Xponential Fitness (NYSE:XPOF) Posts Earnings Results, Misses Expectations By $0.11 EPS

Xponential Fitness (NYSE:XPOF) announced its quarterly earnings data on Thursday. The company reported $0.02 earnings per share for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.11), Zacks reports. Xponential Fitness had a negative return on equity of 3.40% and a negative net margin of 13.64%.The business had revenue of $65.97 million during the quarter, compared to the consensus estimate of $64.42 million. During the same quarter in the previous year, the firm posted $0.26 earnings per share. The company’s revenue was down 13.4% compared to the same quarter last year.

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

• Negative Sentiment: Second-quarter same-store sales fell 6.8% overall and 5% at Club Pilates, while consolidated revenue declined 13% and adjusted EBITDA fell 22% year over year. Management cited weaker organic leads, selective consumer spending, higher promotional activity, and merchandise execution issues.
• Negative Sentiment: The company lowered its 2026 outlook, now expecting approximately 150 net new studios, $250 million–$260 million in revenue, and $91 million–$97 million in adjusted EBITDA. The forecast assumes same-store sales and merchandise trends remain pressured through the second half.
• Positive Sentiment: Xponential continued to expand, ending the quarter with 3,165 global studios, including more than 500 internationally, and signed a Club Pilates agreement with Spartan Fitness Holdings for 117 studios over six years. Management also reported more than 690 obligated North American licenses and 730 international master-franchise obligations.
• Neutral Sentiment: Management is investing in website redesigns, AI-driven organic search, paid media, lead-conversion tools, studio remodels, and field support to improve franchisee performance. These initiatives are still early, and executives cautioned that results will take time to appear.
• Negative Sentiment: Cash and restricted cash declined to $25 million, while long-term debt rose to $522.4 million; the company also expects approximately $11.4 million of additional franchisee and FTC settlement payments during the remainder of 2026. Management said recurring SG&A is improving and expects cash flow to turn positive in 2027, but near-term liquidity remains constrained by legal payments and elevated costs.

Xponential Fitness Stock Down 21.5%

Shares of NYSE XPOF traded down $1.36 during trading hours on Friday, hitting $5.00. The company’s stock had a trading volume of 9,441,432 shares, compared to its average volume of 674,403. Xponential Fitness has a 12 month low of $3.83 and a 12 month high of $9.39. The business has a 50-day simple moving average of $6.50 and a 200-day simple moving average of $6.66.

Xponential Fitness News Summary

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

• Positive Sentiment: Management forecast 2026 adjusted EBITDA of $91 million to $97 million, suggesting continued profitability and cash-generation potential. The company is also reviewing strategic alternatives, which could potentially unlock value through a sale, investment or other transaction. Xponential forecasts 2026 revenue and adjusted EBITDA while reviewing strategic alternatives
• Neutral Sentiment: Second-quarter revenue of approximately $66.0 million exceeded analysts’ $64.4 million estimate, but the sales beat was overshadowed by weaker profitability and declining operating trends. Xponential Fitness Announces Second Quarter 2026 Financial Results
• Negative Sentiment: Adjusted 2026 revenue guidance of $250 million to $260 million is below the roughly $263.4 million consensus estimate, signaling slower expected growth. The outlook also compounds concerns about the company’s near-term execution. Xponential forecasts 2026 revenue and adjusted EBITDA while reviewing strategic alternatives
• Negative Sentiment: XPOF reported second-quarter earnings of $0.02 per share, below estimates ranging from $0.09 to $0.13 and down from $0.26 a year earlier. Revenue fell 13.4% year over year, while the company posted a negative net margin and negative return on equity. Xponential Fitness Lags Q2 Earnings Estimates
• Negative Sentiment: North American same-store sales declined 6.8%, compared with 2.4% growth in the prior-year quarter, although system-wide sales were roughly flat. The deterioration in established-location performance raises concerns about consumer demand and franchisee health. Xponential Fitness Announces Second Quarter 2026 Financial Results

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on XPOF. Robert W. Baird set a $5.50 price target on Xponential Fitness in a research report on Friday. Lake Street Capital downgraded Xponential Fitness from a “buy” rating to a “hold” rating and set a $6.00 price objective for the company. in a research report on Friday, May 8th. Roth Capital set a $7.00 price objective on Xponential Fitness in a research note on Friday, May 8th. Zacks Research upgraded shares of Xponential Fitness from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 7th. Finally, Weiss Ratings raised shares of Xponential Fitness from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, July 28th. One investment analyst has rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $8.31.

Institutional Investors Weigh In On Xponential Fitness

Several institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in shares of Xponential Fitness by 0.3% during the third quarter. Vanguard Group Inc. now owns 1,554,023 shares of the company’s stock valued at $12,106,000 after buying an additional 4,495 shares during the period. Ameriprise Financial Inc. lifted its stake in Xponential Fitness by 8.1% in the third quarter. Ameriprise Financial Inc. now owns 1,463,682 shares of the company’s stock worth $11,402,000 after acquiring an additional 109,432 shares during the period. Nomura Holdings Inc. boosted its holdings in Xponential Fitness by 8.8% in the third quarter. Nomura Holdings Inc. now owns 1,412,218 shares of the company’s stock valued at $11,001,000 after acquiring an additional 114,389 shares in the last quarter. Marshall Wace LLP increased its position in Xponential Fitness by 13.7% during the 3rd quarter. Marshall Wace LLP now owns 1,259,011 shares of the company’s stock valued at $9,808,000 after purchasing an additional 151,506 shares during the period. Finally, Hudson Bay Capital Management LP purchased a new position in Xponential Fitness during the 4th quarter valued at $6,172,000. Hedge funds and other institutional investors own 58.55% of the company’s stock.

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.