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Xponential Fitness Aims for Stability

by Lana Green

Xponential Fitness is taking a step back after experiencing some growth challenges. In the first quarter of 2025, the company saw a 4% year-over-year revenue decline. Although systemwide sales in North America grew by 18%, the company’s adjusted EBITDA dropped by 9%, with an increase in closures and stalled franchise sales.

Looking to rebuild, CEO Mark King described 2025 as a “stabilization year,” shifting focus from expanding license sales to fostering long-term growth. To support struggling franchisees and improve operations at the studio level, Xponential deployed 40 new staff members.

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Core brands like StretchLab and CycleBar are facing challenges, but Club Pilates is holding strong. It accounts for more than half of the new studio openings and most of the interest in new licenses. YogaSix and Pure Barre are also showing growth.

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Xponential is also cleaning up its franchise network, requiring inactive license holders to either open, sell, or exit. While international markets like Spain, Japan, and Portugal offer potential for growth, the company is prioritizing operational health over rapid expansion.

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In summary, after years of fast-paced growth, Xponential is now prioritizing sustainability, focusing on keeping studios open and engaging members.

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