Xponential Fitness, Inc. expects to meet or exceed the high end of its full-year 2022 outlook.

The company expects to meet or exceed the high end of the previously provided full-year 2022 outlook:

  • New studio openings of 511, at the top half of the guidance range of 500-to-520, and an increase of 53 percent as compared to full year 2021;
  • North American system-wide sales of $1.03 billion, exceeding the high end of the guidance range of $995.0 million to $1.005 billion, and an increase of 46 percent as compared to full year 2021;
  • Revenue in the range of $235.0 million to $240.0 million, or an increase of 53 percent at the midpoint as compared to full year 2021; and
  • Adjusted EBITDA in the range of $70.0 million to $74.0 million, or an increase of 164 percent at the midpoint compared to full year 2021.

For the full year ended December 31, 2022, the company:

  • Surpassed 2,600 open studios, and increased total licenses sold to over 5,400 across 10 brands globally;
  • Grew total members by 32 percent year-over-year to 590,000, up from 449,000 in 2021;
  • Grew studio visits by 32 percent year-over-year to 39.2 million, up from 29.7 million in 2021;
  • Increased system-wide sales to $1.03 billion, up 46 percent from $710 million in 2021;
  • Delivered same-store sales growth of 25 percent, compared to 41 percent in 2021; and
  • Achieved Q4 2022 run-rate average unit volume (AUV) of $522,000, compared to $446,000 in Q4 2021.

“It was inspiring to see the enthusiasm shared by the more than 2,000 attendees who participated in our annual convention last month,” said Anthony Geisler, CEO, Xponential Fitness, Inc. “This enthusiasm is no doubt rooted in Xponential’s strong annual performance. Double-digit growth across membership, same-store sales and AUV compared to the prior year depict a business that is firing on all cylinders. We enter the new year fully energized, and I could not be prouder of our team and franchisees for the success we achieved together in 2022.”

Convertible Preferred Stock Repurchase and Incremental Term Loans
The company announced it had entered into a privately negotiated preferred stock repurchase agreement with certain holders of its outstanding Convertible Preferred Stock and an amendment to its existing financing arrangement that provides for, among other things, incremental term loans in an aggregate principal amount of $130.0 million. The company agreed to pay aggregate consideration of $131.0 million in cash in exchange for the repurchase of 85,340 shares of Convertible Preferred Stock. These shares prior to repurchase would have been convertible into 5.9 million shares of Class A Common Stock. The closing of the incremental term loans and the repurchase is expected on or about January 13, 2023, subject to customary closing conditions. The company expects to fund the repurchase with additional borrowings under incremental term loans and available cash. The closing of the repurchase and the closing of the incremental term loans are cross conditional.