Xponential Fitness (NYSE:XPOF) Surprises With Q1 Sales But Stock Drops

Radek Strnad

Thu, May 8, 2025, 2:55 PM 5 min read

Boutique fittingness workplace franchisor Xponential Fitness (NYSE:XPOF) reported Q1 CY2025 results exceeding the market’s gross expectations , but income fell by 3.3% twelvemonth connected twelvemonth to $76.88 million. The institution expects the afloat year’s gross to beryllium astir $320 million, adjacent to analysts’ estimates. Its non-GAAP nonaccomplishment of $0.20 per stock was importantly beneath analysts’ statement estimates.

Is present the clip to bargain Xponential Fitness? Find retired successful our afloat probe report.

• Revenue: $76.88 cardinal vs expert estimates of $76.09 cardinal (3.3% year-on-year decline, 1% beat)

• Adjusted EPS: -$0.20 vs expert estimates of $0.15 (significant miss)

• Adjusted EBITDA: $27.33 cardinal vs expert estimates of $28.86 cardinal (35.5% margin, 5.3% miss)

• The institution reconfirmed its gross guidance for the afloat year of $320 cardinal astatine the midpoint

• EBITDA guidance for the afloat year is $122.5 cardinal astatine the midpoint, successful enactment with expert expectations

• Operating Margin: 12.6%, up from 9.3% successful the aforesaid 4th past year

• Free Cash Flow Margin: 7%, up from 2.3% successful the aforesaid 4th past year

• Market Capitalization: $293.9 million

Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE:XPOF) is simply a boutique fittingness marque offering divers and specialized workout experiences.

Examining a company’s semipermanent show tin supply clues astir its quality. Any concern tin enactment up a bully 4th oregon two, but the champion consistently turn implicit the agelong haul. Thankfully, Xponential Fitness’s 32.2% annualized gross maturation implicit the past 4 years was incredible. Its maturation bushed the mean user discretionary institution and shows its offerings resonate with customers.

Long-term maturation is the astir important, but wrong user discretionary, merchandise cycles are abbreviated and gross tin beryllium hit-driven owed to rapidly changing trends and user preferences. Xponential Fitness’s caller show shows its request has slowed importantly arsenic its annualized gross maturation of 9.3% implicit the past 2 years was good beneath its four-year trend. Note that COVID wounded Xponential Fitness’s concern successful 2020 and portion of 2021, and it bounced backmost successful a large mode thereafter.

Xponential Fitness besides breaks retired the gross for its 3 astir important segments: Franchise, Equipment, and Merchandise, which are 57.1%, 14.4%, and 8.1% of revenue. Over the past 2 years, Xponential Fitness’s Franchise (royalty fees) and Equipment (workout instrumentality sold to franchisees) revenues averaged year-on-year maturation of 20.3% and 4.4% portion its Merchandise gross (apparel sold to franchisees) averaged 2.6% declines.