NYSE$XPOF

Xponential Fitness Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Xponential Fitness's financial performance in Q2 2024 was marked by a revenue decrease of 1%, a net loss, but growth in North America system-wide sales and AUV.

Xponential Fitness reported a slight decrease in revenue and a net loss for Q2 2024, but experienced growth in North America system-wide sales and average unit volume. The company sold 87 franchise licenses and opened 108 new studios. Guidance for studio openings, revenue, and Adjusted EBITDA was lowered due to a second quarter shortfall and current business conditions.

  • Revenue decreased by 1% to $76.5 million.
  • North America system-wide sales increased by 24% to $421.5 million.
  • North America same store sales grew by 7%, compared to 15% growth in the prior year.
  • Net loss was $13.7 million, or a loss of $0.29 per basic share.

Headline financials

Total Revenue

$3.5M

Previous: $4.01M-12.6%
EPS

-$0.29

Previous: $0.07-514.3%
North America System-Wide Sales

$422M

Previous: $341M+23.5%
North America Same Store Sales Growth

7.0%

Previous: 15.0%-53.3%
Gross New Studio Openings

108

Previous: 144-25.0%
Capital Expenditures

-$2.98M

Previous: -$4.36M+31.6%
Free Cash Flow

-$12.1M

Previous: $14M-186.2%
Net Income

-$9.1M

Previous: $18.4M-149.5%
Operating Income

-$2.41M

Previous: $36.5M-106.6%
Gross Profit

$2.04M

Previous: -$4.13M+149.3%
Total Assets

$475M

Previous: $545M-12.8%
Stock-Based Comp

$4.2M

Previous: $6.06M-30.7%

Revenue & EPS history

Xponential Fitness · Revenue · Quarterly

$3.5M

Q2 2024-12.6%vs Q2 2023
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Xponential Fitness · $80.4M total across 5 segments · Q3 2023

  • Franchise Revenue
    $36.4M+21.4%
  • Other Service Revenue
    $16M+52.0%
  • Equipment Revenue
    $12.6M+6.7%
  • Merchandise Revenue
    $8.46M+35.0%
  • Franchise Marketing Fund Revenue
    $6.95M+34.3%

Forward guidance

Xponential Fitness adjusted its full year 2024 guidance due to current business conditions and a second quarter shortfall. The updated guidance includes reduced expectations for gross new studio openings and revenue, while maintaining the North America system-wide sales outlook.

Tailwinds

  • North America system-wide sales are projected to increase by 22% compared to full year 2023.
  • Adjusted EBITDA is expected to increase by 16% compared to full year 2023.
  • Tax rate is expected to be in the mid-to-high single digits.
  • Company anticipates $1.9 million in quarterly dividends paid related to the Company’s Convertible Preferred Stock, or $2.2 million if paid-in-kind.
  • Share count of 31.8 million shares of Class A Common Stock for the GAAP EPS and Adjusted EPS calculations.

Headwinds

  • Gross new studio openings are projected to be in the range of 500 to 520, a decrease of 8% at the midpoint compared to full year 2023.
  • Revenue is projected to be in the range of $310.0 million to $320.0 million, a decrease of 1% at the midpoint compared to full year 2023.
  • Adjusted EBITDA is projected to be in the range of $120.0 million to $124.0 million, compared to previous guidance of $136.0 million to $140.0 million.
  • Retail softness impacted the second quarter.
  • Leadership transition and previously announced regulatory investigations tempered the prior outlook.

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 2024

Historical avgQ2 2024

-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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