Xponential Fitness Inc
NYSE:XPOF
Xponential Fitness Inc
Xponential Fitness, Inc. is a curator of boutique fitness brands across multiple verticals. The company is headquartered in Irvine, California and currently employs 232 full-time employees. The company went IPO on 2021-07-23. The firm is a boutique fitness franchisor in the United States with over 1,889 studios operating across nine distinct brands. The company has a diversified portfolio of brands in fitness and wellness verticals, including Pilates, barre, cycling, stretch, rowing, yoga, boxing, dance and running. The Company’s brands offer consumers engaging experiences that appeal to a range of ages, fitness levels and demographics. The Company’s brands include Club Pilates, Pure Barre, CycleBar, Stretch Lab, Row House, Yoga Six, Rumble, AKT and Stride. The firm offers a robust digital platform containing over 2,400 recorded workouts that can be accessed at-home or on-the-go. The Company’s operational model The Xponential Playbook, helps franchisees generate compelling studio economics. The company provides franchisees with support from the outset, focused on delivering an experience and studio-level productivity.
Xponential Fitness, Inc. is a curator of boutique fitness brands across multiple verticals. The company is headquartered in Irvine, California and currently employs 232 full-time employees. The company went IPO on 2021-07-23. The firm is a boutique fitness franchisor in the United States with over 1,889 studios operating across nine distinct brands. The company has a diversified portfolio of brands in fitness and wellness verticals, including Pilates, barre, cycling, stretch, rowing, yoga, boxing, dance and running. The Company’s brands offer consumers engaging experiences that appeal to a range of ages, fitness levels and demographics. The Company’s brands include Club Pilates, Pure Barre, CycleBar, Stretch Lab, Row House, Yoga Six, Rumble, AKT and Stride. The firm offers a robust digital platform containing over 2,400 recorded workouts that can be accessed at-home or on-the-go. The Company’s operational model The Xponential Playbook, helps franchisees generate compelling studio economics. The company provides franchisees with support from the outset, focused on delivering an experience and studio-level productivity.
Revenue Decline: Q3 revenue was $78.8 million, down 2% year-over-year, mainly due to lower equipment and merchandise sales.
Stronger Franchise Revenue: Franchise revenue rose 17% year-over-year to $51.9 million, driven by license terminations and higher royalties.
Adjusted EBITDA Growth: Adjusted EBITDA grew 9% to $33.5 million, with margin improving to 42% from 38%.
Guidance Reiterated: 2025 revenue and adjusted EBITDA guidance remain unchanged; net new studio opening outlook is also reiterated.
Cost Savings: A recent reduction in force is expected to deliver $6 million in annualized SG&A savings.
Club Pilates Update: New Club Pilates studios are ramping to $900,000–$1 million AUV in under 12 months, but same-store sales growth has slowed due to high maturity and capacity.
StretchLab Headwinds: StretchLab continues to face revenue pressure from Medicare Advantage coverage cutbacks.
Marketing Investment: A national brand campaign for Club Pilates is launching, with new investments in digital and traditional media channels.
Backlog Challenges: About 40% of global franchise licenses remain more than 12 months behind development schedules, though management expects this to improve.
