Xponential Fitness, Inc. Class A ( (XPOF) ) has released its Q3 earnings. Here is a breakdown of the information Xponential Fitness, Inc. Class A presented to its investors.
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Xponential Fitness, Inc. is a leading global franchisor of boutique health and wellness brands, offering diverse workout experiences through its franchise network across the U.S. and internationally. In its third quarter of 2025, Xponential Fitness reported system-wide sales of $432.2 million, marking a 10% increase year-over-year, despite a 2% decline in reported revenue to $78.8 million. The company also opened 78 new studios, expanding its reach and member base, which grew by 7% to 796,000 members.
Key financial highlights include a net loss of $6.7 million, a significant improvement from the $18.1 million loss in the same period last year. However, the company achieved an adjusted net income of $19.3 million, a notable turnaround from the previous year’s adjusted net loss. Adjusted EBITDA rose to $33.5 million, reflecting a 9% increase, indicating improved operational efficiency.
Despite the challenges reflected in the revenue decline, Xponential Fitness demonstrated resilience with a 10% increase in North America system-wide sales and a slight growth in average unit volume. The company’s strategic focus on franchise revenue and marketing fund revenue helped offset declines in equipment and merchandise revenue.
Looking ahead, Xponential Fitness maintains a positive outlook, reiterating its guidance for studio openings and adjusted EBITDA for the full year 2025. The company anticipates continued growth in system-wide sales, aiming for a 12% increase, while navigating challenges in revenue and EBITDA with strategic initiatives to enhance operational performance.