Studio Closures and Operational Overhaul Shape 2025 Outlook
From StockStory.org does not belong to any specific media company.: 2025-05-09 15:43:00
Xponential Fitness (NYSE: XPOF) reported Q1 CY2025 results, exceeding revenue expectations but with a 3.5% year-on-year sales decline to $76.88 million. The company projects full-year revenue of around $320 million, close to analysts’ estimates, with a non-GAAP loss of $0.20 per share significantly below consensus. Management focused on franchisee support and operational efficiency, with a strategic shift towards stabilization. The company aims to address elevated studio closures, reactivate franchise sales, and enhance operational support for sustained growth. Xponential Fitness expects to return to normalized license sales following franchise disclosure document updates and strategic brand adjustments.
In the next quarters, watch for the impact of the field operations team on reducing closures and improving franchisee performance, net studio openings pace and quality, and operational improvements in underperforming brands. Xponential Fitness trades at a forward P/E ratio of 7.8×.
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