NYSE$XPOF

Xponential Fitness Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Xponential Fitness reported mixed Q3 2024 results with revenue consistent year-over-year, but a net loss posted. The company saw growth in North America system-wide sales and AUV, while strategically shifting away from company-owned transition studios.

Xponential Fitness reported Q3 2024 financial results with revenue of $80.5 million, consistent with the prior year. The company posted a net loss of $18.0 million, or a loss of $0.29 per basic share, compared to a net loss of $5.2 million, or earnings per basic share of $0.91, in the prior year period. North America system-wide sales increased by 21% to $431.2 million, and North America quarterly run-rate AUV grew to $631,000 from $585,000.

  • Revenue remained consistent at $80.5 million compared to the previous year.
  • North America system-wide sales increased by 21% to $431.2 million.
  • North America same store sales grew by 5%, a decrease from the previous 15%.
  • Net loss was $18.0 million, or a loss of $0.29 per basic share.

Headline financials

Total Revenue

$3.81M

Previous: $3.35M+13.6%
EPS

-$0.29

Previous: $0.11-363.6%
North America System-Wide Sales

$431M

Previous: $357M+20.9%
Gross New Studio Openings

125

Previous: 127-1.6%
Capital Expenditures

-$4.82M

Previous: -$6.16M+21.8%
Free Cash Flow

-$16.8M

Previous: -$9.54M-76.3%
Net Income

-$12M

Previous: -$3.38M-254.8%
Operating Income

-$6.43M

Previous: $7.48M-185.9%
Gross Profit

$1.54M

Previous: -$9.32M+116.5%
Total Assets

$472M

Previous: $551M-14.3%
Stock-Based Comp

$4.98M

Previous: $3.54M+40.9%

Revenue & EPS history

Xponential Fitness · Revenue · Quarterly

$3.81M

Q3 2024+13.6%vs Q3 2023
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 reiterating its 2024 guidance for system-wide sales, total revenue, and adjusted EBITDA, while lowering guidance for global new studio openings.

Tailwinds

  • North America system-wide sales are expected to be in the range of $1.705 billion to $1.715 billion, representing a 22% increase at the midpoint compared to full year 2023.
  • Revenue is projected to be in the range of $310.0 million to $320.0 million, consistent with full year 2023.
  • Adjusted EBITDA is anticipated to be in the range of $120.0 million to $124.0 million, a 16% increase at the midpoint compared to full year 2023.
  • Tax rate is expected to be in the mid-to-high single digits.
  • Share count is estimated to be 31.8 million shares of Class A Common Stock for GAAP EPS and Adjusted EPS calculations.

Headwinds

  • Gross new studio openings are now projected to be in the range of 490 to 510, a decrease of 10% at the midpoint compared to full year 2023 gross new openings.
  • The company is unable to provide a quantitative reconciliation of the estimated full year Adjusted EBITDA due to the variability and complexity of certain items.
  • Potential unpredictable and significant impact on future GAAP financial results.
  • Reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.
  • Variability of items such as taxes, TRA remeasurements, and income and expense from changes in fair value of contingent consideration from acquisitions.

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 2024

Historical avgQ3 2024

-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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