Xponential Fitness, Inc. (NYSE: XPOF), a leading global franchisor of boutique health and wellness brands, today announced its financial results for the first quarter of 2025, ending March 31.
Financial Highlights:
Total Revenue: $76.9 million, a 4% decline from $79.7 million in Q1 2024.
North America System-Wide Sales: $466.8 million, up 18% year-over-year.
Same-Store Sales Growth: 4% in North America, down from 9% in the previous year.
Quarterly Run-Rate Average Unit Volume (AUV): $659,000, compared to $609,000 in Q1 2024.
Net Loss: $2.7 million, or a loss of $0.10 per share, compared to a net loss of $3.8 million, or a loss of $0.29 per share, in Q1 2024.
Adjusted Net Loss: $7.7 million, or $0.20 per share, compared to adjusted net income of $9.2 million, or $0.15 per share, last year.
Adjusted EBITDA: $27.3 million, down from $29.9 million in Q1 2024.
CEO Mark King commented, “Our results align with our expectations, driven by strong KPIs and the successful completion of our updated financing agreement. We remain focused on executing our franchisee-first strategy and are eager to share more details at our upcoming Analyst & Investor Day.”
Detailed Q1 2025 Performance:
Revenue Breakdown: The company reported a 4% drop in total revenue, from $79.7 million in Q1 2024 to $76.9 million in Q1 2025. The decline was driven by a drop in service, merchandise, and equipment revenues, despite an increase in franchise and marketing fund revenues.
Net Loss: The company reported a net loss of $2.7 million for the quarter, or $0.10 per share, improving from a net loss of $3.8 million, or $0.29 per share, in the same period last year. The improvement was attributed to a reduction in acquisition and transaction expenses and a decrease in restructuring charges, offset by higher litigation and goodwill impairment costs.
Adjusted Net Loss: After excluding certain one-time expenses, the adjusted net loss was $7.7 million, or $0.20 per share, compared to adjusted net income of $9.2 million, or $0.15 per share, in Q1 2024.
Adjusted EBITDA: This metric, which adjusts for non-cash items and other items not considered in evaluating ongoing operations, totaled $27.3 million for Q1 2025, representing a 9% decline from the prior year.
Liquidity and Capital Resources:
As of March 31, 2025, Xponential Fitness had approximately $42.6 million in cash, cash equivalents, and restricted cash. The company’s total long-term debt stood at $379.1 million. Net cash provided by operating activities during the quarter was $5.8 million.
Outlook for 2025:
Xponential Fitness has lowered its guidance for new studio openings but has reaffirmed its revenue and adjusted EBITDA targets for the year. Key full-year guidance includes:
Net New Studio Openings: Expected in the range of 160 to 180, a 29% decrease from the previous year’s forecast.
North America System-Wide Sales: Projected between $1.935 billion and $1.955 billion, an increase of 13% at the midpoint.
Revenue: Expected between $315.0 million and $325.0 million, unchanged at the midpoint.
Adjusted EBITDA: Forecasted between $120.0 million and $125.0 million, an increase of 5% at the midpoint.
Additional key assumptions for 2025 include a tax rate in the mid-to-high single digits and a share count of 34.8 million shares of Class A Common Stock for GAAP and adjusted earnings per share calculations. The company also expects quarterly dividends of $1.9 million related to its Convertible Preferred Stock.
Xponential stated it is unable to provide a precise reconciliation of adjusted EBITDA to the most comparable GAAP measure due to the variability and complexity of certain non-cash items, including tax impacts and contingent consideration from acquisitions.
