Xponential Fitness Reports Fiscal Year 2025 Revenue of $314.9 Million, Net Loss of $53.7 Million

**Xponential Fitness, Inc. Reports Fiscal Year 2025 Performance**

Xponential Fitness, Inc., a global franchisor of boutique health and wellness brands, released its financial results for the fiscal year ended December 31, 2025, showcasing a mix of growth and strategic adjustments. The company reported total revenue of $314.9 million, a slight decrease of 1.7% compared to $320.3 million in the previous fiscal year. This decrease was primarily attributed to lower equipment and merchandise revenue, partially offset by growth in franchise and franchise marketing fund revenue. The company's net loss was $53.7 million, compared to a net loss of $98.7 million in the prior year.

Franchise revenue increased by 10.4% to $192.6 million, driven by higher royalty rates for new studios and increased franchise territory fees due to agreement terminations. Equipment revenue declined by 35.4% to $35.0 million, reflecting fewer global equipment installations. Merchandise revenue also decreased by 12.0% to $23.9 million, influenced by brand divestitures and reduced studio demand. Franchise marketing fund revenue rose by 7.3% to $36.5 million, supported by an increase in the number of operating studios in North America. Other service revenue decreased by 11.9% to $26.8 million, primarily due to lower package and membership revenue from company-owned transition studios and decreased vendor commission and brand access fee revenues.

Operationally, Xponential Fitness reported 341 gross studio openings globally during the year, bringing the total number of operating studios to 3,097. The company sold 179 new franchise licenses globally, increasing the total number of licenses sold to 5,371. Same-store sales growth was reported at 0%. The average unit volume (AUV) for the last twelve months was $695,000, while the quarterly AUV run rate was $683,000. The company also continued its international expansion, with 491 studios operating outside of North America and master franchisees contractually obligated to sell licenses for an additional 767 studios.

Strategic developments during the year included the divestitures of the CycleBar, Rumble, and Lindora brands, aimed at focusing resources on core brands. These divestitures resulted in a net gain of $1.6 million. The company also entered into a retail supply agreement with Fit Commerce to outsource retail merchandising, expecting annualized savings of $13.5 million to $15.5 million upon completion of its restructuring plan. However, the company noted that approximately 30% of its licenses contractually obligated to open in North America are over 12 months behind schedule and currently inactive. Looking ahead, Xponential Fitness plans to grow its franchised studio base, drive system-wide sales, expand operating margins, and pursue international growth opportunities. The company also acknowledged ongoing government investigations and potential impacts from technological disruptions and competition.