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Sep 30, 2022
Xponential Fitness Q3 2022 Earnings Report
Xponential Fitness reported a strong Q3 2022 with significant revenue growth and increased North America system-wide sales.
Key Takeaways
Xponential Fitness, Inc. announced its Q3 2022 financial results, highlighting a 56% increase in revenue to $63.8 million and a 37% increase in North America system-wide sales to $264.8 million compared to Q3 2021. The company reported a net loss of $13.1 million, or a loss of $1.53 per basic share, but also posted adjusted net income of $8.0 million, or $0.10 per basic share. Adjusted EBITDA increased to $20.0 million, up from $6.8 million in the prior-year period. The company raised its full-year 2022 guidance for revenue and Adjusted EBITDA.
Revenue grew by 56% to $63.8 million compared to Q3 2021.
North America system-wide sales increased by 37% to $264.8 million compared to Q3 2021.
North America same store sales grew by 17%.
Adjusted EBITDA increased to $20.0 million, up from $6.8 million in the prior-year period.
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 increased 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 $235.0 million to $240.0 million, or an increase of 53% at the midpoint as compared to full year 2021
- Adjusted EBITDA is now anticipated to be $70.0 million to $74.0 million, or an increase of 164% at the midpoint compared to full year 2021
- Tax rate in mid-to-high single digits
Challenges Ahead
- Share count of approximately 25.3 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 our business and franchisees
- Difficulties and challenges in opening studios by franchisees
- The ability of franchisees to generate sufficient revenues
Revenue & Expenses
Visualization of income flow from segment revenue to net income