NYSE$XPOF

Xponential Fitness Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Xponential Fitness reported a strong Q3 2022 with significant revenue growth and increased North America system-wide sales.

Xponential Fitness, Inc. announced its Q3 2022 financial results, highlighting a 56% increase in revenue to $63.8 million and a 37% increase in North America system-wide sales to $264.8 million compared to Q3 2021. The company reported a net loss of $13.1 million, or a loss of $1.53 per basic share, but also posted adjusted net income of $8.0 million, or $0.10 per basic share. Adjusted EBITDA increased to $20.0 million, up from $6.8 million in the prior-year period. The company raised its full-year 2022 guidance for revenue and Adjusted EBITDA.

  • Revenue grew by 56% to $63.8 million compared to Q3 2021.
  • North America system-wide sales increased by 37% to $264.8 million compared to Q3 2021.
  • North America same store sales grew by 17%.
  • Adjusted EBITDA increased to $20.0 million, up from $6.8 million in the prior-year period.

Headline financials

Total Revenue

$3.1M

Previous: $40.9M-92.4%
EPS (adj)

$0.13

Previous: -$0.31+141.9%
North America System-Wide Sales

$265M

Previous: $192M+37.6%
North America Same Store Sales Growth

17.0%

Previous: 65.0%-73.8%
Capital Expenditures

-$5.66M

Previous: -$2.6M-117.4%
Free Cash Flow

-$12.8M

Previous: -$6.66M-92.2%
Net Income

-$7.14M

Previous: -$4.06M-76.0%
Operating Income

-$10.4M

Previous: -$3.29M-217.2%
Gross Profit

$3.1M

Previous: $26.2M-88.2%
Cash & Equivalents

$30.9M

Previous: $25.5M+21.2%
Total Assets

$472M

Previous: $363M+30.1%
Stock-Based Comp

$4.24M

Previous: $3.53M+20.2%

Revenue & EPS history

Xponential Fitness · Revenue · Quarterly

$3.1M

Q3 2022-92.4%vs Q3 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Xponential Fitness · $63.8M total across 5 segments · Q3 2022

  • Franchise Revenue
    $30M
  • Equipment Revenue
    $11.8M
  • Other Service Revenue
    $10.6M
  • Merchandise Revenue
    $6.26M
  • Franchise Marketing Fund Revenue
    $5.17M

Forward guidance

Xponential Fitness increased 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 $235.0 million to $240.0 million, or an increase of 53% at the midpoint as compared to full year 2021
  • Adjusted EBITDA is now anticipated to be $70.0 million to $74.0 million, or an increase of 164% at the midpoint compared to full year 2021
  • Tax rate in mid-to-high single digits

Headwinds

  • Share count of approximately 25.3 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 our business and franchisees
  • Difficulties and challenges in opening studios by franchisees
  • The 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 17 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-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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