Xponential Fitness, Inc. Class A ( (XPOF) ) has released its Q3 earnings. Here is a breakdown of the information Xponential Fitness, Inc. Class A presented to its investors.
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Xponential Fitness, Inc. is a global leader in boutique health and wellness franchising, offering diverse fitness experiences through nine unique brands across various disciplines such as Pilates, cycling, and yoga.
In its third-quarter 2024 earnings report, Xponential Fitness, Inc. demonstrated significant growth in system-wide sales and membership numbers, despite facing increased net losses and strategic shifts within the company.
The company’s system-wide sales in North America increased by 21% to $431.2 million, while the total number of members rose by 16% to 827,000. However, Xponential reported a net loss of $18 million, influenced by litigation, restructuring, and acquisition expenses. The company also saw a slight increase in revenue to $80.5 million, as gains in franchise and equipment sales were offset by a decline in other service revenues.
The company sold 84 franchise licenses and opened 125 new studios in the third quarter, with a quarterly average unit volume increase to $631,000. Adjusted EBITDA grew to $31 million, reflecting a 17% increase year-over-year, underscoring operational efficiency despite the challenging landscape.
Looking forward, Xponential Fitness maintains its 2024 guidance for system-wide sales and adjusted EBITDA, with expectations of continued growth in North America sales. However, it has adjusted its expectations for global studio openings, indicating a moderated expansion pace.
