Xponential Fitness, Inc. reported that total revenue increased 44 percent to $71.3 million for the fourth quarter of 2022, up from $49.4 million in the prior-year period. This increase included a corresponding North America same-store sales increase of 17 percent. The company reported North America quarterly run-rate average unit volume (AUV) of $522,000, compared to $446,000. North America system-wide sales increased by 38 percent to $294.1 million.

Net loss totaled $0.4 million, or a loss of $1.13 per share, in the quarter, compared to a loss of $29.8 million, or a loss of $2.45 per share, in the prior-year period. The increase was the result of $14.9 million of higher overall profitability, a $14.2 million decrease in non-cash contingent consideration primarily related to the Rumble acquisition, and a $0.4 million decrease in non-cash equity-based compensation expense.

Consistent with previous periods, the Rumble acquisition non-cash contingent consideration liability is marked-to-market based on Xponential’s share price, contributing to an $8.2 million increase to contingent consideration liability in the fourth quarter of 2022.

Adjusted Net Loss for the fourth quarter 2022, which excludes the $8.2 million non-cash contingent consideration related primarily to the Rumble acquisition and ($1.1) million related to the re-measurement of the company’s tax receivable agreement, was $6.8 million, or 7 cents per basic share, on a share count of 26.8 million shares of Class A Common Stock.

Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization, adjusted for equity-based compensation and related employer payroll taxes, acquisition and transaction expenses, management fees, integration and related expenses, litigation expenses, employee retention credit, secondary public offering expenses, tax receivable agreement re-measurement, and impairment of brand assets, increased to $22.2 million, up from $8.6 million in the prior-year period.

For the full year 2022, total revenue increased 58 percent to $245.0 million, up from $155.1 million in 2021. This increase in revenue included a corresponding North America same-store sales increase of 25 percent year-over-year.

Net income totaled $2.9 million, or a loss of 87 cents per share, compared to a loss of $51.4 million, or $2.85 per share, in the prior year. The increase was the result of $54.1 million of higher overall profitability and a $23.2 million decrease in non-cash contingent consideration related to the company’s Rumble acquisition, offset by a $19.3 million increase in non-cash equity-based compensation expense, and a $3.7 million increase in impairment of brand assets.

Adjusted Net Income for the full year 2022, which excludes $2.4 million in non-cash contingent consideration related primarily to the Rumble acquisition, $0.5 million related to the re-measurement of the Company’s tax receivable agreement, and $3.7 million in impairment of brand assets, was $9.5 million, or a loss of 7 cents per share, on a share count of 25.3 million shares.

Adjusted EBITDA as defined above increased to $74.3 million, up from $27.3 million in the prior-year.

“During 2022, we opened a new studio approximately every 17 hours, and system-wide sales surpassed $1 billion for the first time,” said Anthony Geisler, CEO of Xponential Fitness, Inc. “I could not be prouder of all of our franchisees and employees for making this success possible.”

Mr. Geisler continued, “The momentum we experienced in the fourth quarter, including double-digit growth across same store sales, membership and AUVs, has continued into the new year. In fact, our membership base reached a new milestone of 600,000 in January. As evident by our 2023 guidance, we’re looking forward to delivering more growth and value for our stakeholders.”

Looking ahead, Xponential Fitness is initiating full-year 2023 outlook, which compares to 2022 results as follows:

  • Net new studio openings in the range of 540 to 560, or an increase of 8 percent at the midpoint;
  • North America system-wide sales in the range of $1.34 billion to $1.35 billion, or an increase of 30 percent at the midpoint;
  • Revenue in the range of $285.0 million to $295.0 million, or an increase of 18 percent at the midpoint; and
  • Adjusted EBITDA in the range of $101.0 million to $105.0 million, or an increase of 39 percent at the midpoint.