Xponential Fitness (XPOF) Q1 2025 earnings summary

Executive summary

• System-wide sales in North America reached $467 million in Q1 2025, up 18% year-over-year, with total members rising 12% to 865,000 and 116 new studios opened globally.

• Revenue declined 4% year-over-year to $76.9 million, while net loss narrowed to $2.7 million from $3.8 million in Q1 2024; adjusted EBITDA fell 9% to $27.3 million.

• Operating income rose 21% to $9.7 million, and adjusted net loss was $7.7 million versus adjusted net income of $9.2 million last year.

• Significant operational transformation included new CMO and CHRO appointments, a comprehensive reorganization, and the launch of a new field operations function to support franchisees.

• Divestiture of Stride and Row House brands, winding down AKT, and acquisition of Lindora to focus on core brands and improve margins.

Financial highlights

• Franchise revenue grew 5% year-over-year to $43.9 million, while equipment and merchandise revenue declined 20% and 25%, respectively.

• Franchise marketing fund revenue rose 18% to $9.3 million; other service revenue declined 19% to $6.4 million.

• Adjusted EBITDA margin was 35.5%–36%, down from 38% in Q1 2024.

• Operating costs and expenses decreased 6% year-over-year, with notable reductions in product and franchise/service costs.

• Net loss per share improved to $(0.10) from $(0.29) year-over-year; adjusted loss per share was $0.20.

Outlook and guidance

• Guidance for global net new studio openings lowered to 160–180 for 2025, a 29% decrease at midpoint, with closures expected at 6%–8% of the global system.

• System-wide sales expected at $1.935–$1.96 billion (up 13% at midpoint); revenue guidance unchanged at $315–$325 million; adjusted EBITDA forecasted at $120–$125 million (up 5% at midpoint).

• SG&A expected at $145M–$155M, or $115M–$120M excluding one-time items; capex anticipated at $10M–$12M.

• Unlevered free cash flow conversion projected at 90% of adjusted EBITDA; levered conversion at 37%.

• Additional restructuring charges of $5.2–$9.0 million expected through 2025, with cash outflows related to lease terminations.