Xponential Fitness, Inc. Class A (XPOF)

Xponential Fitness's stock price has been volatile, declining by 47.07% between October 23, 2024, and October 22, 2025. Key events include the departure of former CEO Anthony Geisler in May 2024 and the appointment of Mark King as the new CEO in June 2024. The company faced an 18-month SEC investigation, which concluded on July 1, 2025, without action, causing shares to jump 23%. The company completed the divestiture of its CycleBar and Rumble brands to Extraordinary Brands, LLC on July 28, 2025. Q1 2025 earnings exceeded revenue expectations, but sales fell 3.3% year-on-year, and the non-GAAP loss was below estimates. Q2 2025 EPS beat estimates, but revenue was slightly below estimates and down 0.4% year-on-year, leading to adjusted full-year guidance.

Demand for Xponential Fitness's boutique brands is influenced by health trends and seasonality, with increased demand at the beginning of the year due to New Year's resolutions. The membership-based revenue model provides recurring revenue. The diversified portfolio and digital platform aim to mitigate seasonal fluctuations by appealing to a wide customer base and maintaining member engagement outside of physical studio visits.

Xponential Fitness, Inc. operates boutique fitness brands through a franchise model, offering specialized workout experiences. As of July 2025, its core brand portfolio includes Club Pilates, StretchLab, YogaSix, Pure Barre, BFT, and Lindora. CycleBar, Rumble, Row House and Stride were divested to Extraordinary Brands, LLC in 2025 and 2024 respectively. The company generates revenue through franchise fees, royalties, and the sale of fitness-related products and services.

Xponential Fitness has a global presence with franchises operating across 49 U.S. states, Puerto Rico, and 30 additional countries. As of June 30, 2025, it had over 3,300 studios open and more than 6,300 licenses awarded globally. In 2024, franchisees opened 353 studios in North America and 111 internationally.

Xponential Fitness's brand reputation has been affected by a short-seller report in 2023 alleging misrepresentation of franchisee health, leading to a stock price fall. Regulatory investigations by the SEC and USAO, along with the CEO's departure, raised concerns. A financial restatement in March 2025, reporting a net loss, further fueled concerns. The conclusion of the SEC investigation without action on July 1, 2025, was a positive development. The divestiture of CycleBar and Rumble in July 2025, and Row House and Stride in 2024, and the deployment of field operations teams aim to strengthen long-term brand health.

Xponential Fitness, Inc. is owned by a mix of institutional and individual shareholders. As of Q4 2023, approximately 243 institutional owners held a total of 29,422,070 shares, including Voss Capital, LLC, BlackRock, Inc., MSD Partners, L.P., and Vanguard Group Inc. Mark Grabowski owns 39.96 million shares, representing 81.83% of the company, and Anthony Geisler owns 8.16 million shares, representing 16.72% of the company.