Earnings
Home›Earnings›Results›Xponential Fitness posts weaker quarter and cuts 2026…
Xponential Fitness posts weaker quarter and cuts 2026 guidance
Revenue declined 13% year over year to $66 million, and North America same-store sales fell 6.8% alongside higher SG&A and marketing costs.
Xponential Fitness (NYSE: XPOF) swung to a net loss of $4.8 million in its second quarter ended June 30, after reporting net income in the same period a year earlier, and revenue fell 13% year over year to $66 million. According to Yahoo Finance, CEO Mike Nuzzo said the quarter came in below expectations.
The company also reduced nearly every full-year target it had set for 2026, trimming outlook figures even as it continued expanding its franchise network. Xponential Fitness opened 67 gross new studios and sold 53 franchise licenses during the quarter, with North America system-wide sales holding essentially flat at $437.3 million, supported by new locations offsetting some weakness at existing studios.
Despite the guidance cuts, the company still expects to open roughly 150 net new studios in 2026 and generate North America system-wide sales of $1.7 billion to $1.75 billion. Yahoo Finance reported that adjusted EBITDA guidance was lowered but still projects $91 million to $97 million for the year.
Inside the quarter, North America same-store sales declined 6.8%, reversing from 2.4% growth a year earlier, and average unit volume fell to $659,000 from $686,000. Yahoo Finance also cited declines in franchise revenue to $44 million and equipment revenue to $7.1 million, plus a 90% drop in merchandise revenue to $0.5 million, alongside higher selling, general and administrative expenses and marketing fund expenses.