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IRVINE, Calif.--(BUSINESS WIRE)--Xponential Fitness, a leading curator of globally and nationally recognized boutique health and wellness brands, announced today the signing of its largest multi-unit agreement in the company's history. Riser Fitness has obtained the remaining territories in six states and has agreed to open 127 Club Pilates studios over the next five years. The agreement will expand Riser Fitness and Club Pilates' reach in the following states: California Idaho Minnesota Nevada.

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 first quarter ended March 31, 2026.

Financial Highlights: Q1 2026 Compared to Q1 2025

Revenue of $60.7 million decreased 21%. North America system-wide sales1 increased 2% to $436.9 million. North America same store sales2 decreased 6%, compared to growth of 6%. North America quarterly run-rate average unit volume (AUV)3 of $662,000, compared to $685,000. Net loss of $0.8 million, or a loss of $0.02 per basic share, on a share count of 37.3 million shares of Class A Common Stock, compared to a net loss of $2.7 million, or loss per basic share of $0.10, on a share count of 33.9 million shares of Class A Common Stock. Adjusted net loss4 of $2.0 million, or an adjusted net loss of $0.04 per basic share4, compared to adjusted net loss4 of $7.7 million, or adjusted net loss of $0.20 per basic share4. Adjusted EBITDA5 of $20.4 million, compared to $27.3 million. “During the first quarter, we continued to strengthen execution across Xponential, including the addition of Robert Julian as interim Chief Financial Officer, Erik Quade as Chief Information Officer, and starting mid-May Steph So as our new Chief Marketing Officer, which further deepens our capabilities across finance, technology, and marketing,” said Mike Nuzzo, CEO of Xponential Fitness, Inc. “We are operating as a more unified organization, aligning marketing, operations, technology, and brand-building to drive stronger performance and lay the foundation for continued improvement.”

Mr. Nuzzo continued, “As we look ahead, our focus is on restoring sustainable organic growth through a more disciplined framework. This includes stabilizing top-of-funnel lead generation, improving lead-to-member conversion, and optimizing pricing and membership structures over time, all while continuing to support retention through class innovation, studio remodel programs, and clear brand positioning. We are confident these actions will strengthen performance and position us well for the quarters ahead.”

Operating Results for the First Quarter Ended March 31, 2026

Total revenue was $60.7 million, down 21% from the prior year period. The decline in total revenue was expected and driven primarily by strategic divestitures, fewer equipment installations, and lower merchandise revenue following the Company’s transition to the new outsourced logistics arrangement.

Franchise revenue was $41.2 million, down 6% 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 $4.4 million, down 61% 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 $0.7 million, down 90% year-over-year. The decrease was primarily driven by the Company’s transition from an in-house wholesale model, where it recorded the full value of merchandise revenue, to an outsourced retail model, which now records only the commission, or net profit from retail items sold.

Franchise marketing fund revenue was $8.7 million, down 6% year-over-year. The decrease was primarily due to lower system-wide sales stemming from divested brands.

Other service revenue was $5.8 million, down 8% year-over-year, primarily driven by lower vendor commission and brand access fee revenues.

Selling, general and administrative expenses were $30.0 million, down 34% year-over-year, primarily driven by lower legal and personnel-related costs.

Marketing fund expenses were $11.7 million, up 25% year-over-year. This increase reflected the timing of incremental marketing spend, as the Company front-loaded more investment in the first quarter of 2026 compared with the first quarter of 2025.

Net loss totaled $0.8 million, or a loss of $0.02 per basic share, compared to a net loss of $2.7 million, or a loss of $0.10 per basic share, in the prior year period.

Adjusted net loss4 was $2.0 million, or adjusted net loss of $0.04 per basic share4, compared to adjusted net loss4 of $7.7 million, or adjusted net loss of $0.20 per basic share4.

Adjusted EBITDA5 was $20.4 million, down 25% from $27.3 million in the prior year period.

Liquidity and Capital Resources

As of March 31, 2026, the Company had approximately $21.5 million of cash, cash equivalents and restricted cash and $523.7 million in total long-term debt. Net cash used in operating activities was $21.7 million for the quarter ended March 31, 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 March 31, 2026, and to exclude all information for all brands not owned as of March 31, 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 reiterating full year 2026 outlook, which compares to 2025 results as follows:

Net new studio openings in the range of 150 to 170, or a decrease of 20% at the midpoint; North America system-wide sales1 in the range of $1.72 billion to $1.80 billion, or an increase of 1% at the midpoint; Revenue in the range of $260.0 million to $270.0 million, representing a decrease of 16% at the midpoint; and Adjusted EBITDA5 in the range of $100.0 million to $110.0 million, representing a decrease of 6% at the midpoint. Additional key assumptions for full year 2026 include:

Tax rate in the mid-to-high single digits; Share count of 40.9 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.

First 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 first 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, May 21, 2026, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 13759469.

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.

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), litigation expenses, financial transaction fees and related expenses, tax receivable agreement remeasurement, impairment of goodwill and other assets, loss and expenses due to brand divestitures and wind down (excluding impairments), transformation initiative costs, 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)

  March 31, December 31, 2026

2025

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

21,470

$

45,863

Accounts receivable, net 20,838

18,449

Inventories 2,504

2,222

Prepaid expenses and other current assets 26,167

24,151

Deferred costs, current portion 3,913

3,671

Notes receivable, net 96

290

Total current assets 74,988

94,646

Property and equipment, net 10,181

10,891

Right-of-use assets 12,797

13,736

Goodwill 127,789

127,789

Intangible assets, net 65,687

66,507

Deferred costs, net of current portion 23,864

24,860

Other assets 7,097

7,205

Total assets $

322,403

$

345,634

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

18,086

$

26,282

Accrued expenses 41,827

51,202

Deferred revenue, current portion 20,743

19,324

Current portion of long-term debt 5,250

5,250

Other current liabilities 13,117

13,917

Total current liabilities 99,023

115,975

  Deferred revenue, net of current portion 68,137

69,567

Contingent consideration from acquisitions 7,122

10,309

Long-term debt, net of current portion, discount and issuance costs 499,999

500,500

Lease liabilities, net of current portion 13,101

14,243

Other liabilities 6,993

6,993

Total liabilities 694,375

717,587

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

—

Class A common stock, $0.0001 par value, 500,000 shares authorized, 41,812 and 35,256 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively 4

3

Class B common stock, $0.0001 par value, 500,000 shares authorized, 7,303 and 13,738 shares issued, and 7,228 and 13,663 shares outstanding as of March 31, 2026 and December 31, 2025, respectively —

1

Additional paid-in capital 443,635

489,732

Receivable from shareholder (17,016

)

(16,603

)

Accumulated deficit (741,245

)

(740,520

)

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

)

(1,697

)

Total stockholders' deficit attributable to Xponential Fitness, Inc. (316,319

)

(269,084

)

Noncontrolling interests (55,653

)

(102,869

)

Total stockholders' deficit (371,972

)

(371,953

)

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

322,403

$

345,634

  Xponential Fitness, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share amounts)

  Three Months Ended March 31, 2026

2025

Revenue, net: Franchise revenue $

41,154

$

43,894

Equipment revenue 4,351

11,104

Merchandise revenue 653

6,255

Franchise marketing fund revenue 8,712

9,269

Other service revenue 5,844

6,361

Total revenue, net 60,714

76,883

Operating costs and expenses: Costs of product revenue 3,630

11,972

Costs of franchise and service revenue 3,262

4,097

Selling, general and administrative expenses 30,040

45,545

Impairment of goodwill and other noncurrent assets —

1,915

Depreciation and amortization 2,252

2,956

Marketing fund expense 11,674

9,357

Acquisition and transaction income (3,187

)

(8,638

)

Total operating costs and expenses 47,671

67,204

Operating income 13,043

9,679

Other expense (income): Interest income (637

)

(619

)

Interest expense 14,494

11,388

Tax receivable agreement expense —

1,084

Total other expense 13,857

11,853

Loss before income taxes (814

)

(2,174

)

Income taxes 6

485

Net loss (820

)

(2,659

)

Less: net loss attributable to noncontrolling interests (95

)

(736

)

Net loss attributable to Xponential Fitness, Inc. $

(725

)

$

(1,923

)

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

(0.02

)

$

(0.10

)

Diluted $

(0.02

)

$

(0.10

)

Weighted average shares of Class A common stock outstanding: Basic 37,317

33,910

Diluted 37,317

33,910

  Xponential Fitness, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

  Three Months Ended March 31, 2026

2025

Cash flows from operating activities: Net loss $

(820

)

$

(2,659

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 2,252

2,956

Amortization and write off of debt issuance costs 78

50

Amortization and write off of discount on long-term debt 779

1,333

Change in contingent consideration from acquisitions (3,187

)

(8,638

)

Non-cash lease expense 939

1,137

Change in tax receivable agreement liability —

1,084

Bad debt expense 113

249

Equity-based compensation 1,984

3,281

Non-cash interest (474

)

(358

)

Gain on disposal of assets and lease terminations (354

)

—

Change in contingent consideration receivable from Lindora 114

—

Impairment of goodwill and other noncurrent assets —

1,915

Changes in assets and liabilities, net of effect of acquisition: Accounts receivable (2,003

)

(3,229

)

Inventories (282

)

1,696

Prepaid expenses and other current assets (2,303

)

(4,049

)

Operating lease liabilities (1,021

)

(1,034

)

Deferred costs 753

607

Notes receivable, net 1

—

Accounts payable (8,099

)

(245

)

Accrued expenses (9,875

)

15,299

Other current liabilities (569

)

(459

)

Deferred revenue (11

)

(4,480

)

Other assets 296

1,359

Other liabilities —

3

Net cash provided by (used in) operating activities (21,689

)

5,818

Cash flows from investing activities: Purchases of property and equipment (464

)

(465

)

Purchase of intangible assets (353

)

(399

)

Notes receivable issued —

(173

)

Notes receivable payments received 196

40

Net cash used in investing activities (621

)

(997

)

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

10,000

Payments on long-term debt (1,313

)

(1,374

)

Debt issuance costs —

(90

)

Payment of preferred stock dividend —

(1,792

)

Payments of contingent consideration —

(500

)

Payments for taxes related to net share settlement of restricted share units (632

)

(919

)

Payments for distributions to Pre-IPO LLC Members (138

)

(315

)

Net cash provided by (used in) financing activities (2,083

)

5,010

Increase (decrease) in cash, cash equivalents and restricted cash (24,393

)

9,831

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

32,739

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

21,470

$

42,570

  Xponential Fitness, Inc.

Net Income (Loss) to GAAP EPS

(in thousands, except per share amounts)

  Three months ended March 31, 2026

2025

Numerator: Net loss attributable to XPO Inc. $

(820

)

$

(2,659

)

Less: net loss attributable to noncontrolling interests 95

1,304

Less: dividends on preferred shares —

(1,898

)

Net loss attributable to XPO Inc. - basic and diluted (725

)

(3,253

)

Denominator: Weighted average shares of Class A common stock outstanding - basic and diluted 37,317

33,910

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

(0.02

)

$

(0.10

)

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

(0.02

)

$

(0.10

)

  Anti-dilutive shares excluded from diluted loss per share of Class A common stock: Restricted stock units 2,499

1,718

Conversion of Class B common stock to Class A common stock 7,228

13,664

Convertible preferred stock —

8,112

Treasury share options 75

75

Rumble contingent shares 2,024

2,024

  Xponential Fitness, Inc.

Reconciliations of GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

  Three Months Ended March 31, 2026

2025

Net loss $

(820

)

$

(2,659

)

Interest expense, net 13,857

10,769

Income taxes 6

485

Depreciation and amortization 2,252

2,956

EBITDA 15,295

11,551

Equity-based compensation 1,984

3,281

Employer payroll taxes related to equity-based compensation 44

115

Acquisition and transaction income (3,187

)

(8,638

)

Litigation expenses 4,040

16,189

Financial transaction fees and related expenses 189

303

TRA remeasurement —

1,084

Impairment of goodwill and other noncurrent assets —

1,915

Loss and expenses due to brand divestitures and wind down (excluding impairments) 960

81

Transformation initiative costs —

889

Restructuring and related charges (excluding impairments) 1,088

555

Adjusted EBITDA $

20,413

$

27,325

Three months ended March 31, 2026

2025

Net loss $

(820

)

$

(2,659

)

Acquisition and transaction income (3,187

)

(8,638

)

TRA remeasurement —

1,084

Impairment of goodwill and other noncurrent assets —

1,915

Loss and expenses due to brand divestitures and wind down (excluding impairments) 960

81

Restructuring and related charges (excluding impairments) 1,088

555

Adjusted net loss $

(1,959

)

$

(7,662

)

Adjusted net loss attributable to noncontrolling interest (467

)

(2,291

)

Adjusted net loss attributable to Xponential Fitness, Inc. (1,492

)

(5,371

)

Dividends on preferred shares —

(1,330

)

Adjusted loss per share - basic and diluted numerator $

(1,492

)

$

(6,701

)

  Adjusted net loss per share - basic and diluted $

(0.04

)

$

(0.20

)

Weighted average shares of Class A common stock outstanding - basic and diluted 37,317

33,910

    Shares excluded from adjusted diluted loss per share of Class A common stock Restricted stock units 2,499

1,718

Convertible preferred stock —

8,112

Conversion of Class B common stock to Class A common stock 7,228

13,664

Treasury share options 75

75

Rumble contingent shares 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 and transaction bonuses), 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), fees for financial transactions, such as secondary public offering expenses for which we do not receive proceeds (including bonuses paid to executives related to completion of such transactions) and other contemplated corporate transactions, expense related to the remeasurement of our TRA obligation, expense related to loss on impairment or write down of goodwill and other noncurrent assets, loss and expenses related to brand divestitures and wind down (including expenses directly related to the divested or wound down brands for arrangements that existed prior to divestiture or wind down), transformation initiative costs (primarily consisting of third-party professional consulting fees related to modifications of our business strategy and cost saving initiatives), other income (consisting of royalties received from divested brands), 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.

Xponential Fitness (XPOF - Free Report) reported $60.71 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 21%. EPS of -$0.04 for the same period compares to -$0.20 a year ago.

The reported revenue represents a surprise of -6.07% over the Zacks Consensus Estimate of $64.64 million. With the consensus EPS estimate being $0.11, the EPS surprise was -138.1%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Xponential Fitness performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Same store sales: -6% versus the three-analyst average estimate of -3.7%.Revenue- Merchandise: $0.65 million versus $2.22 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -89.6% change.Revenue- Franchise: $41.15 million versus $39.22 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -6.2% change.Revenue- Franchise marketing fund: $8.71 million versus the four-analyst average estimate of $8.78 million. The reported number represents a year-over-year change of -6%.Revenue- Other service: $5.84 million compared to the $5.8 million average estimate based on three analysts. The reported number represents a change of -8.1% year over year.Revenue- Equipment: $4.35 million versus the three-analyst average estimate of $8.36 million. The reported number represents a year-over-year change of -60.8%.View all Key Company Metrics for Xponential Fitness here>>>

Shares of Xponential Fitness have returned -9.8% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of XPOF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260518647899/en/

On April 27, 2026, we delve into the discounted cash flow (DCF) analysis for The Toronto-Dominion Bank TD , a major player in the financial sector. The bank's stock has shown notable performance, with a year-to-date increase of 13.3% and a remarkable 75.1% rise over the past year. However, the current price of $105.03 raises questions about its valuation.

DCF Earnings-based intrinsic value of $79.11 vs price of $105.03 (margin of safety: -22.5%) DCF FCF-based intrinsic value of $-48.05 vs price of $105.03 (significantly overvalued) GF Score™ of 80/100 indicates a reliable DCF input What Is TD Worth? DCF Earnings-Based Model The DCF earnings-based model for TD employs a two-stage approach, where we first project earnings growth for the initial 10 years, followed by a terminal growth phase. The model assumes a current EPS of $6.34, with an expected growth rate of 6.2% over the next decade. The discount rate is set at 11%, combining the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $6.34 10-Year Growth Rate 6.2% 10-Year Treasury Rate 4.32% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), we project that EPS will grow at a rate of 6.2% per year, which, when discounted at 11%, results in a growth stage value of $50.13 per share. Following this, in the terminal phase (Years 11-20), we assume a slower growth rate of 4%, leading to a terminal stage value of $28.98 per share. The intrinsic value derived from this model is calculated as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.2%, discounted at 11% $50.13 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $28.98 Intrinsic Value Growth + Terminal $79.11 With the current price at $105.03, the intrinsic value of $79.11 indicates that TD is fairly valued, with a margin of safety of -22.5%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research suggests that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the TD DCF Calculator.

What Does the Free Cash Flow DCF Say? When we apply a free cash flow (FCF) DCF model, the intrinsic value comes out to be $-48.05. This starkly contrasts with the earnings-based valuation, indicating a significant discrepancy between the two models. The FCF-based analysis suggests that TD is significantly overvalued, with a margin of safety of -100.0%.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for TD stands at $77.95, providing a third perspective on the bank's valuation. This proprietary measure is calculated based on historical trading multiples, past business growth, and future performance estimates. When comparing all three models, the earnings-based DCF and GF Value™ suggest that TD is fairly valued, while the FCF model indicates it is significantly overvalued. For more details, visit the GF Value™ page.

What Does TD's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).

Metric Rating GF Score™ 80/100 Financial Strength 3/10 Profitability 6/10 Growth 8/10 Valuation 5/10 Momentum 9/10 The predictability rank for TD is 3/5 stars, indicating that the DCF model is relatively reliable for this stock. For more information, visit the TD stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect future economic conditions.

What This Means for Investors In summary, the DCF earnings model suggests that TD is fairly valued at $79.11, while the FCF model indicates a significant overvaluation at $-48.05. The GF Value™ of $77.95 aligns closely with the earnings-based DCF, suggesting a consensus on valuation. Overall, the analysis points to TD being fairly valued. For the full DCF analysis, visit the TD DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is TD's intrinsic value based on DCF?

earnings-based $85.73, FCF-based $-48.05

Is TD overvalued or undervalued?

Based on the DCF and GF Value™ consensus, TD is considered fairly valued.

How reliable is the DCF model for TD?

The predictability rank of 3/5 indicates a moderate level of reliability for the DCF model.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Two-year investment will help young people transition from pediatric to adult health and support services May 04, 2026 06:00 ET  | Source: Holland Bloorview Kids Rehabilitation Hospital

TORONTO, May 04, 2026 (GLOBE NEWSWIRE) -- Holland Bloorview Kids Rehabilitation Hospital (Holland Bloorview) is strengthening support for young people with disabilities transitioning to adulthood, thanks to a two-year, $475,000 commitment from TD Bank Group (TD).

The transition to adulthood for young people with disabilities and developmental differences can be an extremely challenging time – one that has been described by some clients and their families as akin to “falling off a cliff.” Upon turning 18, most young people experience several transitions, including school, employment, benefits and funding status, as well as a whole new health-care system.  Suddenly, they are faced with serious gaps in supports and services, long waitlists and numerous financial, social and physical barriers to accessibility and inclusion.

“We are so grateful to TD for their commitment to help young people with disabilities across Ontario gain access to critical supports as they navigate this challenging period. Inclusion is a key pillar of our Together We Dare campaign. If we can scale and spread our programs, more kids can receive the care they need, where and when they need it,” said Sandra Hawken, president and CEO, Holland Bloorview Foundation. 

Holland Bloorview’s Bridging to Adulthood helps ensure young people with disabilities and developmental differences experience a more equitable and inclusive transition to adulthood. Transitions programs provide customized, wraparound supports for clients and their families before, during and after the move to adult services, building self-determination and resilience.

Funding from TD will help Holland Bloorview expand the number of community agencies it partners with in this vital work. This means increased transition supports to additional groups so that more young people can have a well-supported, equitable and inclusive bridge to adult services – including a renewed sense of belonging and independence.

"Turning 18 shouldn’t mean losing the supports young people rely on," said Steve Banquier, Managing Director & Head, Prime Brokerage, TD Securities. "TD is proud to support Holland Bloorview’s Bridging to Adulthood program, which helps youth with disabilities navigate a period of change and stay connected to the support they need as they move forward."

By embedding best practices, expanding equitable resources and building collaborative transitions, Holland Bloorview’s Bridging to Adulthood supports better long-term health and life outcomes, fuelling meaningful change for young people with disabilities while accelerating disability inclusion and working towards health equity. 

Learn more about Holland Bloorview’s Bridging to Adulthood transitions supports and services and how Together We Dare, the largest campaign for childhood disability in Canada, is helping build a healthier, more inclusive and equitable world for children with disabilities and developmental differences.

—30—

About Holland Bloorview Kids Rehabilitation Hospital

At Holland Bloorview we believe in creating a world where all youth and children belong. As Canada’s hospital for children with disabilities, we combine world-class care, transformational research and academic leadership in pediatric disability. Every year we help over 9,500 kids and youth with disabilities and complex medical needs access care that focuses on their physical, mental and emotional well-being, and we power their infinite potential and possibility. Together we dream big. Together we dare to shape the future of disability health care for kids. For more information or to donate, please visit www.TogetherWeDare.ca.

Contact Data Erin Pooley Holland Bloorview Kids Rehabilitation Hospital 647-406-3567 [email protected]

Toronto-Dominion Bank (TD - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Toronto-Dominion is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Toronto-Dominion, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Toronto-DominionThis retail and wholesale bank is expected to earn $6.90 per share for the fiscal year ending October 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Toronto-Dominion. Over the past three months, the Zacks Consensus Estimate for the company has increased 7.5%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Toronto-Dominion to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

On May 11, 2026, we delve into the DCF analysis for The Toronto-Dominion Bank TD . The stock has shown impressive price performance, with a year-to-date increase of 16.0% and a remarkable 76.7% rise over the past year. Below are key highlights from our analysis:

DCF Earnings-based intrinsic value of $79.11 vs current price of $107.46 (margin of safety: -25.4%) DCF FCF-based intrinsic value of $-48.05 vs current price (second opinion: significantly overvalued) GF Score™ of 84/100, indicating a reliable assessment of the DCF inputs What Is TD Worth? DCF Earnings-Based Model The DCF earnings-based model for TD employs a two-stage approach to estimate intrinsic value. The first stage accounts for a growth phase lasting ten years, where we anticipate an EPS growth rate of 6.2%. The second stage represents a terminal phase with a more conservative growth rate of 4% over the subsequent ten years. The discount rate applied is 11%, derived from the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $6.34 10-Year Growth Rate 6.2% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.2%, discounted at 11% $50.13 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $28.98 Intrinsic Value Growth + Terminal $79.11 With the current price at $107.46 and the intrinsic value calculated at $79.11, TD appears to be fairly valued, reflecting a margin of safety of -25.4%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the TD DCF Calculator.

What Does the Free Cash Flow DCF Say? In contrast, the free cash flow (FCF) based intrinsic value for TD is calculated at $-48.05. This starkly contrasts with the earnings-based model, indicating a significant discrepancy between the two valuation methods. The FCF-based model suggests that TD is significantly overvalued, with a margin of safety of -100.0%.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for TD stands at $77.95, providing a third perspective on the valuation. GF Value™ is GuruFocus' proprietary measure, calculated based on historical trading multiples, past business growth, and future performance estimates. When comparing the three models, the earnings-based DCF and GF Value™ suggest that TD is fairly valued, while the FCF model indicates significant overvaluation.

For more insights, visit the GF Value™ page.

What Does TD's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested from 2006-2021).

Metric Rating GF Score™ 84/100 Financial Strength 3/10 Profitability 7/10 Growth 9/10 Valuation 5/10 Momentum 9/10 The predictability rank for TD is 3/5 stars, indicating that the DCF model is relatively reliable for this stock. For additional details, visit the TD stock page.

Key Assumptions and Limitations It is crucial to understand that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not capture the full complexity of future growth.

What This Means for Investors In summary, the three valuation models present a mixed picture for The Toronto-Dominion Bank. The DCF earnings-based model suggests fair valuation, while the FCF model indicates significant overvaluation. The GF Value™ also aligns closely with the earnings-based DCF, suggesting a fair value perspective. Overall, TD appears to be fairly valued based on the earnings-based DCF and GF Value™, while the FCF model raises concerns about overvaluation. For the full DCF analysis, visit the TD DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is TD's intrinsic value based on DCF?

Answer: earnings-based $85.73, FCF-based $-48.05

Is TD overvalued or undervalued?

Answer: The earnings-based DCF suggests fair valuation, while the FCF model indicates significant overvaluation.

How reliable is the DCF model for TD?

Answer: The predictability rank is 3/5, indicating moderate reliability for the DCF model.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

New analysis from the IMPACT-TD Registry confirms tardive dyskinesia (TD) causes a significant burden for most individuals with concomitant mood disorders, impacting their lives regardless of ageThe data shows that 85% of young adults with mood disorders living with TD movements, ages 18-29 (n=13), experience moderate to severe TD impact, yet only 23% received a formal diagnosis of TD, revealing a gap in disease identificationTeva is dedicated to advancing research and initiatives that deepen clinical understanding, identify diagnostic gaps and improve outcomes for patients with TD PARSIPPANY, N.J. and TEL AVIV, Israel, May 18, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA), today announced new data from the ongoing, real-world IMPACT-TD Registry, highlighting a significant gap in diagnosing tardive dyskinesia (TD) in patients with underlying mood disorders. While the findings demonstrate that most patients across all age groups experience multidimensional impact from the condition, young adults (aged 18-29, n=13) had the lowest rate of formal diagnosis (23%) despite having one of the highest rates of personal impact (85%). The data were presented at the 2026 American Psychiatric Association Annual Meeting, taking place May 16 – 20, 2026 in San Francisco, California.

“The latest data from the IMPACT-TD Registry underscores the profound, multidimensional impact of tardive dyskinesia on individuals, extending far beyond any single demographic. Despite its widespread impact, we are still confronted with meaningful diagnostic gaps, leaving many patients undiagnosed and untreated,” said Verena Ramirez Campos, MD-MBA, Vice President U.S. Medical Affairs and Global Innovative Strategy at Teva. “We are committed to grasping the complete human experience of TD, and working to help close those gaps and bring forth innovations that make a meaningful difference in the day-to-day lives of people living with TD.”

The IMPACT-TD Registry, the largest TD study to date, is a 3-year, prospective, non-interventional, Phase 4 study examining how TD progresses over time and the impact it has on patients’ lives.1-3 The study, which includes a broad representation of people affected by TD (age, sex, race/ethnicity, underlying conditions, movement severity and treatment status), evaluates 611 participants aged ≥18 years who, at enrollment, had either a score of ≥2 on at least one item of the Abnormal Involuntary Movement Scale (AIMS) and probable TD, or were receiving vesicular monoamine transporter 2 (VMAT2) inhibitor therapy for TD. The present analysis of the IMPACT-TD Registry evaluated 211 adults with TD who were not receiving VMAT2 inhibitor therapy at enrollment and had concomitant mood disorders, such as bipolar disorder (60%) or depression (54%), reflecting a diverse, real-world patient population. Multidimensional impact of TD was measured using the clinician-reported IMPACT-TD scale, while TD severity was assessed by AIMS.

The IMPACT-TD findings revealed:

A majority of participants, regardless of age, reported a moderate to severe global impact from TD. This burden was particularly high for those aged 18-29 (85%) and 50-59 (87%, n=57), demonstrating that TD significantly affects daily life across the adult lifespan.The psychological impact of TD was most pronounced in adults aged <60. Over three-quarters (77%) of those aged 18-29 experienced moderate to severe psychological effects despite lower AIMS scores (6.4) on average compared to older adults aged 60-69 (8.4, n=56) and >69 (9.9, n=28).Despite the high impact, formal TD diagnosis rates were lowest among adults <40 years old. The rate was 23% for participants aged 18-29 and 35% for participants aged 30-39 (n=20), well below the peak of 57% seen in adults aged 40-49 (n=37) and 47% average in the 50+ age subgroups.A significant delay in diagnosis was also identified, with patients waiting an average of more than 3.5 years to be formally diagnosed after their involuntary movements were first recognized. “Beyond the visible symptoms, tardive dyskinesia impacts every aspect of daily living, from personal independence to social interaction and emotional wellbeing,” said Richard Jackson, MD, an Assistant Clinical Adjunct Professor in the University of Michigan School of Medicine’s Department of Psychiatry and IMPACT-TD principal investigator. “What remains a critical unknown is how this debilitating condition uniquely impacts those already struggling with mood disorders, especially at different ages. The IMPACT-TD study is designed to bridge this crucial knowledge gap, giving us the insights we urgently need to offer targeted, meaningful support to every TD patient, no matter their background.”

Teva is committed to assisting in addressing these significant diagnostic gaps, which could improve the lives of those living with tardive dyskinesia.

About Tardive Dyskinesia (TD)
Tardive dyskinesia (TD) is a highly debilitating, chronic movement disorder that affects one in four people who take certain mental health treatments and is characterized by uncontrollable, abnormal, and repetitive movements of the face, torso, and/or other body parts, which may be disruptive and negatively impact individuals.4-6

About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.

Teva Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully continue to develop and commercialize products for the treatment of tardive dyskinesia and for the treatment of chorea associated with Huntington’s disease, and to improve the lives of those living with tardive dyskinesia; our ability to successfully compete in the marketplace, including our ability to develop and commercialize additional pharmaceutical products; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development; and other factors discussed in our Quarterly Report on Form 10-Q for the first quarter of 2026 and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the section captioned “Risk Factors.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

References:

Finkbeiner S, Konings M, Henegar M, et al. Multidimensional impact of tardive dyskinesia: interim analysis of clinician-reported measures in the IMPACT-TD registry. Poster presented at: Annual Psych Congress Elevate; May 30-June 2, 2024; Las Vegas, NV.Data on file. Parsippany, NJ: Teva Neuroscience, Inc.American Psychiatric Association. Practice Guideline for the Treatment of Patients With Schizophrenia. 3rd ed. American Psychiatric Association; 2021.Warikoo N, Schwartz T, Citrome L. Tardive dyskinesia. In: Schwartz TL, Megna J, Topel ME, eds. Antipsychotic Drugs. Hauppauge, NY: Nova Science Publishers. 2013:235-258.Waln O, Jankovic J. An Update on Tardive Dyskinesia: From Phenomenology to Treatment. Tremor Other Hyperkinet Mov. 2013;3:1-11.Tardive dyskinesia. National Alliance on Mental Illness website. https://www.nami.org/Learn-More/Treatment/Mental-Health-Medications/Tardive-Dyskinesia. Accessed May 4, 2023.

Canada's largest banks head into fiscal Q2 2026 earnings facing a more complex macro backdrop than they did just three months ago. Visible Alpha consensus expectations show Canada's major banks are still poised to deliver resilient fiscal Q2 2026 results for the April quarter. Consensus expectations point to healthy year-over-year growth in revenue and earnings across most banks, although profitability metrics such as ROE and NIM are expected to soften sequentially.

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Headquartered in Toronto, Toronto-Dominion Bank (TD - Free Report) is a Finance stock that has seen a price change of 18.76% so far this year. The retail and wholesale bank is currently shelling out a dividend of $0.78 per share, with a dividend yield of 2.78%. This compares to the Banks - Foreign industry's yield of 2.78% and the S&P 500's yield of 1.42%.

Looking at dividend growth, the company's current annualized dividend of $3.11 is up 4.2% from last year. Over the last 5 years, Toronto-Dominion Bank has increased its dividend 3 times on a year-over-year basis for an average annual increase of 5.24%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Toronto-Dominion's current payout ratio is 47%, meaning it paid out 47% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for TD for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.89 per share, which represents a year-over-year growth rate of 15.22%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, TD is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Toronto-Dominion Bank is lifting its dividend payout, joining other big Canadian banks in returning cash to investors following a strong underlying performance in the latest quarter.

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Highlights

TD said agentic AI reduced mortgage pre-adjudication times from 15 hours to three minutes.

U.S. proprietary credit card balances rose 18% year over year on strong customer acquisition.

Management said AI is beginning to reshape frontline productivity, fraud operations and credit processes.

TD Bank’s latest earnings call suggested the industry is moving into a more operational phase in its use of artificial intelligence, where AI is increasingly tied to loan approvals, fraud management and the economics of customer acquisition.

CEO Raymond Chun said on the Thursday (May 28) that “I believe AI will transform our operations, make our colleagues more efficient, our processes faster and our products and services better.”

The comments came as TD highlighted a growing list of AI deployments across the organization, including agentic AI tools that reduced mortgage pre-adjudication cycle times from roughly 15 hours to three minutes. The bank also said it has more than 40,000 employees using Copilot tools internally and more than 7,000 engineers using AI in software development workflows.

Growth in Card Balances Cards continued to emerge as a key growth engine for the bank on both sides of the border.

In the United States, TD said proprietary credit card balances rose 18% year over year, driven by customer acquisition. CFO Kelvin Tran said new bank card account acquisition increased 32% from a year ago, while the integration of Nordstrom card clients onto TD’s servicing platform marked “an important strategic milestone” for scaling the franchise.

Tran told analysts the Nordstrom conversion could help TD pursue additional strategic card partnerships while lowering long-term servicing costs.

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The broader consumer banking franchise also showed signs of resilience despite ongoing macroeconomic uncertainty. Canadian personal and commercial banking delivered record quarterly revenue, pre-tax pre-provision profit and earnings, supported by higher loan and deposit volumes. Average deposits rose 3% year over year, while average loan volumes increased 6%.

In U.S. banking, deposits excluding sweeps and targeted runoff businesses rose 1% year over year, while middle-market lending balances increased 13%. TD also pointed to continued momentum in home equity lending and business banking.

The earnings release showed the bank continuing to balance growth investments as adjusted revenue rose 6% to $16.6 billion. The bank said it remains on track to exceed its previously stated 6% to 8% earnings per share growth target for fiscal 2026 if macroeconomic conditions remain stable.

Management also continued to emphasize the long-term importance of structural cost reductions and automation. TD said it is targeting $2 billion to $2.5 billion in annualized structural cost savings over the medium term, with AI expected to contribute more than $500 million in annualized savings and a similar amount in revenue uplift.  Shares were down about 0.5% in early trading Thursday.

Analysts engaged management during the Q&A on whether AI could ultimately improve the bank’s profitability profile beyond historical levels.

Chun said the bank is already “tracking well ahead of pace” on its AI targets and sees opportunities across “credit, contact centers, fraud, and frontline productivity.” He added that TD is increasingly focused on AI deployments that “transform end-to-end experiences, drive lower unit costs, and are scalable across the enterprise.”

Looking ahead, management maintained its guidance for fiscal 2026 and said the bank expects continued momentum across core businesses, including cards and commercial lending, even as it continues to invest heavily in AML remediation and governance systems.

Dividend increases include a boost of 6.67% from Dividend Champion Donaldson and a raise of 4.17% from Dividend King Lowe's. Canadian banks BMO, RY, and TD announced modest dividend hikes but are overvalued, with compressed yields near 3%. CSWC declared a special dividend, but its payout ratio above 100% and low quality and safety scores signal caution.

The Polaris Forge 3 lease expands Applied Digital's contracted backlog to $31 billion, 67% of which is tied to investment-grade hyperscaler, which could unlock cheap project financing. The 1-month gap between the Delta Forge 1 and Polaris Forge 3 leases suggests that the same customer is likely to lease the remaining 300 MW site in the near-term. The short gap also points to a broader trend of hyperscalers securing compute capacity for 2027-2028 deployments, in time for the rollout of Nvidia's Rubin Ultra and Feynman GPU architectures.

Applied Digital (APLD +5.91%) has become a high-stakes AI infrastructure story after a massive stock rally and a fast-growing hyperscaler backlog. The bullish case is built around contracted demand, scarce data center capacity, and long-term AI compute growth. But with valuation risk, debt, and execution pressure rising, investors now face a much harder question.

Stock prices used were the market prices of May 28, 2026. The video was published on June 5, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Applied Digital (APLD +5.91%) roared higher in May's trading, bounding 38% higher across the stretch. Meanwhile, the S&P 500 rose 5.2% in the month, and the Nasdaq Composite jumped 8.4%.

Investors were strongly bullish on the artificial intelligence (AI) trade last month, and many big names in the category saw massive valuation gains. Despite a pullback in June's trading, Applied Digital stock is up roughly 66% in 2026.

Image source: Getty Images.

May was a big month for Applied Digital Along with bullish momentum for AI stocks, Applied Digital's valuation also moved higher in conjunction with some business-specific news last month. For starters, the company published a press release on May 4 announcing that it had secured new funding through a $300 million senior secured bridge facility. Applied Digital said that it would use the money to fund the construction of its third AI data center.

The next day, the company announced that it had completed the separation of its cloud business. As a result of the deal, the cloud unit was taken over by EKSO -- which then changed its name to ChronoScale Corporation. The renamed business began trading on the Nasdaq exchange the same day.

On May 20, Applied Digital announced that it had entered into a long-term lease agreement to facilitate the opening of its fourth AI data center. The company said that the facility will deliver 300 megawatts (MW) of critical IT load and be supported by roughly 430 of grid-connected utility power. Along with the news, multiple analysts raised their respective price targets for Applied Digital stock.

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After massive rallies last month, AI stocks appear to be taking a bit of a breather early in June's trading. As of this writing, Applied Digital stock is down roughly 13.5% in the month. Meanwhile, the S&P 500 is down 1.7%, and the Nasdaq Composite is off 3.5%.

Following a stronger-than-expected jobs report from the Bureau of Labor Statistics last Friday, investors have become increasingly concerned that the Federal Reserve could move to raise interest rates this year. With inflationary pressures on the rise recently, the Fed could vote to implement a rate hike in hopes of reversing the trend.

Relatively strong jobs growth makes it less likely that the central banking authority will vote for a rate cut to support economic activity and more likely that it will prioritize fighting inflation. If the Fed pivots to raising rates, it could create strong valuation pressures for Applied Digital and other highly growth-dependent AI stocks.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

DALLAS, June 08, 2026 (GLOBE NEWSWIRE) -- Applied Digital (NASDAQ: APLD), a designer, builder, and operator of high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads, today announced it has entered into a new long-term lease agreement at Delta Forge 2, a purpose-built AI Factory campus located in a new southern state. The lease is with a U.S. based high investment-grade hyperscaler, marking the company’s fifth AI Factory campus overall.

The agreement covers 210 MW of critical IT load under a 15-year take-or-pay structure with renewal options, representing approximately $5.2 billion in base-term contracted revenue, or approximately $12.7 billion if all renewal options are exercised over a 30-year total term.

“Two years ago, we made a deliberate decision to build a company that scales, not just builds data centers,” said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital. “We call it our franchise model — a core team of design, construction, and operations professionals replicated across every campus, in every market. Continued demand from leading hyperscalers across five campuses is strong validation of our model.”

With this agreement, which represents Applied Digital’s third long-term lease with the same U.S. based investment-grade hyperscaler, the company’s contracted portfolio spans five AI Factory campuses, representing 1.4 GW of critical IT load, approximately 2.15 GW of grid-connected utility power, and approximately $36 billion in total contracted base-term lease revenue, or $86 billion if all renewal options are exercised. Approximately 70% of contracted revenue is now backed by U.S. based investment-grade hyperscalers.

Applied Digital’s site selection strategy prioritizes communities where large-scale, long-duration infrastructure investment creates meaningful and lasting economic impact, including local employment, an expanded tax base, and sustained economic activity over the life of each project.

“We are deliberate about where we build,” Cummins continued. “We look for communities where this kind of investment genuinely matters — where the jobs, the tax base, and the long-term economic activity have real impact. We have built a track record of being good partners to those communities, and we take that responsibility seriously. That track record is part of how we earn the right to keep building.”

Delta Forge 2 is expected to bring meaningful local employment, construction activity to its host community. The campus integrates Applied Digital’s proprietary waterless cooling technology and high-power density infrastructure, purpose-built for the compute densities required by large-scale AI training and inference workloads. Initial operations are anticipated to commence in Q1 2028.

To see this community model in practice, Applied Digital’s documentary series Behind the Build offers a ground-level look at how Applied Digital constructs its AI Factory campuses alongside the communities they call home.

Key Transaction Highlights:

210 MW of critical IT load located in a new southern state15-year take-or-pay lease with renewal options; approximately $5.2 billion in base-term contracted revenue, approximately $12.7 billion including all renewal options over a 30-year total termLease with a U.S. based high investment-grade hyperscaler; Applied Digital’s fifth AI Factory campusFranchise model now active across northern and southern geographiesBrings total contracted lease revenue to approximately $36 billion across five campuses ($86 billion if all renewal options are exercised)Total contracted critical IT load now reaches 1.4 GW; approximately 2.15 GW gross grid-connected utility powerApproximately 70% of contracted revenue backed by U.S. based investment-grade hyperscalersPurpose-built for large-scale AI training and inference; incorporates Applied Digital’s proprietary waterless cooling and high-density power infrastructureInitial operations anticipated to commence Q1 2028 About Applied Digital

Applied Digital (Nasdaq: APLD) named Best Data Center in the Americas 2025 by Datacloud — designs, builds, and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. Headquartered in Dallas, TX, and founded in 2021, the company combines hyperscale expertise, proprietary waterless cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its AI Factory franchise model.

Learn more at applieddigital.com or follow @APLDdigital on X and LinkedIn.

Forward-Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives, and future financing plans. These statements use words, and variations of words, such as “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “proven,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding lease agreements and any current or prospective data center campus development; (ii) statements about the high-performance computing (HPC) industry; (iii) statements of company plans and objectives, including the company’s evolving business model, or estimates or predictions of actions by suppliers; (iv) statements of future economic performance; (v) statements of assumptions underlying other statements and statements about the company or its business; and (vi) the company’s plans to obtain future project financing. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the company’s expectations and projections. These risks, uncertainties, and other factors include, among others: whether or not our customers exercise the renewal options under their leases with us (if not, we will not recognize further revenue from such customer under its respective lease); our ability to complete construction of our data center campuses as planned; the lead time of customer acquisition and leasing decisions and related internal approval processes; changes to artificial intelligence and HPC infrastructure needs and their impact on future plans; costs related to the HPC operations and strategy; our ability to timely deliver any services required in connection with completion of installation under lease agreements; our ability to raise additional capital to fund the ongoing datacenter construction and operations; our ability to obtain financing of datacenter leases and more broadly for our development and general corporate activities; our dependence on principal customers, including our ability to execute and perform our obligations under our leases with key customers; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; maintenance of third party relationships; and conditions in the debt and equity capital markets. A further list and description of these risks, uncertainties, and other factors can be found in the company’s most recently filed Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, including in the sections captioned “Forward-Looking Statements” and “Risk Factors,” and in the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, on the company’s website (www.applieddigital.com) under “Investors,” or on request from the company. Information in this press release is as of the dates and time periods indicated herein, and the company does not undertake to update any of the information contained in these materials, except as required by law.

This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.

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Applied Digital APLD rose 10.34% in premarket after the company announced a 15-year, take-or-pay lease at its Delta Forge 2 campus covering 210 MW of critical IT load, with a U.S. investment-grade hyperscaler. The deal is expected to generate approximately $5.2 billion in base-term revenue, rising to roughly $12.7 billion if all renewal options are exercised over a 30-year total term. It marks the third long-term lease Applied Digital has signed with the same hyperscaler.

The agreement brings Applied Digital's contracted portfolio to five AI Factory campuses, spanning 1.4 GW of critical IT load and approximately 2.15 GW of grid-connected utility power. Total contracted base-term lease revenue now stands at $36 billion, or approximately $86 billion if all renewal options are exercised. Around 70% of contracted revenue is backed by U.S. investment-grade hyperscalers.

Delta Forge 2, located in a new southern state, uses Applied Digital's proprietary waterless cooling and high-density power infrastructure purpose-built for large-scale AI training and inference workloads. Initial operations are expected to begin in Q1 2028.

The DealThe Bigger PictureThe Delta Forge 2 deal brings Applied Digital’s total contracted portfolio to approximately $36 billion across five AI Factory campuses — or $86 billion if all renewal options are exercised. The portfolio now spans 1.4 GW of critical IT load and approximately 2.15 GW of gross grid-connected utility power, with roughly 70% of contracted revenue backed by U.S.-based investment-grade hyperscalers.

“Two years ago, we made a deliberate decision to build a company that scales, not just builds data centers,” said CEO Wes Cummins. “Continued demand from leading hyperscalers across five campuses is strong validation of our model.”

The RunThe announcement comes after a remarkable stretch of deal activity. Applied Digital signed a $7.5 billion lease at Polaris Forge 3 late last month, and the stock has surged over 180% in the past 12 months. Shares closed up 3.34% Monday before extending gains nearly 9% in after-hours trading on the Delta Forge 2 news.

$1.59 Billion Notes OfferingApplied Digital Shares AdvanceAPLD Price Action: At the time of publication, Applied Digital shares are trading 10.98% higher at $45.44, according to data from Benzinga Pro.

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Applied Digital Corporation secured a 210 MW, $5.2B, 15-year lease at Delta Forge 2, expanding its contracted revenue backlog to $36B across five campuses. APLD's franchise model enables scalable, repeatable growth, with 1.4 GW of critical IT load now pre-sold under long-term, take-or-pay leases to investment-grade hyperscalers. A $1.59B senior secured notes offering funds construction and repays bridge debt, aligning capital with already contracted demand and de-risking capex.

Applied Digital (APLD +6.65%) builds power-heavy data center campuses that hyperscalers need to train and run advanced artificial intelligence (AI) models.

Image source: Getty Images.

Shares of Applied Digital are up over 67% so far in 2026. Doubling from its current share price of $40.94 (as of June 8) by the end of 2026 appears ambitious. However, Applied Digital's contracted revenue base shows investors a path that makes such a scenario possible.

Fundamental prospects are improving fast Applied Digital now operates one of the few 100-megawatt AI data centers that use advanced liquid-cooling technology to manage the heat generated by power-intensive AI chips. This has positioned the company as a credible player with demonstrated ability to deliver large-scale, high-density AI infrastructure.

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While Applied Digital's first 100-megawatt building at Polaris Forge 1 is already operational, the second 150-megawatt building is expected to come online during 2026. CoreWeave is the key customer at Polaris Forge 1, with 400 megawatts of contracted AI data center capacity.

At Polaris Forge 2 campus, Applied Digital expects the initial capacity under its 200-megawatt hyperscaler lease to come online in calendar 2026, with full capacity anticipated by early 2027. Hence, Applied Digital is now evolving from a speculative data center developer to a revenue-earning artificial intelligence (AI) infrastructure platform.

Applied Digital's contracted capacity is also impressive. It contracted nearly 1.2 gigawatts of AI data center capacity across its four AI Factory campuses by May 2026. Those campuses are supported by about 1.67 gigawatts of total grid power.

In June 2026, Applied Digital strengthened its backlog by signing a new 15-year lease worth $5.2 billion with a U.S.-based hyperscaler covering 210 megawatts of AI data-center capacity. Applied Digital now has $36 billion in contracted base-term lease revenue, which could increase to $86 billion if all renewal options are exercised. Since U.S.-based investment-grade hyperscalers account for 70% of contracted capacity, the backlog is also of high quality.

However, Applied Digital reported a net loss of $100.9 million and exited the third quarter of fiscal 2026 (ending Feb. 28) with $2.7 billion of debt.

The share price may double by the end of 2026 For Applied Digital's share price to double from $40.94, the company's market capitalization would need to rise from about $11.7 billion to roughly $23.4 billion.

Analysts expect Applied Digital's revenues to be close to $500 million in calendar year 2026. At the current market capitalization of about $11.7 billion, the stock already trades at roughly 23.4 times expected calendar 2026 sales. If the market cap doubles to about $23.4 billion, Applied Digital would trade at nearly 46.8 times expected 2026 sales. That looks expensive if investors focus only on near-term revenue.

However, Wall Street does not appear to be valuing Applied Digital based on near-term revenues. The company's $36 billion of contracted base-term lease revenue, when spread over the initial 15-year lease terms, translates into an annual contracted revenue opportunity of about $2.4 billion. A $23.4 billion market value would equal roughly 9.75 times that annualized contracted lease revenue base.

While still not cheap, it becomes more reasonable if investors start viewing Applied Digital as a prominent AI infrastructure player with long-term hyperscaler-backed revenue.

Wall Street analysts forecast that TKO Group Holdings (TKO - Free Report) will report quarterly earnings of $0.89 per share in its upcoming release, pointing to a year-over-year increase of 29%. It is anticipated that revenues will amount to $1.59 billion, exhibiting an increase of 25.3% compared to the year-ago quarter.

The current level reflects a downward revision of 1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

In light of this perspective, let's dive into the average estimates of certain TKO Group metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts expect 'Net Revenue- UFC' to come in at $404.14 million. The estimate suggests a change of +12.4% year over year.

It is projected by analysts that the 'Net Revenue- WWE' will reach $464.23 million. The estimate indicates a year-over-year change of +18.6%.

According to the collective judgment of analysts, 'Net Revenue- WWE- Media rights, production and content' should come in at $264.83 million. The estimate points to a change of +5.3% from the year-ago quarter.

The average prediction of analysts places 'Net Revenue- WWE- Live events and hospitality' at $123.88 million. The estimate suggests a change of +62.4% year over year.

The combined assessment of analysts suggests that 'Net Revenue- WWE- Consumer products licensing and other' will likely reach $39.61 million. The estimate suggests a change of +4.2% year over year.

Analysts' assessment points toward 'Net Revenue- UFC- Live events and hospitality' reaching $47.44 million. The estimate points to a change of -19% from the year-ago quarter.

Analysts predict that the 'Net Revenue- UFC- Media rights, production and content' will reach $268.46 million. The estimate indicates a year-over-year change of +19.8%.

The consensus among analysts is that 'Net Revenue- UFC- Consumer products licensing and other' will reach $12.37 million. The estimate indicates a change of -2.6% from the prior-year quarter.

Based on the collective assessment of analysts, 'UFC - Numbered events' should arrive at 3 . The estimate is in contrast to the year-ago figure of 3 .

The consensus estimate for 'UFC - Total events' stands at 9 . Compared to the present estimate, the company reported 11 in the same quarter last year.

The collective assessment of analysts points to an estimated 'UFC - Fight Nights' of 6 . The estimate is in contrast to the year-ago figure of 8 .

Analysts forecast 'UFC - Location of events - United States' to reach 8 . The estimate is in contrast to the year-ago figure of 7 .

View all Key Company Metrics for TKO Group here>>>

Over the past month, TKO Group shares have recorded returns of -8.7% versus the Zacks S&P 500 composite's +10.5% change. Based on its Zacks Rank #3 (Hold), TKO will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .