Xponential Fitness, Inc. (XPOF) · Nov 5, 2026 · Earnings
Miss — Same-store sales -7.5%; net openings cut to 124-130 from ~150
Xponential Fitness’ third-quarter earnings show deeper studio pressure: same-store sales fell 7.5%, while openings and adjusted EBITDA guidance moved lower.
Xponential is a boutique-fitness franchisor trying to stabilize franchisee economics while its studio-growth engine slows; the board has been reviewing a possible sale, merger, or other strategic transaction since April, and the prior quarter was already described as below expectations.
The core operating problem worsened, not merely persisted. North American same-store sales fell 7.5%, versus a 0.8% decline a year earlier, while quarterly run-rate AUV dropped to $634,000 from $668,000. That points to weaker economics at existing studios—the metric most relevant to franchisee health—not just a temporary revenue mix issue.
The headline profit improvement is misleading. GAAP net income turned positive, but adjusted net income fell to $2.2 million from $19.3 million and adjusted EBITDA fell 27% to $24.3 million. The business is still generating earnings, but its underlying operating performance deteriorated materially.
| Figure | Q3 2026 | Q3 2025 | Prior guidance / comparison |
|---|---|---|---|
| Revenue (Financial Highlights) | $62.3M (-21%) | $78.8M | |
| North America same-store sales (Financial Highlights) | -7.5% | -0.8% | |
| Quarterly run-rate AUV (Financial Highlights) | $634K (-5.1%) | $668K | |
| Adjusted EBITDA (Financial Highlights) | $24.3M (-27%) | $33.5M | |
| Net new studio openings (2026 Outlook) | 124-130 | ~150 prior guide | |
| Adjusted EBITDA (2026 Outlook) | $91M-$94M | $91M-$97M prior guide |
The outlook now confirms a slower growth model. Management retained its revenue and system-wide-sales outlook, but cut expected net new openings by roughly 37% at the midpoint from approximately 150 and reduced the top end of adjusted EBITDA guidance. The direction was already visible after the prior quarter’s guidance reset, so this is partly known rather than a surprise; the new disclosure is that the slowdown is extending into the operating metrics that support franchisee expansion. 〔0〕
Liquidity leaves less room for a prolonged turnaround. Cash, cash equivalents and restricted cash were $27.2 million against $521.1 million of long-term debt, while operating activities used $21.1 million during the first nine months. That makes the ongoing strategic review more consequential to the business situation, even though the filing gives no update on a potential transaction.
Bottom line: This quarter weakens the operating story: existing studios are producing less, new-unit growth is slowing, and adjusted earnings are falling. The strategic review remains the main potential reset, but this filing provides no evidence that the underlying business has stabilized yet.
Conclusion of strategic alternatives review
A buy-side analyst on every ticker — it reads every public company's filing the instant it drops and decodes it into plain English.
A buy-side analyst on every ticker — the whole market decoded the second it moves, before it's a headline. Free gives you a taste. Pro takes the cap off and opens the full read on every company.
by Signing in NOW, claim your FREE 14-day Pro trial!