Xponential Fitness Reports 13.4% Revenue Decline and $4.8 Million Net Loss in Q2 2026

Xponential Fitness, Inc. reported a significant decline in financial performance for the second quarter of 2026, with total revenue decreasing by 13.4% to $66.0 million compared to $76.2 million in the same period last year. The decline was primarily driven by a sharp drop in merchandise revenue, which fell by 90.3% to $0.5 million, and a 25.8% decrease in equipment revenue, which totaled $7.1 million. Franchise revenue also saw a decrease of 3% to $44.0 million, attributed to lower same-store sales and the impact of brand divestitures. The company recorded a net loss of $4.8 million for the quarter, compared to a net income of $1.3 million in the prior year.

In terms of operational metrics, Xponential Fitness had 3,165 studios operating globally as of June 30, 2026, an increase from 3,020 studios a year earlier. The company opened 67 new studios during the quarter, although this was a decrease from 79 openings in the same quarter of 2025. The number of licenses sold globally also increased to 5,452, up from 5,269 a year prior. However, same-store sales growth was negative at -7%, indicating challenges in existing studio performance.

Strategically, Xponential Fitness has been focusing on restructuring efforts, which include exiting company-owned transition studios to streamline operations and reduce costs. The company anticipates recognizing additional restructuring charges throughout 2026, estimated between $8.2 million to $11.7 million. The restructuring plan aims to achieve annualized savings of approximately $13.5 million to $15.5 million. Additionally, the company has entered into a retail supply agreement with Fit Commerce to outsource its retail merchandising, allowing it to concentrate on core business operations.

Looking ahead, Xponential Fitness remains committed to expanding its franchise operations both domestically and internationally. The company has a robust pipeline with 694 additional studios contractually committed to open under existing franchise agreements. Despite the recent financial setbacks, management believes that the ongoing restructuring and strategic initiatives will position the company for future growth. The company’s liquidity remains stable, with $18.2 million in cash and cash equivalents as of June 30, 2026, which is expected to support its operational and capital needs in the near term.