Xponential Fitness, Inc., parent of the BFT, Club Pilates, Pure Barre, and StretchLab fitness brands, reported that total revenue for the second quarter was $66.0 million, down 13 percent from the prior-year Q2 period. The company said the decline in total revenue was expected and driven primarily by fewer equipment installations and lower merchandise revenue following the company’s transition to its new outsourced logistics arrangement.

  • Franchise revenue was $44.0 million, down 3 percent year-over-year (y/y). This decline was reportedly driven primarily by a decrease in same-store sales, coupled with brand divestitures which it completed in 2025.
  • Equipment revenue was $7.1 million, down 26 percent y/y. This decrease was said to be primarily the result of fewer global equipment installations, driven by fewer studio openings and lower franchise license sales.
  • Merchandise revenue was $0.5 million, down 90 percent y/y in Q2. The decrease was primarily driven by the change in the business model due to the company’s transition from an in-house wholesale model to an outsourced retail model, as well as challenges related to the transition.
  • Franchise marketing fund revenue was $8.7 million, down 8 percent y/y. The decrease was primarily due to lower system-wide sales stemming from divested brands.
  • Other service revenue was $5.6 million, down 10 percent y/y, primarily driven by lower vendor commission and brand access fee revenues.

Profitability and Expanses Summary
Selling, general and administrative (SG&A) expenses were $32.0 million, up 33 percent y/y, primarily driven by an increase in legal expenses.

Marketing fund expenses were $11.4 million, up 29 percent y/y. This increase reportedly reflects the timing of incremental marketing spend, as the company front-loaded more investment in the second quarter of 2026 compared with the second quarter of 2025.

Net loss for the quarter totaled $4.8 million, or a loss of 10 cents per basic share, compared to net income of $1.3 million, or a loss of 1 cents per basic share, in the prior-year Q2 period.

Second quarter Adjusted net income was $0.8 million, or adjusted net income of 2 cents per basic share, compared to an adjusted net income of $14.5 million, or an adjusted net income of 26 cents per basic share, in Q2 last year.

Adjusted EBITDA was $21.9 million, down 22 percent from $28.1 million in the prior-year period.

Image courtesy Club Pilates/Xponential Fitness, Inc.