NYSE$XPOF

Xponential Fitness Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Xponential Fitness reported a 44% increase in Q4 2022 revenue and a 38% increase in North America system-wide sales compared to Q4 2021. The company exceeded its full-year guidance, sold 1,026 franchise licenses, and opened 511 new studios in 2022.

Xponential Fitness announced strong Q4 2022 results, with a 44% increase in revenue and a 38% increase in North America system-wide sales compared to Q4 2021. The company's momentum continued into the new year, with its membership base reaching 600,000 in January. Xponential Fitness provided full-year 2023 guidance, expecting continued growth in net new studio openings, system-wide sales, revenue, and Adjusted EBITDA.

  • Revenue grew by 44% to $71.3 million compared to Q4 2021.
  • North America system-wide sales increased by 38% to $294.1 million compared to Q4 2021.
  • North America same-store sales grew by 17% compared to 53% in the prior year.
  • North America quarterly run-rate average unit volume (AUV) was $522,000 compared to $446,000 in the prior year.

Headline financials

Total Revenue

$71.3M

Previous: $49.4M+44.4%
EPS (adj)

$0.11

Previous: -$0.21+152.4%
North America System-Wide Sales

$294M

Previous: $213M+38.1%
North America Same Store Sales Growth

17.0%

Previous: 53.0%-67.9%
Capital Expenditures

$3.3M

Previous: $1.03M+218.7%
Free Cash Flow

$10.9M

Previous: $9.49M+14.9%
Net Income

-$400K

Previous: -$29.8M+98.7%
Operating Income

$2.57M

Previous: -$26.9M+109.5%
Gross Profit

$49.5M

Previous: $32.2M+53.7%
Cash & Equivalents

$37.4M

Previous: $21.3M+75.4%
Total Assets

$483M

Previous: $416M+16.2%
Stock-Based Comp

$5.12M

Previous: $5.5M-6.8%

Revenue & EPS history

Xponential Fitness · Revenue · Quarterly

$71.3M

Q4 2022+44.4%vs Q4 2021
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

The Company is initiating full-year 2023 outlook, which compares to 2022 results as follows:

Tailwinds

  • Net new studio openings in the range of 540 to 560, or an increase of 8% at the midpoint.
  • North America system-wide sales in the range of $1.34 billion to $1.35 billion, or an increase of 30% at the midpoint.
  • Revenue in the range of $285.0 million to $295.0 million, or an increase of 18% at the midpoint.
  • Adjusted EBITDA in the range of $101.0 million to $105.0 million, or an increase of 39% at the midpoint.
  • Tax rate in the mid-to-high single digits.

Headwinds

  • $1.9 million in quarterly dividends paid related to the Company’s Convertible Preferred Stock.
  • Share count of 32.3 million shares of Class A Common Stock for the GAAP EPS and Adjusted EPS calculations.
  • High variability, complexity and low visibility with respect to certain items such as taxes, TRA remeasurements, and income and expense from changes in fair value of contingent consideration from acquisitions.
  • Potential unpredictable and potentially significant impact on future GAAP financial results.
  • Any reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.

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 Q4 2022

Historical avgQ4 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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