Xponential Fitness Q2 2022 Earnings Report
Key Takeaways
Xponential Fitness, Inc. announced its Q2 2022 financial results, revealing a 66% increase in revenue to $59.6 million compared to Q2 2021. North America system-wide sales grew by 45% to $249.8 million, and same-store sales increased by 25%. The company's net income was $31.5 million, or $3.28 per share, compared to a net loss of $8.0 million in the prior-year period. Xponential Fitness also raised its full-year 2022 guidance for revenue and Adjusted EBITDA.
Revenue grew by 66% to $59.6 million compared to Q2 2021.
North America system-wide sales increased by 45% to $249.8 million.
North America same-store sales grew by 25%.
Net income was $31.5 million, or $3.28 per share, compared to a net loss of $8.0 million in the prior-year period.
Xponential Fitness
Xponential Fitness
Xponential Fitness Revenue by Segment
Forward Guidance
Xponential Fitness is increasing its full-year 2022 guidance for revenue and Adjusted EBITDA, and re-affirming guidance for studio openings and system-wide sales in North America.
Positive Outlook
- New studio openings to remain in the range of 500 to 520, or an increase of 53% at the midpoint as compared to full year 2021.
- North America system-wide sales to remain in the range of $995.0 million to $1.005 billion, or an increase of 41% at the midpoint as compared to full year 2021.
- Revenue is now anticipated to be $211.0 million to $221.0 million, or an increase of 39% at the midpoint as compared to full year 2021.
- Adjusted EBITDA is now anticipated to be $68.0 million to $72.0 million, or an increase of 156% at the midpoint compared to full year 2021.
- Tax rate in mid-to-high single digits.
Challenges Ahead
- Share count of approximately 25.7 million shares of Class A Common Stock for the GAAP EPS and Adjusted EPS calculations.
- $3.25 million in quarterly cash dividends paid related to the $200 million Convertible Preferred Stock.
- Impact of the COVID-19 pandemic on the business and franchisees.
- Difficulties and challenges in opening studios by franchisees.
- Ability of franchisees to generate sufficient revenues.
Revenue & Expenses
Visualization of income flow from segment revenue to net income