The fitness franchisor reports third quarter 2022 revenue of $63.8 million and raises its guidance for full-year 2022 revenue and adjusted EBITDA
Xponential Fitness is celebrating its Q3 2022 performance. The largest global franchisor of boutique fitness brands reported its third quarter 2022 revenue of $63.8 million and raised its guidance for full-year 2022 revenue and adjusted EBITDA. Its third quarter revenue was up 56 percent and its North American system-wide sales of $264.8 million increased 37 percent versus third quarter 2021.
The franchisor owns 10 fitness brands: Club Pilates, CycleBar, StretchLab, Row House, AKT, YogaSix, Pure Barre, STRIDE, Rumble, and BFT.
According to an analysts call with Anthony Geisler, Xponential’s CEO, the company’s strategic focus has been on: increasing its franchise studio base, international expansion, margin expansion and driving free cash flow conversion, as well as increasing same-store sales and average unit volume. The success of Xponential Fitness thus far this year has caused it to increase its full-year 2022 guidance for revenue.
Xponential now anticipates revenue of $235 million to $240 million, or an increase of 53 percent compared to full-year 2021. Previously, Xponential’s guidance was $211 million, and now $221 million. In addition, Xponential also increased its guidance on full-year adjusted EBITDA, now anticipating $70 million to $74 million, an increase of 164 percent compared to full-year 2021 compared to its previous guidance of $68 million to $72 million.
“As is evident from our third-quarter results, while we continue to operate in a time of inflationary and overall macroeconomic pressures, our business has remained resilient,” Geisler said, attributing this resilience to the company’s members, franchisees, and business model.
Xponential’s average member has a typical household income of approximately $130,000, and the majority subscribe to reoccurring membership packages with fees that represent a small piece of Xponential’s overall budget, Geisler also stated. Its membership is growing, numbering 577,000 in North America at the end of third quarter, an increase of 33 percent from the prior year period. North America same store sales grew 17 percent.
As brick-and-mortar fitness continues to grow post-pandemic, Xponential is benefitting from the resurgence of consumers’ desire to return to studios, reflected by its third quarter performance.