Xponential Fitness (XPOF) AI Stock Analysis

• Market Cap: $362.26M
• Dividend Yield: N/A
• Average Volume (3M): 734.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: -3.55%
• EPS Growth: -111.90%
• Country: US
• Employees: 288
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.34
• Shares Outstanding: 35,169,000
• 10 Day Avg. Volume: 610,044
• 30 Day Avg. Volume: 734,114
• PEG Ratio: 0.02
• Price to Book (P/B): -4.31
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 61.80
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 2.82
• Enterprise Value/Ebitda: 8.62
• 1Y Price Target: $9.57
• Price Target Upside: 27.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $8.00 ▲(6.24% Upside)

Xponential Fitness's overall stock score reflects significant financial challenges, including negative profitability and high leverage. While technical indicators show some positive momentum, the valuation remains unattractive due to ongoing losses. Recent corporate events and strategic initiatives provide some optimism, but near-term operational and financial challenges persist.

Positive Factors

New Credit Agreement

The new credit agreement reduces interest payments and repurchases convertible preferred equity, enhancing financial stability and shareholder value.

Strategic Divestitures

Divesting non-core brands allows focus on core fitness modalities, improving operational efficiency and profitability.

Leadership Change

New leadership with franchising and governance experience is expected to strengthen compliance and support growth.

Negative Factors

High Leverage

High leverage and negative equity indicate financial instability, potentially limiting growth and increasing risk.

Inconsistent Revenue Growth

Inconsistent revenue growth reflects operational challenges, impacting long-term business sustainability and investor confidence.

Same-Store Sales Decline

Declining same-store sales highlight challenges in maintaining customer engagement and competitive positioning.

Xponential Fitness Business Overview & Revenue Model

Company Description

Xponential Fitness (XPOF) is a leading fitness company that specializes in providing a diverse range of boutique fitness brands. The company operates multiple fitness franchises, including brands such as Club Pilates, CycleBar, StretchLab, and Row House, among others. Xponential aims to create a community-centric fitness experience by offering tailored workout programs that cater to various fitness preferences and demographics. With a strong emphasis on franchising, Xponential Fitness has established a significant presence in the health and wellness sector, combining innovative fitness solutions with a robust operational model.

How the Company Makes Money

Xponential Fitness generates revenue primarily through franchise fees and royalties from its network of franchisees. The company earns initial franchise fees when new franchises are established, as well as ongoing royalty fees based on the franchisee's revenue. Additionally, Xponential benefits from retail sales of fitness-related products and memberships at its locations. The company has also entered partnerships with various brands and technology providers to enhance its offerings, thereby increasing revenue opportunities. The scale of its franchise model allows Xponential to capitalize on the growing demand for boutique fitness experiences, further driving its earnings potential.

Xponential Fitness Financial Statement Overview

Summary

Xponential Fitness faces challenges with profitability and financial stability, as reflected in its income statement and balance sheet. Despite strong gross margins, the company struggles with negative net income and high leverage. Cash flow improvements offer some optimism, but overall, the company needs to address its financial structure and profitability to ensure long-term sustainability.

Income Statement

Xponential Fitness shows a mixed performance in its income statement. The company has a strong gross profit margin, consistently above 80% in recent periods, indicating efficient cost management. However, the net profit margin is negative, reflecting ongoing losses. Revenue growth has been inconsistent, with a significant decline in the TTM period. The negative EBIT and EBITDA margins further highlight operational challenges.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative debt-to-equity ratio due to negative stockholders' equity. This indicates potential financial instability. Although the return on equity is positive, it is driven by negative equity, which is not sustainable. The equity ratio is also negative, suggesting high reliance on debt financing.

Cash Flow

Cash flow analysis shows some positive trends, with a notable increase in free cash flow growth in the TTM period. The operating cash flow to net income ratio is improving, indicating better cash generation relative to net income. However, the free cash flow to net income ratio suggests that cash flow is not yet sufficient to cover losses fully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	315.73M	320.35M	317.94M	243.20M	155.08M	106.59M
Gross Profit	226.50M	260.87M	219.32M	161.01M	100.77M	65.37M
EBITDA	74.09M	-35.08M	70.79M	45.03M	12.79M	6.88M
Net Income	-48.97M	-64.95M	-4.00M	1.22M	-18.83M	-13.64M
Balance Sheet
Total Assets	355.30M	403.40M	528.70M	482.69M	415.54M	322.84M
Cash, Cash Equivalents and Short-Term Investments	41.46M	16.68M	27.76M	31.99M	21.32M	11.30M
Total Debt	375.06M	379.62M	406.62M	170.44M	131.93M	182.77M
Total Liabilities	559.00M	714.21M	616.83M	690.75M	626.01M	318.09M
Stockholders Equity	-113.56M	-216.57M	-10.59M	-154.78M	-654.43M	4.75M
Cash Flow
Free Cash Flow	14.63M	6.96M	23.50M	35.93M	9.59M	-3.62M
Operating Cash Flow	18.40M	11.68M	32.71M	52.06M	14.45M	-728.00K
Investing Cash Flow	-2.51M	-14.15M	-11.69M	-14.61M	-50.63M	-4.60M
Financing Cash Flow	-12.20M	-1.88M	-21.30M	-21.40M	46.20M	7.29M

Xponential Fitness Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XPOF, the sentiment is Neutral. The current price of 7.53 is above the 20-day moving average (MA) of 6.91, above the 50-day MA of 6.82, and below the 200-day MA of 8.32, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 45.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XPOF.

Xponential Fitness Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YETI	78 Outperform	$3.34B	22.36	21.77%	―	1.56%	-17.21%
LTH	71 Outperform	$5.72B	20.26	10.38%	―	15.77%	86.16%
PLNT	68 Neutral	$9.13B	44.96	―	―	14.39%	31.64%
MODG	64 Neutral	$2.10B	-1.43	-46.95%	―	-3.58%	-12720.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
XPOF	54 Neutral	$362.26M	-4.57	―	―	-3.55%	-111.90%
PTON	45 Neutral	$2.59B	-22.36	―	―	-8.74%	74.66%

Xponential Fitness Corporate Events

Xponential Fitness Announces New Credit Agreement

On December 8, 2025, Xponential Fitness, Inc. announced the refinancing of its existing debt through a new credit agreement, which includes a five-year term loan facility of $525 million and a revolving credit facility of $25 million. This refinancing allows the company to decrease interest payments and repurchase all outstanding convertible preferred equity, eliminating approximately 8.2 million shares of common stock. The proceeds from the term loan will be used to refinance the existing credit facility, repurchase convertible preferred stock, and cover associated fees and expenses. The revolving credit facility will support working capital and general corporate purposes. This strategic financial move positions Xponential Fitness to better support its priorities and create long-term value for shareholders.

Xponential Fitness Appoints New Chief Legal Officer

On November 12, 2025, Xponential Fitness announced the appointment of Gavin M. O’Connor as its Chief Legal Officer & Administrative Officer, effective November 14, 2025, following the departure of Andrew Hagopian on November 10, 2025. O’Connor, who brings extensive experience in franchising and corporate governance from his previous roles at European Wax Center and American Eagle Outfitters, is expected to support Xponential Fitness’s growth and governance framework. This leadership change is anticipated to strengthen the company’s compliance framework and support its next phase of growth.

Xponential Fitness Divests Lindora Brand to Next Health

On September 19, 2025, Xponential Fitness announced the divestiture of its Lindora brand to Next Health Management Group. This strategic move allows Xponential to concentrate on its core fitness modalities, enhancing profitability. The transition is seen as beneficial for Lindora franchisees, who will join Next Health, a leader in health optimization. The divestiture is expected to provide Lindora franchisees with superior support and services under Next Health’s established medical infrastructure. Xponential Fitness will collaborate with Next Health to ensure a smooth transition for Lindora franchisees.