NYSE$XPOF

Xponential Fitness Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Xponential Fitness reported a 30% increase in revenue and a 37% increase in North America system-wide sales compared to Q2 2022. The company sold 234 franchise licenses and opened 144 new studios. A $50 million share buyback program was announced and full-year 2023 guidance was raised.

Xponential Fitness, Inc. announced strong financial results for the second quarter ended June 30, 2023, with a 30% increase in revenue to $77.3 million and a 37% increase in North America system-wide sales to $341.3 million compared to the prior year. The company reported a net income of $27.5 million, or $1.44 per basic share, and an adjusted net income of $4.2 million, or $0.05 per basic share. Additionally, the company announced a $50 million share buyback program and raised its full-year 2023 guidance.

  • Revenue grew by 30% to $77.3 million compared to Q2 2022.
  • North America system-wide sales increased by 37% to $341.3 million compared to Q2 2022.
  • North America same store sales grew by 15% compared to growth of 25% in Q2 2022.
  • Net income was reported at $27.5 million, or $1.44 per basic share.

Headline financials

Total Revenue

$4.01M

Previous: $2.58M+55.6%
EPS (adj)

$0.07

Previous: -$0.07+200.0%
North America System-Wide Sales

$341M

Previous: $250M+36.6%
North America Same Store Sales Growth

15.0%

Previous: 25.0%-40.0%
Gross New Studio Openings

144

Previous: 128+12.5%
Capital Expenditures

-$4.36M

Previous: -$4.39M+0.8%
Free Cash Flow

$14M

Previous: $12.4M+12.7%
Net Income

$18.4M

Previous: $16.8M+9.2%
Operating Income

$36.5M

Previous: $36.1M+0.9%
Gross Profit

-$4.13M

Previous: $2.58M-260.2%
Cash & Equivalents

$40.2M

Previous: $29.3M+37.2%
Total Assets

$545M

Previous: $463M+17.7%
Stock-Based Comp

$6.06M

Previous: $4.43M+36.7%

Revenue & EPS history

Xponential Fitness · Revenue · Quarterly

$4.01M

Q2 2023+55.6%vs Q2 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Xponential Fitness · $77.3M total across 5 segments · Q2 2023

  • Franchise Revenue
    $35.1M+27.2%
  • Equipment Revenue
    $14.4M+16.5%
  • Other Service Revenue
    $12.8M+62.2%
  • Merchandise Revenue
    $8.4M+24.4%
  • Franchise Marketing Fund Revenue
    $6.62M+34.0%

Forward guidance

Xponential is increasing full-year 2023 guidance for system-wide sales, revenue, and Adjusted EBITDA, and re-affirming guidance for new studio openings.

Tailwinds

  • New studio openings in the range of 540 to 560, or an increase of 8% at the midpoint as compared to full year 2022
  • North America system-wide sales in the range of $1.385 billion to $1.395 billion, or an increase of 35% at the midpoint as compared to full year 2022
  • Revenue in the range of $295.0 million to $305.0 million, or an increase of 22% at the midpoint as compared to full year 2022
  • Adjusted EBITDA in the range of $102.5 million to $106.5 million, or an increase of 41% at the midpoint as compared to full year 2022
  • Tax rate in the mid-to-high single digits

Historical earnings impact

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

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-2.5%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+2.8%

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 2026-14.4%-22.0%
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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