Xponential Fitness (XPOF) Raymond James TMT and Consumer Conference summary

Leadership and strategic direction

• New CEO Mike Nuzzo highlights the attractive boutique fitness market, strong brands, and opportunities to leverage operational experience for growth, with a focus on positioning for 2026.

• The company has shifted from rapid brand acquisition to focusing on five core brands, centralizing operations to drive margin and support franchisees.

• Emphasis is on sustainable growth, professionalizing operations, and supporting franchisees to achieve high average unit volumes (AUVs).

Brand performance and growth initiatives

• Club Pilates is identified as a key growth driver, with strong four-wall economics and rapid ramp to $1 million AUVs; focus remains on opening more units and expanding internationally.

• International expansion targets Europe and Asia, leveraging successful master franchise relationships in Australia and Japan, with Club Pilates as the initial focus.

• StretchLab faces unique scaling challenges due to its one-on-one service model; initiatives include customer education, marketing, and operational adjustments to improve AUVs and retention.

• No current plans to divest StretchLab; efforts are underway to restore growth and profitability.

Financial performance and operational focus

• Same-store sales have slowed, but the business maintains strong AUVs and rapid studio ramp-up, especially for Club Pilates.

• Focus is on driving top-of-funnel marketing, improving digital investments, and maintaining healthy system-wide sales and royalty production.

• Operational efficiency and margin flow-through are prioritized, with healthy franchisee economics even at lower AUVs.