Xponential Fitness (XPOF) investor relations material

Executive summary

• System-wide sales in North America reached $474M in Q2 2025, up 12% year-over-year, with total members growing 8% to 863,000 and 86 new studios opened globally.

• Revenue for Q2 2025 was $76.2M, down 1% year-over-year, mainly due to lower equipment and merchandise sales, while franchise revenue increased.

• Net income turned positive at $1.3M, a significant improvement from a net loss of $14.3M in Q2 2024, driven by lower operating expenses and insurance credits.

• Adjusted EBITDA rose 14% to $28.1M, with margin improving to 36.9%.

• Leadership transition with Mike Nuzzo appointed as CEO, and strategic actions included divestitures of CycleBar and Rumble, a new retail partnership, and expansion of the field operations team.

Financial highlights

• Franchise revenue grew 5% to $45.4M, while equipment revenue fell 26% to $9.5M and merchandise revenue declined 8% to $5.6M.

• Operating income improved to $14.8M from a loss of $3.1M in Q2 2024, and adjusted net income was $14.5M ($0.26 per share).

• Adjusted EBITDA margin increased to 36.9%–37% from 32.1%–32% year-over-year.

• Cash, cash equivalents, and restricted cash totaled $38.7M as of June 30, 2025; long-term debt was $377.8M.

• Cost reductions included a 35% year-over-year decrease in SG&A, mainly from lower legal and restructuring expenses.

Outlook and guidance

• 2025 guidance lowered for system-wide sales ($1.78B–$1.8B) and adjusted EBITDA ($106M–$111M), reflecting divestitures, FDD renewal headwinds, and macro uncertainty.

• Net new global studio openings expected at 170–190, a 37% decrease from prior year; closure rate projected at ~5%.

• Full-year revenue now expected at $300M–$310M, a 5% year-over-year decrease; adjusted EBITDA margin forecasted at 35.6%.

• SG&A (excluding one-time items) expected at $110M–$115M; capex anticipated at $10M–$12M.

• Unlevered free cash flow conversion projected at ~90% of adjusted EBITDA; levered conversion at 28%.