Xponential Fitness (XPOF) 47th Annual Raymond James Institutional Investor Conference summary

Strategic positioning and operational focus

• Leadership emphasized a renewed focus on operational excellence and franchisee support, following a period of distractions and restructuring.

• The business operates an asset-light franchise model with over 3,000 global studios and five core brands, having divested non-core brands to strengthen long-term growth.

• Club Pilates stands out as the flagship brand, delivering strong unit economics, rapid ramp-up, and high franchisee satisfaction.

• International expansion is accelerating, with a growing share of new openings outside the U.S., especially for BFT and Club Pilates.

• Internal instructor training programs address a key franchisee pain point, supporting scalable growth.

Financial performance and revenue streams

• Five main revenue streams: franchise royalties, equipment, merchandise, marketing fund, and other services, with royalties now over 40% of total revenue.

• Merchandise revenue is now guaranteed via a five-year vendor contract, ensuring $50 million in rebates and high margins.

• Equipment revenue is expected to decline in 2026 due to fewer new studios from divested brands, but Club Pilates remains the main driver.

• Marketing fund revenue is reinvested to drive lead generation, with over-investment planned in early 2026.

• EBITDA margins have improved due to strategic shifts, despite lower total revenue from divestitures and outsourcing.

Growth outlook and priorities

• Net studio openings are guided at 150-170 for the year, down from prior years, reflecting a focus on quality over quantity and a shift toward international growth.

• Closure rates are expected to trend lower, with Club Pilates showing near-zero closures and most remaining closures coming from other brands.

• Strategic priorities include driving top-of-funnel leads, improving marketing effectiveness, and innovating class offerings to boost member engagement.

• Leadership expects upside in 2027-2028 from new growth initiatives in brands like YogaSix, Pure Barre, and BFT.

• Operational improvements and centralized marketing are expected to enhance lead conversion and studio performance.