Xponential Fitness (NYSE:XPOF) Announces Quarterly Earnings Results

Xponential Fitness (NYSE:XPOF) issued its quarterly earnings data on Thursday. The company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.15), FiscalAI reports. Xponential Fitness had a negative net margin of 11.28% and a negative return on equity of 3.49%. The company had revenue of $60.71 million for the quarter, compared to the consensus estimate of $63.75 million. During the same period in the previous year, the business posted $0.20 earnings per share. The firm’s revenue was down 21.0% compared to the same quarter last year.

Here are the key takeaways from Xponential Fitness’ conference call:

• Leadership additions: The company added Robert Julian as Interim CFO, Eric Quade as CIO, and will hire Steph Soe as CMO, positions management says will strengthen financial, technology, and marketing execution.
• Unit growth and pipeline: Q1 saw 23 net domestic and 17 net international openings, management reaffirmed a 2026 target of 150–170 net studio openings and highlighted a robust Club Pilates pipeline (targeting >2,100 U.S. studios and >499 committed international licenses).
• Same‑store sales weakness: Q1 same‑store studio sales fell ~6% company‑wide (Club Pilates down ~4%), which management attributes mainly to lower digital traffic from Meta/Google platform changes and privacy‑related lead conversion issues.
• Financial pressure and liabilities: Revenue declined 21% YoY to $60.7M and adjusted EBITDA fell 25% to $20.4M; cash dropped to $21.5M, the company drew $10M on its revolver, paid $12.5M of franchisee settlement with ~$16.4M more expected, and long‑term debt rose to $523.7M.
• Operational fixes underway include a new national marketing agency, automated CRM emails, website redesigns (early lifts at StretchLab), pricing “hygiene” and remodels; management expects these initiatives plus targeted paid spend to stabilize lead generation and reaffirmed full‑year 2026 guidance.

Xponential Fitness Trading Down 14.1%

Shares of XPOF traded down $0.93 during mid-day trading on Friday, hitting $5.62. 1,653,009 shares of the company traded hands, compared to its average volume of 375,491. The stock has a market capitalization of $275.42 million, a price-to-earnings ratio of -4.07 and a beta of 1.19. The business has a 50-day moving average of $6.36 and a 200 day moving average of $7.11. Xponential Fitness has a one year low of $3.83 and a one year high of $11.14.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Robert W. Baird dropped their target price on shares of Xponential Fitness from $8.00 to $6.50 and set a “neutral” rating for the company in a research report on Friday, February 27th. Raymond James Financial reaffirmed a “market perform” rating on shares of Xponential Fitness in a research note on Thursday, March 19th. Zacks Research raised shares of Xponential Fitness from a “strong sell” rating to a “hold” rating in a report on Monday, May 4th. Roth Mkm set a $7.00 target price on shares of Xponential Fitness in a research note on Friday. Finally, Lake Street Capital downgraded Xponential Fitness from a “buy” rating to a “hold” rating and set a $6.00 target price on the stock. in a report on Friday. One research analyst has rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $8.50.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd boosted its position in Xponential Fitness by 1,621.3% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,632 shares of the company’s stock valued at $30,000 after buying an additional 3,421 shares during the last quarter. Aquatic Capital Management LLC bought a new stake in shares of Xponential Fitness during the third quarter worth $44,000. Larson Financial Group LLC acquired a new position in shares of Xponential Fitness during the third quarter valued at $54,000. Wexford Capital LP acquired a new position in shares of Xponential Fitness during the third quarter valued at $59,000. Finally, Cerity Partners LLC bought a new position in Xponential Fitness in the second quarter valued at about $82,000. Institutional investors and hedge funds own 58.55% of the company’s stock.

Key Headlines Impacting Xponential Fitness

Here are the key news stories impacting Xponential Fitness this week:

• Negative Sentiment: Q1 2026 results missed expectations, with EPS of -$0.04 versus the $0.11 consensus and revenue of $60.7 million versus $63.8 million expected; revenue also fell 21% from a year ago, signaling softer operating performance. Article Title
• Negative Sentiment: The company’s same-store sales in North America declined 6%, reversing last year’s growth and suggesting slower franchise demand. Article Title
• Negative Sentiment: Lake Street Capital downgraded Xponential Fitness (XPOF) from buy to hold, even though it kept a $6.00 price target, which adds to the cautious sentiment around the stock. Article Title
• Neutral Sentiment: Management guided 2026 revenue to $260 million-$270 million, roughly in line with Wall Street expectations, which may help limit further downside if execution improves.
• Neutral Sentiment: Despite the earnings miss, North America system-wide sales rose 2% to $436.9 million, showing the franchise base is still expanding even as same-store trends remain weak.

Xponential Fitness Company Profile

Xponential Fitness is a leading franchisor and operator of boutique fitness studios headquartered in Irvine, California. The company specializes in developing, marketing, and supporting a portfolio of fitness brands that deliver low-impact cardio, strength training, and mindful movement workouts. Through its asset-light franchise model, Xponential provides entrepreneurs with proprietary studio designs, branded equipment, digital support, and comprehensive training programs to ensure consistent member experiences.

Its portfolio comprises core brands such as Club Pilates, Pure Barre, CycleBar, StretchLab, YogaSix, Row House, Rumble, AKT, and STRIDE.