Xponential Fitness (XPOF) 37th Annual ROTH Conference summary

Leadership and strategic direction

• New CEO has focused on shifting from hyper-growth to a franchisee-first mentality, emphasizing support and qualification of franchisees.

• Sales, real estate, and construction functions consolidated under a Chief Development Officer for more strategic license sales.

• Field operations team being built out, with plans to deploy 30+ field ops staff over 18 months to support franchisees on-site.

• Franchisee profile now prioritizes commitment, operational capability, and sufficient capital to ensure long-term success.

Operational investments and financial guidance

• Investments in field operations and technology are factored into guidance, with increased SG&A from headcount and marketing spend.

• Marketing fund dollars are being reinvested, especially in Club Pilates, to drive brand building and protect market position.

• Margin expansion is expected to be modest as investments are gradually built over time, not front-loaded.

• Deleveraging is a goal, with the business expected to generate significant free cash flow and reduce cost of capital over time.

Brand portfolio and optimization

• Brand optimization has reduced the portfolio from 11 to 8 brands, focusing on those with growth and franchisee profitability.

• Brands must be accretive to the bottom line or add strategic value; non-performing brands are divested.

• Franchisee profitability is the primary metric for brand retention and growth.

• Cross-brand consumer programs like XPASS are deprioritized due to franchisee resistance to sharing customers.