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IRVINE, Calif.--(BUSINESS WIRE)--Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential” or the “Company”), one of the leading global franchisors of boutique health and wellness brands, today announced the appointment of Jennifer Ryu as Chief Financial Officer, effective as of October 19, 2026, following the previously announced search process. Ms. Ryu will succeed Robert Julian, who has served as interim Chief Financial Officer since March 2026. Mr. Julian will remain a consultant to the Company t.

3 gym stocks to cash in on dieters’ New Year's resolutions Xponential Fitness NYSE: XPOF reported second-quarter results that fell below its internal expectations, prompting the boutique fitness franchisor to lower its full-year outlook as same-store sales declined, merchandise operations remained pressured and the company continued to invest in paid marketing and digital initiatives.

Chief Executive Officer Mike Nuzzo said the company is shifting its emphasis from the unit expansion and brand development that characterized its prior growth toward improving organic growth, franchisee economics, operating execution and consistency in the member experience.

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Can Planet Fitness Stock Regain its Pump? “Our objective is straightforward,” Nuzzo said. “Build a healthier, more productive franchise system that delivers sustainable membership growth and long-term value creation.”

Studio Growth Continues, Though Same-Store Sales Decline Xponential ended the second quarter with 3,165 open studios globally. The company opened 67 gross new studios during the quarter, including 47 in North America and 20 internationally, while 39 studios closed. Net unit growth was 16 domestically and 12 internationally during the quarter. Year to date, the company added 39 net domestic studios and 29 net international studios.

Will Xponential Fitness Recover From a Short Seller Knockout?The company sold 53 licenses globally in the quarter, including 43 internationally and 10 in North America. As of June 30, Xponential had more than 690 North American licenses contractually obligated to open, along with 730 international master franchise obligations.

Club Pilates remained a focal point of the growth strategy. Xponential announced a partnership with Spartan Fitness Holdings, its largest Club Pilates franchisee, that is expected to result in 117 studio openings across 10 states over the next six years. Nuzzo said the arrangement is centered on detailed geographic planning and does not materially differ from the company’s core franchise arrangement.

Internationally, Xponential now has more than 500 studios open, with Club Pilates opening its 200th international studio in June.

However, North America system-wide sales were flat year over year at $437 million, as sales from net new studios were offset by a 6.8% decline in same-store sales. Club Pilates same-store sales declined 5% during the quarter. Nuzzo said the results were modestly weaker than first-quarter trends and were primarily affected by pressure at the top of the customer funnel.

Management pointed to a more challenging consumer environment, including selective consumer spending, higher promotional activity and pressure on new-customer acquisition entering the summer months. Total company member retention nevertheless improved 28 basis points year over year in the second quarter.

Revenue and Adjusted EBITDA Fall Consolidated second-quarter revenue was $66 million, down $10.2 million, or 13%, from the prior-year period. Interim Chief Financial Officer Robert Julian said approximately $2.5 million of the decline was related to equipment revenue tied to the timing of studio openings and installation schedules.

Merchandise revenue declined $5.1 million from a year earlier. Of that amount, $3.9 million reflected the company’s new outsourced merchandise model, under which Xponential records its commission rather than the full merchandise sales value as revenue. The company also cited operational challenges with its outsourced logistics partner involving vendor operations, sourcing and execution.

Franchise revenue declined $1.4 million, primarily because of lower same-store sales and brand divestitures completed in 2025. The remaining revenue decline was split between marketing fund revenue and other services revenue, Julian said.

Second-quarter adjusted EBITDA was $21.9 million, down $6.2 million, or 22%, year over year. Adjusted EBITDA margin was 33%, compared with 37% in the prior-year quarter. Cash equivalents and restricted cash totaled $25 million as of June 30, compared with $38.7 million a year earlier. Total long-term debt was $522.4 million, compared with $377.8 million a year earlier, primarily due to the retirement of a convertible preferred security in the fourth quarter of 2025. Julian said adjusted EBITDA was below the company’s internal forecast because of lower merchandise contribution and higher marketing investment.

Digital, Marketing and Franchisee Initiatives Xponential said it is responding to top-of-funnel pressure through paid media, website redesigns, artificial intelligence-focused search engine optimization efforts and new data tools for franchisees.

The company implemented a new StretchLab digital experience in July and completed a redesign of the Club Pilates website, which management expects to launch in the third quarter after programming is completed. Nuzzo said the redesigned digital experiences are intended to improve navigation, reduce friction in the member journey and support more lead submissions.

The company is also using reporting dashboards to help franchisees improve conversion from leads to memberships. Pure Barre and YogaSix teams, for example, are using data tools to coach studios on adding class types associated with higher new-member conversion. Xponential is also supporting franchisees that are piloting AI-enabled customer relationship management tools.

Paid-media leads increased year over year, helping offset declines in organic leads. Nuzzo said the company will maintain elevated paid media and digital spending while working to improve organic lead generation later in the year.

On merchandise, management said it is working with its outsourced partner on process improvements while evaluating other ways to improve reliability and performance. Nuzzo said the company’s goal is to return merchandise to a normal operating run rate during the second half, though Julian said the company’s guidance assumes pressure continues through year-end.

Lowered 2026 Outlook and Strategic Review Xponential lowered its 2026 guidance due to second-quarter performance, expectations for continued merchandise pressure and more cautious assumptions for same-store sales in the second half. Management said its forecast assumes same-store sales trends remain broadly consistent with the first half rather than forecasting an improvement before it is visible in results.

Global net new studio openings are expected to be approximately 150. North America system-wide sales are projected at $1.70 billion to $1.75 billion. Total 2026 revenue is expected to be $250 million to $260 million. Adjusted EBITDA is forecast at $91 million to $97 million, representing a 36.9% margin at the midpoint. Julian said the company made $6.8 million in second-quarter payments associated with agreed settlements in franchisee litigation, the Federal Trade Commission case and the New York Attorney General case. It expects approximately $11.4 million of additional settlement payments for the remainder of 2026 related to the franchisee and FTC cases.

The company said it has made significant progress resolving most of its regulatory matters and has substantially refreshed its franchise disclosure documents. Julian said legal expenses and settlements have placed substantial pressure on cash flow in recent years, but he expects cash flow to turn positive in 2027.

Nuzzo also reiterated that Xponential’s board is continuing its strategic alternatives review, which may include a sale, merger or another strategic or financial transaction. The company said it does not intend to comment further on the process until it is complete.

About Xponential Fitness (NYSE:XPOF)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Xponential Fitness (XPOF - Free Report) came out with quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -77.78%. A quarter ago, it was expected that this franchisor of boutique fitness brands would post earnings of $0.11 per share when it actually produced a loss of $0.04, delivering a surprise of -136.36%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Xponential Fitness, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $65.97 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.26%. This compares to year-ago revenues of $76.21 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Xponential Fitness shares have lost about 18.4% since the beginning of the year versus the S&P 500's gain of 12.8%.

What's Next for Xponential Fitness?While Xponential Fitness has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Xponential Fitness was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $67.25 million in revenues for the coming quarter and $0.40 on $262.83 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Target Hospitality (TH - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10.

This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +33.3%. The consensus EPS estimate for the quarter has been revised 13.6% higher over the last 30 days to the current level.

Target Hospitality's revenues are expected to be $79.27 million, up 28.7% from the year-ago quarter.

IRVINE, Calif.--(BUSINESS WIRE)--Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential” or the “Company”), one of the leading global franchisors of boutique health and wellness brands, today reported financial results for the second quarter ended June 30, 2026.

Financial Highlights: Q2 2026 Compared to Q2 2025

Revenue of $66.0 million decreased 13%. North America system-wide sales1 of $437.3 million were flat. North America same store sales2 decreased 6.8%, compared to growth of 2.4%. North America quarterly run-rate average unit volume (AUV)3 of $659,000, compared to $686,000. Net loss of $4.8 million, or a loss of $0.10 per basic share, on a share count of 42.0 million shares of Class A Common Stock, compared to a net income of $1.3 million, or loss per share of $0.01, on a share count of 35.0 million shares of Class A Common Stock. Adjusted net income4 of $0.8 million, or an adjusted net income of $0.02 per basic share4, compared to $14.5 million, or $0.26 per basic share4. Adjusted EBITDA5 of $21.9 million, compared to $28.1 million. “While our second quarter results were below expectations, we continued to make progress against the priorities we believe are most important to strengthening Xponential for the long term, including continued studio growth, both domestically and internationally, enhanced digital capabilities, and elevated franchisee studio support,” said Mike Nuzzo, Chief Executive Officer of Xponential Fitness. “These efforts, led by a strong management team working collaboratively across brands and functions, are laser focused on driving long term, sustainable growth and success for our franchisees.”

Operating Results for the Second Quarter Ended June 30, 2026

Total revenue was $66.0 million, down 13% from the prior year period. The decline in total revenue was expected and driven primarily by fewer equipment installations, and lower merchandise revenue following the Company’s transition to the new outsourced logistics arrangement.

Franchise revenue was $44.0 million, down 3% year-over-year. This decline was driven primarily by a decrease in same store sales, coupled with brand divestitures completed in 2025.

Equipment revenue was $7.1 million, down 26% year-over-year. This decrease was primarily the result of fewer global equipment installations, driven by fewer studio openings and lower franchise license sales.

Merchandise revenue was $0.5 million, down 90% year-over-year. The decrease was primarily driven by the change in the business model due to the Company’s transition from an in-house wholesale model to an outsourced retail model, as well as challenges related to the transition.

Franchise marketing fund revenue was $8.7 million, down 8% year-over-year. The decrease was primarily due to lower system-wide sales stemming from divested brands.

Other service revenue was $5.6 million, down 10% year-over-year, primarily driven by lower vendor commission and brand access fee revenues.

Selling, general and administrative expenses were $32.0 million, up 33% year-over-year, primarily driven by an increase in legal expenses.

Marketing fund expenses were $11.4 million, up 29% year-over-year. This increase reflected the timing of incremental marketing spend, as the Company front-loaded more investment in the second quarter of 2026 compared with the second quarter of 2025.

Net loss totaled $4.8 million, or a loss of $0.10 per basic share, compared to net income of $1.3 million, or a loss of $0.01 per basic share, in the prior year period.

Adjusted net income4 was $0.8 million, or adjusted net income of $0.02 per basic share4, compared to adjusted net income4 of $14.5 million, or adjusted net income of $0.26 per basic share4.

Adjusted EBITDA5 was $21.9 million, down 22% from $28.1 million in the prior year period.

Liquidity and Capital Resources

As of June 30, 2026, the Company had approximately $25.0 million of cash, cash equivalents and restricted cash and $522.4 million in total long-term debt. Net cash used in operating activities was $25.7 million for the quarter ended June 30, 2026.

All financial data included in this release refer to global numbers, unless otherwise noted. All KPI information is presented on an adjusted basis to include full historical data for all brands in the brand portfolio as of June 30, 2026, and to exclude all information for all brands not owned as of June 30, 2026. Definitions for the non-GAAP measures and a reconciliation to the corresponding GAAP measures are included in the tables that accompany this release.

2026 Outlook

The Company is revising its full year 2026 outlook, which compares to 2025 results as follows:

Net new studio openings of approximately 150, or a decrease of 25%. This compares to previous guidance of 150 to 170; North America system-wide sales1 in the range of $1.70 billion to $1.75 billion, or a decrease of 1% at the midpoint. This compares to previous guidance of $1.72 billion to $1.80 billion; Revenue in the range of $250.0 million to $260.0 million, representing a decrease of 19% at the midpoint. This compares to previous guidance of $260.0 million to $270.0 million; and Adjusted EBITDA5 in the range of $91.0 million to $97.0 million, representing a decrease of 16% at the midpoint. This compares to previous guidance of $100.0 million to $110.0 million. Additional key assumptions for full year 2026 include:

Tax rate in the mid-to-high single digits; Share count of 41.0 million shares of Class A Common Stock for the GAAP EPS and Adjusted EPS calculations. A full explanation of the Company’s share count calculation and associated EPS and Adjusted EPS calculations can be found in the tables at the end of this press release. The Company is not able to provide a quantitative reconciliation of the estimated full year Adjusted EBITDA for fiscal year ending December 31, 2026 without unreasonable efforts to the most directly comparable GAAP financial measure due to the high variability, complexity and low visibility with respect to certain items such as taxes, tax receivable agreement remeasurements, and income and expense from changes in fair value of contingent consideration from acquisitions. We expect the variability of these items to have a potentially unpredictable and potentially significant impact on future GAAP financial results, and, as such, we also believe that any reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.

Second Quarter 2026 Conference Call

The Company will host a conference call today at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to discuss its second quarter 2026 financial results. Participants may join the conference call by dialing 1-877-407-9716 (United States) or 1-201-493-6779 (International).

A live webcast of the conference call will also be available on the Company’s Investor Relations site at https://investor.xponential.com/. For those unable to participate in the conference call, a telephonic replay of the call will be available shortly after the completion of the call, until 11:59 p.m. ET on Thursday, August 20, 2026, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 13761232.

About Xponential Fitness, Inc.

Xponential Fitness, Inc. (NYSE: XPOF) is one of the leading global franchisors of boutique health and wellness brands. Through its mission to deliver the talents, assets, and capabilities necessary for successful franchise growth, the Company operates a diversified platform of five brands spanning modalities including Pilates, barre, stretching, strength training, and yoga. In partnership with its franchisees, and master franchisees, Xponential offers energetic, accessible, and personalized workout experiences led by highly qualified instructors in studio locations throughout the U.S. and internationally, with franchise, master franchise and international expansion agreements in 49 U.S. states, Puerto Rico, and 29 additional countries. Xponential’s portfolio of brands includes Club Pilates, the largest Pilates brand in the United States; StretchLab, a concept offering one-on-one and group stretching services; YogaSix, the largest franchised yoga brand in the United States; Pure Barre, a total body workout that uses the ballet barre to perform small isometric movements, and the largest barre brand in the United States; and BFT, a functional training and strength-based program. For more information, please visit the Company’s website at xponential.com.

Non-GAAP Financial Measures

In addition to our results determined in accordance with GAAP, we believe non-GAAP financial measures are useful in evaluating our operating performance. We use certain non-GAAP financial information, such as EBITDA, Adjusted EBITDA, adjusted net income (loss), and adjusted net earnings (loss) per share, which exclude certain non-operating or non-recurring items, including but not limited to, equity-based compensation expenses and related employer payroll taxes, acquisition and transaction expenses (income) (including change in contingent consideration), litigation expenses (consisting of legal and related fees for specific proceedings that arise outside of the ordinary course of our business net of insurance reimbursements), financial transaction fees and related expenses (including costs related to strategic alternatives and other contemplated corporate transactions), tax receivable agreement remeasurement, impairment of goodwill and other noncurrent assets, loss and expenses due to brand divestitures (excluding impairments) (including expenses directly related to the divested brands for arrangements that existed prior to divestiture, outsourcing of our retail merchandising and change in contingent consideration receivable related to a divested brand) executive transition costs (consisting of executive recruiting costs and other related costs), transformation initiative costs (primarily consisting of third-party professional consulting fees related to modifications of our business strategy and cost saving initiatives), and charges incurred in connection with our restructuring plan that we believe are not representative of our core business or future operating performance, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively with comparable GAAP financial measures, is helpful to investors because it provides consistency and comparability with past financial performance and provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations or outlook. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We seek to compensate such limitations by providing a detailed reconciliation for the non-GAAP financial measures to the most directly comparable financial measures stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business. For a reconciliation of non-GAAP to GAAP measures discussed in this release, please see the tables at the end of this press release.

Forward-Looking Statements

This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated financial performance. Forward-looking statements include, without limitation, statements relating to expected growth of our business; expected benefit of the changes in management; projected number of new studio openings; profitability; anticipated industry trends; projected financial and performance information such as system-wide sales and Adjusted EBITDA; and other statements under the section “2026 Outlook”; our competitive position in the boutique fitness and broader health and wellness industry; and ability to execute our business strategies and our strategic growth drivers. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to: franchisees’ ability to generate sufficient revenues; our ability to anticipate and satisfy consumer preferences; risks related to loss of reputation and brand awareness; our ability to manage changes in executive leadership; our ability to attract and retain key senior management and key employees; risks relating to expansion into international markets; macroeconomic conditions or economic downturns; geopolitical uncertainty, including, but not limited to, the impact of the presidential administration in the U.S. trade policies and tariffs and the ongoing conflicts in Europe and the Middle East; general economic conditions and industry trends; risks relating to our review of strategic alternatives, including that such review may not result in a transaction and could adversely affect our business, operations and stock price; and other risks as described in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the full year ended December 31, 2025, filed by Xponential with the SEC on March 4, 2026, and other periodic reports filed with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and Xponential undertakes no duty to update such information, except as required under applicable law.

Xponential Fitness, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)
(in thousands, except per share amounts)

June 30,

December 31,

2026

2025

Assets Current assets: Cash, cash equivalents and restricted cash $

24,988

$

45,863

Accounts receivable, net 17,428

18,449

Inventories 2,950

2,222

Prepaid expenses and other current assets 20,169

24,151

Deferred costs, current portion 3,794

3,671

Notes receivable, net 55

290

Total current assets 69,384

94,646

Property and equipment, net 9,418

10,891

Right-of-use assets 11,642

13,736

Goodwill 127,789

127,789

Intangible assets, net 65,229

66,507

Deferred costs, net of current portion 22,162

24,860

Other assets 4,219

7,205

Total assets $

309,843

$

345,634

Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) Current liabilities: Accounts payable $

15,986

$

26,282

Accrued expenses 31,126

51,202

Deferred revenue, current portion 17,259

19,324

Line of credit 10,000

—

Current portion of long-term debt 5,250

5,250

Other current liabilities 13,330

13,917

Total current liabilities 92,951

115,975

  Deferred revenue, net of current portion 65,225

69,567

Contingent consideration from acquisitions 8,561

10,309

Long-term debt, net of current portion, discount and issuance costs 499,524

500,500

Lease liabilities, net of current portion 10,860

14,243

Other liabilities 8,817

6,993

Total liabilities 685,938

717,587

Commitments and contingencies Redeemable convertible preferred stock, $0.0001 par value, 400 shares authorized,
none issued and outstanding as of June 30, 2026 and December 31, 2025 —

—

Stockholders' equity (deficit): Undesignated preferred stock, $0.0001 par value, 4,600 shares authorized, none issued and
outstanding as of June 30, 2026 and December 31, 2025 —

—

Class A common stock, $0.0001 par value, 500,000 shares authorized, 42,196 and 35,256 shares
issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 4

3

Class B common stock, $0.0001 par value, 500,000 shares authorized, 7,110 and 13,738 shares issued,
and 7,035 and 13,663 shares outstanding as of June 30, 2026 and December 31, 2025,
respectively —

1

Additional paid-in capital 443,147

489,732

Receivable from shareholder (17,502

)

(16,603

)

Accumulated deficit (745,382

)

(740,520

)

Treasury stock, at cost, 75 shares outstanding as of June 30, 2026 and December 31, 2025 (1,697

)

(1,697

)

Total stockholders' deficit attributable to Xponential Fitness, Inc. (321,430

)

(269,084

)

Noncontrolling interests (54,665

)

(102,869

)

Total stockholders' deficit (376,095

)

(371,953

)

Total liabilities, redeemable convertible preferred stock and stockholders' deficit $

309,843

$

345,634

Xponential Fitness, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Revenue, net: Franchise revenue $

43,991

$

45,353

$

85,145

$

89,247

Equipment revenue 7,058

9,509

11,409

20,613

Merchandise revenue 542

5,613

1,195

11,868

Franchise marketing fund revenue 8,733

9,461

17,445

18,730

Other service revenue 5,644

6,272

11,488

12,633

Total revenue, net 65,968

76,208

126,682

153,091

Operating costs and expenses: Costs of product revenue 5,579

10,505

9,209

22,477

Costs of franchise and service revenue 4,198

3,955

7,460

8,052

Selling, general and administrative expenses 32,033

24,084

62,073

69,629

Impairment of goodwill and other noncurrent assets —

12,928

—

14,843

Depreciation and amortization 1,765

2,973

4,017

5,929

Marketing fund expense 11,440

8,855

23,114

18,212

Acquisition and transaction expense (income) 1,439

(1,915

)

(1,748

)

(10,553

)

Total operating costs and expenses 56,454

61,385

104,125

128,589

Operating income 9,514

14,823

22,557

24,502

Other expense (income): Interest income (668

)

(701

)

(1,305

)

(1,320

)

Interest expense 14,948

12,975

29,442

24,363

Tax receivable agreement expense —

891

—

1,975

Total other expense 14,280

13,165

28,137

25,018

Income (loss) before income taxes (4,766

)

1,658

(5,580

)

(516

)

Income taxes 65

312

71

797

Net income (loss) (4,831

)

1,346

(5,651

)

(1,313

)

Less: net income (loss) attributable to noncontrolling interests (694

)

377

(789

)

(359

)

Net income (loss) attributable to Xponential Fitness, Inc. $

(4,137

)

$

969

$

(4,862

)

$

(954

)

  Net loss per share of Class A common stock: Basic $

(0.10

)

$

(0.01

)

$

(0.12

)

$

(0.11

)

Diluted $

(0.10

)

$

(0.01

)

$

(0.12

)

$

(0.11

)

Weighted average shares of Class A common stock outstanding: Basic 42,031

34,972

39,687

34,444

Diluted 42,031

34,972

39,687

34,444

Xponential Fitness, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

Six Months Ended June 30,

2026

2025

Cash flows from operating activities: Net loss $

(5,651

)

$

(1,313

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 4,017

5,929

Amortization and write off of debt issuance costs 156

87

Amortization and write off of discount on long-term debt 1,585

3,664

Change in contingent consideration from acquisitions (1,748

)

(10,553

)

Non-cash lease expense 1,888

2,207

Change in tax receivable agreement liability —

1,975

Bad debt expense 89

1,163

Equity-based compensation 3,687

5,947

Non-cash interest (976

)

(747

)

Gain on disposal of assets and lease terminations (718

)

(931

)

Change in contingent consideration receivable from Lindora 3,593

—

Impairment of goodwill and other noncurrent assets —

14,843

Changes in assets and liabilities, net of effect of acquisition: Accounts receivable 1,432

(11,949

)

Inventories (727

)

2,624

Prepaid expenses and other current assets 3,196

(4,146

)

Operating lease liabilities (1,994

)

(1,934

)

Deferred costs 2,575

2,065

Notes receivable, net 3

1

Accounts payable (11,173

)

(4,662

)

Accrued expenses (20,577

)

12,127

Other current liabilities 1

(2,417

)

Deferred revenue (6,407

)

(7,335

)

Other assets 198

1,296

Other liabilities 1,824

400

Net cash provided by (used in) operating activities (25,727

)

8,341

Cash flows from investing activities: Purchases of property and equipment (736

)

(1,992

)

Purchase of intangible assets (707

)

(803

)

Notes receivable issued —

(173

)

Notes receivable payments received 234

108

Net cash used in investing activities (1,209

)

(2,860

)

Cash flows from financing activities: Borrowings from long-term debt, net of original discount issue —

10,000

Payments on long-term debt (2,625

)

(2,748

)

Debt issuance costs —

(90

)

Payment of preferred stock dividend —

(3,796

)

Borrowings from line of credit 10,000

—

Payments of contingent consideration —

(500

)

Payments for taxes related to net share settlement of restricted share units (1,161

)

(2,097

)

Proceeds from issuance of common stock in connection with stock-based compensation plans 58

122

Payments for distributions to Pre-IPO LLC Members (176

)

(432

)

Loan to shareholder (35

)

—

Net cash provided by financing activities 6,061

459

Increase (decrease) in cash, cash equivalents and restricted cash (20,875

)

5,940

Cash, cash equivalents and restricted cash, beginning of period 45,863

32,739

Cash, cash equivalents and restricted cash, end of period $

24,988

$

38,679

Xponential Fitness, Inc.

Net Income (Loss) to GAAP EPS

(in thousands, except per share amounts)

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Numerator: Net income (loss) attributable to XPO Inc. $

(4,831

)

$

1,346

$

(5,651

)

$

(1,313

)

Less: net loss attributable to noncontrolling interests 694

156

789

1,460

Less: dividends on preferred shares —

(1,898

)

—

(3,796

)

Net loss attributable to XPO Inc. - basic and diluted (4,137

)

(396

)

(4,862

)

(3,649

)

Denominator: Weighted average shares of Class A common stock outstanding - basic and diluted 42,031

34,972

39,687

34,444

  Net loss per share attributable to Class A common stock - basic $

(0.10

)

$

(0.01

)

$

(0.12

)

$

(0.11

)

Net loss per share attributable to Class A common stock - diluted $

(0.10

)

$

(0.01

)

$

(0.12

)

$

(0.11

)

  Anti-dilutive shares excluded from diluted loss per share of Class A common stock: Restricted stock units 2,506

1,850

2,506

1,850

Conversion of Class B common stock to Class A common stock 7,035

13,663

7,035

13,663

Convertible preferred stock —

8,112

—

8,112

Treasury share options 75

75

75

75

Rumble contingent shares 2,024

2,024

2,024

2,024

Xponential Fitness, Inc.

Reconciliations of GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net income (loss) $

(4,831

)

$

1,346

$

(5,651

)

$

(1,313

)

Interest expense, net 14,280

12,274

28,137

23,043

Income taxes 65

312

71

797

Depreciation and amortization 1,765

2,973

4,017

5,929

EBITDA 11,279

16,905

26,574

28,456

Equity-based compensation 1,703

2,666

3,687

5,947

Employer payroll taxes related to equity-based compensation 28

144

72

259

Acquisition and transaction expense (income) 1,439

(1,915

)

(1,748

)

(10,553

)

Litigation expenses (benefit) 791

(4,921

)

4,831

11,268

Financial transaction fees and related expenses 1,592

139

1,781

442

TRA remeasurement —

891

—

1,975

Impairment of goodwill and other noncurrent assets —

12,928

—

14,843

Loss and expenses due to brand divestitures (excluding impairments) 4,004

—

4,964

81

Executive transition costs 931

—

931

—

Transformation initiative costs —

—

—

889

Restructuring and related charges (excluding impairments) 168

1,263

1,256

1,818

Adjusted EBITDA $

21,935

$

28,100

$

42,348

$

55,425

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net income (loss) $

(4,831

)

$

1,346

$

(5,651

)

$

(1,313

)

Acquisition and transaction expenses (income) 1,439

(1,915

)

(1,748

)

(10,553

)

TRA remeasurement —

891

—

1,975

Impairment of goodwill and other noncurrent assets —

12,928

—

14,843

Loss and expenses due to brand divestitures (excluding impairments) 4,004

—

4,964

81

Restructuring and related charges (excluding impairments) 168

1,263

1,256

1,818

Adjusted net income (loss) $

780

$

14,513

$

(1,179

)

$

6,851

Adjusted net income (loss) attributable to noncontrolling interest 113

4,077

(354

)

1,786

Adjusted net income (loss) attributable to Xponential Fitness, Inc. 667

10,436

(825

)

5,065

Dividends on preferred shares —

(1,365

)

—

(2,695

)

Adjusted earnings (loss) per share - basic numerator $

667

$

9,071

$

(825

)

$

2,370

Add: Adjusted net income attributable to noncontrolling interest 113

4,077

—

1,786

Add: Dividends on preferred shares —

1,365

—

2,695

Adjusted earnings (loss) per share - diluted numerator $

780

$

14,513

$

(825

)

$

6,851

  Adjusted net earnings (loss) per share - basic $

0.02

$

0.26

$

(0.02

)

$

0.07

Weighted average shares of Class A common stock outstanding - basic 42,031

34,972

39,687

34,444

  Adjusted net earnings (loss) per share - diluted $

0.02

$

0.26

$

(0.02

)

$

0.12

Effect of dilutive securities: Restricted stock units 18

—

—

—

Convertible preferred stock —

8,112

—

8,112

Conversion of Class B common stock to Class A common stock 7,146

13,664

—

14,062

Weighted average shares of Class A common stock outstanding - diluted 49,195

56,748

39,687

56,618

  Shares excluded from adjusted diluted earnings per share of Class A common stock Restricted stock units 2,506

1,851

2,506

1,851

Convertible preferred stock —

—

—

—

Conversion of Class B common stock to Class A common stock —

—

—

—

Treasury share options 75

75

75

75

Rumble contingent shares 2,024

2,024

2,024

2,024

Note: The above adjusted net income (loss) per share is computed by dividing the adjusted net income (loss) attributable to holders of Class A common stock by the weighted average shares of Class A common stock outstanding during the period. Total share count does not include potential future shares vested upon achieving certain earn-out thresholds. Net income, however, continues to take into account the non-cash contingent liability primarily attributable to Rumble.

Footnotes

1. System-wide sales represent gross sales by all North America studios (which includes the United States, U.S. territories and Canada). System-wide sales include sales by franchisees that are not revenue realized by us in accordance with GAAP. While we do not record sales by franchisees as revenue, and such sales are not included in our consolidated financial statements, this operating metric relates to our revenue because we receive approximately 7% and 2% of the sales by franchisees as royalty revenue and marketing fund revenue, respectively. We believe that this operating measure aids in understanding how we derive our royalty revenue and marketing fund revenue and is important in evaluating our performance. System-wide sales growth is driven by new studio openings and increases in same store sales. Management reviews system-wide sales weekly, which enables us to assess changes in our franchise revenue, overall studio performance, the health of our brands and the strength of our market position relative to competitors.

2. Same store sales refer to period-over-period sales comparisons for the base of studios. We define the same store sales to include monthly sales for any traditional studio location in North America. If the studio has generated at least 13 months of consecutive positive sales and opened at least 13 calendar months ago as of any month within the measurement period, the respective comparable months will be included. We measure same store sales based solely upon monthly sales as derived through the designated point-of-sale system. This measure highlights the performance of existing studios, while excluding the impact of new studio openings. Management reviews same store sales to assess the health of the franchised studios.

3. AUV is calculated by dividing sales during the applicable period for all studios contributing to AUV by the number of studios contributing to AUV. All traditional studio locations in North America are included in the AUV calculation, so long as they meet certain time since opening and sales criteria (as defined immediately below). In particular, AUV (LTM as of period end) and Quarterly AUV (run rate) are calculated as follows:

AUV (LTM as of period end) consists of the average sales for the trailing 12 calendar months for all traditional studio locations in North America that opened at least 13 calendar months ago as of the measurement date and that have generated positive sales for each of the last 13 calendar months as of the measurement date. Quarterly AUV (run rate) consists of average quarterly sales for all traditional studio locations in North America that had opened at least six calendar months ago as of the beginning of the respective quarter, and that have non-zero sales in the respective quarter (including nominal or negative sales figures; the only figures excluded are exact $0 amounts in the quarter), multiplied by four. We measure sales for AUV based solely upon monthly sales as derived through the designated point-of-sale system. AUV is impacted by changes in same store sales, studio openings, and studio closures. Management reviews AUV to assess studio economics.

4. Adjusted net income (loss) is a non-GAAP financial measure that excludes certain amounts and is used to supplement net income (loss). Adjusted net income (loss) assumes that all net income (loss) is attributable to Xponential Fitness, Inc., which assumes the full exchange of all outstanding Class B common stock for shares of Class A common stock of Xponential Fitness, Inc., adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance. Adjusted net income (loss) per share, diluted, is calculated by dividing adjusted net income (loss) by the total weighted-average shares of Class A common stock outstanding plus any dilutive securities and assuming the full conversion of all outstanding Class B common stock. Total share count does not include potential future shares vested upon achieving certain earn-out thresholds.

5. We define Adjusted EBITDA as EBITDA (net income/loss before interest, taxes, depreciation and amortization), adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include equity-based compensation and related employer payroll taxes, acquisition and transaction expenses (income) (including change in contingent consideration), litigation expenses (consisting of legal and related fees for specific proceedings that arise outside of the ordinary course of our business net of insurance reimbursements), financial transaction fees and related expenses (including costs related to strategic alternatives and other contemplated corporate transactions), tax receivable agreement remeasurement, impairment of goodwill and other noncurrent assets, loss and expenses due to brand divestitures (excluding impairments) (including expenses directly related to the divested brands for arrangements that existed prior to divestiture, outsourcing of our retail merchandising and change in contingent consideration receivable related to a divested brand) executive transition costs (consisting of executive recruiting costs and other related costs), transformation initiative costs (primarily consisting of third-party professional consulting fees related to modifications of our business strategy and cost saving initiatives),and restructuring and related charges incurred in connection with our restructuring plan that we do not believe reflect our underlying business performance and affect comparability.

More News From Xponential Fitness, Inc.

IRVINE, Calif.--(BUSINESS WIRE)--Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential” or the “Company”), one of the leading global franchisors of boutique health and wellness brands, today announced that it will release its second quarter 2026 financial results on Thursday, August 6, 2026, after the market closes. Xponential Fitness management will host a conference call to discuss the results the same day at 1:30 p.m. PT / 4:30 p.m. ET. To access the event by telephone, please dial +1 (877) 407.

Shares of Xponential Fitness, Inc. (NYSE: XPOF - Get Free Report) have earned a consensus rating of "Reduce" from the nine brokerages that are covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, six have given a hold rating and one has assigned a buy rating to the company. The

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Xponential Fitness, Inc. ("Xpontential" or the "Company") (NYSE: XPOF). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Xpontential and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On February 26, 2026, Xponential reported its fourth quarter and full year 2025 financial results, including a much larger-than-expected loss and a projected 16% decline in revenue in 2026. Xponential also announced that its "has agreed to pay $17.0 million over a 12-month period" and "recently finalized a $22.75 million settlement (to be paid out over a thirty-five month period) with over 500 current and former franchisees" to settle allegations that it had misled franchisees over financial projections and the financial health of certain fitness studios. 

On this news, Xponential's stock price fell $3.79 per share, or 47.08%, to close at $4.26 per share on February 27, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton 
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980 

SOURCE Pomerantz LLP

To the Board of Directors of Xponential Fitness, Inc. (NYSE: XPOF):

COCONUT CREEK, Fla., April 01, 2026 (GLOBE NEWSWIRE) -- Kanen Wealth Management, LLC, as owners of approximately 4% of the Company’s outstanding Class A shares, urges the Board to immediately initiate and publicly announce a formal review of strategic alternatives, including a sale of the Company. The Board should establish an independent Special Committee and retain a qualified financial advisor to conduct a good-faith process with credible bidders.

This letter follows a private communication we sent to the Board in March 2026. In our view, our conversations with the Company’s former CFO and current Chairman suggest a degree of alignment at the leadership level, with both appearing receptive to pursuing strategic alternatives as a rational and appropriate path forward. Our characterization reflects our interpretation of those discussions, and we recognize that views may differ. Notably, we did not encounter material opposition to the concept of exploring a transition to private ownership.

Given this apparent alignment, the absence of a public process is increasingly difficult to justify.

Based on our discussions with other investors and the Company’s prolonged valuation dislocation, we believe most shareholders support a strategic review, particularly given ongoing governance instability and execution uncertainty.

Structural Instability Has Driven a Valuation Disconnect

As outlined in our prior correspondence, three Chief Executive Officers in three years, repeated operational resets, financial restatements, and regulatory scrutiny signal structural instability. This level of leadership turnover is not transitional, it reflects deeper governance and execution challenges. SEC inquiries and FTC-related matters have further undermined credibility and diverted focus from disciplined operations. Public markets have responded accordingly, with a severe compression in valuation and investor confidence.

Our position is not rooted in pessimism about the Company’s brands. To the contrary, we believe Xponential owns a premier asset in Club Pilates, which is a category-defining franchise with durable unit economics and substantial embedded value not reflected in today’s share price.

After allocating appropriate G&A, we estimate Club Pilates can generate $100M+ of EBITDA today, with a clear path to $125–150M within three years under focused stewardship. Applying a conservative 10–12x multiple implies an enterprise value of $1.25–1.8 billion for Club Pilates alone, representing material upside relative to the Company’s current valuation after accounting for net debt and the TRA.

The market is discounting governance risk, not asset quality. A public strategic process would improve transparency and accountability and allow market participants to reassess XPOF’s intrinsic value. Private ownership would enable the operational reset required to unlock this value without the credibility overhang and quarterly scrutiny suppressing the stock.

We believe the current share price materially understates intrinsic value, and that a strategic process would result in a transaction at a substantial premium. Under a streamlined structure with reduced interest expense and SG&A rationalization, Xponential could generate $125M+ of EBITDA and $80M+ of FCF, supporting an attractive acquisition multiple for a scaled, asset-light franchise system.

The Board’s Fiduciary Duty

The Board’s responsibility is to maximize shareholder value through independent and objective judgment. Leadership appears aligned around pursuing alternatives, shareholders broadly support a review, and valuation remains materially disconnected from intrinsic value—yet no formal process has been initiated.

The status quo has failed to restore credibility or close the valuation gap. Another operating reset will not resolve these structural issues. A public, disciplined exploration of strategic alternatives is the most direct path to accountability and value realization.

We expect the Board to act decisively.

Sincerely,

David Kanen
President
Kanen Wealth Management, LLC.

Contact:
[email protected]

IRVINE, Calif.--(BUSINESS WIRE)--Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential” or the “Company”), one of the leading global franchisors of boutique health and wellness brands, today announced its Board of Directors has initiated a review of strategic alternatives to maximize shareholder value. As part of this process, the Board's independent directors will evaluate a range of potential alternatives, which may include a sale of the Company, a merger, or another strategic or financial trans.

Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Xponential (XPOF) To Contact Him Directly To Discuss Their Options

If you purchased or acquired stock in Xponential and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648.

Click here to participate in the action.

NEW YORK, April 08, 2026 (GLOBE NEWSWIRE) --

What’s Happening:

Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Xponential Fitness, Inc. (“Xponential” or the “Company”) (NYSE:XPOF) on behalf of Xponential stockholders. Our investigation concerns whether Xponential has violated the federal securities laws and/or engaged in other unlawful business practices.
Investigation Details:

On February 26, 2026, Xponential filed with the Securities and Exchange Commission a Current Report on Form 8-K announcing a stipulated consent agreement between the Federal Trade Commission ("FTC") and Xponential regarding the FTC's previous investigation into Xponential. The report stated that, "the Company has agreed to pay $17.0 million over a 12-month period. The Company has also recently finalized a $22.75 million settlement (to be paid out over a thirty-five month period) with over 500 current and former franchisees." Following this news, Xponential's stock price dropped $3.79 per share, or 47.1%, to close at $4.26 on February 27, 2026.
Next Steps:

If you purchased or otherwise acquired Xponential shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], by telephone at (212) 355-4648, or by filling out this contact form.  There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Follow us for updates on LinkedIn and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com

IRVINE, Calif.--(BUSINESS WIRE)--Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential” or the “Company”), one of the leading global franchisors of boutique health and wellness brands, today announced that it will release its first quarter 2026 financial results on Thursday, May 7, 2026, after the market closes. Xponential Fitness management will host a conference call to discuss the results the same day at 1:30 p.m. PT / 4:30 p.m. ET. To access the event by telephone, please dial +1 (877) 407-971.

Xponential Fitness (XPOF - Free Report) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of $0.11. This compares to a loss of $0.2 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -138.10%. A quarter ago, it was expected that this franchisor of boutique fitness brands would post a loss of $0.03 per share when it actually produced a loss of $0.91, delivering a surprise of -2933.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Xponential Fitness, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $60.71 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 6.07%. This compares to year-ago revenues of $76.88 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Xponential Fitness shares have lost about 19.4% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for Xponential Fitness?While Xponential Fitness has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Xponential Fitness was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.12 on $65.46 million in revenues for the coming quarter and $0.51 on $265.98 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

United Parks & Resorts (PRKS - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 11.

This theme park operator is expected to post quarterly loss of $0.36 per share in its upcoming report, which represents a year-over-year change of -24.1%. The consensus EPS estimate for the quarter has been revised 8.9% lower over the last 30 days to the current level.

United Parks & Resorts' revenues are expected to be $277.41 million, down 3.3% from the year-ago quarter.

Xponential Fitness, Inc. (XPOF) Q1 2026 Earnings Call Transcript

IRVINE, Calif.--(BUSINESS WIRE)--Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential” or the “Company”), one of the leading global franchisors of boutique health and wellness brands, announced today that its Board of Directors has appointed Danielle Porto Parra as President, effective immediately.

Danielle is a seasoned operational leader with over 20 years of experience building and scaling high-performing brands. She brings deep expertise across marketing, operations, product development, and digital, with a proven ability to drive profitable growth, enhance operating performance, and strengthen brand relevance.

Her leadership experience spans Fortune 100 companies, private equity-backed organizations, franchise systems, and entrepreneurial high-growth businesses. Most recently, Danielle served as President Chief Brand Officer of McAlister’s Deli. Prior to that, she led Marketing & Culinary Innovation at GoTo Foods, across seven brands including Cinnabon, Auntie Anne’s and Jamba. She also has held C-level and executive roles at Pep Boys, Build.com, Caesars Entertainment and Petco. Danielle earned business and advertising degrees from the University of Georgia.

“On behalf of the Board, I am excited to announce Danielle’s appointment as Xponential continues to execute against its strategic priorities,” said Mr. Nuzzo, Chief Executive Officer, Director of Xponential Fitness. “Danielle brings deep expertise across both franchised and company-operated models, with a proven track record of improving unit-level economics, aligning operators, and enhancing the customer experience. Her ability to combine strategic vision with operational discipline positions her well to help us continue to build a best-in-class partnership with our franchisees. The Board is confident in her leadership and strategic perspective, and I look forward to working closely with her as we advance our mission.”

“I'm honored to join Xponential and our franchisees in our mission to improve health and wellness in everyday life,” said Ms. Parra, President of Xponential Fitness. “At the core of my leadership approach is a commitment to driving long-term success for our franchisees, when they succeed, our brands and the communities we serve thrive alongside them.”

About Xponential Fitness, Inc.

Xponential Fitness, Inc. (NYSE: XPOF) is one of the leading global franchisors of boutique health and wellness brands. Through its mission to deliver the talents, assets, and capabilities necessary for successful franchise growth, the Company operates a diversified platform of five brands spanning modalities including Pilates, barre, stretching, strength training, and yoga. In partnership with its franchisees, and master franchisees, Xponential offers energetic, accessible, and personalized workout experiences led by highly qualified instructors in studio locations throughout the U.S. and internationally, with franchise, master franchise and international expansion agreements in 49 U.S. states, Puerto Rico, and 28 additional countries. Xponential’s portfolio of brands includes Club Pilates, the largest Pilates brand in the United States; StretchLab, a concept offering one-on-one and group stretching services; YogaSix, the largest franchised yoga brand in the United States; Pure Barre, a total body workout that uses the ballet barre to perform small isometric movements, and the largest barre brand in the United States; and BFT, a functional training and strength-based program. For more information, please visit the Company’s website at xponential.com.

Forward-Looking Statements

This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated financial performance. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to: franchisees’ ability to generate sufficient revenues; our ability to anticipate and satisfy consumer preferences; risks related to loss of reputation and brand awareness; our ability to manage changes in executive leadership; our ability to attract and retain key senior management and key employees; risks relating to expansion into international markets; macroeconomic conditions or economic downturns; geopolitical uncertainty, including the impact of the presidential administration in the U.S. trade policies and tariffs; general economic conditions and industry trends; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the full year ended December 31, 2025, and other periodic reports filed with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and Xponential undertakes no duty to update such information, except as required under applicable law.

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The best non-AI trade of the decade might be hiding in your gym’s lobby.

Gen Z — the largest consumer cohort in history — is making a quiet but seismic spending decision. They are not going to bars or spending Friday nights out at restaurants. They are paying hundreds of dollars a month for premium gym memberships, boutique fitness classes, and recovery studios. And it has become the center of their social life.

Most investors are completely ignoring this shift — because it doesn’t involve a GPU. That’s exactly why it’s worth paying attention to. 

The Death of the Bar Tab: Gen Z’s Spending Shift Is Showing Up In the Data According to a February 2026 Bank of America report, gym-related spending among Gen Z and millennials is rising sharply as alcohol consumption continues to decline. 

A separate survey from Mintel found that 77% of U.S. Gen Z consumers say they are more focused on wellness than they were a year ago, with 30% spending more on gym memberships and classes in that time.

With over 3.4 million posts under #Pilates on Instagram alone and TikTok overflowing with gym routines, “what I eat in a day” videos, and run club recaps, fitness isn’t something Gen Z does. It’s something Gen Z is. 

This is a structural identity shift. And it matters enormously for investors.

Why This Is a Structural Identity Shift, Not a Fad This isn’t just about health. These premium gyms and boutique studios are functioning as social infrastructure — filling the community void once occupied by bars, restaurants, and even offices.

The data bears this out. According to Bank of America, Gen Z households spend 2.8 times more than baby boomers on fitness. Fitness club foot traffic has surpassed bars and pubs by 22 percentage points since 2021. Non-alcoholic beverage spending has outpaced alcoholic alternatives by 28 points over the same period. 

This is a generational reallocation of the “going out” budget — and it is accelerating. 

Spending on premium fitness carries a social ROI that a traditional gym membership never had. You don’t build your professional network at a $30/month big-box gym. But at a $300/month Equinox or a $40-per-class boutique studio? 

The switching costs and community lock-in are real. And the willingness to pay is, evidently, recession-resistant — these Gen Z consumers are spending $500-plus per month on fitness despite record rent burdens, student debt, and a brutal job market.

The Long Side: Three Wellness Stocks Built for This Generational Shift Against this backdrop, three names stand out as the highest-conviction expressions of this trend in public markets.

Life Time Group Holdings (LTH) is the purest play available. Life Time has spent years building what it calls the “athletic country club” — massive, spa-level facilities with pools, group fitness, personal training, and a social scene that makes showing up feel less like a chore and more like the best part of your day. This is exactly the premium fitness-as-social-hub model the data is validating. While Planet Fitness (PLNT) fights for the budget end of the market, Life Time owns the high ground. Xponential Fitness (XPOF) is the franchisor behind the entire boutique studio ecosystem — Club Pilates, CycleBar, Pure Barre, Row House, Rumble Boxing, and more. The asset-light franchise model captures the brand and community value without the real estate risk. XPOF has been beaten up — which, in a secular growth story, often means opportunity. Dutch Bros (BROS) is the least obvious pick but arguably the most interesting. The wellness trend isn’t just about where Gen Z works out — it’s about the entire morning ritual that replaces the hangover recovery of previous generations. Up at 5 a.m. for the gym, strong coffee or functional energy drink before the session, no bar the night before. With its customizable, high-energy beverages and protein coffee, Dutch Bros is built precisely for this demographic. When the macro headwinds eventually clear, BROS is positioned to be a significant beneficiary. The Short Side: Three Stocks Bleeding Out as Gen Z Abandons the Bar Tab The wellness shift isn’t just a spending increase — it’s a substitution trade. Gen Z is explicitly reallocating their “going out” budget away from specific industries. That creates high-conviction short opportunities that mirror the longs.

Boston Beer (SAM) is the cleanest short in the alcohol space. Craft beer was supposed to be the cool, premium alternative to mass-market beer — precisely the type of product that captures younger consumers. It isn’t working. Its hard seltzer brand Truly was supposed to be the Gen Z entry point. But there is no pivot available when the replacement cohort simply doesn’t drink. Dave & Buster’s (PLAY) is the most structurally compelling short in the entire playbook. D&B is selling the exact Friday night social experience that the data says Gen Z is abandoning. Its business model is: attract young people with arcade games, monetize heavily on alcohol sales. Both legs are under pressure simultaneously. And you cannot reposition a 40,000-square-foot arcade bar.  Bloomin’ Brands (BLMN) — owner of Outback Steakhouse — represents the casual dining category losing to boutique fitness social events. Bloomin’ carries the weakest balance sheet among major casual dining operators, making it most vulnerable to sustained structural headwinds. The Pair Trades: Three Self-Hedging Expressions of the Same Thesis If you want clean expression of this thesis:

Long LTH/Short SAM — premium fitness social hub directly cannibalizing craft beer’s Friday night occasion Long XPOF/Short PLAY — boutique studio franchisor vs. bar entertainment venue, competing for the same Gen Z “where do I go tonight” budget Long BROS/Short Molson Coors (TAP) — morning fitness culture functional beverage vs. traditional beer whose core demographic is literally aging into retirement Why This Is the Best Non-AI Trade In the Market Right Now Almost every macro conversation in 2025 and ’26 has circled back to AI infrastructure. And rightly so — the ‘Pax Silica’ buildout remains the dominant investment theme of this era. But AI infrastructure investing is crowded, expensive, and requires navigating geopolitical risk, tariff exposure, and supply chain complexity.

The wellness trade is different. It’s a consumer behavioral shift playing out in plain sight, being documented in real time by Bloomberg, Bank of America, and Mintel. It requires no technology adoption curve, regulatory approval, or transformer architecture expertise. The tailwinds — Gen Z’s identity-level commitment to wellness, structural alcohol decline, and the social collapse that made boutique gyms the new “third place” — are durable across multiple years.

That same cultural force that is minting new revenue at Life Time and Xponential is quietly bleeding out Boston Beer and Dave & Buster’s. Long/short, the thesis is self-hedging and structurally clean.

Gen Z replaced the entire nightlife scene with something better — and built a $300-a-month subscription around it. 

For investors willing to follow the smoothie instead of the beer, the setup has rarely been cleaner.

That instinct — looking where the crowd isn’t — tends to be where the most interesting opportunities live.

The companies I’m most focused on right now aren’t household names, don’t dominate financial media, and won’t show up on most investors’ radar until it’s too late to get in at the right price. That’s exactly why I think the opportunity is as clean as anything I’ve seen in years.

Here’s what I’m watching — and why I think the window is narrowing fast.