Xponential Fitness (NYSE:XPOF) Announces Earnings Results, Misses Estimates By $0.15 EPS

Key Points

• Xponential Fitness missed Q1 estimates: The company reported EPS of -$0.04 versus the $0.11 consensus, and revenue of $60.7 million came in below expectations while falling 21% year over year.
• Same-store sales and profitability weakened: North America same-store sales declined 6%, and the company posted a negative net margin and lower adjusted EBITDA, highlighting continued pressure on operating performance.
• Management is focusing on turnaround efforts: Xponential added new leadership, is working on marketing and technology fixes, and reaffirmed its 2026 outlook, including a target of 150–170 net studio openings.

Xponential Fitness (NYSE:XPOF - Get Free Report) announced its earnings results on Thursday. The company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.11 by ($0.15), FiscalAI reports. Xponential Fitness had a negative net margin of 11.28% and a negative return on equity of 3.49%. The company had revenue of $60.71 million during the quarter, compared to the consensus estimate of $63.75 million. During the same quarter in the prior year, the company earned $0.20 EPS. The business's quarterly revenue was down 21.0% on a year-over-year basis.

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

• Leadership additions: The company added Robert Julian as Interim CFO, Eric Quade as CIO, and will hire Steph Soe as CMO, positions management says will strengthen financial, technology, and marketing execution.
• Unit growth and pipeline: Q1 saw 23 net domestic and 17 net international openings, management reaffirmed a 2026 target of 150–170 net studio openings and highlighted a robust Club Pilates pipeline (targeting >2,100 U.S. studios and >499 committed international licenses).
• Same‑store sales weakness: Q1 same‑store studio sales fell ~6% company‑wide (Club Pilates down ~4%), which management attributes mainly to lower digital traffic from Meta/Google platform changes and privacy‑related lead conversion issues.
• Financial pressure and liabilities: Revenue declined 21% YoY to $60.7M and adjusted EBITDA fell 25% to $20.4M; cash dropped to $21.5M, the company drew $10M on its revolver, paid $12.5M of franchisee settlement with ~$16.4M more expected, and long‑term debt rose to $523.7M.
• Operational fixes underway include a new national marketing agency, automated CRM emails, website redesigns (early lifts at StretchLab), pricing “hygiene” and remodels; management expects these initiatives plus targeted paid spend to stabilize lead generation and reaffirmed full‑year 2026 guidance.

Xponential Fitness Trading Down 14.1%

NYSE:XPOF traded down $0.93 during trading hours on Friday, hitting $5.62. 1,653,009 shares of the stock traded hands, compared to its average volume of 375,491. The firm has a 50 day moving average price of $6.36 and a 200 day moving average price of $7.11. The firm has a market cap of $275.42 million, a price-to-earnings ratio of -4.07 and a beta of 1.19. Xponential Fitness has a fifty-two week low of $3.83 and a fifty-two week high of $11.14.

Key Xponential Fitness News

Here are the key news stories impacting Xponential Fitness this week:

• Negative Sentiment: Q1 2026 results missed expectations, with EPS of -$0.04 versus the $0.11 consensus and revenue of $60.7 million versus $63.8 million expected; revenue also fell 21% from a year ago, signaling softer operating performance. Article Title
• Negative Sentiment: The company’s same-store sales in North America declined 6%, reversing last year’s growth and suggesting slower franchise demand. Article Title
• Negative Sentiment: Lake Street Capital downgraded Xponential Fitness (XPOF) from buy to hold, even though it kept a $6.00 price target, which adds to the cautious sentiment around the stock. Article Title
• Neutral Sentiment: Management guided 2026 revenue to $260 million-$270 million, roughly in line with Wall Street expectations, which may help limit further downside if execution improves.
• Neutral Sentiment: Despite the earnings miss, North America system-wide sales rose 2% to $436.9 million, showing the franchise base is still expanding even as same-store trends remain weak.

Institutional Investors Weigh In On Xponential Fitness

Several hedge funds have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd increased its holdings in shares of Xponential Fitness by 1,621.3% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,632 shares of the company's stock valued at $30,000 after purchasing an additional 3,421 shares during the period. Aquatic Capital Management LLC purchased a new position in Xponential Fitness during the third quarter valued at approximately $44,000. Larson Financial Group LLC purchased a new position in Xponential Fitness during the third quarter valued at approximately $54,000. Wexford Capital LP acquired a new position in Xponential Fitness in the 3rd quarter valued at approximately $59,000. Finally, Cerity Partners LLC purchased a new stake in Xponential Fitness in the 2nd quarter worth approximately $82,000. 58.55% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms have recently issued reports on XPOF. KeyCorp began coverage on shares of Xponential Fitness in a report on Thursday, March 12th. They issued a "sector weight" rating for the company. Robert W. Baird cut their target price on Xponential Fitness from $8.00 to $6.50 and set a "neutral" rating for the company in a research report on Friday, February 27th. Guggenheim decreased their price target on Xponential Fitness from $12.00 to $10.00 and set a "buy" rating for the company in a research note on Monday, March 2nd. Wall Street Zen cut Xponential Fitness from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Finally, Zacks Research upgraded Xponential Fitness from a "strong sell" rating to a "hold" rating in a report on Monday, May 4th. One equities research analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $8.50.

Xponential Fitness Company Profile

Xponential Fitness is a leading franchisor and operator of boutique fitness studios headquartered in Irvine, California. The company specializes in developing, marketing, and supporting a portfolio of fitness brands that deliver low-impact cardio, strength training, and mindful movement workouts. Through its asset-light franchise model, Xponential provides entrepreneurs with proprietary studio designs, branded equipment, digital support, and comprehensive training programs to ensure consistent member experiences.

Its portfolio comprises core brands such as Club Pilates, Pure Barre, CycleBar, StretchLab, YogaSix, Row House, Rumble, AKT, and STRIDE.

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