Xponential Grows Revenue, System-Wide Sales in Q2
The positive financial results come after a short-seller report earlier this summer questioned the boutique fitness franchisor’s viability
Xponential Fitness has announced its second quarter results for 2023, growing revenue 30% to $77.3 million and increasing North American system-wide sales 37% to $341.3 million compared to the same period last year.
The positive financial results come after a short-seller report by Fuzzy Panda Research that was released in late June that caused Xponential’s shares to hit a slump, although analysts have seemed mostly unfazed by the allegations that question the health of the company.
The boutique fitness franchisor’s $77.3 million in revenue for Q2 topped analysts’ estimates of $71.9 million. Xponential shares rose around 7% in after-hours trading Thursday night following the Q2 results being released.
The boutique fitness franchisor reveals it has sold 234 franchise licenses and opened 144 new studios in Q2.
“The company continues to execute on our strategic growth drivers. We were pleased to announce the renewal and expansion of our partnership with Lululemon in June, as well as the signing of a master franchise agreement in France, which marks Xponential’s 19th country outside of North America,” said Anthony Geisler, CEO of Xponential Fitness. “Additionally, the Board has approved a $50,000,000 stock repurchase program, and our lender, MSD Partners, has amended our term loan Financing Agreement and is funding the capital to complete the repurchase.”
As Xponential looks to the rest of the year, the fitness franchisor is increasing its full-year 2023 guidance for system-wide sales, revenue and Adjusted EBITDA.
The company is re-affirming guidance for new studio openings in the range of 540 to 560, North America system-wide sales in the range of $1.385 billion to $1.395 billion, revenue in the range of $295.0 million to $305.0 million and Adjusted EBITDA in the range of $102.5 million to $106.5 million.
Four of Xponential’s brands (Club Pilates, Pure Barre, StretchLab and Yoga Six) were recently recognized as top franchises by Entrepreneur magazine.
