Xponential Fitness Reports $76.9 Million Revenue in Q1 2025, Net Loss Improves

Xponential Fitness, Inc. reported a total revenue of $76.9 million for the first quarter of 2025, a decrease of 3.5% compared to $79.7 million in the same period of 2024. The decline was primarily attributed to a significant drop in equipment and merchandise revenue, which fell by 20.1% and 25.0%, respectively. Franchise revenue, however, increased by 5.1% to $43.9 million, driven by higher same-store sales and an increase in the number of operating studios. The company recorded a net loss of $2.7 million, an improvement from a net loss of $3.8 million in the prior year, with net loss per share of $(0.10) compared to $(0.29) in the same quarter of 2024.

In terms of operational metrics, Xponential Fitness had 3,298 studios operating globally as of March 31, 2025, up from 3,079 studios a year earlier. The company opened 116 new studios during the quarter, contributing to a cumulative total of 6,286 franchise licenses sold. The average unit volume (AUV) for the trailing twelve months increased to $673, reflecting a 6.8% rise from the previous year. The company also reported a 4% increase in same-store sales, indicating a positive trend in customer engagement.

Strategically, Xponential Fitness has been undergoing a restructuring plan initiated in the third quarter of 2023, aimed at exiting company-owned transition studios and focusing on franchise operations. The company recognized restructuring charges of $2.4 million in the first quarter of 2025, down from $6.8 million in the same period of 2024. The restructuring is expected to yield annualized savings of approximately $13.5 million to $15.5 million, although the company cautioned that achieving these savings may be contingent on successful negotiations with lease counterparties.

The company also completed the acquisition of Lindora Franchise, LLC, in January 2024, which is expected to enhance its portfolio in the wellness sector. As of March 31, 2025, Xponential Fitness had cash and cash equivalents of $26.6 million, alongside $16.0 million in restricted cash. The company anticipates that its available cash and cash generated from operations will be sufficient to meet its operational needs and debt service requirements for at least the next twelve months.

Looking ahead, Xponential Fitness remains focused on expanding its franchise network both domestically and internationally, with contractual commitments for 1,509 additional studios in North America and 1,027 internationally. The company is also addressing challenges related to compliance with franchise laws in certain states, which has temporarily impacted its ability to sell franchises. Despite these challenges, Xponential Fitness aims to leverage its diverse brand portfolio and operational efficiencies to drive future growth.