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5 Must-Read Analyst Questions From Xponential Fitness’s Q1 Earnings Call

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Xponential Fitness's first quarter was marked by a decline in sales and a negative market reaction, as the company reported a 3.5% year-over-year revenue drop and a non-GAAP loss that fell short of Wall Street expectations. Management attributed the subdued performance to a higher-than-anticipated studio closure rate, particularly within the CycleBar and StretchLab brands, and a temporary pause in franchise license terminations as the company reorganized its operations. CEO Mark King described the business as “in the middle of a transformation,” emphasizing a shift from aggressive sales tactics to a focus on operational efficiency and franchisee support.

Is now the time to buy XPOF? Find out in our full research report (it’s free).

Xponential Fitness (XPOF) Q1 CY2025 Highlights:

  • Revenue: $76.88 million vs analyst estimates of $76.09 million (3.5% year-on-year decline, 1% beat)
  • Adjusted EPS: -$0.20 vs analyst estimates of $0.15 (significant miss)
  • Adjusted EBITDA: $27.33 million vs analyst estimates of $28.86 million (35.5% margin, 5.3% miss)
  • The company reconfirmed its revenue guidance for the full year of $320 million at the midpoint
  • EBITDA guidance for the full year is $122.5 million at the midpoint, in line with analyst expectations
  • Operating Margin: 12.6%, up from 10% in the same quarter last year
  • Market Capitalization: $352.8 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Xponential Fitness’s Q1 Earnings Call

  • Randy Konik (Jefferies) pressed for the main theme of the company’s transformation, to which CEO Mark King responded that Xponential is shifting from aggressive sales to operational efficiency and franchisor support for long-term growth.
  • Joe Altobello (Raymond James) asked about the spike in closures, with CFO John Meloun attributing most to CycleBar and StretchLab, and confirming the company expects this pattern to persist in the near term.
  • John Heinbockel (Guggenheim) questioned the effectiveness and immediate impact of the new field operations team. King and Meloun replied that hands-on support should help new and struggling franchisees quickly, starting with the weakest performers.
  • Chris O’Cull (Stifel) inquired about underinvestment in StretchLab marketing and potential for new membership models. King confirmed increased marketing spend and the exploration of monthly memberships to improve the brand’s outlook.
  • Korinne Wolfmeyer (Piper Sandler) sought clarification on tariff exposure and consumer demand assumptions. King emphasized minimal direct tariff impact and resilience in consumer demand, with no notable change in visitation or member growth.

Catalysts in Upcoming Quarters

In future quarters, our team will monitor (1) the rollout and impact of the expanded field operations team on studio performance, (2) progress on StretchLab’s turnaround plan and results of new membership models, and (3) the pace of international expansion and Club Pilates openings. The effectiveness of franchisee license management and adjustments to cost pressures will also be key markers of execution.

Xponential Fitness currently trades at $10.10, up from $8.72 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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