Xponential Fitness, Inc. (XPOF), parent of the Club Pilates, StretchLab, AKT, YogaSix, Pure Barre, BFT, and Lindora fitness brand names, reported total revenue decreased 1 percent to $76.2 million in the second quarter, down from $76.9 million in the prior-year Q2 period. The trend was attributed to lower equipment revenue resulting from a decline in installations, as well as a decrease in merchandise sales, partially offset by higher franchise and franchise marketing fund revenue.

  • North America system-wide sales increased 12 percent year-over-year (y/y) to $473.5 million in the second quarter.
  • North America same-store sales grew 1 percent y/y, compared to year-over-year growth of 7 percent in the prior-year Q2 period.
  • North America quarterly run-rate average unit volume (AUV) amounted to $659,000 in Q2, compared to $638,000 in the 2024 Q2 period.

“We’ve made meaningful progress on several key initiatives we discussed during our Investor & Analyst Day,” said Mark King, outgoing CEO, Xponential Fitness, Inc. “We’ve expanded our field operations team, executed a new retail partnership, and completed the divestiture of CycleBar and Rumble. That said, we revised guidance reflecting the recent divestiture and proactive investments in the organization intended to position us for a stronger 2026.”

In breaking news on Thursday, August 7, the company’s Board of Directors appointed Mike Nuzzo as the new CEO, effective immediately, succeeding Mark King, who resigned from his roles as CEO and director.

King, who was hired by Exponential in mid-June 2024, resigned in mid-May and agreed to continue to serve as CEO throughout the search process for a successor until his retirement. King was previously CEO of Taco Bell. The former head of Taylormade and Adidas North America informed the XPOF Board of Directors in May that he intended to retire due to health reasons.

XPOF posted net income of $1.3 million, or a loss of 1 cent per basic share, on a share count of 35.0 million shares of Class A Common Stock, compared to a net loss of $14.3 million, or a loss of 30 cents per basic share, on a share count of 31.8 million shares of Class A Common Stock.

Adjusted net income was $14.5 million, or 26 cents per basic share, on a share count of 35.0 million shares of Class A Common Stock, compared to Adjusted net income of $0.03 million, or an Adjusted loss of 4 cents per basic share in the prior-year period.

Adjusted EBITDA, which is defined as net income (loss) before interest, taxes, depreciation and amortization, adjusted for the impact of certain non-cash and other items that are not considered in the evaluation of ongoing operating performance, was $28.1 million, up 14 percent from $24.7 million in the prior-year Q2 period.

Liquidity and Capital Resources
As of June 30, 2025, the company had approximately $38.7 million of cash, cash equivalents and restricted cash and $377.8 million in total long-term debt.

Net cash provided by operating activities was $8.3 million for the six months ended June 30, 2025.

2025 Outlook
The company is updating its guidance for net new studio openings, system-wide sales, total revenue, and Adjusted EBITDA for full year 2025. Guidance and year-over-year comparisons for net new studio openings and system-wide sales exclude CycleBar and Rumble results in both periods.

Guidance compares to 2024 results as follows:

  • Net new studio openings in the range of 170 to 190, or a decrease of 37 percent at the midpoint;
  • North America system-wide sales in the range of $1.780 billion to $1.800 billion, or an increase of 13 percent at the midpoint;
  • Revenue in the range of $300.0 million to $310.0 million, or a decrease of 5 percent at the midpoint; this compares to previous guidance of $315.0 million to $325.0 million; and
  • Adjusted EBITDA in the range of $106.0 million to $111.0 million, or a decrease of 7 percent at the midpoint. This compares to the previous guidance of $120.0 million to $125.0 million.

Additional key assumptions for full year 2025 include:

  • Tax rate in the mid-to-high single digits;
  • Share count of 34.8 million shares of Class A Common Stock for the GAAP EPS and Adjusted EPS calculations; and
  • $1.9 million in quarterly dividends paid related to the Company’s Convertible Preferred Stock, or $2.2 million if paid-in-kind.

The company said it is not able to provide a quantitative reconciliation of the estimated full year Adjusted EBITDA for fiscal year ending December 31, 2025, without unreasonable efforts to the most directly comparable GAAP financial measure due to the high variability, complexity and low visibility with respect to certain items such as taxes, TRA re-measurements, and income and expense from changes in fair value of contingent consideration from acquisitions.

The company stated that it expects the variability of these items to have a potentially unpredictable and significant impact on future GAAP financial results. Consequently, it also believes that any reconciliations provided would imply a degree of precision that could be confusing or misleading.

All financial data included in the earnings release refer to global numbers, unless otherwise noted. All KPI information is presented on an Adjusted basis to include full historical data for all brands in the brand portfolio as of June 30, 2025, and to exclude all information for all brands not owned as of June 30, 2025.

Image courtesy Xponential Fitness, Inc.