Xponential Fitness, Inc. reported a total revenue of $76.2 million for the three months ended June 30, 2025, a slight decrease of 0.9% compared to $76.9 million in the same period last year. The decline was primarily attributed to a significant drop in equipment revenue, which fell by 26.4% to $9.5 million, and merchandise revenue, which decreased by 8.5% to $5.6 million. However, franchise revenue increased by 5.4% to $45.4 million, driven by a rise in the number of operating studios globally. The company also saw a 12.9% increase in franchise marketing fund revenue, totaling $9.5 million.
In terms of profitability, Xponential Fitness reported an operating income of $14.8 million for the second quarter of 2025, a notable recovery from an operating loss of $3.1 million in the same quarter of 2024. The improvement in operating income was supported by a reduction in total operating costs and expenses, which decreased by 23.3% to $61.4 million. This reduction was largely due to lower selling, general, and administrative expenses, which fell by 34.9% to $24.1 million, and a decrease in costs associated with product revenue.
The company has also made strategic moves, including the acquisition of Lindora Franchise, LLC, which was completed on January 2, 2024. This acquisition is expected to enhance Xponential's portfolio in the wellness sector. Additionally, Xponential Fitness announced the divestiture of its CycleBar and Rumble brands on July 24, 2025, for a total consideration of $7 million, allowing the company to focus on its core brands. As of June 30, 2025, Xponential operated 3,327 studios globally, with 2,823 in North America and 504 internationally.
Operationally, Xponential Fitness reported a total of 86 new studio openings in the second quarter of 2025, contributing to a cumulative total of 3,327 studios. The company also noted that franchisees were contractually committed to open an additional 1,461 studios under existing agreements. The average unit volume (AUV) for the trailing twelve months was $682, reflecting a year-over-year increase from $641. The company’s same-store sales growth was reported at 1% for the quarter, indicating a modest increase in sales performance across existing locations.
Looking ahead, Xponential Fitness remains focused on its restructuring plan initiated in 2023, which aims to exit company-owned transition studios and reduce costs. The company anticipates recognizing additional restructuring charges throughout 2025, totaling between $13.1 million to $16.8 million. Despite the challenges, Xponential Fitness is optimistic about its growth trajectory, supported by its diverse brand portfolio and ongoing franchise expansion efforts.
About Xponential Fitness, Inc.
Xponential Fitness is a global franchisor specializing in boutique health and wellness brands across verticals like Pilates, cycling, yoga, barre, boxing, and metabolic health. It offers personalized, community-driven workout experiences through a diversified portfolio of eight brands, supported by a proven franchise model, digital platforms, and international expansion. The company leverages scale, operational expertise, and shared services to drive growth, margins, and consumer loyalty.
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