NYSE$XPOF

Xponential Fitness Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Xponential Fitness reported a strong second quarter, marked by significant revenue growth, increased system-wide sales, and positive same-store sales growth.

Xponential Fitness, Inc. announced its Q2 2022 financial results, revealing a 66% increase in revenue to $59.6 million compared to Q2 2021. North America system-wide sales grew by 45% to $249.8 million, and same-store sales increased by 25%. The company's net income was $31.5 million, or $3.28 per share, compared to a net loss of $8.0 million in the prior-year period. Xponential Fitness also raised its full-year 2022 guidance for revenue and Adjusted EBITDA.

  • Revenue grew by 66% to $59.6 million compared to Q2 2021.
  • North America system-wide sales increased by 45% to $249.8 million.
  • North America same-store sales grew by 25%.
  • Net income was $31.5 million, or $3.28 per share, compared to a net loss of $8.0 million in the prior-year period.

Headline financials

Total Revenue

$2.58M

Previous: $35.8M-92.8%
EPS (adj)

-$0.07

Previous: -$0.50+86.0%
North America System-Wide Sales

$250M

Previous: $172M+45.6%
North America Same Store Sales Growth

25.0%

Previous: 129.0%-80.6%
Gross New Studio Openings

128

Previous: 59+116.9%
Capital Expenditures

-$4.39M

Previous: -$2.02M-117.2%
Free Cash Flow

$12.4M

Previous: -$10M+224.1%
Net Income

$16.8M

Previous: -$8M+310.4%
Operating Income

$36.1M

Previous: -$392K+9319.9%
Gross Profit

$2.58M

No prior period
Cash & Equivalents

$29.3M

Previous: $20.2M+45.0%
Total Assets

$463M

Previous: $355M+30.5%
Stock-Based Comp

$4.43M

No prior period

Revenue & EPS history

Xponential Fitness · Revenue · Quarterly

$2.58M

Q2 2022-92.8%vs Q2 2021
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Xponential Fitness · $59.6M total across 5 segments · Q2 2022

  • Franchise Revenue
    $27.6M+55.5%
  • Equipment Revenue
    $12.4M+160.4%
  • Other Service Revenue
    $7.87M+44.8%
  • Merchandise Revenue
    $6.75M+49.8%
  • Franchise Marketing Fund Revenue
    $4.94M+49.0%

Forward guidance

Xponential Fitness is increasing its full-year 2022 guidance for revenue and Adjusted EBITDA, and re-affirming guidance for studio openings and system-wide sales in North America.

Tailwinds

  • New studio openings to remain in the range of 500 to 520, or an increase of 53% at the midpoint as compared to full year 2021.
  • North America system-wide sales to remain in the range of $995.0 million to $1.005 billion, or an increase of 41% at the midpoint as compared to full year 2021.
  • Revenue is now anticipated to be $211.0 million to $221.0 million, or an increase of 39% at the midpoint as compared to full year 2021.
  • Adjusted EBITDA is now anticipated to be $68.0 million to $72.0 million, or an increase of 156% at the midpoint compared to full year 2021.
  • Tax rate in mid-to-high single digits.

Headwinds

  • Share count of approximately 25.7 million shares of Class A Common Stock for the GAAP EPS and Adjusted EPS calculations.
  • $3.25 million in quarterly cash dividends paid related to the $200 million Convertible Preferred Stock.
  • Impact of the COVID-19 pandemic on the business and franchisees.
  • Difficulties and challenges in opening studios by franchisees.
  • Ability of franchisees to generate sufficient revenues.

Historical earnings impact

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-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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