Xponential Fitness’s (NYSE:XPOF) Q3 Sales Beat Estimates, Stock Jumps 13.5%

Boutique fittingness workplace franchisor Xponential Fitness (NYSE:XPOF) reported Q3 CY2025 results beating Wall Street’s gross expectations , but income fell by 2.1% twelvemonth connected twelvemonth to $78.82 million. The institution expects the afloat year’s gross to beryllium astir $305 million, adjacent to analysts’ estimates. Its non-GAAP nett of $0.34 per stock was importantly supra analysts’ statement estimates.

Is present the clip to bargain Xponential Fitness? Find retired successful our afloat probe report.

• Revenue: $78.82 cardinal vs expert estimates of $75.83 cardinal (2.1% year-on-year decline, 3.9% beat)

• Adjusted EPS: $0.34 vs expert estimates of $0.12 (significant beat)

• Adjusted EBITDA: $33.48 cardinal vs expert estimates of $25.81 cardinal (42.5% margin, 29.7% beat)

• The institution reconfirmed its gross guidance for the afloat year of $305 cardinal astatine the midpoint

• EBITDA guidance for the afloat year is $108.5 cardinal astatine the midpoint, successful enactment with expert expectations

• Operating Margin: 4.5%, up from -8% successful the aforesaid 4th past year

• Free Cash Flow Margin: 10.4%, up from 4.2% successful the aforesaid 4th past year

• Market Capitalization: $229.9 million

“Over my archetypal 90 days, I’ve gained a overmuch clearer representation of our strengths and opportunities ahead. This clip has lone reinforced my assurance successful some the powerfulness of our brands and the committedness of our franchisees,” said Mike Nuzzo, CEO of Xponential Fitness, Inc.

Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE:XPOF) is simply a boutique fittingness marque offering divers and specialized workout experiences.

A company’s semipermanent income show is 1 awesome of its wide quality. Any concern tin person short-term success, but a top-tier 1 grows for years. Thankfully, Xponential Fitness’s 24.1% annualized gross maturation implicit the past 5 years was excellent. Its maturation bushed the mean user discretionary institution and shows its offerings resonate with customers.

Long-term maturation is the astir important, but wrong user discretionary, merchandise cycles are abbreviated and gross tin beryllium hit-driven owed to rapidly changing trends and user preferences. Xponential Fitness’s caller show shows its request has slowed importantly arsenic its annualized gross maturation of 2.5% implicit the past 2 years was good beneath its five-year trend. Note that COVID wounded Xponential Fitness’s concern successful 2020 and portion of 2021, and it bounced backmost successful a large mode thereafter.

Xponential Fitness besides breaks retired the gross for its 3 astir important segments: Franchise, Equipment, and Merchandise, which are 65.8%, 9.5%, and 6.1% of revenue. Over the past 2 years, Xponential Fitness’s Franchise gross (royalty fees) averaged 17% year-on-year maturation portion its Equipment (workout instrumentality sold to franchisees) and Merchandise (apparel sold to franchisees) revenues averaged declines of 8% and 13.9%.