BEACHBODY COMPANY, INC., 10-Q filed on 5/12/2026
Quarterly Report
v3.26.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2026
May 06, 2026
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2026  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Entity Registrant Name The Beachbody Company, Inc.  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Central Index Key 0001826889  
Entity File Number 001-39735  
Entity Tax Identification Number 85-3222090  
Entity Incorporation, State or Country Code DE  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Address, Address Line One 400 Continental Blvd  
Entity Address, Address Line Two Floor 6  
Entity Address, City or Town El Segundo,  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 90245  
City Area Code 310  
Local Phone Number 883-9000  
Title of 12(b) Security Class A Common Stock, par value $0.0001 per share  
Trading Symbol BODI  
Security Exchange Name NASDAQ  
Entity Shell Company false  
Common Class A [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   4,512,761
Common Class X [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   2,729,003
v3.26.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Current assets:    
Cash and cash equivalents (restricted cash of $0.1 million at March 31, 2026 and December 31, 2025, respectively) $ 36,591 $ 39,017
Restricted short-term investments 4,250 4,250
Inventory 10,130 9,410
Prepaid expenses 6,952 6,823
Other current assets 3,652 4,338
Total current assets 61,575 63,838
Property and equipment, net 7,067 8,523
Content assets, net 5,929 6,292
Goodwill 65,166 65,166
Right-of-use assets, net 1,426 1,625
Other assets 1,967 1,591
Total assets 143,130 147,035
Current liabilities:    
Accounts payable 6,307 5,304
Accrued expenses 14,237 18,408
Deferred revenue 55,167 56,866
Current portion of lease liabilities 942 1,036
Current portion of Term Loan 1,594 1,062
Other current liabilities 2,593 3,920
Total current liabilities 80,840 86,596
Term Loan 21,960 22,564
Long-term lease liabilities, net 602 738
Other liabilities 5,377 5,817
Total liabilities 108,779 115,715
Stockholders' equity:    
Preferred stock, $0.0001 par value; 100,000,000 shares authorized, none issued and outstanding at March 31, 2026 and December 31, 2025
Additional paid-in capital 678,503 677,743
Accumulated deficit (644,092) (646,378)
Accumulated other comprehensive loss (62) (47)
Total stockholders' equity 34,351 31,320
Total liabilities and stockholders' equity 143,130 147,035
Class A Common Stock [Member]    
Stockholders' equity:    
Common stock value 1 1
Class X Common Stock [Member]    
Stockholders' equity:    
Common stock value 1 1
Class C Common Stock [Member]    
Stockholders' equity:    
Common stock value $ 0 $ 0
v3.26.1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Restriched cash $ 0.1 $ 0.1
Preferred stock, par value (in Dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in Dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized 1,900,000,000 1,900,000,000
Class A Common Stock [Member]    
Common stock, par value (in Dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized 1,600,000,000 1,600,000,000
Common stock, shares issued 4,506,164 4,450,721
Common stock, shares outstanding 4,506,164 4,450,721
Class X Common Stock [Member]    
Common stock, par value (in Dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 2,729,003 2,729,003
Common stock, shares outstanding 2,729,003 2,729,003
Class C Common Stock [Member]    
Common stock, par value (in Dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 0 0
Common stock, shares outstanding 0 0
v3.26.1
Unaudited Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Revenue:    
Revenue $ 54,284 $ 72,363
Cost of revenue:    
Cost of revenue 15,285 20,814
Gross profit 38,999 51,549
Operating expenses:    
Selling and marketing 18,759 30,970
Enterprise technology and development 9,407 12,596
General and administrative 7,719 11,657
Total operating expenses 35,885 55,223
Operating income (loss) 3,114 (3,674)
Other income (expense):    
Change in fair value of warrant liabilities (191) (689)
Interest expense (1,014) (1,565)
Other income, net 409 225
Income (loss) before income taxes 2,318 (5,703)
Income tax provision (32) (45)
Net income (loss) $ 2,286 $ (5,748)
Net income (loss) per common share, basic [1] $ 0.32 $ (0.84)
Net income (loss) per common share, diluted [1] $ 0.3 $ (0.84)
Weighted-average common shares outstanding, basic 7,113,795 6,882,988
Weighted-average common shares outstanding, diluted 7,569,193 6,882,988
Digital [Member]    
Revenue:    
Revenue $ 33,562 $ 42,911
Cost of revenue:    
Cost of revenue 4,230 6,211
Nutrition and Other [Member]    
Revenue:    
Revenue 20,722 28,653
Cost of revenue:    
Cost of revenue 11,055 13,451
Connected Fitness [Member]    
Revenue:    
Revenue 0 799
Cost of revenue:    
Cost of revenue $ 0 $ 1,152
[1] In computing basic and diluted net income per common share, net income is reduced by the amount of undistributed net income allocated to participating securities other than common shares, as required under the two-class method. See Note 14: Income (loss) per Share
v3.26.1
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 2,286 $ (5,748)
Other comprehensive loss:    
Foreign currency translation adjustment (15) (9)
Total other comprehensive loss (15) (9)
Total comprehensive income (loss) $ 2,271 $ (5,757)
v3.26.1
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Loss [Member]
Beginning balance at Dec. 31, 2024 $ 28,170 $ 2 $ 671,735 $ (643,518) $ (49)
Beginning balance, Shares at Dec. 31, 2024   6,948      
Net income (loss) (5,748)     (5,748)  
Other comprehensive loss (9)       (9)
Equity-based compensation 1,726   1,726    
Equity-based compensation, Shares   55      
Options exercised, net of tax withholdings 47   47    
Options exercised, net of tax withholdings, Shares   7      
Tax withholdings on vesting of restricted stock (151)   (151)    
Tax withholdings on vesting of restricted stock, Shares   (22)      
Ending balance at Mar. 31, 2025 24,035 $ 2 673,357 (649,266) (58)
Ending balance, shares at Mar. 31, 2025   6,988      
Beginning balance at Dec. 31, 2025 31,320 $ 2 677,743 (646,378) (47)
Beginning balance, Shares at Dec. 31, 2025   7,180      
Net income (loss) 2,286     2,286  
Other comprehensive loss (15)       (15)
Equity-based compensation 1,118   1,118    
Equity-based compensation, Shares   89      
Options exercised, net of tax withholdings 14   14    
Options exercised, net of tax withholdings, Shares   2      
Tax withholdings on vesting of restricted stock (372)   (372)    
Tax withholdings on vesting of restricted stock, Shares   (36)      
Ending balance at Mar. 31, 2026 $ 34,351 $ 2 $ 678,503 $ (644,092) $ (62)
Ending balance, shares at Mar. 31, 2026   7,235      
v3.26.1
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Cash flows from operating activities:    
Net income (loss) $ 2,286 $ (5,748)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:    
Depreciation and amortization expense 2,228 2,888
Amortization of content assets 1,369 2,729
Provision for inventory 595 146
Change in fair value of warrant liabilities 191 689
Equity-based compensation 1,118 1,726
Amortization of debt issuance costs 178 728
Paid-in-kind interest expense 0 154
Change in lease assets 199 259
Changes in operating assets and liabilities:    
Inventory (1,315) 2,677
Content assets (1,006) (688)
Prepaid expenses (129) 1,867
Other assets 294 10,985
Accounts payable 944 (1,310)
Accrued expenses (4,188) (5,597)
Deferred revenue (2,247) (7,369)
Other liabilities (1,556) (1,794)
Net cash (used in) provided by operating activities (1,039) 2,342
Cash flows from investing activities:    
Purchase of property and equipment (684) (694)
Net cash used in investing activities (684) (694)
Cash flows from financing activities:    
Proceeds from exercise of stock options 14 47
Debt repayments 0 (3,625)
Tax withholding payments for vesting of restricted stock (372) (151)
Payment of debt issuance costs (250) 0
Net cash used in financing activities (608) (3,729)
Effect of exchange rates on cash, cash equivalents, and restricted cash (95) 20
Net decrease in cash, cash equivalents, and restricted cash (2,426) (2,061)
Cash, cash equivalents and restricted cash, beginning of period 39,017 20,187
Cash, cash equivalents, and restricted cash, end of period 36,591 18,126
Supplemental disclosure of cash flow information:    
Cash paid during the period for interest 830 645
Cash received during the year for Texas GMT income taxes (21) (27)
Supplemental disclosure of noncash investing activities:    
Property and equipment acquired but not yet paid for 367 331
UNITED KINGDOM    
Supplemental disclosure of cash flow information:    
Cash (received) paid during the year (4) 9
CANADA    
Supplemental disclosure of cash flow information:    
Cash (received) paid during the year 6 11
Other jurisdictions    
Supplemental disclosure of cash flow information:    
Cash (received) paid during the year $ 11 $ 14
v3.26.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Pay vs Performance Disclosure    
Net Income (Loss) $ 2,286 $ (5,748)
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.26.1
Description Of Business And Summary Of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description Of Business And Summary Of Significant Accounting Policies

Note 1. Description of Business and Summary of Significant Accounting Policies

Business

The Beachbody Company, Inc. (“BODi” or the “Company”) is a leading fitness and nutrition company and the creator of some of the world’s most popular fitness programs. The Company’s fitness programs are available for streaming through subscription and/or digital program purchases on the Beachbody On Demand Interactive ("BODi") digital platform, accessible through a web browser, iOS devices, Android Devices, and Roku. BODi offers nutritional products such as Shakeology nutrition shakes and Beachbody Performance supplements, which have been designed and clinically tested to help customers achieve their goals. The Company’s revenue has historically been generated primarily through a network of micro-influencers (“Partners”), social media marketing channels, and direct response advertising. On September 30, 2024, the Company announced strategic initiatives to transition its network business from a Multi-Level Marketing ("MLM") model with its Partners to a single level affiliate model (the "Pivot").

Basis of Presentation and Principles of Consolidation

The Company prepares its unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information as determined by the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”), and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”).

The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Significant estimates in our condensed consolidated financial statements include, but are not limited to, the useful life and recoverability of long-lived assets, the valuation of warrant liabilities, the recognition and measurement of income tax assets and liabilities, impairment of goodwill, and the net realizable value of inventory. The Company bases these estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities. Actual results could differ from those estimates. We periodically review estimates and assumptions and we reflect the effects of changes, if any, in the unaudited condensed consolidated financial statements in the period that they are determined.

The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and, in the opinion of management, include all normal recurring adjustments necessary for the fair statement of the Company’s financial position, results of operations, and cash flows. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated in consolidation. The financial data and other financial information disclosed in the notes to these unaudited condensed consolidated financial statements are also unaudited. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Interim results are not necessarily indicative of the results that may be expected for the full fiscal year or any other period.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, to improve disclosures about a public entity's reportable segments through enhanced disclosures about significant segment expenses. The Company adopted this new accounting guidance on a retrospective basis on January 1, 2024, and the adoption did not have a material effect on its unaudited condensed consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, to improve disclosures about a company's income taxes paid and the effective rate reconciliation table. The Company adopted this new accounting guidance on a retrospective basis on January 1, 2025, and the adoption did not have a material effect on its unaudited condensed consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets, which amends ASC 326-20 to provide a practical expedient and an accounting policy election (for all entities other than public business entities that elect the practical expedient) related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The Company adopted this new accounting guidance on January 1, 2026, and the adoption did not have a material effect on its unaudited condensed consolidated financial statements.

 

Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, to provide additional disclosure about the nature of a company's expenses included in the income statement. The guidance in this update will be effective for public

companies for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. The Company is evaluating the potential impact of adopting this guidance on its unaudited condensed consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Targeted Improvement to the Accounting for Internal-Use Software, which amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40. The amendments also supersede the guidance on web site development costs in ASC 350-50. The guidance in this update will be effective for all entities for annual periods beginning after December 15, 2027 and interim reporting periods within those reporting periods. The Company is evaluating the potential impact of adopting this guidance on its unaudited condensed consolidated financial statements.

 

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which is intended to improve the navigability of the guidance in ASC 270 and clarify when it applies. The guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the potential impact, if any, of adopting this guidance on its unaudited condensed consolidated financial statements.
v3.26.1
Revenue
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue

Note 2. Revenue

The Company’s revenue disaggregated by geographic region is as follows (in thousands):

 

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

Geographic region:

 

 

 

 

 

 

United States

 

$

50,114

 

 

$

66,852

 

Rest of world1

 

 

4,170

 

 

 

5,511

 

Total revenue

 

$

54,284

 

 

$

72,363

 

 

(1) Consists of Canada, United Kingdom, and France. Other than the United States, no single country accounted for more than 10% of the Company's total revenue during the three months ended March 31, 2026 and 2025.

 

The Company determined that, in addition to the preceding table, the disaggregation of revenue by revenue type as presented in the unaudited condensed consolidated statements of operations achieves the disclosure requirement to disaggregate revenue into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

Deferred Revenue

Deferred revenue is recorded for nonrefundable cash payments received for the Company’s performance obligation to transfer, or stand ready to transfer, goods or services in the future. Deferred revenue consists of subscription fees billed that have not been recognized and physical products sold that have not yet been delivered. The Company expects to recognize approximately 98% of the remaining performance obligations as revenue in the next 12 months, and the remainder thereafter. During the three months ended March 31, 2026, the Company recognized $26.8 million of revenue that was included in the deferred revenue balance as of December 31, 2025. During the three months ended March 31, 2025, the Company recognized $36.3 million of revenue that was included in the deferred revenue balance as of December 31, 2024.
v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 3. Fair Value Measurements

The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows (in thousands):

 

 

 

March 31, 2026

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Restricted short-term investments

 

$

—

 

 

$

4,250

 

 

$

—

 

Total assets

 

$

—

 

 

$

4,250

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Term Loan Warrants

 

$

—

 

 

$

—

 

 

$

767

 

Common Stock Warrants

 

 

—

 

 

 

—

 

 

 

3,577

 

Total liabilities

 

$

—

 

 

$

—

 

 

$

4,344

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Restricted short-term investments

 

$

—

 

 

$

4,250

 

 

$

—

 

Total assets

 

$

—

 

 

$

4,250

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Term Loan Warrants

 

$

—

 

 

$

—

 

 

$

733

 

Common Stock Warrants

 

 

—

 

 

 

—

 

 

 

3,420

 

Total liabilities

 

$

—

 

 

$

—

 

 

$

4,153

 

 

Fair values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and other current liabilities approximate their recorded value due to the short period of time to maturity. Restricted short-term investments of $4.3 million at March 31, 2026 consist of a one-year certificate of deposit (“CD”) that matures on July 26, 2026 with an interest rate of 3.5%, which is restricted due to a contractual agreement. The Company’s Term Loan Warrants (as defined below) and Common Stock Warrants (as defined below) are classified within Level 3 of the fair value hierarchy because their fair values are based on significant inputs that are unobservable in the market.

Term Loan Warrants

The Company determined the fair value of the Term Loan Warrants (as defined below) using a Black-Scholes option-pricing model and the quoted price of the Company’s Class A common stock. Volatility was based on the implied volatility derived primarily from the average of the actual market activity of the Company’s peer group and the Company's historical volatility. The expected life was based on the remaining contractual term of the Term Loan Warrants, and the risk-free interest rate was based on the implied yield available on U.S. treasury securities with a maturity equivalent to the Term Loan Warrants expected life. The significant unobservable input used in the fair value measurement of the Term Loan Warrants is the implied volatility. Significant changes in the implied volatility would result in a significantly higher or lower fair value measurement, respectively. See Note 9, Debt, for additional information regarding the Term Loan Warrants.

 

The following table presents significant assumptions utilized in the valuation of the Term Loan Warrants at March 31, 2026 and December 31, 2025:

 

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

 

 

 

 

 

Risk-free rate

 

 

3.8

%

 

 

3.6

%

Dividend yield rate

 

 

—

 

 

 

—

 

Volatility

 

 

91.7

%

 

 

91.1

%

Contractual term (in years)

 

 

3.36

 

 

 

3.60

 

Exercise price

 

$

6.26

 

 

$

6.26

 

 

The following table presents changes in the fair value of the Term Loan Warrants for the three months ended March 31, 2026 and 2025 (in thousands):

 

 

 

Three months ended March 31,

 

 

 

 

2026

 

 

2025

 

 

Balance, beginning of period

 

$

733

 

 

$

390

 

 

Change in fair value

 

 

34

 

 

 

114

 

 

Balance, end of period

 

$

767

 

 

$

504

 

 

 

For the three months ended March 31, 2026 and 2025, the change in the fair value of the Term Loan Warrants was due to the change in price of the Company's Class A Common Stock, the remaining contractual term and the risk-free rate. The changes in fair value are included in the unaudited condensed consolidated statements of operations as a component of change in fair value of warrant liabilities and in the unaudited condensed consolidated balance sheets as other liabilities.

 

Common Stock Warrants

The Company issued warrants (the "Common Stock Warrants") on December 10, 2023, to certain institutional investors to purchase 543,590 shares of Class A common stock at an exercise price of $11.24 per share. The Common Stock Warrants may be exercised at any time beginning June 13, 2024, and will expire on June 13, 2029. The Company determined the fair value of the Common Stock Warrants using a Black-Scholes option-pricing model and the quoted price of the Company’s Class A common stock. Volatility was based on the implied volatility derived from the average of the actual market activity of the Company’s peer group and the Company's historical volatility. The expected life was based on the remaining contractual term of the Common Stock Warrants, and the risk-free interest rate was based on the implied yield available on U.S. treasury securities with a maturity equivalent to the Common Stock Warrants expected life. The significant unobservable input used in the fair value measurement of the Common Stock Warrants is the implied volatility. Significant changes in the implied volatility would result in a significantly higher or lower fair value measurement, respectively.

The following table presents significant assumptions utilized in the valuation of the Common Stock Warrants on March 31, 2026 and December 31, 2025:

 

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

 

 

 

 

 

Risk-free rate

 

 

3.8

%

 

 

3.6

%

Dividend yield rate

 

 

—

 

 

 

—

 

Volatility

 

 

91.7

%

 

 

90.4

%

Contractual term (in years)

 

 

3.20

 

 

 

3.45

 

Exercise price

 

$

11.24

 

 

$

11.24

 

 

The following table presents changes in the fair value of the Common Stock Warrants for the three months ended March 31, 2026 and 2025 (in thousands):

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

Balance, beginning of period

 

$

3,420

 

 

$

1,783

 

Change in fair value

 

 

157

 

 

 

575

 

Balance, end of period

 

$

3,577

 

 

$

2,358

 

 

For the three months ended March 31, 2026 and 2025, the change in the fair value of the Common Stock Warrants resulted from the change in price of the Company’s Class A common stock, remaining contractual term, and risk-free rate. The changes in fair value are included in the unaudited condensed consolidated statements of operations as a component of change in fair value of warrant liabilities and in the unaudited condensed consolidated balance sheets as other liabilities.

v3.26.1
Inventory
 3 Months Ended
Mar. 31, 2026
Inventory Disclosure [Abstract]  
Inventory

Note 4. Inventory

Inventory, net consists of the following (in thousands):

 

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

 

 

 

 

 

Raw materials and work in process

 

$

4,842

 

 

$

5,194

 

Finished goods

 

 

5,288

 

 

 

4,216

 

Total inventory

 

$

10,130

 

 

$

9,410

 

 

 

Total adjustments to the carrying value of excess inventory and inventory on hand to net realizable value were $0.6 million and $0.1 million during the three months ended March 31, 2026 and 2025, respectively. The Company recorded all of these adjustments in nutrition and other cost of revenue for the three months ended March 31, 2026 and 2025, respectively.
v3.26.1
Other Current Assets
 3 Months Ended
Mar. 31, 2026
Other Current Assets [Abstract]  
Other Current Assets

Note 5. Other Current Assets

Other current assets consist of the following (in thousands):

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Accounts receivable, net

 

$

1,463

 

 

$

1,138

 

Deferred Partner costs

 

 

743

 

 

 

1,371

 

Deferred Affiliate costs

 

 

558

 

 

 

645

 

Other

 

 

888

 

 

 

1,184

 

Total other current assets

 

$

3,652

 

 

$

4,338

 
v3.26.1
Property and Equipment, Net
 3 Months Ended
Mar. 31, 2026
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net

Note 6. Property and Equipment, Net

 

Property and equipment, net consists of the following (in thousands):

 

 

 

 

 

 

 

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

 

 

 

 

 

Computer software and web development

 

$

107,359

 

 

$

107,539

 

Computer equipment

 

 

9,634

 

 

 

12,553

 

Leasehold improvements

 

 

21

 

 

 

20

 

Furniture, fixtures and equipment

 

 

347

 

 

 

470

 

Computer software and web development projects in-process

 

 

153

 

 

 

—

 

Property and equipment, gross

 

 

117,514

 

 

 

120,582

 

Less: Accumulated depreciation

 

 

(110,447

)

 

 

(112,059

)

Total property and equipment, net

 

$

7,067

 

 

$

8,523

 

 

The Company recorded depreciation expense related to property and equipment in the following expense categories of its unaudited condensed consolidated statements of operations, as follows (in thousands):

 

 

 

Three months ended March 31,

 

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

1,352

 

 

$

1,558

 

 

Enterprise technology and development

 

 

876

 

 

 

1,330

 

 

Total depreciation

 

$

2,228

 

 

$

2,888

 

 
v3.26.1
Accrued Expenses and Other Current Liabilities
 3 Months Ended
Mar. 31, 2026
Payables and Accruals [Abstract]  
Accrued Expenses and Other Current Liabilities

Note 7. Accrued Expenses and Other Current Liabilities

Accrued expenses consist of the following (in thousands):

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Advertising

 

$

3,459

 

 

$

3,928

 

Employee compensation and benefits

 

 

2,687

 

 

 

3,796

 

Outside professional services

 

 

2,085

 

 

 

2,170

 

Sales and other taxes

 

 

1,720

 

 

 

1,928

 

Inventory, shipping and fulfillment

 

 

1,483

 

 

 

2,243

 

Information technology

 

 

1,334

 

 

 

1,308

 

Other accrued expenses

 

 

1,469

 

 

 

3,035

 

Total accrued expenses

 

$

14,237

 

 

$

18,408

 

 

As of December 31, 2025, we reclassified accrued Partner costs to other accrued expenses to conform to the current year presentation. This reclassification had no impact on total accrued expenses.

 

Advertising costs, which are primarily comprised of social media, television media, and internet advertising expenses and also include print, radio, and infomercial production costs, were $11.1 million and $11.5 million for the three months ended March 31, 2026 and 2025, respectively.

 

Other Current Liabilities

 

On October 1, 2025, the Company entered into a financing agreement with AFCO Acceptance Corporation ("AFCO") to finance certain of its annual insurance premiums. The Company financed $1.7 million, which will be paid over an eleven month period with the first payment due on November 1, 2025. The financing has an interest rate of 6.84% and AFCO has a security interest in the underlying policies that were financed. The $1.0 million and $1.4 million outstanding as of March 31, 2026 and December 31, 2025, respectively, is recorded in other current liabilities and accounts payable in the condensed consolidated balance sheet and the interest expense is recorded in interest expense in the condensed consolidated statement of operations.

 

On October 1, 2025, the Company entered into a financing agreement with First Insurance Funding ("FIF") to finance certain other of its annual insurance premiums. The Company financed $1.6 million, which will be paid over a nine month period with the first payment due on November 1, 2025. The financing has an interest rate of 6.82% and FIF has a security interest in the underlying policies that were financed. The $0.7 million and $1.2 million outstanding as of March 31, 2026 and December 31, 2025, respectively, is recorded in other current liabilities and accounts payable in the condensed consolidated balance sheet and the interest expense is recorded in interest expense in the condensed consolidated statement of operations.

v3.26.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 8. Commitments and Contingencies

Inventory Purchase and Service Agreements

The Company has noncancelable inventory purchase and service agreements with multiple service providers which expire at varying dates through 2029. During the three months ended March 31, 2026 and 2025, there were no losses on inventory purchase commitments. Service agreement obligations include amounts related to fitness and nutrition trainers, information systems support, and other technology projects.

Future minimum payments under noncancelable service and inventory purchase agreements for the periods succeeding March 31, 2026 are as follows (in thousands):

 

Nine months ending December 31, 2026

 

$

14,717

 

Year ending December 31, 2027

 

 

1,430

 

Year ending December 31, 2028 and thereafter

 

 

531

 

 

$

16,678

 

 

 

The preceding table excludes royalty payments to fitness trainers, talent, and others that are based on future sales as such amounts cannot be reasonably estimated. During the three months ended March 31, 2026, the Company paid $0.7 million of royalty payments exclusive of guaranteed payments.

 

 

Lease Commitments

 

The Company leases facilities under noncancelable operating leases expiring through 2029. These lease obligations will require payments of approximately $0.8 million during the nine months ending December 31, 2026, $0.5 million for the year ending December 31, 2027, and $0.4 million in total thereafter through 2029.

Contingencies

The Company is subject to litigation from time to time in the ordinary course of business. Such claims typically involve its products, intellectual property, and relationships with suppliers, customers, distributors, employees, and others. Contingent liabilities are recorded when it is both probable that a loss has occurred and the amount of the loss can be reasonably estimated. Although it is not possible to predict how litigation and other claims will be resolved, the Company does not believe that any currently identified claims or litigation matters will have a material adverse effect on its condensed consolidated financial position or results of operations.

 

On May 22, 2023, Jessica Lyons, an individual, and a group of other plaintiffs filed a class action complaint with the Los Angeles County Superior Court alleging that the Company misclassified its Partners as contractors rather than as employees and committed other violations of the California Labor Code. The Company understands that the plaintiffs in this matter intend on filing additional claims under the Private Attorney General Act of 2004 ("PAGA"). The Company and certain executive officers are listed as defendants in the complaint. The plaintiffs are seeking monetary damages. The Company filed a motion to compel arbitration in the case. The firm representing Ms. Lyons has also filed 28 arbitration actions in Los Angeles County in anticipation that the Company's motion to compel arbitration will be upheld. We have continued to deny the allegations in the complaint and have vigorously defended ourselves in this action. As of October 7, 2025, the parties reached a settlement that resulted in a dismissal of all claims, including all 28 filed arbitrations. A motion to dismiss the entire class action and PAGA complaint was filed on December 29, 2025, which was granted on January 12, 2026, and has now been formally dismissed in its entirety.

 

On June 14, 2024, Bryan Reilly on behalf of himself and similarly situated current and former stockholders of Forest Road Acquisition Corp., which later became the Beachbody Company, Inc. (“Forest Road”), filed a verified class action complaint (the “Reilly Action”) in the Delaware Chancery Court against the former directors and officers of Forest Road, as well as Forest Road Acquisition Sponsor LLC, Forest Road Company LLC, Zach Tarica, and Jeremy Tarica (together the “Forest Road Sponsor Defendants”) alleging claims for breach of fiduciary duty in connection with the merger among Forest Road, The Beachbody Company, Inc., and Myx in 2021 (the “Merger”). The lawsuit also brought claims against the Company, Kevin Meyer, and The Raine Group LLC (“Raine”) alleging aiding and abetting breach of fiduciary duty, and against the former Forest Road directors and officers, the Forest Road Sponsor Defendants, Raine, and Meyer for unjust enrichment. We also have certain indemnification obligations as to some or all of the former Forest Road directors and Raine as to certain claims.

The Reilly Action generally alleges that the proxy that Forest Road issued prior to the Merger contained numerous material misstatements and omissions that impaired the Forest Road stockholders’ ability to make an informed decision regarding whether to redeem their stock in connection with the Merger. The plaintiff also asserts that the Merger was a conflicted transaction because the Forest Road Sponsor Defendants and the former Forest Road directors were incentivized to close the Merger even if it was a value-decreasing transaction for Forest Road’s public stockholders. As to the Company, Meyer, and Raine, the complaint alleges that these defendants aided and abetted the Forest Road defendants’ disclosure violations. On December 5, 2024, the plaintiffs in the Reilly Action dismissed without prejudice the aiding and abetting claims against the Company and Raine. Consequently, the Company is not currently a party to the litigation but its indemnification obligations as to certain of the remaining defendant directors remain.

On July 1, 2025, the Defendants in the Reilly Action filed a Motion to Dismiss action before the Delaware Chancery Court. On September 30, 2025, this Motion was granted, dismissing the action with prejudice and giving the Plaintiffs thirty days to file an appeal. On October 15, 2025, Plaintiffs filed a notice of appeal for the Reilly Action. The appeal was heard on April 22, 2026, and on May 7, 2026, the Supreme Court of the State of Delaware issued its order, affirming the lower court’s decision and dismissing the case.

 

On October 14, 2024, the firm Milberg Coleman Bryson Phillips Grossman ("Milberg") filed 10 arbitration demands alleging that the Company violated the Video Privacy Protection Act. The arbitration demands state that Milberg currently represents approximately

6,239 additional subscribers of BODi and intends to file similar demands for each person. The plaintiffs are seeking monetary damages as well as injunctive and equitable relief. As of September 11, 2025, the parties reached a settlement that resulted in a release of all threatened claims, including on behalf of all alleged affected subscribers.

The Company disputes the allegations in the above referenced active matters and intends to defend the matters vigorously. Some of our legal proceedings, such as the above referenced complaints, may be based on complex claims involving substantial uncertainties and unascertainable damages. Accordingly, other than the pending and settled matters noted above, it is not possible to determine the probability of loss or estimate damages for any of the above matters, and therefore the Company has not established reserves for any proceedings, other than the pending and settled matters noted above. When the Company determines that a loss is both probable and reasonably estimable, the Company records a liability, and, if the liability is material, discloses the amount of the liability reserved. Given that such proceedings are subject to uncertainty, there can be no assurance that such legal proceedings, either individually or in the aggregate, will not have a material adverse effect on our business, results of operations, financial condition or cash flows.
v3.26.1
Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt

Note 9. Debt

 

ABL Facility

 

On May 13, 2025, (the “Asset-Based Lending Facility Effective Date”), the Company, the lenders party thereto and Tiger Finance, LLC (“Tiger”), as administrative agent, entered into a $35.0 million ABL Facility, which includes a $10.0 million uncommitted accordion, that matures on May 13, 2028 with the potential for two one-year extensions which would need to be approved by Tiger. The amount that the Company may borrow under the ABL Facility is based on a borrowing base calculated based on advance rates for the various assets serving as collateral for the ABL Facility. The Company borrowed $25.0 million on the Asset-Based Lending Facility Effective Date. In connection with the ABL Facility, the Company incurred $1.8 million of third-party debt issuance costs which were recorded in the unaudited condensed consolidated balance sheet at March 31, 2026 as a reduction of long-term debt and are being amortized over the term of the ABL Facility using the effective-interest method. The ABL Facility bears interest based on the one-month Secured Overnight Financing Rate ("SOFR") plus 9.00% at its inception, which can decrease to the one-month SOFR plus 7.75% after May 13, 2026 if the Company's fixed charge coverage ratio ("FCCR") is greater than 1.10x. The SOFR is subject to a 3.5% floor. The ABL Facility had an effective interest rate of 14.83% and a cash interest rate of 12.67% for the three months ended March 31, 2026. The Company recorded $1.0 million of interest related to the ABL Facility during the three months ended March 31, 2026. The ABL Facility is secured by a first lien on substantially all of the Company’s assets.

The ABL Facility also contains customary representations, warranties, and covenants, which include, but are not limited to, restrictions on indebtedness, liens, restricted payments, asset sales, affiliate transactions, changes in line of business, investments, negative pledges and amendments to organizational documents and material contracts. The ABL Facility contains customary events of default, which among other things include (subject to certain exceptions and cure periods): (1) failure to pay principal, interest, or any fees or certain other amounts when due; (2) breach of any representation or warranty, covenant, or other agreement in the ABL Facility and other related loan documents; (3) the occurrence of certain bankruptcy or insolvency proceedings; and (4) certain other customary events of default.

The Company’s financial covenants under the ABL Facility were as follows until they were amended as part of the Amended ABL Facility Credit Agreement (defined below):

1.
The Company shall not fail to exceed the Three Month Total Billings Target (as defined in the Credit Agreement).
2.
The Company shall not fail to exceed the Quarterly Digital Subscriptions Target (as defined in the Credit Agreement).
3.
On an annual basis, the amount of Capital Expenditures (as defined in the Credit Agreement) for the year then ended shall be less than $10 million, which can increase based on certain cost savings metrics.
4.
Liquidity, as defined in the Credit Agreement, shall be greater than $12 million at all times and during a Cure Period (as defined in the Credit Agreement) shall be greater than $13.2 million.

See ABL Facility First Amendment below for discussion of the amendments to the above financial covenants.

If there is an event of default, including not being in compliance with the financial covenants, the ABL Facility will bear interest from the date of such event of default until the event of default is cured or waived in writing by the Lenders at the post default rate, which is the rate of interest in effect pursuant to the ABL Facility plus 3.50%. In the event of default, the Lenders could also require repayment of the outstanding balance of the ABL Facility. Repayment of the ABL Facility due to an event of default or a voluntary prepayment of

all or a portion of the ABL Facility by the Company would require the Company to pay the prepayment premium of (a) Make Whole (as defined in the Credit Agreement) if repaid in the 18 months after the Asset-Based Lending Facility Effective Date, (b) 5.0% if repaid 19-24 months after the Asset-Based Lending Facility Effective Date and (c) 2.0% if repaid 25-36 months after the Asset-Based Lending Facility Effective Date.

ABL Facility First Amendment

On January 7, 2026, (the “ABL Facility Amendment Effective Date”), the Company and Tiger entered into Amendment No. 1 to the Credit Agreement (the "Amended ABL Facility Credit Agreement") which amended the Company’s existing Credit Agreement. The Amended ABL Facility Credit Agreement amends, among other things, certain terms of the Credit Agreement including without limitation, to (1) eliminate the capital expenditures covenant, (2) increase the minimum liquidity financial covenant from $12 million to $15 million, (3) the minimum Three Months Total Billings Target and the minimum Monthly Digital Subscriptions financial covenants are not tested unless the Company's cash balance is less than $4.6 million greater than the outstanding debt principal (a Covenant Testing Period, as defined in the Amended ABL Facility Credit Agreement), (4) decrease the minimum Monthly Digital Subscriptions Target covenant level from 850,000 to 700,000, which is tested if a Covenant Testing Period (as defined in the Amended ABL Facility Credit Agreement) has been triggered, (5) add an additional financial covenant such that if a Covenant Testing Period (as defined in the Amended ABL Facility Credit Agreement) is in effect, the Company must maintain a minimum billings fixed charge coverage ratio ("BFCCR") (as defined in the Amended ABL Facility Credit Agreement) of at least 1.1x, (6) extended the date for potential decrease in the interest rate of the ABL Facility from SOFR plus 9.00% to SOFR plus 7.75% from May 13, 2026 to December 31, 2026, (7) extended the Make Whole prepayment premium from November 13, 2026 to July 7, 2027, and (8) amend certain financial definitions, reporting covenants and other covenants thereunder.

The Company incurred a 1% amendment fee on the outstanding ABL Facility balance prior to the amendment (fee of $0.3 million) which was recorded as of the ABL Facility First Amendment Effective Date in the consolidated balance sheet as a reduction of long-term debt and is being amortized over the remaining term of the ABL Facility using the effective-interest method.

Principal Balance-ABL Facility

 

As of March 31, 2026, the principal balance outstanding under the ABL Facility was $25.0 million. The aggregate amounts of payments due for the periods succeeding March 31, 2026 and reconciliation of the Company’s debt balances, net of debt discount and debt issuance costs, are as follows (in thousands):

 

Nine months ending December 31, 2026

 

$

1,062

 

Year ending December 31, 2027

 

 

2,125

 

Year ending December 31, 2028

 

 

21,813

 

Total debt

 

 

25,000

 

Less current portion

 

 

(1,594

)

Less unamortized debt discount and debt issuance costs

 

 

(1,446

)

Total long-term debt

 

$

21,960

 

 

The ABL Facility has no required payment of principal until July 1, 2026 and thereafter the principal payments are approximately $2.1 million per year, which is split into equal monthly payments of $177,083. The remaining unpaid principal balance of the ABL Facility will be due on the maturity date of May 13, 2028, unless extended pursuant to its terms.

 

Repayment of Term Loan

 

The Company used the proceeds from the ABL Facility to repay in full its Term Loan (as defined below) on May 13, 2025 (outstanding principal balance of $17.3 million as of the date of repayment) along with the repayment of the outstanding paid in kind interest of $0.5 million, a prepayment premium of $0.3 million and outstanding accrued interest of $0.2 million. The repayment of the Term Loan was accounted for as a debt extinguishment and the Company wrote off the remaining amount of unamortized debt discount and debt issuance costs as of the repayment date ($1.7 million) which in addition to the prepayment premium ($0.3 million) and certain legal expenses, was recorded as a loss on debt extinguishment of $2.2 million in the three months ended June 30, 2025.

Term Loan

 

On August 8, 2022 (the “Effective Date”), the Company, Beachbody, LLC as borrower (a wholly owned subsidiary of the Company), and certain other subsidiaries of the Company as guarantors (the “Guarantors”), the lenders (the “Lenders”), and Blue Torch Finance, LLC, ("Blue Torch") as administrative agent and collateral agent for such lenders (the “Term Loan Agent”) entered into a financing

agreement which was subsequently amended (collectively with any amendments thereto, the “Financing Agreement”). The Financing Agreement provided for senior secured term loans on the Effective Date in an aggregate principal amount of $50.0 million (the “Term Loan”) which was drawn on the Effective Date. Borrowings under the Term Loan were unconditionally guaranteed by the Guarantors. Such security interest consisted of a first-priority perfected lien on substantially all property and assets of the Company and subsidiaries, including stock pledges on the capital stock of the Company’s material and direct subsidiaries, subject to customary carveouts. In connection with the Financing Agreement, the Company incurred $4.5 million of third-party debt issuance costs which were recorded in the unaudited condensed consolidated balance sheets as a reduction of long-term debt and were amortized over the term of the Term Loan using the effective-interest method.

 

The Term Loan bore interest at a rate per annum equal to the sum of an applicable margin of 7.15% and the SOFR (based upon an interest period of three months). In addition, the Term Loan borrowings bore additional interest at 3.00% per annum, paid in kind by capitalizing such interest and adding such capitalized interest to the outstanding principal amount of the Term Loan on each anniversary of the Effective Date. The Term Loan had an effective interest rate of 27.81% and a cash interest rate of 11.64% for the three months ended March 31, 2025. The Company recorded $1.5 million of interest related to the Term Loan during the three months ended March 31, 2025.

 

In connection with the Term Loan, the Company issued to certain holders affiliated with Blue Torch warrants for the purchase of 94,335 shares of the Company’s Class A common stock at an exercise price of $92.50 per share (the "Term Loan Warrants"). The Term Loan Warrants vest on a monthly basis over four years, with 30%, 30%, 20% and 20% vesting in the first, second, third and fourth years, respectively. The Term Loan Warrants have a seven-year term from the Effective Date. See Note 3, Fair Value Measurements, for information on the valuation of the Term Loan Warrants. The Term Loan Warrants were recorded in the unaudited condensed consolidated balance sheets as warrant liabilities. The initial fair value of the Term Loan Warrants, of $5.2 million, was being amortized as a debt discount over the term of the Term Loan using the effective-interest method. As noted above, when the Company repaid in full the Term Loan it wrote off the remaining unamortized debt discount. In connection with the Term Loan Second Amendment, the Company also amended and restated the Term Loan Warrants (the "Warrant First Amendment"). The amendment of the Term Loan Warrants amended the exercise price of the Term Loan Warrants from $92.50 per share to $20.50 per share. The amended exercise price increased the fair value of the Term Loan Warrants as of the Second Amendment Effective Date by $0.8 million and was recorded as of the Second Amendment Effective Date as an incremental debt discount, and in addition to the remaining debt discount was being amortized over the amended term of the Term Loan using the effective-interest method. In connection with the Equity Offering (as defined below), the Term Loan Warrants conversion ratio was amended resulting in an increase in the number of shares purchased upon the exercise of the Term Loan Warrants to 97,482 shares of the Company's Class A common stock. In connection with the Term Loan Fifth Amendment, the Company also amended and restated the Term Loan Warrants (the "Warrant Second Amendment"). The Warrant Second Amendment amended the exercise price of the Term Loan Warrants from $20.50 per share to $9.16 per share. The amended exercise price increased the fair value of the Term Loan Warrants as of the Term Loan Fifth Amendment Effective Date by $0.1 million and was recorded as of the Term Loan Fifth Amendment Effective Date as an incremental debt discount, and in addition to the remaining debt discount was being amortized over the amended term of the Term Loan using the effective interest method. In connection with the Term Loan Sixth Amendment, the Company also amended and restated the Term Loan Warrants for the purchase of 97,482 shares of the Company’s Class A common stock. The amendment of the Term Loan Warrants amended the exercise price from $9.16 per share to $6.26 per share.

 

Letter of credit

 

At March 31, 2026 and December 31, 2025, the Company had one irrevocable standby letter of credit outstanding, totaling $0.1 million which is collateralized by $0.1 million of cash. This letter of credit expires on December 6, 2026 and is automatically extended for one-year terms unless notice of non-renewal is provided 60 days prior to the end of the applicable term. At March 31, 2026 and December 31, 2025, the cash collateralizing this letter of credit is classified as current restricted cash in our unaudited condensed consolidated balance sheet.
v3.26.1
Segment
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment

Note 10. Segment

The Company is a leading fitness and nutrition company. The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer ("CEO"). The Company defines its one segment on the basis of the way in which internally reported financial information is regularly reviewed by the CODM to analyze financial performance, make decisions, and allocate resources.

The Company’s CODM assesses the segments performance by using net income (loss). The CODM uses net income (loss) for its segment in the annual budget and forecasting process. The CODM considers budget to actual variances on a quarterly basis for its profit measures when making decisions about the allocation of operating and capital resources to the segment.

The Company recorded depreciation expense related to its property and equipment of $2.2 million and $2.9 million for the three months ended March 31, 2026 and 2025, respectively. See Note 6, Property and Equipment, Net, for additional information on the Company's depreciation expense. The Company recorded content amortization expense of $1.4 million and $2.7 million for the three months ended March 31, 2026 and 2025, respectively. The Company recorded interest income, which is recorded in other income, net, in the condensed consolidated statement of operations, of $0.3 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively.

Since the Company has only one reporting segment, the presentation of the Company’s segment’s operating results is the same as the Company’s condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025 and the expenses on the condensed consolidated statement of operations are the significant segment expenses (see the Company’s condensed consolidated statement of operations) and its assets and liabilities are the same as the Company’s condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025 (see the Company’s condensed consolidated balance sheets).

v3.26.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2026
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

Note 11. Stockholders’ Equity

As of March 31, 2026, 2,000,000,000 shares, $0.0001 par value per share are authorized, of which, 1,600,000,000 shares are designated as Class A common stock, 200,000,000 shares are designated as Class X common stock, 100,000,000 shares are designated as Class C common stock and 100,000,000 shares are designated as preferred stock.

Holders of each share of each class of Common Stock are entitled to dividends when, as, and if declared by the Company’s Board of Directors, subject to the rights and preferences of any holders of Preferred Stock outstanding at the time. As of March 31, 2026, the Company had not declared any dividends. The holder of each Class A common stock is entitled to one vote, the holder of each share of Class X common stock is entitled to ten votes and except as otherwise required by law, the holder of each share of Class C common stock is not entitled to any voting powers.

Accumulated Other Comprehensive Income (Loss)

The following tables summarize changes in accumulated other comprehensive income (loss) by component during the three months ended March 31, 2026 and 2025 (in thousands):

 

 

Total1

 

 

 

 

Balances at December 31, 2024

$

(49

)

Other comprehensive loss before reclassifications

 

(9

)

Balances at March 31, 2025

$

(58

)

 

 

 

 

 

 

Balances at December 31, 2025

$

(47

)

Other comprehensive loss before reclassifications

 

(15

)

Balances at March 31, 2026

$

(62

)

 

1Total denotes foreign currency translation adjustments.
v3.26.1
Equity-Based Compensation
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Equity-Based Compensation

Note 12. Equity-Based Compensation

Equity Compensation Plans

A summary of the option activity under the Company’s equity compensation plans is as follows:

 

 

Time-Vesting Options Outstanding

 

 

Number of Options

 

 

Weighted-Average Exercise Price
(per option)

 

 

Weighted-Average Remaining Contractual Term
(in years)

 

 

Aggregate Intrinsic Value
(in thousands)

 

Outstanding at December 31, 2025

 

714,618

 

 

$

22.82

 

 

 

6.51

 

 

$

2,573

 

Granted

 

50,000

 

 

 

8.86

 

 

 

 

 

 

 

Exercised

 

(2,181

)

 

 

6.43

 

 

 

 

 

 

 

Forfeited

 

(12,584

)

 

 

6.43

 

 

 

 

 

 

 

Expired

 

(1,200

)

 

 

6.43

 

 

 

 

 

 

 

Outstanding at March 31, 2026

 

748,653

 

 

$

22.24

 

 

 

6.51

 

 

$

2,930

 

Exercisable at March 31, 2026

 

433,553

 

 

$

33.45

 

 

 

5.75

 

 

$

1,656

 

A summary of restricted stock unit ("RSU") activity is as follows:

 

 

 

RSUs Outstanding

 

 

Number of RSUs

 

 

Weighted-Average Fair Value
(per RSU)

 

 

Outstanding at December 31, 2025

 

 

517,580

 

 

$

 

9.24

 

 

Granted

 

 

424,690

 

 

 

 

10.48

 

 

Vested

 

 

(88,566

)

 

 

 

12.64

 

 

Outstanding at March 31, 2026

 

 

853,704

 

 

$

 

9.50

 

 

 

The fair value of RSUs vested during the three months ended March 31, 2026 and 2025 was $1.1 million and $1.1 million, respectively.

 

On January 1, 2026, the number of shares available for issuance under the 2021 Incentive Award Plan (the “2021 Plan”) increased by 358,986 pursuant to the terms of the 2021 Plan. As of March 31, 2026, 1,088,715 shares of Class A common stock were available for issuance under the 2021 Plan.

 

Vested RSUs included shares of common stock that the Company withheld on behalf of certain employees to satisfy the minimum statutory tax withholding requirements, as defined by the Company. The Company withheld shares of common stock with an aggregate fair value and remitted taxes of $0.4 million during the three months ended March 31, 2026, which were classified as financing cash outflows in the unaudited condensed consolidated statements of cash flows. The Company canceled and returned these shares to the 2021 Plan, which are available under the plan terms for future issuance.

Equity-Based Compensation Expense

 

Equity-based compensation expense for the three months ended March 31, 2026 and 2025 was as follows (in thousands):

 

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

Cost of revenue

 

$

101

 

 

$

201

 

Selling and marketing

 

 

139

 

 

 

270

 

Enterprise technology and development

 

 

96

 

 

 

161

 

General and administrative

 

 

782

 

 

 

1,094

 

Total equity-based compensation

 

$

1,118

 

 

$

1,726

 

 

The Company modified certain stock awards of terminated employees (approximately 10 employees in the three month period ended March 31, 2025). The modifications in the three months ended March 31, 2025 included accelerating the vesting of any options and RSU's that would have vested within three months of the employees termination date (12 months for a former executive of the Company), and all vested options were available for exercise for a total of six months after the employees’ termination date (that is, three months in addition to the standard three months per original agreement). As a result of these modifications, the Company recognized $0.9 million

reduction to equity-based compensation expense in the unaudited condensed consolidated statements of operations for the three months ended March 31, 2025.
v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

13. Income Taxes

The Company recorded a provision for income taxes of approximately zero for the three months ended March 31, 2026 and 2025. The effective tax rate was 1.4% and (0.8)% for the three months ended March 31, 2026 and 2025, respectively.

The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items arising in that quarter. The Company’s effective tax rate differs from the U.S. statutory tax rate in the three months ended March 31, 2026 primarily due to changes in valuation allowances on deferred tax assets as it is more likely than not that some or all of the Company’s deferred tax assets will not be realized.

The Company evaluates its tax positions on a quarterly basis and revises its estimate accordingly. There were no material changes to the Company’s uncertain tax positions, interest, or penalties during the three months ended March 31, 2026.
v3.26.1
Income (Loss) per Share
 3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
Income (Loss) per Share

14. Income (loss) per Share

The Company computes net income (loss) per share using the two-class method required for participating securities. The two-class method requires income available to common shareholders for the period to be allocated between common stock and participating securities based upon their respective right to receive dividends as if all income for the period had been distributed. The Forest Road Earn-Out Shares are deemed participating securities. These participating securities do not contractually require the holders of such shares to participate in the Company's losses.

Basic income (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period, without considering any dilutive items. The Company applied the two-class method in arriving at basic and diluted income (loss) per common share and in determining diluted income (loss) per common share considering the impact of potentially dilutive securities applying the treasury stock method in arriving at the most dilutive result in arriving at diluted income (loss) per common share.

The computation of net income (loss) per share of Class A and Class X common stock is as follows (in thousands, except share and per share information):

 

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

Numerator:

 

 

 

 

 

 

Net income (loss)

 

$

2,286

 

 

$

(5,748

)

Less: Income allocated to participating securities under two-class method

 

 

24

 

 

 

—

 

Net income (loss) available to common shareholders - two class method - basic and diluted

 

 

2,262

 

 

 

(5,748

)

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

Weighted-average common shares outstanding, basic

 

 

7,113,795

 

 

 

6,882,988

 

Dilutive effect of:

 

 

 

 

 

 

RSUs

 

 

348,253

 

 

 

—

 

Options

 

 

107,145

 

 

 

—

 

Weighted-average common shares outstanding, diluted

 

 

7,569,193

 

 

 

6,882,988

 

 

 

 

 

 

 

 

Net income (loss) per common share, basic

 

$

0.32

 

 

$

(0.84

)

Net income (loss) per common share, diluted

 

$

0.30

 

 

$

(0.84

)

 

Basic net income (loss) per common share is the same as dilutive net income (loss) per common share for the three months ended March 31, 2025 as the inclusion of all potential common shares would have been antidilutive in that period.

The following table presents the common shares that are excluded from the computation of diluted net income (loss) per common share as of the periods presented because including them would have been antidilutive:

 

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

Time-vesting options

 

 

641,508

 

 

 

912,758

 

RSUs

 

 

505,451

 

 

 

603,155

 

Compensation warrants

 

 

79,612

 

 

 

79,612

 

Public and Private Placement Warrants

 

 

306,667

 

 

 

306,667

 

Term Loan Warrants

 

 

97,482

 

 

 

97,482

 

Common Stock Warrants

 

 

543,590

 

 

 

543,590

 

Forest Road Earn-out Shares

 

 

75,000

 

 

 

75,000

 

ESPP

 

 

11,730

 

 

 

—

 

 

 

 

2,261,040

 

 

 

2,618,264

 
v3.26.1
Description Of Business And Summary Of Significant Accounting Policies (Polices)
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The Company prepares its unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information as determined by the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”), and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”).

The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Significant estimates in our condensed consolidated financial statements include, but are not limited to, the useful life and recoverability of long-lived assets, the valuation of warrant liabilities, the recognition and measurement of income tax assets and liabilities, impairment of goodwill, and the net realizable value of inventory. The Company bases these estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities. Actual results could differ from those estimates. We periodically review estimates and assumptions and we reflect the effects of changes, if any, in the unaudited condensed consolidated financial statements in the period that they are determined.

The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and, in the opinion of management, include all normal recurring adjustments necessary for the fair statement of the Company’s financial position, results of operations, and cash flows. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated in consolidation. The financial data and other financial information disclosed in the notes to these unaudited condensed consolidated financial statements are also unaudited. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Interim results are not necessarily indicative of the results that may be expected for the full fiscal year or any other period.
Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, to improve disclosures about a public entity's reportable segments through enhanced disclosures about significant segment expenses. The Company adopted this new accounting guidance on a retrospective basis on January 1, 2024, and the adoption did not have a material effect on its unaudited condensed consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, to improve disclosures about a company's income taxes paid and the effective rate reconciliation table. The Company adopted this new accounting guidance on a retrospective basis on January 1, 2025, and the adoption did not have a material effect on its unaudited condensed consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets, which amends ASC 326-20 to provide a practical expedient and an accounting policy election (for all entities other than public business entities that elect the practical expedient) related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The Company adopted this new accounting guidance on January 1, 2026, and the adoption did not have a material effect on its unaudited condensed consolidated financial statements.

 

Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, to provide additional disclosure about the nature of a company's expenses included in the income statement. The guidance in this update will be effective for public

companies for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. The Company is evaluating the potential impact of adopting this guidance on its unaudited condensed consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Targeted Improvement to the Accounting for Internal-Use Software, which amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40. The amendments also supersede the guidance on web site development costs in ASC 350-50. The guidance in this update will be effective for all entities for annual periods beginning after December 15, 2027 and interim reporting periods within those reporting periods. The Company is evaluating the potential impact of adopting this guidance on its unaudited condensed consolidated financial statements.

 

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which is intended to improve the navigability of the guidance in ASC 270 and clarify when it applies. The guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the potential impact, if any, of adopting this guidance on its unaudited condensed consolidated financial statements.
v3.26.1
Revenue (Tables)
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue

The Company’s revenue disaggregated by geographic region is as follows (in thousands):

 

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

Geographic region:

 

 

 

 

 

 

United States

 

$

50,114

 

 

$

66,852

 

Rest of world1

 

 

4,170

 

 

 

5,511

 

Total revenue

 

$

54,284

 

 

$

72,363

 

 

(1) Consists of Canada, United Kingdom, and France. Other than the United States, no single country accounted for more than 10% of the Company's total revenue during the three months ended March 31, 2026 and 2025.
v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Summary of Fair Value Measurements, Recurring and Nonrecurring

The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows (in thousands):

 

 

 

March 31, 2026

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Restricted short-term investments

 

$

—

 

 

$

4,250

 

 

$

—

 

Total assets

 

$

—

 

 

$

4,250

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Term Loan Warrants

 

$

—

 

 

$

—

 

 

$

767

 

Common Stock Warrants

 

 

—

 

 

 

—

 

 

 

3,577

 

Total liabilities

 

$

—

 

 

$

—

 

 

$

4,344

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Restricted short-term investments

 

$

—

 

 

$

4,250

 

 

$

—

 

Total assets

 

$

—

 

 

$

4,250

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Term Loan Warrants

 

$

—

 

 

$

—

 

 

$

733

 

Common Stock Warrants

 

 

—

 

 

 

—

 

 

 

3,420

 

Total liabilities

 

$

—

 

 

$

—

 

 

$

4,153

 
Summary of Fair Value of Significant Assumptions Utilized in the Valuation

The following table presents significant assumptions utilized in the valuation of the Term Loan Warrants at March 31, 2026 and December 31, 2025:

 

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

 

 

 

 

 

Risk-free rate

 

 

3.8

%

 

 

3.6

%

Dividend yield rate

 

 

—

 

 

 

—

 

Volatility

 

 

91.7

%

 

 

91.1

%

Contractual term (in years)

 

 

3.36

 

 

 

3.60

 

Exercise price

 

$

6.26

 

 

$

6.26

 

The following table presents significant assumptions utilized in the valuation of the Common Stock Warrants on March 31, 2026 and December 31, 2025:

 

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

 

 

 

 

 

Risk-free rate

 

 

3.8

%

 

 

3.6

%

Dividend yield rate

 

 

—

 

 

 

—

 

Volatility

 

 

91.7

%

 

 

90.4

%

Contractual term (in years)

 

 

3.20

 

 

 

3.45

 

Exercise price

 

$

11.24

 

 

$

11.24

 
Summary of Change in the Fair Value of the Warrants

The following table presents changes in the fair value of the Term Loan Warrants for the three months ended March 31, 2026 and 2025 (in thousands):

 

 

 

Three months ended March 31,

 

 

 

 

2026

 

 

2025

 

 

Balance, beginning of period

 

$

733

 

 

$

390

 

 

Change in fair value

 

 

34

 

 

 

114

 

 

Balance, end of period

 

$

767

 

 

$

504

 

 

The following table presents changes in the fair value of the Common Stock Warrants for the three months ended March 31, 2026 and 2025 (in thousands):

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

Balance, beginning of period

 

$

3,420

 

 

$

1,783

 

Change in fair value

 

 

157

 

 

 

575

 

Balance, end of period

 

$

3,577

 

 

$

2,358

 
v3.26.1
Inventory (Tables)
 3 Months Ended
Mar. 31, 2026
Inventory Disclosure [Abstract]  
Schedule of Inventory, net

Inventory, net consists of the following (in thousands):

 

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

 

 

 

 

 

Raw materials and work in process

 

$

4,842

 

 

$

5,194

 

Finished goods

 

 

5,288

 

 

 

4,216

 

Total inventory

 

$

10,130

 

 

$

9,410

 

 
v3.26.1
Other Current Assets (Tables)
 3 Months Ended
Mar. 31, 2026
Other Current Assets [Abstract]  
Summary of Other Current Assets

Other current assets consist of the following (in thousands):

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Accounts receivable, net

 

$

1,463

 

 

$

1,138

 

Deferred Partner costs

 

 

743

 

 

 

1,371

 

Deferred Affiliate costs

 

 

558

 

 

 

645

 

Other

 

 

888

 

 

 

1,184

 

Total other current assets

 

$

3,652

 

 

$

4,338

 
v3.26.1
Property and Equipment, Net (Tables)
 3 Months Ended
Mar. 31, 2026
Property, Plant and Equipment [Abstract]  
Summary of Property and equipment, net

Property and equipment, net consists of the following (in thousands):

 

 

 

 

 

 

 

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

 

 

 

 

 

Computer software and web development

 

$

107,359

 

 

$

107,539

 

Computer equipment

 

 

9,634

 

 

 

12,553

 

Leasehold improvements

 

 

21

 

 

 

20

 

Furniture, fixtures and equipment

 

 

347

 

 

 

470

 

Computer software and web development projects in-process

 

 

153

 

 

 

—

 

Property and equipment, gross

 

 

117,514

 

 

 

120,582

 

Less: Accumulated depreciation

 

 

(110,447

)

 

 

(112,059

)

Total property and equipment, net

 

$

7,067

 

 

$

8,523

 

 
Summary of depreciation expense related to property and equipment

The Company recorded depreciation expense related to property and equipment in the following expense categories of its unaudited condensed consolidated statements of operations, as follows (in thousands):

 

 

 

Three months ended March 31,

 

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

1,352

 

 

$

1,558

 

 

Enterprise technology and development

 

 

876

 

 

 

1,330

 

 

Total depreciation

 

$

2,228

 

 

$

2,888

 

 
v3.26.1
Accrued Expenses and Other Current Liabilities (Tables)
 3 Months Ended
Mar. 31, 2026
Payables and Accruals [Abstract]  
Summary of Accrued Expenses

Accrued expenses consist of the following (in thousands):

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Advertising

 

$

3,459

 

 

$

3,928

 

Employee compensation and benefits

 

 

2,687

 

 

 

3,796

 

Outside professional services

 

 

2,085

 

 

 

2,170

 

Sales and other taxes

 

 

1,720

 

 

 

1,928

 

Inventory, shipping and fulfillment

 

 

1,483

 

 

 

2,243

 

Information technology

 

 

1,334

 

 

 

1,308

 

Other accrued expenses

 

 

1,469

 

 

 

3,035

 

Total accrued expenses

 

$

14,237

 

 

$

18,408

 
v3.26.1
Commitments and Contingencies (Tables)
 3 Months Ended
Mar. 31, 2026
Purchase Obligation, Fiscal Year Maturity [Abstract]  
Summary of Purchase Obligation, Fiscal Year Maturity

Future minimum payments under noncancelable service and inventory purchase agreements for the periods succeeding March 31, 2026 are as follows (in thousands):

 

Nine months ending December 31, 2026

 

$

14,717

 

Year ending December 31, 2027

 

 

1,430

 

Year ending December 31, 2028 and thereafter

 

 

531

 

 

$

16,678

 

 

 
v3.26.1
Debt (Tables)
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Schedule of Aggregate Amounts of Payments Due and Reconciliation of Debt Balances, Net of Debt Discount and Debt Issuance Costs The aggregate amounts of payments due for the periods succeeding March 31, 2026 and reconciliation of the Company’s debt balances, net of debt discount and debt issuance costs, are as follows (in thousands):

 

Nine months ending December 31, 2026

 

$

1,062

 

Year ending December 31, 2027

 

 

2,125

 

Year ending December 31, 2028

 

 

21,813

 

Total debt

 

 

25,000

 

Less current portion

 

 

(1,594

)

Less unamortized debt discount and debt issuance costs

 

 

(1,446

)

Total long-term debt

 

$

21,960

 
v3.26.1
Stockholders' Equity (Tables)
 3 Months Ended
Mar. 31, 2026
Stockholders' Equity Note [Abstract]  
Summarize Changes in Accumulated Other Comprehensive Income (Loss)

The following tables summarize changes in accumulated other comprehensive income (loss) by component during the three months ended March 31, 2026 and 2025 (in thousands):

 

 

Total1

 

 

 

 

Balances at December 31, 2024

$

(49

)

Other comprehensive loss before reclassifications

 

(9

)

Balances at March 31, 2025

$

(58

)

 

 

 

 

 

 

Balances at December 31, 2025

$

(47

)

Other comprehensive loss before reclassifications

 

(15

)

Balances at March 31, 2026

$

(62

)

 

1Total denotes foreign currency translation adjustments.
v3.26.1
Equity-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2026
Schedule of Share Based Compensation Activity [Abstract]  
Summary of the Option Activity under the Equity Compensation Plans

A summary of the option activity under the Company’s equity compensation plans is as follows:

 

 

Time-Vesting Options Outstanding

 

 

Number of Options

 

 

Weighted-Average Exercise Price
(per option)

 

 

Weighted-Average Remaining Contractual Term
(in years)

 

 

Aggregate Intrinsic Value
(in thousands)

 

Outstanding at December 31, 2025

 

714,618

 

 

$

22.82

 

 

 

6.51

 

 

$

2,573

 

Granted

 

50,000

 

 

 

8.86

 

 

 

 

 

 

 

Exercised

 

(2,181

)

 

 

6.43

 

 

 

 

 

 

 

Forfeited

 

(12,584

)

 

 

6.43

 

 

 

 

 

 

 

Expired

 

(1,200

)

 

 

6.43

 

 

 

 

 

 

 

Outstanding at March 31, 2026

 

748,653

 

 

$

22.24

 

 

 

6.51

 

 

$

2,930

 

Exercisable at March 31, 2026

 

433,553

 

 

$

33.45

 

 

 

5.75

 

 

$

1,656

 
Summary of Restricted Stock Unit ("RSU") Activity

A summary of restricted stock unit ("RSU") activity is as follows:

 

 

 

RSUs Outstanding

 

 

Number of RSUs

 

 

Weighted-Average Fair Value
(per RSU)

 

 

Outstanding at December 31, 2025

 

 

517,580

 

 

$

 

9.24

 

 

Granted

 

 

424,690

 

 

 

 

10.48

 

 

Vested

 

 

(88,566

)

 

 

 

12.64

 

 

Outstanding at March 31, 2026

 

 

853,704

 

 

$

 

9.50

 

 
Summary of Equity-Based Compensation Expense

Equity-based compensation expense for the three months ended March 31, 2026 and 2025 was as follows (in thousands):

 

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

Cost of revenue

 

$

101

 

 

$

201

 

Selling and marketing

 

 

139

 

 

 

270

 

Enterprise technology and development

 

 

96

 

 

 

161

 

General and administrative

 

 

782

 

 

 

1,094

 

Total equity-based compensation

 

$

1,118

 

 

$

1,726

 
v3.26.1
Income (Loss) per Share (Tables)
 3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
Summary of Computation of Net Income (Loss) Per Share of Class A and Class X Common Stock

The computation of net income (loss) per share of Class A and Class X common stock is as follows (in thousands, except share and per share information):

 

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

Numerator:

 

 

 

 

 

 

Net income (loss)

 

$

2,286

 

 

$

(5,748

)

Less: Income allocated to participating securities under two-class method

 

 

24

 

 

 

—

 

Net income (loss) available to common shareholders - two class method - basic and diluted

 

 

2,262

 

 

 

(5,748

)

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

Weighted-average common shares outstanding, basic

 

 

7,113,795

 

 

 

6,882,988

 

Dilutive effect of:

 

 

 

 

 

 

RSUs

 

 

348,253

 

 

 

—

 

Options

 

 

107,145

 

 

 

—

 

Weighted-average common shares outstanding, diluted

 

 

7,569,193

 

 

 

6,882,988

 

 

 

 

 

 

 

 

Net income (loss) per common share, basic

 

$

0.32

 

 

$

(0.84

)

Net income (loss) per common share, diluted

 

$

0.30

 

 

$

(0.84

)

 
Summary of Common Shares That Are Excluded from Computation of Diluted Net Income (Loss) Per Common Share

The following table presents the common shares that are excluded from the computation of diluted net income (loss) per common share as of the periods presented because including them would have been antidilutive:

 

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

Time-vesting options

 

 

641,508

 

 

 

912,758

 

RSUs

 

 

505,451

 

 

 

603,155

 

Compensation warrants

 

 

79,612

 

 

 

79,612

 

Public and Private Placement Warrants

 

 

306,667

 

 

 

306,667

 

Term Loan Warrants

 

 

97,482

 

 

 

97,482

 

Common Stock Warrants

 

 

543,590

 

 

 

543,590

 

Forest Road Earn-out Shares

 

 

75,000

 

 

 

75,000

 

ESPP

 

 

11,730

 

 

 

—

 

 

 

 

2,261,040

 

 

 

2,618,264

 
v3.26.1
Description Of Business And Summary Of Significant Accounting Policies - Additional Information (Details)
Mar. 31, 2026
ASU 2023-07 [Member]  
Description Of Business And Summary Of Significant Accounting Policies [Line Items]  
Change in accounting principle, accounting standards update, adopted [true false] true
Change in accounting principle, accounting standards update adoption date Jan. 01, 2024
Change in accounting principle, accounting standards update, immaterial effect [true false] true
ASU 2023-09 [Member]  
Description Of Business And Summary Of Significant Accounting Policies [Line Items]  
Change in accounting principle, accounting standards update, adopted [true false] true
Change in accounting principle, accounting standards update adoption date Jan. 01, 2025
Change in accounting principle, accounting standards update, immaterial effect [true false] true
v3.26.1
Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Disaggregation of Revenue [Line Items]    
Revenue $ 54,284 $ 72,363
United States [Member]    
Disaggregation of Revenue [Line Items]    
Revenue 50,114 66,852
Rest of world [Member]    
Disaggregation of Revenue [Line Items]    
Revenue [1] $ 4,170 $ 5,511
[1] Consists of Canada, United Kingdom, and France. Other than the United States, no single country accounted for more than 10% of the Company's total revenue during the three months ended March 31, 2026 and 2025.
v3.26.1
Revenue - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Disaggregation of Revenue [Line Items]    
Contract with customer liability, Current $ 26.8 $ 36.3
v3.26.1
Revenue - Additional Information (Details)1 - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01
Mar. 31, 2026
Disaggregation of Revenue [Line Items]  
Remaining performance obligation, percentage 98.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 12 months
v3.26.1
Fair Value Measurements - Summary of Fair Value Measurements, Recurring and Nonrecurring (Details) - Fair Value, Recurring [Member] - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets $ 4,250 $ 4,250
Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities 4,344 4,153
Level 3 [Member] | Term Loan Warrants [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants $ 767 $ 733
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Noncurrent Other Liabilities, Noncurrent
Level 3 [Member] | Common Stock Warrants [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants $ 3,577 $ 3,420
Restricted Short-term Investments [Member] | Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets $ 4,250 $ 4,250
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Noncurrent Other Assets, Noncurrent
v3.26.1
Fair Value Measurements - Summary of Fair Value of Significant Assumptions Utilized in the Valuation (Details)
Mar. 31, 2026
yr
Dec. 31, 2025
yr
Term Loan Warrants [Member] | Risk-free Rate [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value, Measurement Input 0.038 0.036
Term Loan Warrants [Member] | Dividend Yield Rate [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value, Measurement Input 0 0
Term Loan Warrants [Member] | Volatility [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value, Measurement Input 0.917 0.911
Term Loan Warrants [Member] | Contractual Term (in years) [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value, Measurement Input 3.36 3.6
Term Loan Warrants [Member] | Exercise Price [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value, Measurement Input 6.26 6.26
Common Stock Warrants [Member] | Risk-free Rate [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value, Measurement Input 0.038 0.036
Common Stock Warrants [Member] | Dividend Yield Rate [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value, Measurement Input 0 0
Common Stock Warrants [Member] | Volatility [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value, Measurement Input 0.917 0.904
Common Stock Warrants [Member] | Contractual Term (in years) [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value, Measurement Input 3.2 3.45
Common Stock Warrants [Member] | Exercise Price [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value, Measurement Input 11.24 11.24
v3.26.1
Fair Value Measurements - Summary of Change in the Fair Value of the Warrants (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Term Loan Warrants [Member]    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Balance, beginning of period $ 733 $ 390
Change in fair value $ 34 $ 114
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Fair Value Adjustment of Warrants Fair Value Adjustment of Warrants
Balance, end of period $ 767 $ 504
Common Stock Warrants [Member]    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Balance, beginning of period 3,420 1,783
Change in fair value $ 157 $ 575
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Fair Value Adjustment of Warrants Fair Value Adjustment of Warrants
Balance, end of period $ 3,577 $ 2,358
v3.26.1
Fair Value Measurements - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Dec. 10, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Restricted short-term investments $ 4,250 $ 4,250  
Restricted Short-term Investments [Member]      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Restricted short-term investments $ 4,300    
Investment maturity period 1 year    
Investments maturity date Jul. 26, 2026    
Restricted investments interest rate 3.50%    
Class A Common Stock [Member]      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Number of warrants issued     543,590
Warrants or rights exercise price per share     $ 11.24
Warrant expiry date     Jun. 13, 2029
v3.26.1
Inventory - Schedule of Inventory, net (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Inventory, Net [Abstract]    
Raw materials and work in process $ 4,842 $ 5,194
Finished goods 5,288 4,216
Total inventory $ 10,130 $ 9,410
v3.26.1
Inventory - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Inventory [Line Items]    
Inventory Write-down $ 0.6 $ 0.1
v3.26.1
Other Current Assets - Summary of Other Current Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Other Current Assets [Abstract]    
Accounts receivable, net $ 1,463 $ 1,138
Deferred Partner costs 743 1,371
Deferred Affiliate costs 558 645
Other 888 1,184
Total other current assets $ 3,652 $ 4,338
v3.26.1
Property and Equipment, Net - Summary of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 117,514 $ 120,582
Less: Accumulated depreciation (110,447) (112,059)
Total property and equipment, net 7,067 8,523
Computer software and web development [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 107,359 107,539
Computer Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 9,634 12,553
Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 21 20
Furniture, fixtures and equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 347 470
Computer Software and Web Development Projects In-process [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 153 $ 0
v3.26.1
Property and Equipment, Net - Summary of Depreciation Expense Related to Property and Equipment (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Schedule of depreciation expense related to property and equipment [Line Items]    
Total depreciation $ 2,228 $ 2,888
Cost of Revenue [Member]    
Schedule of depreciation expense related to property and equipment [Line Items]    
Total depreciation 1,352 1,558
Enterprise Technology and Development [Member]    
Schedule of depreciation expense related to property and equipment [Line Items]    
Total depreciation $ 876 $ 1,330
v3.26.1
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Payables and Accruals [Abstract]    
Advertising $ 3,459 $ 3,928
Employee compensation and benefits 2,687 3,796
Outside professional services 2,085 2,170
Sales and other taxes 1,720 1,928
Inventory, shipping and fulfillment 1,483 2,243
Information technology 1,334 1,308
Other accrued expenses 1,469 3,035
Total accrued expenses $ 14,237 $ 18,408
v3.26.1
Accrued Expenses and Other Current Liabilities - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Oct. 01, 2025
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Debt Instrument [Line Items]        
Advertising costs   $ 11.1 $ 11.5  
Financing Agreement with AFCO [Member]        
Debt Instrument [Line Items]        
Financing agreement amount $ 1.7      
Financing agreement term 11 months      
Financing agreement first payment due date Nov. 01, 2025      
Percentage of interest rate on agreement 6.84%      
Financing Agreement with AFCO [Member] | Other Current Liabilities [Member]        
Debt Instrument [Line Items]        
Financing agreement outstanding amount   1.0   $ 1.4
Financing Agreement with FIF [Member]        
Debt Instrument [Line Items]        
Financing agreement amount $ 1.6      
Financing agreement term 9 months      
Financing agreement first payment due date Nov. 01, 2025      
Percentage of interest rate on agreement 6.82%      
Financing Agreement with FIF [Member] | Other Current Liabilities [Member]        
Debt Instrument [Line Items]        
Financing agreement outstanding amount   $ 0.7   $ 1.2
v3.26.1
Commitments and Contingencies - Additional Information (Details)
 3 Months Ended
Oct. 14, 2024
Subscribers
Mar. 31, 2026
USD ($)
Mar. 31, 2025
USD ($)
Product Liability Contingency [Line Items]      
Losses on inventory purchase commitments   $ 0 $ 0
Royalty payments   $ 700,000  
Operating lease expiring term   leases facilities under noncancelable operating leases expiring through 2029  
Payments during the nine months ending December 31, 2026   $ 800,000  
Payments in 2027   500,000  
Payments in 2028   400,000  
Payments in 2029   400,000  
Thereafter through 2029   $ 400,000  
Number of subscribers | Subscribers 6,239    
v3.26.1
Commitments and Contingencies - Summary of Purchase Obligation, Fiscal Year Maturity (Details)
$ in Thousands
Mar. 31, 2026
USD ($)
Purchase Obligation, Fiscal Year Maturity [Abstract]  
Nine months ending December 31, 2026 $ 14,717
Year ending December 31, 2027 1,430
Year ending December 31, 2028 and thereafter 531
Purchase Obligation $ 16,678
v3.26.1
Debt - Additional Information (Details) - USD ($)
 3 Months Ended
Jan. 07, 2026
May 13, 2025
Apr. 05, 2024
Jul. 24, 2023
Aug. 08, 2022
Mar. 31, 2026
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2025
Oct. 18, 2024
Dec. 10, 2023
Debt Instrument [Line Items]                      
Interest expense           $ 1,014,000   $ 1,565,000      
Change in fair value of warrant liabilities           (191,000)   (689,000)      
Paid in kind interest           0   154,000      
Irrevocable standby letter of credit           100,000     $ 100,000    
Borrowings outstanding           25,000,000          
Term Loan Warrants [Member]                      
Debt Instrument [Line Items]                      
Change in fair value of warrant liabilities       $ 800,000              
Term Loan Warrants [Member] | Fifth Amendment [Member]                      
Debt Instrument [Line Items]                      
Change in fair value of warrant liabilities     $ 100,000                
Common Class A [Member]                      
Debt Instrument [Line Items]                      
Number of warrants issued                     543,590
Class of warrants or rights exercise price per share                     $ 11.24
ABL Facility [Member]                      
Debt Instrument [Line Items]                      
Credit line   $ 35,000,000                  
Uncommitted credit facility matures in May 2028   $ 10,000,000                  
Line of credit extension term   1 year                  
Proceeds from Long-Term Lines of Credit   $ 25,000,000                  
Interest expense           1,000,000          
Credit facility covenant terms   The Company’s financial covenants under the ABL Facility were as follows until they were amended as part of the Amended ABL Facility Credit Agreement (defined below):1.The Company shall not fail to exceed the Three Month Total Billings Target (as defined in the Credit Agreement).2.The Company shall not fail to exceed the Quarterly Digital Subscriptions Target (as defined in the Credit Agreement).3.On an annual basis, the amount of Capital Expenditures (as defined in the Credit Agreement) for the year then ended shall be less than $10 million, which can increase based on certain cost savings metrics.4.Liquidity, as defined in the Credit Agreement, shall be greater than $12 million at all times and during a Cure Period (as defined in the Credit Agreement) shall be greater than $13.2 million.                  
Credit facility covenant maximum allowed capital expenditure   $ 10,000,000                  
Credit facility covenant minimum required liquidity   12,000,000                  
Credit facility covenant minimum required liquidity during cure period   $ 13,200,000                  
Additional interest rate in event of default   3.50%                  
Percentage of prepayment premium if paid 19 to 24 months   5.00%                  
Percentage of prepayment premium if paid 25 to 36 months   2.00%                  
Repayment of principal amount monthly after July 01, 2026   $ 2,100,000                  
Repayment of principal amount split into equal payments monthly after July 01, 2026   177,083                  
Repayments of debt   17,300,000                  
Repayment of outstanding paid in kind   500,000                  
Debt redemption premium payment   300,000                  
Debt instrument, outstanding accrued interest   200,000                  
Third-party debt issuance costs   1,800,000                  
Write off of unamortized debt discount and debt issuance costs   1,700,000                  
Loss on partial debt extinguishment             $ (2,200,000)        
Prepayment premium   $ 300,000                  
Borrowings outstanding           $ 25,000,000          
ABL Facility [Member] | Floor Rate [Member]                      
Debt Instrument [Line Items]                      
Percentage of interest paid in kind   3.50%                  
ABL Facility [Member] | One Month SOFR [Member]                      
Debt Instrument [Line Items]                      
Debt instrument, effective interest rate   14.83%                  
Debt instrument, cash interest rate   12.67%                  
Percentage of interest paid in kind   9.00%                  
Variable interest rate on the debt after one year   7.75%                  
ABL Facility [Member] | Minimum [Member]                      
Debt Instrument [Line Items]                      
Fixed charge coverage ratio   1.10%                  
Term Loan [Member]                      
Debt Instrument [Line Items]                      
Credit line         $ 50,000,000            
Interest expense               $ 1,500,000      
Third-party debt issuance costs         $ 4,500,000            
Warrants vesting percentage first year         30.00%            
Warrants vesting percentage second year         30.00%            
Warrants vesting percentage third year         20.00%            
Warrants vesting percentage fourth year         20.00%            
Warrants and rights outstanding, term         7 years            
Fair value of warrant liabilities         $ 5,200,000            
Term Loan [Member] | Common Class A [Member]                      
Debt Instrument [Line Items]                      
Number of warrants issued         94,335            
Class of warrants or rights exercise price per share       $ 20.5 $ 92.5            
Term Loan [Member] | Common Class A [Member] | Second Amendment [Member]                      
Debt Instrument [Line Items]                      
Number of warrants issued         97,482            
Term Loan [Member] | Common Class A [Member] | Term Loan Warrants [Member] | Second Amendment [Member]                      
Debt Instrument [Line Items]                      
Class of warrants or rights exercise price per share       $ 20.5              
Term Loan [Member] | Common Class A [Member] | Term Loan Warrants [Member] | Fifth Amendment [Member]                      
Debt Instrument [Line Items]                      
Class of warrants or rights exercise price per share     $ 9.16                
Term Loan [Member] | Common Class A [Member] | Term Loan Warrants [Member] | Sixth Amendment [Member]                      
Debt Instrument [Line Items]                      
Number of warrants issued                   97,482  
Class of warrants or rights exercise price per share                   $ 6.26  
Term Loan [Member] | Secured Overnight Financing Rate [Member]                      
Debt Instrument [Line Items]                      
Percentage of interest rate during period         7.15%            
Debt instrument, effective interest rate             27.81%        
Debt instrument, cash interest rate               11.64%      
Term Loan [Member] | Paid in Kind [Member] | Secured Overnight Financing Rate [Member]                      
Debt Instrument [Line Items]                      
Percentage of interest paid in kind         3.00%            
Letter of Credit [Member]                      
Debt Instrument [Line Items]                      
Debt instrument, maturity date           Dec. 06, 2026          
Irrevocable standby letter of credit           $ 100,000     $ 100,000    
Debt instrument, maturity date description           This letter of credit expires on December 6, 2026 and is automatically extended for one-year terms unless notice of non-renewal is provided 60 days prior to the end of the applicable term.          
ABL Facility First Amendment [Member]                      
Debt Instrument [Line Items]                      
Percentage of amendement fee 1.00%                    
AmendmentFees $ 300,000                    
ABL Facility First Amendment [Member] | Secured Overnight Financing Rate [Member]                      
Debt Instrument [Line Items]                      
Percentage of interest paid in kind 9.00%                    
Variable interest rate on the debt after one year 7.75%                    
ABL Facility First Amendment [Member] | Minimum [Member]                      
Debt Instrument [Line Items]                      
Fixed charge coverage ratio 1.10%                    
Increase the minimum liquidity financial covenant $ 12,000,000                    
Decrease the minimum monthly digital subscriptions target covenant level 850,000                    
ABL Facility First Amendment [Member] | Maximum [Member]                      
Debt Instrument [Line Items]                      
Increase the minimum liquidity financial covenant 15,000,000                    
Cash balance 4,600,000                    
Decrease the minimum monthly digital subscriptions target covenant level $ 700,000                    
v3.26.1
Debt - Schedule of Aggregate Amounts of Payments Due and Reconciliation of Debt Balances, Net of Debt Discount and Debt Issuance Costs (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Debt Disclosure [Abstract]    
Nine months ending December 31, 2026 $ 1,062  
Year ending December 31, 2027 2,125  
Year ending December 31, 2028 21,813  
Total debt 25,000  
Less current portion (1,594) $ (1,062)
Less unamortized debt discount and debt issuance costs (1,446)  
Total long-term debt $ 21,960 $ 22,564
v3.26.1
Segment - Additional Information (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
USD ($)
Segment
Mar. 31, 2025
USD ($)
Segment Reporting [Abstract]    
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] srt:ChiefExecutiveOfficerMember  
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description The Company’s CODM assesses the segments performance by using net income (loss). The CODM uses net income (loss) for its segment in the annual budget and forecasting process. The CODM considers budget to actual variances on a quarterly basis for its profit measures when making decisions about the allocation of operating and capital resources to the segment.  
Depreciation $ 2,228 $ 2,888
Amortization expense 1,400 2,700
Interest income $ 300 $ 200
Number of reportable segments | Segment 1  
v3.26.1
Stockholders' Equity - Additional Information (Details) - $ / shares
 3 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Stockholders Equity Note [Line Items]    
Number of shares authorized 2,000,000,000  
Par value of shares authorized $ 0.0001  
Common stock, shares authorized 1,900,000,000 1,900,000,000
Preferred stock, shares authorized 100,000,000 100,000,000
Common stock shares voting rights The holder of each Class A common stock is entitled to one vote, the holder of each share of Class X common stock is entitled to ten votes and except as otherwise required by law, the holder of each share of Class C common stock is not entitled to any voting powers.  
Common Class A [Member]    
Stockholders Equity Note [Line Items]    
Common stock, shares authorized 1,600,000,000 1,600,000,000
Common stock shares voting rights one vote  
Common Class C [Member]    
Stockholders Equity Note [Line Items]    
Common stock, shares authorized 100,000,000 100,000,000
Common Class X [Member]    
Stockholders Equity Note [Line Items]    
Common stock, shares authorized 200,000,000  
Common stock shares voting rights ten votes  
v3.26.1
Stockholders' Equity - Summarize Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Stockholders' Equity Note [Abstract]    
Balances at Beginning $ (47) $ (49)
Other comprehensive loss before reclassifications (15) (9)
Balance at Ending $ (62) $ (58)
v3.26.1
Equity-Based Compensation - Additional Information (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
USD ($)
shares
Mar. 31, 2025
USD ($)
Employee
Jan. 01, 2026
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Payment, fair value of tax withholding and remitted taxes share-based payment arrangement $ 372 $ 151  
Number of employees terminated | Employee   10  
General and Administrative Expense [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Reduction in equity-based compensation cost recognized   $ 900  
2021 Plan [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Share-based compensation number of shares available for grant | shares 1,088,715    
Payment, fair value of tax withholding and remitted taxes share-based payment arrangement $ 400    
Maximum [Member] | 2021 Plan [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Share-based compensation number of shares available for grant | shares     358,986
RSUs [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Fair value of RSU, vested $ 1,100 $ 1,100  
v3.26.1
Equity-Based Compensation - Summary of the Option Activity under the Equity Compensation Plans (Details) - 2021 Plan [Member] - Time-Vesting Options Outstanding [Member] - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Schedule of Share Based Compensation Activity [Line Items]    
Number of Options, Outstanding Beginning 714,618  
Number of Options, Granted 50,000  
Number of Options, Exercised (2,181)  
Number of Options, Forfeited (12,584)  
Number of Options, Expired (1,200)  
Number of Options, Outstanding Ending 748,653 714,618
Number of Options, Exercisable 433,553  
Weighted- Average Exercise Price (per option), Outstanding Beginning $ 22.82  
Weighted- Average Exercise Price (per option), Granted 8.86  
Weighted- Average Exercise Price (per option), Exercised 6.43  
Weighted- Average Exercise Price (per option), Forfeited 6.43  
Weighted- Average Exercise Price (per option), Expired 6.43  
Weighted- Average Exercise Price (per option), Outstanding Ending 22.24 $ 22.82
Weighted- Average Exercise Price (per option), Exercisable $ 33.45  
Weighted- Average Remaining Contractual Term (in years), Outstanding 6 years 6 months 3 days 6 years 6 months 3 days
Weighted- Average Remaining Contractual Term (in years), Exercisable 5 years 9 months  
Aggregate Intrinsic Value, Outstanding $ 2,930 $ 2,573
Aggregate Intrinsic Value, Exercisable $ 1,656  
v3.26.1
Equity-Based Compensation - Summary of Restricted Stock Unit ("RSU") Activity (Details) - Restricted Stock Units (RSUs) [Member]
 3 Months Ended
Mar. 31, 2026
$ / shares
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Number of RSUs, Outstanding Beginning | shares 517,580
Number of RSUs, Granted | shares 424,690
Number of RSUs, Vested | shares (88,566)
Number of RSUs, Outstanding Ending | shares 853,704
Weighted Average Fair Value (per RSU), Outstanding Beginning | $ / shares $ 9.24
Weighted Average Fair Value (per RSU), Granted | $ / shares 10.48
Weighted-Average Fair Value (per RSU), Vested | $ / shares 12.64
Weighted Average Fair Value (per RSU), Outstanding Ending | $ / shares $ 9.5
v3.26.1
Equity-Based Compensation - Summary of Equity-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Schedule of Compensation Cost for Share Based Payment Arrangements Allocation of Share Based Compensation Costs by Plan [Line Items]    
Total equity-based compensation $ 1,118 $ 1,726
Cost of Revenue [Member]    
Schedule of Compensation Cost for Share Based Payment Arrangements Allocation of Share Based Compensation Costs by Plan [Line Items]    
Total equity-based compensation 101 201
Selling and Marketing [Member]    
Schedule of Compensation Cost for Share Based Payment Arrangements Allocation of Share Based Compensation Costs by Plan [Line Items]    
Total equity-based compensation 139 270
Enterprise Technology and Development [Member]    
Schedule of Compensation Cost for Share Based Payment Arrangements Allocation of Share Based Compensation Costs by Plan [Line Items]    
Total equity-based compensation 96 161
General and Administrative [Member]    
Schedule of Compensation Cost for Share Based Payment Arrangements Allocation of Share Based Compensation Costs by Plan [Line Items]    
Total equity-based compensation $ 782 $ 1,094
v3.26.1
Restructuring - Schedule of Costs Incurred and Benefits Realized Associated With the Pivot (Parenthetical) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Restructuring Cost and Reserve [Line Items]      
Net book value of certain long-lived assets $ 7,067   $ 8,523
Inventory Write-down 600 $ 100  
Equity-based compensation $ 1,118 $ 1,726  
v3.26.1
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Income Tax Disclosure [Abstract]    
Income tax provision (benefit) $ 32 $ 45
Effective benefit tax rate 1.40% (0.80%)
v3.26.1
Income (Loss) per Share - Summary of Computation of Net Income (Loss) Per Share of Class A and Class X Common Stock (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Numerator:    
Net Income (Loss) $ 2,286 $ (5,748)
Less: Income allocated to participating securities under two-class method 24  
Net income (loss) available to common shareholders - two class method - basic 2,262 (5,748)
Net income (loss) available to common shareholders - two class method - diluted $ 2,262 $ (5,748)
Denominator:    
Weighted-average common shares outstanding, basic 7,113,795 6,882,988
Dilutive effect of: RSUs 348,253  
Dilutive effect of: Options 107,145  
Weighted-average common shares outstanding, diluted 7,569,193 6,882,988
Net income (loss) per common share, basic [1] $ 0.32 $ (0.84)
Net income (loss) per common share, diluted [1] $ 0.3 $ (0.84)
[1] In computing basic and diluted net income per common share, net income is reduced by the amount of undistributed net income allocated to participating securities other than common shares, as required under the two-class method. See Note 14: Income (loss) per Share
v3.26.1
Income (Loss) per Share - Summary of Common Shares That Are Excluded from Computation of Diluted Net Income (Loss) Per Common Share (Details) - shares
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share, amount 2,261,040 2,618,264
Time-Vesting Options [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share, amount 641,508 912,758
RSUs [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share, amount 505,451 603,155
Compensation Warrant [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share, amount 79,612 79,612
Public and Private Placement Warrants [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share, amount 306,667 306,667
Term Loan Warrants [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share, amount 97,482 97,482
Common Stock Warrants [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share, amount 543,590 543,590
Forest Road Earn-out Shares [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share, amount 75,000 75,000
ESPP [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share, amount 11,730