Xponential Fitness, Inc., the owner of several fitness boutiques including Club Pilates and YogaSix, reduced its loss in the first quarter due to lower costs. Sales declined 21 percent due to a strategic transition to an outsourced logistics arrangement. North America same-store sales decreased 6 percent.

Other banners owned by the company include Pure Barre and BFT.

Financial Highlights: Q1 2026 Compared to Q1 2025

  • Revenue of $60.7 million decreased 21 percent.
  • North America system-wide sales increased 2 percent to $436.9 million.
  • North America same store sales decreased 6 percent, compared to growth of 6 percent.
  • North America quarterly run-rate average unit volume (AUV) of $662,000, compared to $685,000.
  • Net loss of $0.8 million, or 2 cents, compared to a net loss of $2.7 million, or 10 cents, a year ago.
  • Adjusted net loss of $2.0 million, or 4 cents a share, compared to adjusted net loss of $7.7 million, or 20 cents.
  • Adjusted EBITDA of $20.4 million, compared to $27.3 million.

“During the first quarter, we continued to strengthen execution across Xponential, including the addition of Robert Julian as interim Chief Financial Officer, Erik Quade as Chief Information Officer, and starting mid-May Steph So as our new Chief Marketing Officer, which further deepens our capabilities across finance, technology, and marketing,” said Mike Nuzzo, CEO of Xponential Fitness, Inc. “We are operating as a more unified organization, aligning marketing, operations, technology, and brand-building to drive stronger performance and lay the foundation for continued improvement.”

Nuzzo continued, “As we look ahead, our focus is on restoring sustainable organic growth through a more disciplined framework. This includes stabilizing top-of-funnel lead generation, improving lead-to-member conversion, and optimizing pricing and membership structures over time, all while continuing to support retention through class innovation, studio remodel programs, and clear brand positioning. We are confident these actions will strengthen performance and position us well for the quarters ahead.”

Operating Results for the First Quarter Ended March 31, 2026

  • Total revenue was $60.7 million, down 21 percent from the prior year period. The decline in total revenue was expected and driven primarily by strategic divestitures, fewer equipment installations, and lower merchandise revenue following the company’s transition to the new outsourced logistics arrangement.
  • Franchise revenue was $41.2 million, down 6 percent year-over-year. This decline was driven primarily by a decrease in same store sales, coupled with brand divestitures completed in 2025.
  • Equipment revenue was $4.4 million, down 61 percent year-over-year. This decrease was primarily the result of fewer global equipment installations, driven by fewer studio openings and lower franchise license sales.
  • Merchandise revenue was $0.7 million, down 90 percent year-over-year. The decrease was primarily driven by the company’s transition from an in-house wholesale model, where it recorded the full value of merchandise revenue, to an outsourced retail model, which now records only the commission, or net profit from retail items sold.
  • Franchise marketing fund revenue was $8.7 million, down 6 percent year-over-year. The decrease was primarily due to lower system-wide sales stemming from divested brands.
  • Other service revenue was $5.8 million, down 8 percent year-over-year, primarily driven by lower vendor commission and brand access fee revenues.
  • Selling, general and administrative expenses were $30.0 million, down 34 percent year-over-year, primarily driven by lower legal and personnel-related costs.
  • Marketing fund expenses were $11.7 million, up 25 percent year-over-year. This increase reflected the timing of incremental marketing spend, as the company front-loaded more investment in the first quarter of 2026 compared with the first quarter of 2025.
  • Net loss totaled $0.8 million, or 2 cents per share, compared to a net loss of $2.7 million, or 10 cents, in the prior year period.
  • Adjusted net loss was $2.0 million, or 4 cents, compared to adjusted net loss of $7.7 million, or 20 cents.
  • Adjusted EBITDA was $20.4 million, down 25 percent from $27.3 million in the prior year period.

Liquidity and Capital Resources

As of March 31, 2026, the company had approximately $21.5 million of cash, cash equivalents and restricted cash and $523.7 million in total long-term debt. Net cash used in operating activities was $21.7 million for the quarter ended March 31, 2026.

All financial data included in this 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 March 31, 2026, and to exclude all information for all brands not owned as of March 31, 2026. Definitions for the non-GAAP measures and a reconciliation to the corresponding GAAP measures are included in the tables that accompany this release.

2026 Outlook

The company is reiterating full year 2026 outlook, which compares to 2025 results as follows:

  • Net new studio openings in the range of 150 to 170, or a decrease of 20 percent at the midpoint;
  • North America system-wide sales1 in the range of $1.72 billion to $1.80 billion, or an increase of 1 percent at the midpoint;
  • Revenue in the range of $260.0 million to $270.0 million, representing a decrease of 16 percent at the midpoint; and
  • Adjusted EBITDA in the range of $100.0 million to $110.0 million, representing a decrease of 6 percent at the midpoint.

Image courtesy Club Pilates