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Jun 30, 2021
Xponential Fitness Q2 2021 Earnings Report
Xponential Fitness's Q2 2021 financial performance showcased strong revenue growth and system-wide sales, driven by franchise license sales and same-store sales growth, although the company reported a net loss.
Key Takeaways
Xponential Fitness reported a 67% increase in revenue to $35.8 million, a net loss of $8.0 million, and adjusted EBITDA of $8.3 million. The company sold 197 North American franchise licenses and opened 59 new studios. System-wide sales increased by 179% to $171.6 million, with same-store sales growth of 129%.
Revenue grew by 67% year-over-year to $35.8 million.
System-wide sales increased by 179% year-over-year to $171.6 million.
System-wide same-store sales grew by 129%.
197 North American franchise licenses were sold, compared to 46 in Q2 2020.
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
Xponential Fitness initiated its outlook for the full fiscal year ending December 31, 2021, anticipating studio openings in the range of 215 to 235, North America system-wide sales in the range of $690 million to $700 million, revenue in the range of $135.5 million to $137.0 million, and Adjusted EBITDA in the range of $22.0 million to $23.0 million.
Positive Outlook
- Studio openings in the range of 215 to 235.
- North America system-wide sales in the range of $690 million to $700 million, representing a 57% increase at the midpoint compared to full year 2020.
- Revenue in the range of $135.5 million to $137.0 million, representing a 28% increase at the midpoint compared to full year 2020.
- Adjusted EBITDA in the range of $22.0 million to $23.0 million, representing a 129% increase at the midpoint compared to full year 2020.
- Tax rate of approximately 5%.
Challenges Ahead
- Further restrictions enforced as a result of the pandemic, such as government-mandated studio closures, could have a material negative impact on the Company’s business and financial performance.
- Share count of 22.6 million for EPS calculation, which includes the 904,000 additional shares issued in August 2021 following a partial exercise by underwriters of their option to purchase additional shares related to the IPO.
- $3.25 million in quarterly dividends paid as related to the $200 million Preferred Convertible note.
- Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements.
- The company cannot guarantee future results, level of activity, performance, or achievements.