NYSE$XPOF

Xponential Fitness Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Xponential Fitness's Q2 2021 financial performance showcased strong revenue growth and system-wide sales, driven by franchise license sales and same-store sales growth, although the company reported a net loss.

Xponential Fitness reported a 67% increase in revenue to $35.8 million, a net loss of $8.0 million, and adjusted EBITDA of $8.3 million. The company sold 197 North American franchise licenses and opened 59 new studios. System-wide sales increased by 179% to $171.6 million, with same-store sales growth of 129%.

  • Revenue grew by 67% year-over-year to $35.8 million.
  • System-wide sales increased by 179% year-over-year to $171.6 million.
  • System-wide same-store sales grew by 129%.
  • 197 North American franchise licenses were sold, compared to 46 in Q2 2020.

Headline financials

Total Revenue

$35.8M

Previous: $21.5M+66.7%
EPS (adj)

-$0.50

Previous: -$0.21-141.9%
North America System-Wide Sales

$172M

Previous: $0.00
North America Same Store Sales Growth

129.0%

No prior period
Gross New Studio Openings

59

No prior period
North America Total Members

1.8K

No prior period
Capital Expenditures

-$2.02M

No prior period
Free Cash Flow

-$10M

No prior period
Net Income

-$8M

Previous: -$4.75M-68.4%
Operating Income

-$392K

Previous: -$473K+17.1%
Cash & Equivalents

$20.2M

No prior period
Total Assets

$355M

No prior period

Revenue & EPS history

Xponential Fitness · Revenue · Quarterly

$35.8M

Q2 2021+66.7%vs Q2 2020
Beat estimate in 5 of 12 quarters(42%)
ActualEstimate

Revenue by segment

Xponential Fitness · $35.8M total across 5 segments · Q2 2021

  • Franchise Revenue
    $17.8M
  • Other Service Revenue
    $5.43M
  • Equipment Revenue
    $4.76M
  • Merchandise Revenue
    $4.51M
  • Franchise Marketing Fund Revenue
    $3.31M

Forward guidance

Xponential Fitness initiated its outlook for the full fiscal year ending December 31, 2021, anticipating studio openings in the range of 215 to 235, North America system-wide sales in the range of $690 million to $700 million, revenue in the range of $135.5 million to $137.0 million, and Adjusted EBITDA in the range of $22.0 million to $23.0 million.

Tailwinds

  • Studio openings in the range of 215 to 235.
  • North America system-wide sales in the range of $690 million to $700 million, representing a 57% increase at the midpoint compared to full year 2020.
  • Revenue in the range of $135.5 million to $137.0 million, representing a 28% increase at the midpoint compared to full year 2020.
  • Adjusted EBITDA in the range of $22.0 million to $23.0 million, representing a 129% increase at the midpoint compared to full year 2020.
  • Tax rate of approximately 5%.

Headwinds

  • Further restrictions enforced as a result of the pandemic, such as government-mandated studio closures, could have a material negative impact on the Company’s business and financial performance.
  • Share count of 22.6 million for EPS calculation, which includes the 904,000 additional shares issued in August 2021 following a partial exercise by underwriters of their option to purchase additional shares related to the IPO.
  • $3.25 million in quarterly dividends paid as related to the $200 million Preferred Convertible note.
  • Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements.
  • The company cannot guarantee future results, level of activity, performance, or achievements.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports

Historical avg

-2.5%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+1.7%

Avg return

30 days after

37%

7 / 19 earnings

Positive

+44.3%

Q4 2023

Best reaction

-47.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-14.0%-21.7%-18.1%
Q4 2025-47.2%-31.3%-28.6%
Q3 2025+1.4%+1.1%+12.4%
Q1 2025-7.5%+13.0%+9.1%
Q4 2024-38.4%-29.4%-39.4%
Q3 2024-3.5%+0.7%-2.4%
Q2 2024-23.5%-19.3%-24.8%
Q1 2024+3.8%-20.8%-7.0%
Q4 2023+44.3%+38.9%+69.8%
Q3 2023-3.2%-8.0%-15.7%
Q2 2023-7.3%-6.0%+5.3%
Q1 2023-8.8%-11.7%-20.2%
Q4 2022+15.5%+16.1%+19.7%
Q3 2022+15.2%+21.9%+22.1%
Q2 2022+19.4%+26.7%+23.0%
Q1 2022-9.9%+1.9%-2.1%
Q4 2021-7.1%-7.8%+12.5%
Q3 2021+24.5%+22.2%+16.2%
Q2 2021-1.2%+3.6%+0.1%
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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