Xponential Fitness (NYSE:XPOF) Releases Earnings Results, Misses Expectations By $0.11 EPS

Key Points

• Xponential Fitness missed earnings expectations: Second-quarter EPS was $0.02 versus the $0.13 consensus, while revenue of $65.97 million exceeded estimates but declined 13.4% year over year.
• Operating trends and guidance weakened: Same-store sales fell 6.8%, and the company lowered its 2026 outlook to $250 million–$260 million in revenue, $91 million–$97 million in adjusted EBITDA, and approximately 150 net new studios.
• Shares plunged 21.5% to $5.00: Investors remain concerned about declining cash, rising long-term debt, upcoming settlement payments and near-term franchisee pressure, despite continued studio expansion and potential strategic alternatives.

Xponential Fitness (NYSE:XPOF - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.02 earnings per share for the quarter, missing analysts' consensus estimates of $0.13 by ($0.11), Zacks reports. Xponential Fitness had a negative net margin of 11.28% and a negative return on equity of 3.40%. The firm had revenue of $65.97 million during the quarter, compared to analysts' expectations of $64.42 million. During the same quarter in the prior year, the business earned $0.26 EPS. The company's quarterly revenue was down 13.4% compared to the same quarter last year.

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

• Negative Sentiment: Second-quarter same-store sales fell 6.8% overall and 5% at Club Pilates, while consolidated revenue declined 13% and adjusted EBITDA fell 22% year over year. Management cited weaker organic leads, selective consumer spending, higher promotional activity, and merchandise execution issues.
• Negative Sentiment: The company lowered its 2026 outlook, now expecting approximately 150 net new studios, $250 million–$260 million in revenue, and $91 million–$97 million in adjusted EBITDA. The forecast assumes same-store sales and merchandise trends remain pressured through the second half.
• Positive Sentiment: Xponential continued to expand, ending the quarter with 3,165 global studios, including more than 500 internationally, and signed a Club Pilates agreement with Spartan Fitness Holdings for 117 studios over six years. Management also reported more than 690 obligated North American licenses and 730 international master-franchise obligations.
• Neutral Sentiment: Management is investing in website redesigns, AI-driven organic search, paid media, lead-conversion tools, studio remodels, and field support to improve franchisee performance. These initiatives are still early, and executives cautioned that results will take time to appear.
• Negative Sentiment: Cash and restricted cash declined to $25 million, while long-term debt rose to $522.4 million; the company also expects approximately $11.4 million of additional franchisee and FTC settlement payments during the remainder of 2026. Management said recurring SG&A is improving and expects cash flow to turn positive in 2027, but near-term liquidity remains constrained by legal payments and elevated costs.

Xponential Fitness Stock Down 21.5%

Shares of NYSE:XPOF traded down $1.36 during midday trading on Friday, reaching $5.00. The company's stock had a trading volume of 9,441,432 shares, compared to its average volume of 647,264. The firm has a market cap of $245.60 million, a price-to-earnings ratio of -3.62 and a beta of 1.07. The business has a 50 day moving average price of $6.50 and a 200 day moving average price of $6.66. Xponential Fitness has a 1 year low of $3.83 and a 1 year high of $9.39.

Xponential Fitness News Roundup

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

• Positive Sentiment: Management forecast 2026 adjusted EBITDA of $91 million to $97 million, suggesting continued profitability and cash-generation potential. The company is also reviewing strategic alternatives, which could potentially unlock value through a sale, investment or other transaction. Xponential forecasts 2026 revenue and adjusted EBITDA while reviewing strategic alternatives
• Neutral Sentiment: Second-quarter revenue of approximately $66.0 million exceeded analysts’ $64.4 million estimate, but the sales beat was overshadowed by weaker profitability and declining operating trends. Xponential Fitness Announces Second Quarter 2026 Financial Results
• Negative Sentiment: Adjusted 2026 revenue guidance of $250 million to $260 million is below the roughly $263.4 million consensus estimate, signaling slower expected growth. The outlook also compounds concerns about the company’s near-term execution. Xponential forecasts 2026 revenue and adjusted EBITDA while reviewing strategic alternatives
• Negative Sentiment: XPOF reported second-quarter earnings of $0.02 per share, below estimates ranging from $0.09 to $0.13 and down from $0.26 a year earlier. Revenue fell 13.4% year over year, while the company posted a negative net margin and negative return on equity. Xponential Fitness Lags Q2 Earnings Estimates
• Negative Sentiment: North American same-store sales declined 6.8%, compared with 2.4% growth in the prior-year quarter, although system-wide sales were roughly flat. The deterioration in established-location performance raises concerns about consumer demand and franchisee health. Xponential Fitness Announces Second Quarter 2026 Financial Results

Institutional Investors Weigh In On Xponential Fitness

A number of institutional investors have recently added to or reduced their stakes in XPOF. SkyView Investment Advisors LLC raised its stake in shares of Xponential Fitness by 4.9% in the 2nd quarter. SkyView Investment Advisors LLC now owns 39,871 shares of the company's stock valued at $302,000 after purchasing an additional 1,859 shares in the last quarter. Raymond James Financial Inc. grew its stake in Xponential Fitness by 20.4% in the third quarter. Raymond James Financial Inc. now owns 14,732 shares of the company's stock worth $115,000 after purchasing an additional 2,500 shares in the last quarter. Rhumbline Advisers increased its holdings in Xponential Fitness by 8.1% in the second quarter. Rhumbline Advisers now owns 35,633 shares of the company's stock valued at $267,000 after buying an additional 2,668 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in Xponential Fitness by 1,621.3% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,632 shares of the company's stock valued at $30,000 after buying an additional 3,421 shares during the last quarter. Finally, Barclays PLC raised its stake in Xponential Fitness by 4.4% during the fourth quarter. Barclays PLC now owns 83,829 shares of the company's stock valued at $690,000 after buying an additional 3,524 shares in the last quarter. Hedge funds and other institutional investors own 58.55% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Northland Securities raised shares of Xponential Fitness from a "market perform" rating to an "outperform" rating and set a $8.00 price target on the stock in a report on Wednesday, May 20th. Wall Street Zen downgraded Xponential Fitness from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Guggenheim lowered Xponential Fitness from a "buy" rating to a "neutral" rating in a research note on Friday. Robert W. Baird set a $5.50 target price on Xponential Fitness in a report on Friday. Finally, Roth Capital set a $7.00 price target on Xponential Fitness in a research report on Friday, May 8th. One research analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Xponential Fitness currently has a consensus rating of "Hold" and a consensus target price of $8.31.

About Xponential Fitness

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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