Xponential Fitness (XPOF) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue declined 13% year-over-year to $66.0 million, primarily due to lower equipment and merchandise revenue after transitioning to an outsourced logistics model and brand divestitures.

• Net loss was $4.8 million (loss of $0.10 per share), compared to net income of $1.3 million in Q2 2025, driven by lower merchandise/equipment revenue and increased legal/professional expenses.

• Leadership team strengthened with a new President and ongoing emphasis on franchise support and execution.

• Strategic alternatives review is ongoing, including a potential sale, merger, or other transactions, creating operational and stock price uncertainty.

• Restructuring plan to exit company-owned studios and reduce costs is ongoing, with expected annualized savings of $13.5M–$15.5M.

Financial highlights

• Q2 2026 consolidated revenue was $66.0 million, down 13% year-over-year; adjusted EBITDA was $21.9 million, down 22%, with a margin of 33%.

• North America system-wide sales were $437 million, flat year-over-year; same-store sales declined 6.8%–7%.

• Merchandise revenue declined 90% to $0.5 million, mainly due to a new outsourced model and operational challenges.

• Cash, cash equivalents, and restricted cash were $25.0 million as of June 30, 2026, down from $38.7 million a year ago.

• Interest expense increased 21% to $29.4 million in H1 2026 due to higher average debt balances.

Outlook and guidance

• Full-year 2026 revenue expected between $250 million and $260 million, with adjusted EBITDA guidance lowered to $91–$97 million and a 36.9% margin at midpoint.

• Global net new studio openings forecast at approximately 150, a 25% decrease from 2025.

• North America system-wide sales projected at $1.70–$1.75 billion, a 1% decrease at midpoint.

• Guidance reflects continued pressure on same-store sales, merchandise revenue, and ongoing restructuring charges.

• Growth depends on new franchise sales, timely studio openings, and international expansion, but delays in license development and regulatory approvals may impact future revenue.