Australia's richest ex-couple Kayla Itsines and Tobi Pearce recently joined forces and bought back their Sweat fitness business, which they sold a few years ago.
The couple, who sold Sweat to US fitness group iFIT for hundreds of millions of dollars in 2021, took back control of the digital fitness brand in November for an undisclosed sum.
However, iFIT struggled to maintain the success of the Sweat brand after taking the reins and recorded an $80 million write-down after the first year of ownership.
Now financial reports filed with ASIC show iFIT subscription revenue fell a further 14 per cent to $61.4 million in the 2022-2023 financial year.
Previously, subscription revenue fell 16 percent in the 2020/21 fiscal year, resulting in a loss of $9.5 million.
The fitness empire of Kayla Itsines and Tobi Pearce (both pictured) posted a huge loss of $10.7 million in the 2022-2023 financial year
In its most recent fiscal year, iFIT also recorded an additional write-down of $3.8 million on the value of Sweat and an after-tax loss of $10.7 million.
Itsines and Pearce founded the fitness program Body Guide in 2015, which later evolved into Sweat.
The ex-couple sold the platform to iFIT for $400 million in 2021 after home workouts boomed as gyms and sports centers closed during the Covid pandemic.
Itsines and Pearce, who sold Sweat to US fitness group iFIT for hundreds of millions of dollars in 2021, took back control of the digital fitness brand in November for an undisclosed sum
But subscriptions, which cost $20 a month, dropped after gyms reopened.
Itsines and Pearce decided to go back into their sweat business together in November, with Itsines as the face and Mr. Pearce as the head.
Itsines will return to her role as head coach of the platform and Pearce will focus on the company's longevity and growth strategy.
In November. However, iFIT struggled to maintain the success of the Sweat brand after taking the reins and recorded an $80 million write-down after the first year of ownership
In a statement, Itsines said she had no regrets about selling the company and that she had since come “full circle.”
“I am thrilled to once again be the owner of Sweat, a platform that has meant so much to me and the millions of women it serves,” she said.
“The decision to take back ownership of the company is about securing the best future for Sweat.” We have always been a platform created by women, for women, providing a safe and empowering space for them to express themselves Sharing transformational journeys.
Financial reports filed with ASIC show iFIT subscription revenue fell a further 14 per cent to $61.4 million in the 2022-2023 financial year
“Our commitment to this community remains unwavering.”
The business partners saw an opportunity to regain ownership of their company when iFIT shifted its focus to fitness hardware products and away from Sweat.
Ms Itsines and Mr Pearce now plan to grow the business back from Adelaide, where they once employed almost 100 people in 2019.
THE RISE, FALL AND RERISE OF KAYLA ITSINES AND TOBI PEARCE
- 2012: Kayla Itsines meets Tobi Pearce and they begin dating
- 2014: Ms. Itsines and Mr. Pearce create the Bikini Body Guide (BBG), a 12-week program aimed at women to achieve dramatic weight loss results
- 2015: The “Sweat with Kayla” app launches and is renamed “Sweat” two years later
- 2016: Ms Itsines becomes Australia's fourth richest young woman in the BRW Young Rich List, with a combined fortune of $46 million between her and Mr Pearce
- 2017: The couple renames their fitness workout app and calls it Sweat, with Ms. Itsines as the face of the brand
- 2017: Ms. Itsines is named a “Top Fitness Influencer” by Forbes
- 2017: In the 2017 AFR Rich List, she is ranked 40th, while Mr. Pearce is ranked 41st
- 2019: The couple are jointly ranked tenth on the AFR's Young Rich List with a fortune of $486 million
- 2020: Ms Itsines and Mr Pearce announce their shocking split
- 2021: Ms Itsines and Mr Pearce sell Sweat to US fitness giant iFIT for A$280 million
- 2022: iFIT records an $80 million write-down on Sweat after its first year of ownership amid momentum difficulties
- 2023: Ms. Itsines and Mr. Pearce resume their business relationship and repurchase Sweat for an undisclosed sum