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Xponential Fitness Q1 2025 Earnings Report
Xponential Fitness, Inc. announced its first quarter 2025 financial results, reporting a decrease in total revenue and net loss compared to the prior year, while key performance indicators like system-wide sales and average unit volume showed growth.
Key Takeaways
Xponential Fitness, Inc. reported a total revenue of $76.9 million for Q1 2025, a 4% decrease from the prior year. The company posted a net loss of $2.7 million, or $0.10 per basic share. Despite the revenue decline, North America system-wide sales increased by 18% to $466.8 million, and quarterly average unit volume grew by 8% to $659,000.
Total revenue for Q1 2025 decreased by 4% to $76.9 million compared to the prior year period.
The company reported a net loss of $2.7 million, or $0.10 per basic share, an improvement from a net loss of $3.8 million in the prior year.
North America system-wide sales increased by 18% year-over-year, reaching $466.8 million.
Quarterly run-rate average unit volume (AUV) in North America grew by 8% to $659,000.
Xponential Fitness
Xponential Fitness
Xponential Fitness Revenue by Segment
Revenue by Segment
Franchise Revenue
CapyFin.comEquipment Revenue
CapyFin.comMerchandise Revenue
CapyFin.comFranchise Marketing Fund Revenue
CapyFin.comOther Service Revenue
CapyFin.com Forward Guidance
For the full year 2025, Xponential Fitness, Inc. is lowering its guidance for global net new studio openings while reiterating guidance for system-wide sales, total revenue, and adjusted EBITDA.
Positive Outlook
- North America system-wide sales are projected to be in the range of $1.935 billion to $1.955 billion, representing an increase of 13% at the midpoint.
- Adjusted EBITDA is expected to be in the range of $120.0 million to $125.0 million, an increase of 5% at the midpoint.
- Revenue is projected to be in the range of $315.0 million to $325.0 million, representing no change at the midpoint.
- The company expects a tax rate in the mid-to-high-single digits.
- The share count for GAAP EPS and Adjusted EPS calculations is projected at 34.8 million shares of Class A Common Stock.
Challenges Ahead
- Net new studio openings are projected to be in the range of 160 to 180, representing a decrease of 29% at the midpoint compared to 2024 results.
- The company is not able to provide a quantitative reconciliation of estimated full year Adjusted EBITDA to the most directly comparable GAAP financial measure due to high variability and complexity.
- Variability in items such as taxes, TRA remeasurements, and income/expense from changes in fair value of contingent consideration from acquisitions could unpredictably and significantly impact future GAAP financial results.
- The company believes that any reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.
- Quarterly dividends paid related to the Company's Convertible Preferred Stock are expected to be $1.9 million, or $2.2 million if paid-in-kind.