Xponential Fitness (XPOF) Q2 2026 Earnings Report

The call highlighted continued unit growth, a substantial development pipeline, improved member retention, active digital and operational initiatives, and ongoing franchise partnerships. However, material near-term headwinds were emphasized: same-store sales comps deteriorated (-6.8% in Q2), consolidated revenue declined -13% YoY, merchandise execution and revenue recognition changes weighed on results, adjusted EBITDA fell -22%, cash decreased and debt increased, and management lowered full-year guidance. While management has clear plans (digital upgrades, remodels, AI/CRM pilots, strategic partnerships) and regulatory issues are largely resolved, the magnitude and number of operational and financial setbacks communicated on the call indicate that the lowlights outweigh the highlights in the near term.

Management lowered full‑year 2026 guidance after softer Q2 results (Q2 revenue $66.0M, down $10.2M or 13%; Q2 adjusted EBITDA $21.9M, down $6.2M or 22%; Q2 adjusted EBITDA margin 33% vs. 37% a year ago; Q2 same‑store sales -6.8%), and now expects ~150 global net new studio openings, North America system‑wide sales of $1.70–1.75B, total 2026 revenue of $250–260M, and full‑year adjusted EBITDA of $91–97M (36.9% margin at the midpoint). The company cited continuing merchandise pressure (merchandise revenue down $5.1M, $3.9M of which reflects the outsourced model), an equipment revenue decline of about $2.5M, and is assuming H2 same‑store trends similar to H1; operational metrics include 3,165 open studios, 67 Q2 gross openings (47 NA / 20 international), 39 Q2 closures, YTD net unit growth of 39 domestic and 29 international, cash & restricted cash of $25.0M, total long‑term debt of $522.4M, $6.8M of settlement payments made in Q2 and an expected ~$11.4M more this year.