Xponential Fitness Stock Earnings Reports

Xponential Fitness reported Q1 2026 results while reaffirming full-year 2026 guidance. Key operational highlights: 66 gross new studio openings in Q1 (43 North America, 23 international) and 3,137 global open studios at quarter end; finalized major Club Pilates expansion deals and continued international expansion with first studios in Mexico, Belgium and Thailand. Same-store studio sales declined (company-wide down ~6% and Club Pilates down ~4%), driven primarily by lower digital traffic and lead generation impacted by AI-driven changes at Meta and Google and by conversion frictions at the studio level during a shift to a field-based support structure. Management emphasized improving top-of-funnel acquisition (paid and organic), digital and website upgrades (AI SEO focus), a new national marketing/digital agency, launch of automated email CRM, studio remodel program and new class/product innovation (e.g., Club Pilates Circuit). Financials: consolidated revenue $60.7M (down 21% YoY), adjusted EBITDA $20.4M (down 25% YoY) with adjusted EBITDA margin ~34%. Cash was $21.5M at quarter end; they drew $10M on a $25M revolving credit facility in April for flexibility and expect to repay it by year-end. They paid $12.5M related to a franchisee lawsuit and expect ~$16.4M additional payments for franchisee and FTC settlements this year. Management reiterated 2026 guidance: net new studios 150–170, North America system-wide sales $1.72–1.80B, total revenue $260–270M, adjusted EBITDA $100–110M (midpoint ~39.6% margin). Management is engaged in a strategic alternatives review (no details discussed).