Xponential Fitness (NYSE:XPOF) Announces Earnings Results, Misses Estimates By $0.88 EPS

Xponential Fitness (NYSE:XPOF) released its earnings results on Thursday. The company reported ($0.91) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.88), Zacks reports. The company had revenue of $82.96 million for the quarter, compared to analyst estimates of $73.42 million. Xponential Fitness had a negative net margin of 10.90% and a negative return on equity of 2.28%. Xponential Fitness’s revenue for the quarter was down .3% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.19) earnings per share.

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

• Management reported continued scale with strong studio expansion led by Club Pilates, driving roughly $1.7 billion in system-wide sales for 2025 and making Club Pilates the dominant brand in the portfolio.
• 2026 guidance calls for fewer net new studios (150–170, ~20% lower at the midpoint) and a total revenue decline to $260M–$270M (midpoint down ~16% year-over-year), reflecting recent brand divestitures and the shift to outsourced merchandise.
• Management is prioritizing member acquisition and retention with increased performance marketing, pricing tests, digital and studio-management platform upgrades, and a newly deployed 35-person field operations team to improve lead-to-membership conversion.
• Regulatory uncertainty may be reduced after FTC staff recommended a proposed consent order resolving alleged claims, under which the company agreed to pay $17 million (subject to final approvals).
• Capital structure actions include a new $525 million term loan and full repurchase of convertible preferred stock (eliminating ~8.1M potential shares), which management says reduces dilution and improves financial flexibility.

Xponential Fitness Stock Down 47.1%

Xponential Fitness stock traded down $3.80 during mid-day trading on Friday, hitting $4.26. 5,756,639 shares of the company were exchanged, compared to its average volume of 386,793. The company has a market capitalization of $208.10 million, a PE ratio of -2.91 and a beta of 1.41. The business has a fifty day moving average of $8.16 and a 200 day moving average of $7.73. Xponential Fitness has a 1-year low of $4.06 and a 1-year high of $13.91.

More Xponential Fitness News

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

• Positive Sentiment: Q4 revenue topped expectations — Xponential reported revenue of $82.96M vs. consensus ~$73.4M, showing top‑line strength despite the profit miss. Xponential Fitness (XPOF) Reports Q4 Loss, Beats Revenue Estimates
• Neutral Sentiment: Full Q4 earnings call transcript and analyst metric breakdowns are available for investors wanting details on 2025 results and KPI trends. These provide context for management’s explanations of margin dynamics and brand performance. Xponential Fitness, Inc. (XPOF) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Big EPS miss and softer FY‑26 guidance — Xponential posted a ($0.91) EPS vs. consensus (~($0.03)) and issued FY‑2026 revenue guidance of $260M–$270M (consensus ~ $300M), signaling a material downgrade to growth expectations. Those misses and the guidance cut are the primary immediate bearish drivers. Xponential Fitness, Inc. Announces Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: FTC resolution cost — the company will pay about $17M to resolve an FTC investigation, which is a near‑term cash/expense headwind and increases uncertainty around 2026 profitability. Xponential Fitness to Pay $17M to Resolve FTC Investigation
• Negative Sentiment: Investor litigation/SEC‑style probe risk — Johnson Fistel announced an investigation into potential claims on behalf of XPOF investors, adding legal risk and potential headline volatility. Xponential Fitness Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information About Potentially Recovering Their Losses
• Negative Sentiment: Analyst downgrades and lower price targets — Roth MKM cut XPOF from Buy to Neutral (PT $7.00) and Robert W. Baird trimmed its PT to $6.50/Neutral; these moves reduce buy‑side support and may pressure sentiment even though targets still imply upside to current levels. Finviz Benzinga

Institutional Investors Weigh In On Xponential Fitness

A number of hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd lifted its holdings in Xponential Fitness by 1,621.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,632 shares of the company’s stock valued at $30,000 after purchasing an additional 3,421 shares during the last quarter. Aquatic Capital Management LLC bought a new stake in Xponential Fitness during the third quarter worth about $44,000. Larson Financial Group LLC acquired a new stake in shares of Xponential Fitness during the third quarter worth approximately $54,000. Wexford Capital LP bought a new position in shares of Xponential Fitness in the third quarter valued at approximately $59,000. Finally, Cerity Partners LLC acquired a new position in shares of Xponential Fitness in the 2nd quarter worth approximately $82,000. Institutional investors and hedge funds own 58.55% of the company’s stock.

Analysts Set New Price Targets

Several brokerages recently issued reports on XPOF. Guggenheim lowered their price target on Xponential Fitness from $13.00 to $12.00 and set a “buy” rating on the stock in a research note on Monday, November 10th. Wall Street Zen upgraded Xponential Fitness from a “hold” rating to a “buy” rating in a research report on Tuesday, November 11th. Roth Mkm cut Xponential Fitness from a “buy” rating to a “neutral” rating and set a $7.00 target price for the company. in a research report on Friday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Xponential Fitness in a research note on Wednesday, January 21st. Finally, Stifel Nicolaus dropped their price objective on shares of Xponential Fitness from $10.00 to $8.00 and set a “hold” rating for the company in a research note on Friday, November 21st. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Xponential Fitness currently has a consensus rating of “Hold” and a consensus price target of $9.94.

Xponential Fitness Company Profile

Xponential Fitness is a leading franchisor and operator of boutique fitness studios headquartered in Irvine, California. The company specializes in developing, marketing, and supporting a portfolio of fitness brands that deliver low-impact cardio, strength training, and mindful movement workouts. Through its asset-light franchise model, Xponential provides entrepreneurs with proprietary studio designs, branded equipment, digital support, and comprehensive training programs to ensure consistent member experiences.

Its portfolio comprises core brands such as Club Pilates, Pure Barre, CycleBar, StretchLab, YogaSix, Row House, Rumble, AKT, and STRIDE.