Xponential Fitness, Inc. reported that North America system-wide sales climbed 18 percent in the first quarter, with overall results in line with expectations. The fitness boutique owner lowered its guidance on global net new studio openings for the year but reaffirmed its guidance on system-wide sales, total revenue, and adjusted EBITDA.

Financial Highlights
Q1 2025 Compared to Q1 2024

  • Reported revenue of $76.9 million, a decrease of 4 percent from the prior year period.
  • Increased North America system-wide sales by 18 percent to $466.8 million.
  • Reported North America same-store sales growth of 4 percent, compared to an increase of 9 percent.
  • Reported North America quarterly run-rate average unit volume (AUV) of $659,000, compared to $609,000.
  • Posted net loss of $2.7 million, or a loss of $0.10 per basic share, on a share count of 33.9 million shares of Class A Common Stock, compared to a net loss of $3.8 million, or a loss of $0.29 per basic share, on a share count of 31.1 million shares of Class A Common Stock.
  • Posted adjusted net loss of $7.7 million, or adjusted loss of $0.20 per basic share, compared to adjusted net income of $9.2 million, or adjusted earnings of $0.15 per basic share.
  • Reported Adjusted EBITDA of $27.3 million, compared to $29.9 million.

“Xponential delivered results in line with our expectations this quarter, supported by solid KPIs, while successfully completing our updated financing agreement and making significant progress on the renewals of our Franchise Disclosure Documents,” said CEO Mark King. “Our team continues to enhance operations and focus upon Xponential’s franchisee-first strategy. We look forward to sharing further details at our upcoming Analyst & Investor Day.”

 Results for the First Quarter Ended March 31, 2025

  • For the first quarter of 2025, total revenue decreased $2.8 million, or 4 percent, to $76.9 million, down from $79.7 million in the prior year period, as increases in franchise and marketing fund revenues were offset by decreases in other service, merchandise and equipment revenues.
  • Net loss totaled $2.7 million, or a loss of $0.10 per basic share, compared to a net loss of $3.8 million, or a loss of $0.29 per basic share, in the prior year period. The change in net loss was the result of $1.2 million of lower profitability, $15.5 million increase in litigation expenses, a $1.9 million increase in impairment of goodwill and other noncurrent assets, a $0.9 million increase in transformation initiative costs, and a $0.7 million increase in other miscellaneous costs; offset by a $13.2 million decrease in acquisition and transaction expenses, which includes non-cash contingent consideration primarily related to the Rumble acquisition, a $7.3 million decrease in restructuring and related charges and a $0.9 million decrease in equity-based compensation and related taxes.
  • Adjusted net loss for the first quarter of 2025, which excludes $8.6 million in acquisition and transaction income, a $1.1 million expense related to the remeasurement of the company’s tax receivable agreement, $1.9 million related to the impairment of goodwill and other noncurrent assets, $0.1 million loss and ongoing expenses due to brand divestitures and wind down, and $0.6 million of restructuring and related charges, was $7.7 million, or an adjusted net loss of 20 cents per basic share, on a share count of 33.9 million shares of Class A Common Stock.
  • Adjusted EBITDA, defined as net income (loss) before interest, taxes, depreciation and amortization, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance, was $27.3 million for the quarter, down 9 percent from $29.9 million in the prior year period.

Liquidity and Capital Resources
As of March 31, 2025, the company had approximately $42.6 million cash, cash equivalents and restricted cash and $379.1 million in total long-term debt. Net cash provided by operating activities was $5.8 million for the three months ended March 31, 2025.

2025 Outlook
The company is lowering guidance on global net new studio openings and reiterating guidance on system-wide sales, total revenue, and adjusted EBITDA for full year 2025, which compares to 2024 results as follows:

  • Net new studio openings in the range of 160 to 180, or a decrease of 29 percent at the midpoint. Previously, net new studio openings were expected in the range of 200 to 220, or a reduction of 12 percent at the mid-point;
  • North America system-wide sales in the range of $1.935 billion to $1.955 billion, or an increase of 13 percent at the midpoint;
  • Revenue in the range of $315.0 million to $325.0 million, representing no change at the midpoint; and
  • Adjusted EBITDA in the range of $120.0 million to $125.0 million, or an increase of 5 percent at the midpoint.

Xponential Fitness chains include Club Pilates, CycleBar, StretchLab, YogaSix, Pure Barre, Rumble, BFT, and Lindora.

Image courtesy Xponential Fitness/Pure Barre