Xponential Fitness Reports Q2 Loss Amid Revenue Decline and Guidance Cut
On August 6, Xponential Fitness (NYSE:XPOF) reported second-quarter results for the period ended June 30, revealing a net loss of $4.8 million compared to prior-year profitability. Revenue fell by 13% year-over-year to $66 million due in part to declining same-store sales and reduced equipment and merchandise revenue. Despite weak financial performance, Xponential continued expanding its franchise network with the opening of 67 new studios and sale of 53 licenses during the quarter. The company significantly revised down full-year guidance across multiple metrics including total revenue, which is now projected at $250 million to $260 million—down from a previous range of $260 million to $270 million. North America system-wide sales are still expected between $1.7 billion and $1.75 billion for the year with adjusted EBITDA guidance remaining in the $91 million to $97 million range. Xponential faces challenges including a 33% increase in SG&A expenses, rising legal costs, and high debt levels ($25M cash vs. $522.4M long-term debt). The stock currently trades at a forward P/E of 13.32 with short interest representing nearly half the float.
