Xponential Fitness (NYSE:XPOF) Issues Quarterly Earnings Results

Xponential Fitness (NYSE:XPOF) issued its earnings results on Thursday. The company reported $0.02 earnings per share for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.11), Zacks reports. Xponential Fitness had a negative return on equity of 3.40% and a negative net margin of 11.28%.The business had revenue of $65.97 million for the quarter, compared to analyst estimates of $64.42 million. During the same period last year, the company posted $0.26 earnings per share. The firm’s revenue for the quarter was down 13.4% on a year-over-year basis.

Here are the key takeaways from Xponential Fitness’ conference call:

• Negative Sentiment: Second-quarter same-store sales fell 6.8% overall and 5% at Club Pilates, while consolidated revenue declined 13% and adjusted EBITDA fell 22% year over year. Management cited weaker organic leads, selective consumer spending, higher promotional activity, and merchandise execution issues.
• Negative Sentiment: The company lowered its 2026 outlook, now expecting approximately 150 net new studios, $250 million–$260 million in revenue, and $91 million–$97 million in adjusted EBITDA. The forecast assumes same-store sales and merchandise trends remain pressured through the second half.
• Positive Sentiment: Xponential continued to expand, ending the quarter with 3,165 global studios, including more than 500 internationally, and signed a Club Pilates agreement with Spartan Fitness Holdings for 117 studios over six years. Management also reported more than 690 obligated North American licenses and 730 international master-franchise obligations.
• Neutral Sentiment: Management is investing in website redesigns, AI-driven organic search, paid media, lead-conversion tools, studio remodels, and field support to improve franchisee performance. These initiatives are still early, and executives cautioned that results will take time to appear.
• Negative Sentiment: Cash and restricted cash declined to $25 million, while long-term debt rose to $522.4 million; the company also expects approximately $11.4 million of additional franchisee and FTC settlement payments during the remainder of 2026. Management said recurring SG&A is improving and expects cash flow to turn positive in 2027, but near-term liquidity remains constrained by legal payments and elevated costs.

Xponential Fitness Stock Down 21.5%

Xponential Fitness stock traded down $1.36 during trading hours on Friday, hitting $5.00. 9,441,432 shares of the company traded hands, compared to its average volume of 647,264. Xponential Fitness has a 1-year low of $3.83 and a 1-year high of $9.39. The firm has a market cap of $245.60 million, a P/E ratio of -3.62 and a beta of 1.07. The firm’s 50-day simple moving average is $6.50 and its two-hundred day simple moving average is $6.66.

Analysts Set New Price Targets

XPOF has been the topic of several research reports. Northland Securities upgraded shares of Xponential Fitness from a “market perform” rating to an “outperform” rating and set a $8.00 price objective on the stock in a research note on Wednesday, May 20th. Zacks Research upgraded Xponential Fitness from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 7th. Weiss Ratings upgraded Xponential Fitness from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, July 28th. Lake Street Capital downgraded Xponential Fitness from a “buy” rating to a “hold” rating and set a $6.00 price objective for the company. in a research note on Friday, May 8th. Finally, Wall Street Zen downgraded shares of Xponential Fitness from a “hold” rating to a “sell” rating in a research report on Saturday, August 1st. One research analyst has rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $8.31.

Institutional Investors Weigh In On Xponential Fitness

A number of institutional investors have recently added to or reduced their stakes in the company. SkyView Investment Advisors LLC increased its position in shares of Xponential Fitness by 4.9% during the 2nd quarter. SkyView Investment Advisors LLC now owns 39,871 shares of the company’s stock valued at $302,000 after purchasing an additional 1,859 shares during the period. Raymond James Financial Inc. lifted its holdings in shares of Xponential Fitness by 20.4% in the third quarter. Raymond James Financial Inc. now owns 14,732 shares of the company’s stock valued at $115,000 after buying an additional 2,500 shares during the period. Rhumbline Advisers boosted its stake in Xponential Fitness by 8.1% during the second quarter. Rhumbline Advisers now owns 35,633 shares of the company’s stock valued at $267,000 after buying an additional 2,668 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its holdings in Xponential Fitness by 1,621.3% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,632 shares of the company’s stock worth $30,000 after acquiring an additional 3,421 shares during the period. Finally, Barclays PLC raised its position in Xponential Fitness by 4.4% in the fourth quarter. Barclays PLC now owns 83,829 shares of the company’s stock worth $690,000 after acquiring an additional 3,524 shares in the last quarter. 58.55% of the stock is currently owned by institutional investors and hedge funds.

Key Xponential Fitness News

Here are the key news stories impacting Xponential Fitness this week:

• Positive Sentiment: Management forecast 2026 adjusted EBITDA of $91 million to $97 million, suggesting continued profitability and cash-generation potential. The company is also reviewing strategic alternatives, which could potentially unlock value through a sale, investment or other transaction. Xponential forecasts 2026 revenue and adjusted EBITDA while reviewing strategic alternatives
• Neutral Sentiment: Second-quarter revenue of approximately $66.0 million exceeded analysts’ $64.4 million estimate, but the sales beat was overshadowed by weaker profitability and declining operating trends. Xponential Fitness Announces Second Quarter 2026 Financial Results
• Negative Sentiment: Adjusted 2026 revenue guidance of $250 million to $260 million is below the roughly $263.4 million consensus estimate, signaling slower expected growth. The outlook also compounds concerns about the company’s near-term execution. Xponential forecasts 2026 revenue and adjusted EBITDA while reviewing strategic alternatives
• Negative Sentiment: XPOF reported second-quarter earnings of $0.02 per share, below estimates ranging from $0.09 to $0.13 and down from $0.26 a year earlier. Revenue fell 13.4% year over year, while the company posted a negative net margin and negative return on equity. Xponential Fitness Lags Q2 Earnings Estimates
• Negative Sentiment: North American same-store sales declined 6.8%, compared with 2.4% growth in the prior-year quarter, although system-wide sales were roughly flat. The deterioration in established-location performance raises concerns about consumer demand and franchisee health. Xponential Fitness Announces Second Quarter 2026 Financial Results

Xponential Fitness Company Profile

Xponential Fitness is a leading franchisor and operator of boutique fitness studios headquartered in Irvine, California. The company specializes in developing, marketing, and supporting a portfolio of fitness brands that deliver low-impact cardio, strength training, and mindful movement workouts. Through its asset-light franchise model, Xponential provides entrepreneurs with proprietary studio designs, branded equipment, digital support, and comprehensive training programs to ensure consistent member experiences.

Its portfolio comprises core brands such as Club Pilates, Pure Barre, CycleBar, StretchLab, YogaSix, Row House, Rumble, AKT, and STRIDE.