Loading...
•
Jun 30, 2024
Xponential Fitness Q2 2024 Earnings Report
Xponential Fitness's financial performance in Q2 2024 was marked by a revenue decrease of 1%, a net loss, but growth in North America system-wide sales and AUV.
Key Takeaways
Xponential Fitness reported a slight decrease in revenue and a net loss for Q2 2024, but experienced growth in North America system-wide sales and average unit volume. The company sold 87 franchise licenses and opened 108 new studios. Guidance for studio openings, revenue, and Adjusted EBITDA was lowered due to a second quarter shortfall and current business conditions.
Revenue decreased by 1% to $76.5 million.
North America system-wide sales increased by 24% to $421.5 million.
North America same store sales grew by 7%, compared to 15% growth in the prior year.
Net loss was $13.7 million, or a loss of $0.29 per basic share.
Revenue by Segment
Forward Guidance
Xponential Fitness adjusted its full year 2024 guidance due to current business conditions and a second quarter shortfall. The updated guidance includes reduced expectations for gross new studio openings and revenue, while maintaining the North America system-wide sales outlook.
Positive Outlook
- North America system-wide sales are projected to increase by 22% compared to full year 2023.
- Adjusted EBITDA is expected to increase by 16% compared to full year 2023.
- Tax rate is expected to be in the mid-to-high single digits.
- Company anticipates $1.9 million in quarterly dividends paid related to the Company’s Convertible Preferred Stock, or $2.2 million if paid-in-kind.
- Share count of 31.8 million shares of Class A Common Stock for the GAAP EPS and Adjusted EPS calculations.
Challenges Ahead
- Gross new studio openings are projected to be in the range of 500 to 520, a decrease of 8% at the midpoint compared to full year 2023.
- Revenue is projected to be in the range of $310.0 million to $320.0 million, a decrease of 1% at the midpoint compared to full year 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...