Xponential Fitness (NYSE:XPOF) Posts Quarterly Earnings Results

Xponential Fitness (NYSE:XPOF) issued its quarterly earnings data on Thursday. The company reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.11), Zacks reports. Xponential Fitness had a negative return on equity of 3.40% and a negative net margin of 13.64%.The firm had revenue of $65.97 million for the quarter, compared to analysts’ expectations of $64.42 million. During the same period in the previous year, the business posted $0.26 EPS. The business’s revenue for the quarter was down 13.4% compared to the same quarter last year.

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

• Negative Sentiment: Second-quarter same-store sales fell 6.8% overall and 5% at Club Pilates, while consolidated revenue declined 13% and adjusted EBITDA fell 22% year over year. Management cited weaker organic leads, selective consumer spending, higher promotional activity, and merchandise execution issues.
• Negative Sentiment: The company lowered its 2026 outlook, now expecting approximately 150 net new studios, $250 million–$260 million in revenue, and $91 million–$97 million in adjusted EBITDA. The forecast assumes same-store sales and merchandise trends remain pressured through the second half.
• Positive Sentiment: Xponential continued to expand, ending the quarter with 3,165 global studios, including more than 500 internationally, and signed a Club Pilates agreement with Spartan Fitness Holdings for 117 studios over six years. Management also reported more than 690 obligated North American licenses and 730 international master-franchise obligations.
• Neutral Sentiment: Management is investing in website redesigns, AI-driven organic search, paid media, lead-conversion tools, studio remodels, and field support to improve franchisee performance. These initiatives are still early, and executives cautioned that results will take time to appear.
• Negative Sentiment: Cash and restricted cash declined to $25 million, while long-term debt rose to $522.4 million; the company also expects approximately $11.4 million of additional franchisee and FTC settlement payments during the remainder of 2026. Management said recurring SG&A is improving and expects cash flow to turn positive in 2027, but near-term liquidity remains constrained by legal payments and elevated costs.

Xponential Fitness Price Performance

Shares of NYSE:XPOF traded down $1.36 during trading on Friday, reaching $5.00. The company had a trading volume of 9,441,432 shares, compared to its average volume of 674,403. The firm has a market capitalization of $245.60 million, a price-to-earnings ratio of -3.40 and a beta of 1.07. The stock’s fifty day moving average price is $6.49 and its 200 day moving average price is $6.64. Xponential Fitness has a fifty-two week low of $3.83 and a fifty-two week high of $9.39.

Key Stories Impacting Xponential Fitness

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

• Positive Sentiment: Management forecast 2026 adjusted EBITDA of $91 million to $97 million, suggesting continued profitability and cash-generation potential. The company is also reviewing strategic alternatives, which could potentially unlock value through a sale, investment or other transaction. Xponential forecasts 2026 revenue and adjusted EBITDA while reviewing strategic alternatives
• Neutral Sentiment: Second-quarter revenue of approximately $66.0 million exceeded analysts’ $64.4 million estimate, but the sales beat was overshadowed by weaker profitability and declining operating trends. Xponential Fitness Announces Second Quarter 2026 Financial Results
• Negative Sentiment: Adjusted 2026 revenue guidance of $250 million to $260 million is below the roughly $263.4 million consensus estimate, signaling slower expected growth. The outlook also compounds concerns about the company’s near-term execution. Xponential forecasts 2026 revenue and adjusted EBITDA while reviewing strategic alternatives
• Negative Sentiment: XPOF reported second-quarter earnings of $0.02 per share, below estimates ranging from $0.09 to $0.13 and down from $0.26 a year earlier. Revenue fell 13.4% year over year, while the company posted a negative net margin and negative return on equity. Xponential Fitness Lags Q2 Earnings Estimates
• Negative Sentiment: North American same-store sales declined 6.8%, compared with 2.4% growth in the prior-year quarter, although system-wide sales were roughly flat. The deterioration in established-location performance raises concerns about consumer demand and franchisee health. Xponential Fitness Announces Second Quarter 2026 Financial Results

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on XPOF. Northland Securities upgraded Xponential Fitness from a “market perform” rating to an “outperform” rating and set a $8.00 price target on the stock in a research note on Wednesday, May 20th. Wall Street Zen cut Xponential Fitness from a “hold” rating to a “sell” rating in a research note on Saturday, August 1st. Zacks Research raised Xponential Fitness from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 7th. Weiss Ratings upgraded shares of Xponential Fitness from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, July 28th. Finally, Roth Capital set a $7.00 target price on shares of Xponential Fitness in a report on Friday, May 8th. One research analyst has rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Xponential Fitness currently has an average rating of “Hold” and a consensus price target of $7.50.

Institutional Investors Weigh In On Xponential Fitness

Hedge funds have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD increased its stake in shares of Xponential Fitness by 28.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 17,958 shares of the company’s stock worth $148,000 after acquiring an additional 3,999 shares during the period. Graham Capital Management L.P. raised its holdings in Xponential Fitness by 15.9% during the fourth quarter. Graham Capital Management L.P. now owns 28,329 shares of the company’s stock worth $233,000 after purchasing an additional 3,887 shares in the last quarter. Los Angeles Capital Management LLC lifted its position in Xponential Fitness by 52.3% in the fourth quarter. Los Angeles Capital Management LLC now owns 47,046 shares of the company’s stock valued at $387,000 after purchasing an additional 16,157 shares during the period. SkyView Investment Advisors LLC lifted its position in Xponential Fitness by 4.9% in the second quarter. SkyView Investment Advisors LLC now owns 39,871 shares of the company’s stock valued at $302,000 after purchasing an additional 1,859 shares during the period. Finally, Militia Capital Partners LP purchased a new stake in Xponential Fitness in the 2nd quarter valued at approximately $126,000. 58.55% of the stock is owned by institutional investors and hedge funds.

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.