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Sep 30, 2023

Xponential Fitness Q3 2023 Earnings Report

Xponential Fitness's Q3 2023 performance was marked by revenue growth, increased North America system-wide sales, and strategic adjustments towards profitability.

Key Takeaways

Xponential Fitness reported a 26% increase in revenue to $80.4 million and a 35% increase in North America system-wide sales to $356.7 million compared to Q3 2022. The company sold 216 franchise licenses and opened 127 new studios. While the company posted a net loss of $5.2 million, adjusted EBITDA increased by 33% to $26.5 million.

Revenue grew by 26% to $80.4 million compared to Q3 2022.

North America system-wide sales increased by 35% to $356.7 million compared to Q3 2022.

North America same store sales grew by 15% compared to 17% in Q3 2022.

Adjusted EBITDA increased by 33% to $26.5 million compared to $20.0 million in the prior year period.

Total Revenue
$80.4M
Previous year: $63.8M
+26.1%
EPS
$0.11
Previous year: $0.13
-15.4%
NA System-Wide Sales
$357M
Previous year: $265M
+34.7%
NA Same Store Sales
15%
Previous year: 17%
-11.8%
Gross New Studio Openings
127
Gross Profit
$58.4M
Previous year: $42.9M
+36.2%
Cash and Equivalents
$51.9M
Previous year: $30.9M
+68.0%
Free Cash Flow
$4.38M
Previous year: $10M
-56.2%
Total Assets
$551M
Previous year: $472M
+16.7%

Xponential Fitness

Xponential Fitness

Xponential Fitness Revenue by Segment

Forward Guidance

Xponential Fitness is increasing its full year 2023 guidance for revenue and tightening the top end ranges for new studio openings, system-wide sales and Adjusted EBITDA.

Positive Outlook

  • New studio openings in the range of 550 to 560, or an increase of 9% at the midpoint as compared to full year 2022.
  • North America system-wide sales in the range of $1.390 billion to $1.395 billion, or an increase of 35% at the midpoint as compared to full year 2022.
  • Revenue in the range of $305.0 million to $310.0 million, or an increase of 26% at the midpoint as compared to full year 2022.
  • Adjusted EBITDA in the range of $104.5 million to $106.5 million, or an increase of 42% 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