Guggenheim Analyst Maintains Buy Rating on Xponential Fitness Despite Q1 Losses

Guggenheim analyst John Heinbockel maintains a Buy rating for Xponential Fitness with a $13.00 price target, citing the company's quarterly revenue of $76.88 million and GAAP net loss of $1.36 million. Heinbockel has a 5-star rating with a 10.6% average return and 63.08% success rate, covering Consumer Cyclical stocks. The analyst consensus on Xponential Fitness is a Moderate Buy with an average price target of $14.86.

Shares of Xponential Fitness (NYSE: XPOF) experienced a pre-market rally of 3.4% after the company announced the completion of the divestiture of its CycleBar and Rumble brands. The fitness franchisor sold these brands to Extraordinary Brands, LLC, as part of a strategic realignment [1]. CEO Mark King emphasized that the company would focus resources on its more profitable brands to improve financial performance and support its core franchises.

The move follows the SEC's conclusion of its investigation into the company, which began in December 2023 and was a significant overhang on the stock. The investigation was initiated after the SEC requested documents related to potential securities fraud and accounting issues. In a filing, Xponential stated that the investigation was concluded on July 1, 2025, with no enforcement action recommended [1]. This news led to a surge in investor confidence, reflected in the pre-market rally.

The stock cooled down to $11.01, up 2.3% from the previous close. Analysts at Jefferies noted that with the probe now cleared and new leadership in place, investor sentiment should improve, potentially allowing the stock's valuation to rise toward peer levels [1].

Xponential Fitness is down 21.1% since the beginning of the year and is currently trading 40.4% below its 52-week high of $18.47. Investors who bought $1,000 worth of shares at the IPO in July 2021 would now be looking at an investment worth $898.78 [1].

Guggenheim analyst John Heinbockel maintains a Buy rating for Xponential Fitness with a $13.00 price target, citing the company's quarterly revenue of $76.88 million and GAAP net loss of $1.36 million. Heinbockel has a 5-star rating with a 10.6% average return and 63.08% success rate, covering Consumer Cyclical stocks. The analyst consensus on Xponential Fitness is a Moderate Buy with an average price target of $14.86 [2].

The stock's market cap is $517.48 million, with an enterprise value of $867.88 million. Xponential Fitness has 48.59 million shares outstanding, with a current share class of 34.93 million shares. The company has a current ratio of 0.81 and a quick ratio of 0.51. The stock's 52-week price change is -41.52%, with a beta of 1.47, indicating higher than average price volatility [2].

References:
[1] https://finance.yahoo.com/news/why-xponential-fitness-xpof-stock-181602778.html
[2] https://stockanalysis.com/stocks/xpof/statistics/