Xponential Fitness Q1 2025: Key Contradictions in Studio Closures, License Sales, and Consumer Behavior

Studio closure expectations, license sales strategy and forecast, license sales and studio openings, franchisee support and operational efficiency, same-store sales and consumer behavior are the key contradictions discussed in Xponential Fitness's latest 2025Q1 earnings call.



Revenue and System-wide Sales Growth:
- North American system-wide sales for Q1 2025 were $467 million, up 18% year-over-year.
- Growth was driven by a 4% increase in same-store sales and an increase in net new studio openings.

Franchise Sales and Studio Closures:
- The company opened 116 gross new studios in Q1, with a 51 global studio closure rate of 1.5%.
- The increase in closures was mainly in CycleBar and StretchLab, attributed to operational challenges in these brands.

Operational Changes and Strategy:
- Xponential Fitness appointed a new Chief Marketing Officer and reorganized resources, launching a new field operations function with 12 field managers.
- These changes aim to improve franchisee support and effectiveness in operating studios, enhancing operational efficiency.

Guidance Adjustments and Financial Outlook:
- Xponential revised guidance for global net new studio openings, expecting 160-180 openings, down 29% from the previous year.
- This adjustment reflects a pause in license sales and an increase in studio closures due to a higher-than-expected churn in certain franchises.