Xponential Fitness, Inc. Announces Third Quarter 2026 Financial Results
Xponential Fitness, Inc. (XPOF) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Xponential Fitness, Inc. Announces Third Quarter 2026 Financial Results IRVINE, Calif., November 5, 2026 – Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential” or the “Company”), one of the leading global franchisors of boutique health and wellness brands, today repor
How this was made
The 30-second read
Why it matters
The earnings miss and updated outlook suggest near‑term weakness, but the strategic alternatives review leaves open a possible M&A catalyst.
Market read
The new earnings and guidance are likely to drive short‑term price declines for XPOF, with limited spillover to the broader sector.
What to watch
Potential upside from a future sale or merger could offset short‑term earnings weakness.
Xponential Fitness reported third-quarter revenue of $62.3 million, down 21% year-over-year, while adjusted EBITDA declined to $24.3 million and full-year net new studio-opening guidance was reduced.
Revenue, system-wide sales, same store sales, AUV, adjusted net income and adjusted EBITDA all declined year-over-year. The company lowered expected net new studio openings and narrowed adjusted EBITDA guidance to the lower end of its prior range.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenue, netGAAP | $62.3M | – | down 21% |
| Q3 2026 North America system-wide salesother | $424.3M | – | – |
| Q3 2026 North America same store salesother | decreased 7.5% | – | decreased 7.5% |
| Q3 2026 North America quarterly run-rate average unit volumeother | $634,000 | – | – |
| Q3 2026 operating incomeGAAP | $19.54M | – | – |
| Q3 2026 net incomeGAAP | $4.9M | – | – |
| Q3 2026 net income attributable to Xponential Fitness, Inc.GAAP | $4.21M | – | – |
| Q3 2026 basic net earnings per share of Class A common stockGAAP | $0.10 | – | – |
| Q3 2026 diluted net earnings per share of Class A common stockGAAP | $0.10 | – | – |
| Q3 2026 weighted average Class A common stock outstanding, basicGAAP | 42,241 | – | – |
| Q3 2026 weighted average Class A common stock outstanding, dilutedGAAP | 49,271 | – | – |
| Q3 2026 adjusted net incomenon-GAAP | $2.2M | – | – |
| Q3 2026 adjusted net earnings per share, basicnon-GAAP | $0.04 | – | – |
| Q3 2026 adjusted net earnings per share, dilutednon-GAAP | $0.04 | – | – |
| Q3 2026 EBITDAnon-GAAP | $20.87M | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $24.3M | – | down 27% |
| Q3 2026 costs of product revenueGAAP | $3.14M | – | – |
| Q3 2026 costs of franchise and service revenueGAAP | $4.32M | – | – |
| Q3 2026 selling, general and administrative expensesGAAP | $28.2M | – | up 14% |
| Q3 2026 marketing fund expenseGAAP | $9.6M | – | up 6% |
| Q3 2026 depreciation and amortizationGAAP | $1.33M | – | – |
| Q3 2026 acquisition and transaction expense (income)GAAP | −$3.84M | – | – |
| Nine months ended September 30, 2026 total revenue, netGAAP | $188.9M | – | – |
| Nine months ended September 30, 2026 operating incomeGAAP | $42.10M | – | – |
| Nine months ended September 30, 2026 net lossGAAP | $ (743 ) | – | – |
| Nine months ended September 30, 2026 basic net loss per share of Class A common stockGAAP | $ (0.02 ) | – | – |
| Nine months ended September 30, 2026 adjusted EBITDAnon-GAAP | $66.66M | – | – |
| Nine months ended September 30, 2026 adjusted net incomenon-GAAP | $1.01M | – | – |
| Nine months ended September 30, 2026 net cash used in operating activitiesGAAP | $21.1M | – | – |
| Nine months ended September 30, 2026 net cash used in investing activitiesGAAP | −$2.11M | – | – |
| Nine months ended September 30, 2026 net cash provided by financing activitiesGAAP | $4.53M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Franchise revenueThe decline was primarily due to lower franchise territory revenue from lower revenue recognized from franchise agreement terminations. Royalty fees were lower due to lower same store sales and 2025 brand divestitures, while technology and training fees also declined. | $43.4M | – | down 16% year-over-year |
| Equipment revenueThe decrease was primarily the result of fewer global equipment installations, driven by fewer studio openings. | $4.3M | – | down 42% year-over-year |
| Merchandise revenueThe decrease was primarily driven by the transition from an in-house wholesale model to an outsourced retail model. | $400K | – | down 92% year-over-year |
| Franchise marketing fund revenueThe decrease was primarily due to lower same store sales and the impact of divested brands. | $8.5M | – | down 4% year-over-year |
| Other service revenueThe filing did not provide a specific driver for the decline. | $5.7M | – | down 2% year-over-year |
Full year 2026 outlook
- Revenue$250.0 million to $260.0 million
- Tax ratemid-to-high single digits
- NoteNet new studio openings of 124 to 130
- NoteNorth America system-wide sales of $1.70 billion to $1.75 billion
- NoteAdjusted EBITDA of $91.0 million to $94.0 million
- NoteShare count of 41.0 million shares of Class A Common Stock for the GAAP EPS and Adjusted EPS calculations
What drove it
- Total revenue declined primarily due to lower franchise revenue, lower merchandise revenue following the outsourced logistics arrangement, and fewer equipment installations.
- North America same store sales decreased 7.5%, compared with a decrease of 0.8%.
- Quarterly run-rate AUV was $634,000, compared with $668,000.
- Selling, general and administrative expenses increased primarily due to higher financial transaction fees and legal fees, partly offset by lower salaries and wages.
- Marketing fund expense increased due to the timing of marketing fund spend in the quarter.
- Acquisition and transaction expense (income) was $ (3,843 ) in the third quarter of 2026, compared with $ 3,071 in the prior-year quarter.
Concerns
- North America system-wide sales were $424.3 million, down from $432.2 million.
- The company reduced net new studio-opening guidance to 124 to 130 from previous guidance of approximately 150.
- Equipment revenue fell 42% year-over-year as fewer studio openings reduced global equipment installations.
- Merchandise revenue fell 92% year-over-year following the transition to an outsourced retail model.
- Adjusted EBITDA fell 27% year-over-year to $24.3 million.
- Net cash used in operating activities was $21.1 million for the nine months ended September 30, 2026.
- The company had approximately $27.2 million of cash, cash equivalents and restricted cash and $521.1 million in total long-term debt as of September 30, 2026.
- The Board remains engaged in a review of strategic alternatives, which may include a sale, merger, or another strategic or financial transaction.
What to watch
- North America same store sales and quarterly run-rate AUV.
- The pace of net new studio openings relative to the revised range of 124 to 130.
- North America system-wide sales relative to the full-year range of $1.70 billion to $1.75 billion.
- Adjusted EBITDA execution relative to the narrowed range of $91.0 million to $94.0 million.
- Cash flow from operating activities, liquidity, the line of credit, and debt levels.
- The outcome and timing of the Board's strategic alternatives review.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash were approximately $27.2 million as of September 30, 2026.
- Cash, cash equivalents and restricted cash were $ 27,183 as of September 30, 2026, compared with $ 45,863 as of December 31, 2025.
- Total long-term debt was $521.1 million as of September 30, 2026.
- Line of credit was $ 10,000 as of September 30, 2026, compared with $ — as of December 31, 2025.
- Current portion of long-term debt was $ 13,125 as of September 30, 2026, compared with $ 5,250 as of December 31, 2025.
- Long-term debt, net of current portion, discount and issuance costs was $ 491,204 as of September 30, 2026, compared with $ 500,500 as of December 31, 2025.
- Total assets were $ 308,443 as of September 30, 2026, compared with $ 345,634 as of December 31, 2025.
- Total liabilities were $ 678,263 as of September 30, 2026, compared with $ 717,587 as of December 31, 2025.
- Total stockholders' deficit was $ (369,820 ) as of September 30, 2026, compared with $ (371,953 ) as of December 31, 2025.
- Purchases of property and equipment were $ (1,282 ) for the nine months ended September 30, 2026, compared with $ (3,070 ) in the prior-year period.
- Purchases of intangible assets were $ (1,097 ) for the nine months ended September 30, 2026, compared with $ (1,224 ) in the prior-year period.
- Cash, cash equivalents and restricted cash decreased by $ (18,680 ) during the nine months ended September 30, 2026, compared with an increase of $ 8,724 in the prior-year period.
Analysis
Xponential reported a weaker third quarter, with total revenue of $62.3 million, down 21% from $78.8 million. North America system-wide sales declined to $424.3 million from $432.2 million, while North America same store sales decreased 7.5%, compared with a decrease of 0.8%. Quarterly run-rate AUV declined to $634,000 from $668,000, indicating pressure on studio-level sales and economics.
The revenue decline was broad-based. Franchise revenue fell 16% to $43.4 million, reflecting lower franchise territory revenue recognized from franchise agreement terminations, lower royalty fees associated with lower same store sales and 2025 brand divestitures, and lower technology and training fees. Equipment revenue declined 42% to $4.3 million as fewer studio openings reduced global equipment installations. Merchandise revenue declined 92% to $0.4 million following the transition from an in-house wholesale model to an outsourced retail model.
Profitability benefited from a $ (3,843 ) acquisition and transaction expense (income) line, producing operating income of $ 19,542 versus $ 3,566 in the prior-year quarter and net income of $4.9 million versus a net loss of $6.7 million. Under the company's non-GAAP measures, however, adjusted net income fell to $2.2 million from $19.3 million and adjusted EBITDA declined 27% to $24.3 million from $33.5 million. Selling, general and administrative expenses increased 14% to $28.2 million due primarily to financial transaction fees and legal fees, while marketing fund expense increased 6% to $9.6 million because of spending timing.
Liquidity remains a central focus. The company reported approximately $27.2 million of cash, cash equivalents and restricted cash and $521.1 million of total long-term debt as of September 30, 2026. Net cash used in operating activities was $21.1 million for the first nine months of 2026, compared with net cash provided by operating activities of $ 17,640 in the prior-year period. The company also had a $ 10,000 line of credit balance at period end.
The company reiterated its full-year outlook for North America system-wide sales and revenue, but reduced expected net new studio openings to 124 to 130 from approximately 150. It also narrowed adjusted EBITDA guidance to $91.0 million to $94.0 million from $91.0 million to $97.0 million. The strategic alternatives review remains active, with the Board considering strategic, financial, and operational alternatives, including a sale, merger, or another transaction.
Management, verbatim
We are making progress in strengthening Xponential’s business with the initiatives we have implemented across marketing, technology and brand management. Our priorities are clear across the organization: improve franchisee and studio-level economics, support healthy and disciplined unit expansion both domestically and internationally, strengthen Xponential’s financial performance, and elevate our member experience across our portfolio.
Mike Nuzzo, CEO of Xponential Fitness
Not in the filing
stated, not guessed- Gross margin and gross-profit figures were not reported.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported.
- Capital returns, including share repurchases and common-stock dividends, were not reported.
- Prior-quarter comparisons were not reported for the operating metrics.
- A quantitative reconciliation of full-year adjusted EBITDA guidance to the most directly comparable GAAP measure was not provided.
- Previous-release outlook was not provided, so reported results were not compared with prior guidance.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Xponential Fitness filed an 8‑K reporting Q3 2026 financial results and updated its full‑year guidance.
Ticker impact
Q3 2026 results show revenue down 21% YoY and updated full-year outlook, providing fresh guidance that may pressure the stock.
likely downward pressure as investors price in weaker revenue and updated outlook
Revenue fell 21% YoY, same-store sales declined, and the full-year revenue outlook was updated to $250‑260M, all new data that can trigger sell‑offs.
Market effects
Boutique fitness franchise sector may see broader scrutiny as peers face similar revenue pressures.
North America franchise revenue slowdown could weigh on related consumer discretionary stocks.
Limited to the fitness franchise niche; no broad market impact expected.
Counterpoint
If the company can successfully execute its strategic alternatives review, a turnaround could be priced in later.
Key entities
- companyXponential Fitness, Inc.
Boutique health and wellness franchise operator (NYSE:XPOF).
