Xponential Fitness Reports Strong Sales Growth Amid Revenue Challenges

Xponential Fitness Reports Strong Sales Growth Amid Revenue Challenges

Xponential Fitness, Inc. Class A ( (XPOF) ) has released its Q4 earnings. Here is a breakdown of the information Xponential Fitness, Inc. Class A presented to its investors.

Xponential Fitness, Inc. is a leading global franchisor of boutique health and wellness brands, offering a diverse range of fitness experiences including Pilates, cycling, barre, boxing, and yoga through a network of franchisees across the U.S. and internationally.

In its latest earnings report, Xponential Fitness announced a 21% year-over-year increase in system-wide sales for the fourth quarter of 2024, reaching $464.7 million. However, the company reported a decrease in quarterly revenue by 7% to $83.2 million and a net loss of $62.5 million, reflecting challenges in merchandise and equipment sales.

Key financial metrics highlighted a 9% growth in average unit volume and a 15% increase in total membership, indicating strong franchise performance. Despite a net loss, the company achieved a 13% increase in Adjusted EBITDA to $30.8 million. For the full year 2024, revenue grew slightly by 1% to $320.3 million, with North America system-wide sales rising by 23% to $1.71 billion.

Looking ahead, Xponential Fitness anticipates continued growth in North America system-wide sales, projecting an increase of 13% for 2025. The company plans to open 200 to 220 new studios, although this represents a decrease from the previous year. The management remains confident in their strategic direction and team capabilities to drive sustainable growth.

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