• New Billings Fixed Charge Coverage Ratio covenant: at least 1.10x, tested monthly if a Covenant Testing Period is in effect.
• Interest rate relief (from one‑month SOFR + 9.00% to one‑month SOFR + 7.75%) cannot occur until the period ended December 31, 2026, subject to other terms.

Why It Matters These amendments give Beachbody more near‑term operational flexibility (no capex cap and a lower digital subscription floor) and require a larger cash cushion ($15M). However, the addition of a monthly Billings Fixed Charge Coverage Ratio during any Covenant Testing Period creates a new ongoing coverage test that could limit cash use if triggered. Investors should watch cash levels, billings and subscription trends and any indication that a Covenant Testing Period has been triggered, as those metrics determine whether the tighter monthly coverage test applies.