Xponential Fitness (XPOF) Q4 2024 earnings summary

Executive summary

• North America system-wide sales reached $1.7B in 2024, up 23% year-over-year, with 813,000 members, up 15% year-over-year.

• 400 franchise licenses sold and 464 gross new studios opened in 2024; 3,233 global open studios at year-end, an 8% increase.

• Net loss for FY 2024 was $98.7M, compared to $6.4M in 2023, driven by significant impairment, litigation, and restructuring costs.

• Adjusted EBITDA for 2024 was $116.2M, up 16% year-over-year; Q4 adjusted EBITDA was $30.8M, up 13%.

• Leadership team expanded and strategic focus set on franchisee profitability, international expansion, innovation, and data-driven operations.

Financial highlights

• Q4 consolidated revenue was $83.2M, down 7% year-over-year; full-year revenue was $320.3M, up 1%.

• Adjusted EBITDA margin improved to 36% in 2024 from 32% in 2023.

• Adjusted net loss per share for FY 2024 was $(0.13); Q4 adjusted net loss was $7.1M.

• Cash at year-end was $32.7M; long-term debt increased to $352.4M.

• Franchise revenue grew 22% year-over-year to $174.5M, while equipment and merchandise revenue declined.

Outlook and guidance

• 2025 North America system-wide sales projected at $1.935B–$1.955B, up 13% at midpoint.

• 2025 global net new studio openings expected at 200–220, a 12% decrease from prior year.

• 2025 revenue guidance of $315M–$325M, flat year-over-year; adjusted EBITDA guidance of $120M–$125M, up 5%.

• SG&A expected at $130M–$140M, with $10M–$12M in capital expenditures focused on technology and data initiatives.

• Unlevered free cash flow conversion expected at ~90% of adjusted EBITDA.