GICS Sector : Consumer Cyclical
Xponential Fitness, Inc., through its subsidiaries, operates as a boutique fitness franchisor in the United States and internationally.The company offers fitness and wellness services, including pilates, barre, cycling, stretching, rowing, yoga, boxing, dancing, running, and functional training under the Club Pilates, Pure Barre, CycleBar, StretchLab, Row House, YogaSix, Rumble, AKT, Stride, and BFT brands.As of December 31, 2021, it had 1,556 franchisees operating 1,954 open studios on an adjusted basis.
Xponential Fitness reported a revenue of $78.8 million for the third quarter of 2025, down 2% from $80.5 million in the prior year period. The company's adjusted net income was $19.3 million, with an adjusted EPS of $0.36 per basic share, beating analyst estimates of $0.14. Adjusted EBITDA was $33.5 million, up 9% year-over-year, driven by increased margin from license terminations and increased royalties. The company's actual EPS came out at $0.34.
Publication Date: Nov -19
Franchise revenue rose 17% year-over-year to $51.9 million, while equipment revenue was $7.5 million, down 49%. Merchandise revenue was $4.8 million, down 27%. North America system-wide sales were $432.2 million, up 10% year-over-year, driven by growth from net new studio openings. Same-store sales were down 0.8% for the quarter and up 5.4% on a 2-year stack basis.
The company ended the quarter with 3,066 global open studios, opened 78 gross new studios, and sold 49 licenses. However, approximately 40% of its global licenses are over 12 months behind their applicable development schedules. The company is taking steps to improve its marketing, operations support, unit growth, and licensing, innovation, and efficiencies.
With a P/E Ratio of -4.14 and an EV/EBITDA of -25.29, the company's valuation metrics indicate a challenging environment. However, the company's guidance for 2025 remains unchanged, with North America system-wide sales expected to range from $1.73 billion to $1.75 billion, representing a 12% increase at the midpoint. Total 2025 revenue is expected to be between $300 million and $310 million.
Club Pilates reported same-store sales growth moderated to 1% in the third quarter. The company is exploring enhanced pricing strategies to drive revenue and is working with an expert to analyze data and develop a thoughtful approach to pricing and packages. StretchLab is working to replace lost Medicare revenue by driving an expanded membership mix.
The company is actively exploring opportunities to bring in larger-scale operators, including private equity firms, to support its franchisee base. However, franchisees face challenges like labor, occupancy, and instructor availability. The company's efforts to mitigate these challenges through instructor training programs and ProfitKeeper system will be crucial in driving future growth.
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Xponential Fitness, Inc. (XPOF) Q2 2025 Earnings Call Transcript
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Xponential Fitness, Inc.'s franchise growth is driven by increasing demand for boutique fitness, low-cost membership models, and a diverse portfolio of brands (e.g., Club Pilates, CycleBar). Strong unit economics, scalable business models, and a loyal customer base also contribute to the 8% growth rate.
Xponential Fitness, Inc.'s 7% growth is driven by increasing demand for boutique fitness, expansion into new markets, and strategic partnerships. Additionally, the company's diversified portfolio of brands, including Club Pilates, CycleBar, and StretchLab, contributes to its growth. Furthermore, the growing trend of health and wellness, coupled with the rise of the gig economy, fuels demand for flexible and convenient fitness options.
Xponential Fitness, Inc.'s equipment segment growth is driven by increasing demand for boutique fitness experiences, expansion of existing brands, and strategic acquisitions. Growing health awareness, rising disposable income, and the need for convenient, high-energy workouts also contribute to this 10% growth. Furthermore, the company's focus on technology integration, data-driven decision making, and strong marketing efforts support its rapid expansion.
Xponential Fitness, Inc.'s 11% merchandise growth is driven by increasing demand for at-home fitness solutions, expansion of e-commerce platforms, and strategic partnerships with popular fitness influencers. Additionally, the company's diversified portfolio of boutique fitness brands, such as Club Pilates and CycleBar, contributes to the growth.
Xponential Fitness, Inc.'s 9% growth in Franchise Marketing Fund is driven by increasing brand awareness, strategic marketing campaigns, and expansion into new markets. Additionally, the rise of the health and wellness industry, coupled with the growing demand for boutique fitness experiences, contributes to the fund's growth.
A boutique fitness studio offering Pilates-based workouts in a variety of formats, including group classes and private sessions.
A premium indoor cycling studio offering high-energy, instructor-led classes with state-of-the-art equipment and technology.
A stretching studio offering one-on-one and group stretching sessions to improve flexibility, range of motion, and overall wellness.
A high-energy, rowing-based fitness studio offering group classes and personalized coaching.
A dance-based fitness studio offering high-energy classes that combine elements of dance, Pilates, and yoga.
A yoga studio offering a variety of classes and workshops for all levels, from beginner to advanced.
A boxing-inspired fitness studio offering high-intensity, group classes that combine boxing techniques with strength training.
A boot camp-style fitness program offering high-intensity, group classes that combine strength training and cardio exercises.
Xponential Fitness, Inc. has a low threat of substitutes due to its unique and diverse range of fitness brands, including Club Pilates, CycleBar, and StretchLab, among others. This diversification reduces the threat of substitutes, as customers are more likely to remain loyal to the brand.
Xponential Fitness, Inc. has a medium bargaining power of customers, as customers have some flexibility to choose from various fitness brands and studios. However, the company's strong brand reputation and customer loyalty programs help to mitigate this power.
Xponential Fitness, Inc. has a low bargaining power of suppliers, as it has a diverse range of suppliers for its various fitness brands. This diversification reduces the dependence on any single supplier, giving the company more negotiating power.
Xponential Fitness, Inc. faces a high threat of new entrants, as the fitness industry is highly competitive and relatively easy to enter. New entrants can easily start a fitness studio or gym, posing a threat to the company's market share.
Xponential Fitness, Inc. operates in a highly competitive fitness industry, with many established players and new entrants vying for market share. This intense rivalry puts pressure on the company to maintain its market position and differentiate its brands.
| Value | |
|---|---|
| Debt Weight | 103.28% |
| Debt Cost | 3.95% |
| Equity Weight | -3.28% |
| Equity Cost | 9.92% |
| WACC | 3.75% |
| Leverage | -3146.59% |
Value: 8.7
Growth: 1.9
Quality: 3.3
Yield: 5.0
Momentum: 8.0
Volatility: 5.3
1-Year Total Return ->
Value: 9.6
Growth: 1.3
Quality: 4.4
Yield: 4.0
Momentum: 2.0
Volatility: 3.7
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Value: 5.9
Growth: 4.4
Quality: 4.6
Yield: 4.0
Momentum: 2.0
Volatility: 4.0
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Value: 8.5
Growth: 5.7
Quality: 5.5
Yield: 0.0
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Volatility: 1.0
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Value: 6.9
Growth: 4.2
Quality: 4.2
Yield: 0.0
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Volatility: 3.3
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Value: 9.8
Growth: 2.6
Quality: 5.5
Yield: 0.0
Momentum: 0.5
Volatility: 1.7
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