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Dec 31, 2024
Xponential Fitness Q4 2024 Earnings Report
Xponential Fitness reported a decline in revenue and a wider net loss for Q4 2024 compared to the previous year.
Key Takeaways
Xponential Fitness saw a 7% decrease in revenue, reporting $83.2 million for Q4 2024. The company posted a net loss of $62.5 million, compared to a loss of $12.3 million in Q4 2023. Adjusted EBITDA improved to $30.8 million. North America system-wide sales increased by 21%, while same-store sales grew by 5%.
Revenue declined 7% to $83.2 million due to lower equipment, merchandise, and other service revenues.
North America system-wide sales increased 21% to $464.7 million.
Adjusted EBITDA rose to $30.8 million, up from $27.2 million in Q4 2023.
The company reported a net loss of $62.5 million, driven by impairment charges and litigation expenses.
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 expects revenue to remain flat in 2025, with an increase in system-wide sales and Adjusted EBITDA.
Positive Outlook
- System-wide sales projected to grow 13% to approximately $1.935B-$1.955B.
- Adjusted EBITDA expected to increase 5% to $120M-$125M.
- Net new studio openings expected in the range of 200-220.
- Tax rate expected to remain in the mid-to-high single digits.
- Stable revenue outlook between $315M and $325M.
Challenges Ahead
- Net new studio openings to decline by approximately 12% at the midpoint.
- Revenue expected to remain flat compared to 2024.
- Ongoing litigation expenses continue to be a financial burden.
- Increased impairment charges and restructuring costs impacted profitability.
- Share count expected to rise to 34M, potentially diluting earnings per share.