Beachbody Company, Inc. Amends Credit Agreement, Revises Covenants

What Happened
Beachbody Company, Inc. announced on Aug 3, 2026 that it entered into Amendment No. 2 to its Credit Agreement with its lenders and Tiger Finance, LLC as administrative and collateral agent. The amendment changes several financial covenants and the interest-rate structure under the company’s existing credit facility; the company issued a related press release on Aug 6, 2026.

Key Details

• Cash threshold: the Covenant Testing cash threshold was reduced from "Total Outstandings + $4.6M" (about $29.6M at June 30, 2026 under the prior agreement) to $22.5M.
• Liquidity and covenants: minimum liquidity increased from $15.0M to $18.0M, then will step down monthly by ~ $162,000 starting March 1, 2027 until it reaches $16.0M.
• Operational covenants: minimum digital subscriptions requirement cut from 700,000 to 650,000 through Dec 31, 2026 and 550,000 thereafter; this subscription test (and the Three Month Total Billings Target) will only be applied if the Cash Threshold is under $22.5M.
• Billings and pricing: the Three Month Total Billings Target was raised from 90% to 92.5% of Forecasted Total Billings when tested. The interest-rate step-down was removed — the facility now bears interest at SOFR + 9.00% through maturity (previously could step down to SOFR + 7.75%).

Why It Matters
These amendments change both the company’s borrowing cost and the conditions under which lenders test financial health. Raising the interest margin to SOFR + 9.00% increases Beachbody’s ongoing interest expense relative to the prior stepped-down rate, while the covenant adjustments (lower cash threshold requirement in one place, higher minimum liquidity, and relaxed subscription targets) alter the company’s operational tests and timing for covenant cures or breaches. For investors, the amendment provides clarity on near-term liquidity and covenant testing triggers and signals the company's negotiated flexibility with lenders alongside a higher cost of debt.