Xponential Fitness (NYSE:XPOF) Issues Earnings Results, Misses Estimates By $0.08 EPS

Key Points

• Xponential Fitness reported $0.04 in quarterly EPS, missing the $0.12 consensus estimate by $0.08. Revenue of $62.26 million also fell short of estimates and declined 21% year over year.
• Operating performance weakened: same-studio sales fell 7.5%, while adjusted EBITDA declined 27% to $24.3 million. The company narrowed its 2026 outlook for new studio openings to 124–130 and adjusted EBITDA to $91–$94 million.
• Management cited early gains from marketing and technology initiatives, including higher Club Pilates lead submissions and appointment conversions. A board review of strategic alternatives, potentially including a sale or merger, remains underway.

Xponential Fitness (NYSE:XPOF - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.04 earnings per share for the quarter, missing analysts' consensus estimates of $0.12 by ($0.08), FiscalAI reports. The business had revenue of $62.26 million during the quarter, compared to analyst estimates of $63.00 million. Xponential Fitness had a negative net margin of 13.64% and a negative return on equity of 3.40%. The company's revenue for the quarter was down 21.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.34 EPS.

Here are the key takeaways from Xponential Fitness' conference call:

• Q3 operating results weakened: same-studio sales fell 7.5% (5.6% at Club Pilates), North American systemwide sales declined 2%, revenue decreased 21% to $62.3 million, and adjusted EBITDA fell 27% to $24.3 million. Management cited softer studio performance, lower equipment installations, and merchandise-transition challenges.
• 2026 guidance was tightened: expected net new studio openings are now 124–130, and adjusted EBITDA is expected to be $91–$94 million; North American systemwide sales and revenue outlooks were unchanged. Management attributed slower openings partly to tougher real-estate availability and said it is being more selective about sites.
• Management reported early signs of improvement from its marketing and technology initiatives. Since the new Club Pilates website launched, lead-form submissions and first-class appointment conversions have increased by a double-digit percentage, while lower cost per lead and stronger YogaSix member-tenure trends were also cited.
• International expansion and Club Pilates remain long-term growth priorities. The company ended the quarter with 3,185 studios, including 19 net international openings, and reiterated a goal of growing Club Pilates to more than 2,000 locations domestically within five years, while emphasizing disciplined development.
• The board’s strategic-alternatives review remains active and could include a sale, merger, or other transaction; the company said it would not comment further while the process is ongoing.

Xponential Fitness Stock Up 5.6%

NYSE:XPOF traded up $0.25 during midday trading on Friday, reaching $4.67. The stock had a trading volume of 2,561,034 shares, compared to its average volume of 855,943. The stock has a market cap of $230.23 million, a P/E ratio of -3.92 and a beta of 1.07. The firm has a fifty day simple moving average of $4.41 and a two-hundred day simple moving average of $5.96. Xponential Fitness has a 12-month low of $3.57 and a 12-month high of $9.25.

Wall Street Analyst Weigh In

XPOF has been the subject of a number of recent analyst reports. Robert W. Baird set a $5.50 price objective on Xponential Fitness in a report on Friday, August 7th. Roth Capital decreased their target price on shares of Xponential Fitness from $7.00 to $5.00 and set a "neutral" rating for the company in a research report on Monday, August 10th. Weiss Ratings downgraded Xponential Fitness from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday. Wall Street Zen downgraded Xponential Fitness from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. Finally, UBS Group cut their price target on shares of Xponential Fitness from $7.00 to $4.50 and set a "neutral" rating on the stock in a report on Wednesday, September 16th. One equities research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Xponential Fitness has a consensus rating of "Hold" and an average target price of $6.50.

About Xponential Fitness

Xponential Fitness, Inc is a franchisor of boutique health and wellness businesses. Founded in 2017 and headquartered in Irvine, California, the company develops and supports specialized fitness concepts that operate through franchised studios and licensed locations.

Its portfolio has included Club Pilates, CycleBar, StretchLab, YogaSix, Pure Barre, AKT, Rumble, STRIDE Fitness and BFT, which offer services such as Pilates, indoor cycling, assisted stretching, yoga, barre, dance-based workouts, boxing-inspired training and group fitness.

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