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Jun 30, 2023

Xponential Fitness Q2 2023 Earnings Report

Xponential Fitness reported a 30% increase in revenue and a 37% increase in North America system-wide sales compared to Q2 2022. The company sold 234 franchise licenses and opened 144 new studios. A $50 million share buyback program was announced and full-year 2023 guidance was raised.

Key Takeaways

Xponential Fitness, Inc. announced strong financial results for the second quarter ended June 30, 2023, with a 30% increase in revenue to $77.3 million and a 37% increase in North America system-wide sales to $341.3 million compared to the prior year. The company reported a net income of $27.5 million, or $1.44 per basic share, and an adjusted net income of $4.2 million, or $0.05 per basic share. Additionally, the company announced a $50 million share buyback program and raised its full-year 2023 guidance.

Revenue grew by 30% to $77.3 million compared to Q2 2022.

North America system-wide sales increased by 37% to $341.3 million compared to Q2 2022.

North America same store sales grew by 15% compared to growth of 25% in Q2 2022.

Net income was reported at $27.5 million, or $1.44 per basic share.

Total Revenue
$77.3M
Previous year: $59.6M
+29.9%
EPS
$0.07
Previous year: -$0.07
-200.0%
NA System-Wide Sales
$341M
Previous year: $250M
+36.6%
NA Same Store Sales
15%
Previous year: 25%
-40.0%
Gross New Studio Openings
144
Previous year: 128
+12.5%
Gross Profit
$53.9M
Previous year: $37.4M
+44.2%
Cash and Equivalents
$40.2M
Previous year: $29.3M
+37.2%
Free Cash Flow
$17M
Previous year: $20.7M
-18.0%
Total Assets
$545M
Previous year: $463M
+17.7%

Xponential Fitness

Xponential Fitness

Xponential Fitness Revenue by Segment

Forward Guidance

Xponential is increasing full-year 2023 guidance for system-wide sales, revenue, and Adjusted EBITDA, and re-affirming guidance for new studio openings.

Positive Outlook

  • New studio openings in the range of 540 to 560, or an increase of 8% at the midpoint as compared to full year 2022
  • North America system-wide sales in the range of $1.385 billion to $1.395 billion, or an increase of 35% at the midpoint as compared to full year 2022
  • Revenue in the range of $295.0 million to $305.0 million, or an increase of 22% at the midpoint as compared to full year 2022
  • Adjusted EBITDA in the range of $102.5 million to $106.5 million, or an increase of 41% at the midpoint as compared to full year 2022
  • Tax rate in the mid-to-high single digits

Revenue & Expenses

Visualization of income flow from segment revenue to net income