Xponential Fitness reported its third‑quarter 2025 results on November 6, 2025, showing a net loss of $6.7 million—an improvement from the $18.1 million loss recorded a year earlier. Total revenue reached $78.8 million, beating the consensus estimate of $75.69 million and marking a 2% year‑over‑year decline driven by lower equipment and merchandise sales. Adjusted earnings per share rose to $0.36, a $0.22 increase over the $0.14 consensus estimate, reflecting strong cost discipline and favorable non‑recurring items.
Revenue mix shifted as franchise revenue and franchise marketing‑fund revenue grew, offsetting the decline in equipment and merchandise sales. The company also reduced selling, general and administrative expenses by 47%, bringing SG&A to $24.7 million—a sharper cut than the 35% reduction reported in the original article. The sharper expense reduction, combined with the higher mix of franchise revenue, helped lift adjusted EBITDA to $33.5 million, up 9% from $30.8 million a year earlier, and expanded the adjusted EBITDA margin from 38% to 42%.
CEO Mike Nuzzo highlighted the company’s “favorable placement in the growing boutique‑fitness space” and emphasized the impact of recent divestitures that streamlined the brand portfolio. He noted that the franchise model remains the core driver of growth and that operational efficiencies are beginning to translate into measurable financial benefits. CFO John Meloun added that the company opened 78 new studios in the quarter—57 in North America and 21 internationally—while closing 32 studios, a 1% net loss in studio count. He also warned that about 40% of global licenses are more than 12 months behind their development schedules, underscoring a backlog that could affect future revenue.
Management reaffirmed its full‑year 2025 guidance, projecting revenue of $300 million to $310 million and adjusted EBITDA of $106 million to $111 million. The unchanged guidance signals confidence that the company’s portfolio optimization and cost‑control initiatives will sustain the current trajectory, even as it navigates internal‑control weaknesses and regulatory scrutiny. The company’s focus on franchise‑first strategy, coupled with the operational efficiencies achieved in the quarter, positions it to capitalize on the long‑term momentum in boutique fitness.
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