Xponential Fitness (XPOF) AI Stock Analysis

• Market Cap: $310.58M
• Dividend Yield: N/A
• Average Volume (3M): 697.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• 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: 874,356
• 30 Day Avg. Volume: 697,772
• 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: 2.06
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 2.82
• Enterprise Value/Ebitda: 8.62
• 1Y Price Target: $9.57
• Price Target Upside: 50.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $6.50 ▲(2.04% Upside)

Xponential Fitness's overall stock score is primarily impacted by its financial performance challenges, including negative net income and high leverage. Technical analysis indicates a bearish trend, further weighing on the score. Valuation concerns due to a negative P/E ratio and lack of dividend yield also contribute to the lower score. The earnings call provided some positive insights, particularly in growth initiatives and strategic divestitures, but these are overshadowed by ongoing financial and operational challenges.

Positive Factors

Franchise Model Strength

The diverse franchise model with multiple boutique brands allows Xponential to cater to various demographics, enhancing market reach and resilience.

System-Wide Sales Growth

Consistent system-wide sales growth indicates strong demand and successful expansion, supporting long-term revenue potential.

Improved EBITDA Margins

Improved EBITDA margins reflect effective cost management and operational efficiency, bolstering financial health.

Negative Factors

High Financial Leverage

High leverage poses risks to financial stability, potentially limiting flexibility and increasing vulnerability to economic downturns.

Negative Revenue Growth

Declining revenue growth can hinder long-term profitability and market competitiveness, necessitating strategic adjustments.

Same-Store Sales Decline

Declining same-store sales suggest challenges in customer retention and conversion, impacting steady revenue streams.

Xponential Fitness Business Overview & Revenue Model

Company Description

Xponential Fitness, Inc., through its subsidiaries, operates as a boutique fitness franchisor in the United States and internationally. The company offers fitness and wellness services, including pilates, barre, cycling, stretching, rowing, yoga, boxing, dancing, running, and functional training under the Club Pilates, Pure Barre, CycleBar, StretchLab, Row House, YogaSix, Rumble, AKT, Stride, and BFT brands. As of December 31, 2021, it had 1,556 franchisees operating 1,954 open studios on an adjusted basis. The company was founded in 2017 and is headquartered in Irvine, California.

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: 6.37
• 50DMA: Negative
• 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 6.37 is above the 20-day moving average (MA) of 6.22, below the 50-day MA of 7.02, and below the 200-day MA of 8.94, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 61.31 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	$3.07B	20.53	21.77%	―	1.56%	-17.21%
LTH	67 Neutral	$6.07B	21.48	10.38%	―	15.77%	86.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PLNT	61 Neutral	$9.07B	44.51	―	―	14.39%	31.64%
MODG	58 Neutral	$2.05B	―	-46.95%	―	-3.58%	-12720.97%
XPOF	47 Neutral	$310.58M	―	―	―	-3.55%	-111.90%
PTON	45 Neutral	$2.76B	―	―	―	-8.74%	74.66%

Xponential Fitness Corporate Events

Xponential Fitness Earnings Call: Growth Amid Challenges

The recent earnings call for Xponential Fitness, Inc. Class A revealed a mixed sentiment among stakeholders. While the company celebrated significant growth in its Club Pilates brand and successful strategic divestitures, it also faced challenges such as a decline in same-store sales, high delinquent licenses, and a decrease in revenue. Despite these hurdles, the company’s focus on growth initiatives and core brand strategies provided a balanced outlook.

Xponential Fitness Reports Q3 2025 Financial Results

Xponential Fitness, Inc. is a leading global franchisor of boutique health and wellness brands, offering diverse workout experiences through its franchise network across the U.S. and internationally. In its third quarter of 2025, Xponential Fitness reported system-wide sales of $432.2 million, marking a 10% increase year-over-year, despite a 2% decline in reported revenue to $78.8 million. The company also opened 78 new studios, expanding its reach and member base, which grew by 7% to 796,000 members.

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.

The most recent analyst rating on (XPOF) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Xponential Fitness stock, see the XPOF Stock Forecast page.

Xponential Fitness Appoints Rachel Lee to Board

On August 25, 2025, Xponential Fitness, Inc. announced the appointment of Rachel Lee to its Board of Directors, expanding the board from six to seven members. Rachel Lee, who brings nearly two decades of financial and private equity experience, will also serve on the Nominating and Corporate Governance Committee. Her appointment is expected to enhance Xponential’s corporate governance and contribute strategic insights as the company advances its long-term growth strategy in the boutique health and wellness industry.

The most recent analyst rating on (XPOF) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Xponential Fitness stock, see the XPOF Stock Forecast page.

Xponential Fitness Earnings Call: Mixed Signals Amid Strategic Shifts

The recent earnings call for Xponential Fitness, Inc. Class A painted a mixed picture for investors. While there were commendable strides in sales growth and strategic partnerships, these were offset by challenges such as revenue declines, brand divestitures, and a slowdown in same-store sales growth. The transition in leadership and a strategic refocus add an element of uncertainty, but also hold the promise of potential improvements in the future.

Xponential Fitness Reports Q2 2025 Financial Results

Xponential Fitness, Inc. is a prominent global franchisor in the boutique health and wellness sector, offering a diverse range of fitness modalities including Pilates, barre, stretching, and yoga through its franchise network. The company operates across the U.S. and internationally, partnering with franchisees to deliver personalized workout experiences.