Xponential Fitness (NYSE:XPOF – Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.02 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.11), Zacks reports. The company had revenue of $65.97 million for the quarter, compared to the consensus estimate of $64.42 million. Xponential Fitness had a negative return on equity of 3.40% and a negative net margin of 13.64%.Xponential Fitness’s revenue was down 13.4% compared to the same quarter last year. During the same quarter last year, the business earned $0.26 earnings per share.
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 Performance
Shares of XPOF stock traded down $1.36 during trading hours on Friday, hitting $5.00. 9,441,432 shares of the company were exchanged, compared to its average volume of 674,403. The company has a 50 day simple moving average of $6.50 and a two-hundred day simple moving average of $6.66. Xponential Fitness has a fifty-two week low of $3.83 and a fifty-two week high of $9.39.
Xponential Fitness News Summary
- 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
Analyst Upgrades and Downgrades
A number of equities research analysts have recently commented on XPOF shares. Zacks Research raised shares of Xponential Fitness from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 7th. Guggenheim cut shares of Xponential Fitness from a “buy” rating to a “neutral” rating in a research report on Friday. Weiss Ratings upgraded Xponential Fitness from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, July 28th. Roth Capital set a $7.00 price objective on Xponential Fitness in a research report on Friday, May 8th. Finally, Northland Securities raised Xponential Fitness from a “market perform” rating to an “outperform” rating and set a $8.00 price objective on the stock in a research note on Wednesday, May 20th. One analyst has rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Xponential Fitness currently has an average rating of “Hold” and a consensus price target of $8.31.
Read Our Latest Analysis on XPOF
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd increased its stake 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 purchasing an additional 3,421 shares in the last quarter. Aquatic Capital Management LLC bought a new position in shares of Xponential Fitness during the 3rd quarter worth about $44,000. Larson Financial Group LLC bought a new position in shares of Xponential Fitness during the 3rd quarter worth about $54,000. Wexford Capital LP acquired a new stake in shares of Xponential Fitness in the 3rd quarter valued at about $59,000. Finally, Cerity Partners LLC acquired a new stake in shares of Xponential Fitness in the 2nd quarter valued at about $82,000. 58.55% of the stock is owned by institutional investors.
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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