NYSE$XPOF

Xponential Fitness Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Xponential Fitness's Q3 2023 performance was marked by revenue growth, increased North America system-wide sales, and strategic adjustments towards profitability.

Xponential Fitness reported a 26% increase in revenue to $80.4 million and a 35% increase in North America system-wide sales to $356.7 million compared to Q3 2022. The company sold 216 franchise licenses and opened 127 new studios. While the company posted a net loss of $5.2 million, adjusted EBITDA increased by 33% to $26.5 million.

  • Revenue grew by 26% to $80.4 million compared to Q3 2022.
  • North America system-wide sales increased by 35% to $356.7 million compared to Q3 2022.
  • North America same store sales grew by 15% compared to 17% in Q3 2022.
  • Adjusted EBITDA increased by 33% to $26.5 million compared to $20.0 million in the prior year period.

Headline financials

Total Revenue

$3.35M

Previous: $3.1M+8.0%
EPS (adj)

$0.11

Previous: $0.13-15.4%
North America System-Wide Sales

$357M

Previous: $265M+34.7%
North America Same Store Sales Growth

15.0%

Previous: 17.0%-11.8%
Gross New Studio Openings

127

No prior period
Capital Expenditures

-$6.16M

Previous: -$5.66M-8.8%
Free Cash Flow

-$9.54M

Previous: -$12.8M+25.5%
Net Income

-$3.38M

Previous: -$7.14M+52.6%
Operating Income

$7.48M

Previous: -$10.4M+171.7%
Gross Profit

-$9.32M

Previous: $3.1M-400.1%
Cash & Equivalents

$51.9M

Previous: $30.9M+68.0%
Total Assets

$551M

Previous: $472M+16.7%
Stock-Based Comp

$3.54M

Previous: $4.24M-16.7%

Revenue & EPS history

Xponential Fitness · Revenue · Quarterly

$3.35M

Q3 2023+8%vs Q3 2022
Beat estimate in 3 of 15 quarters(20%)
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 is increasing its full year 2023 guidance for revenue and tightening the top end ranges for new studio openings, system-wide sales and Adjusted EBITDA.

Tailwinds

  • New studio openings in the range of 550 to 560, or an increase of 9% at the midpoint as compared to full year 2022.
  • North America system-wide sales in the range of $1.390 billion to $1.395 billion, or an increase of 35% at the midpoint as compared to full year 2022.
  • Revenue in the range of $305.0 million to $310.0 million, or an increase of 26% at the midpoint as compared to full year 2022.
  • Adjusted EBITDA in the range of $104.5 million to $106.5 million, or an increase of 42% 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 18 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-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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