Xponential Fitness Q2 EPS Jumps 18%, GAAP Revenue Declines 1% YoY.

Xponential Fitness reported Q2 EPS of $0.26, beating estimates by 18%, but GAAP revenue of $76.2 million missed expectations and declined 1% YoY. Same store sales growth in North America slowed to 1%. Net new studio opening guidance for FY2025 is expected to be down 37% compared to the prior year. The company divested two brands, reorganized its field operations, and forecasts lower revenue and adjusted EBITDA for the year.

Xponential Fitness Inc (XPOF) reported its Q2 2025 earnings, showcasing a mixed performance with significant advancements in earnings per share (EPS) while revenue missed expectations and slowed growth in same-store sales. The company's adjusted EPS of $0.26 surpassed estimates by 18%, highlighting strong profitability improvements [1]. However, GAAP revenue of $76.2 million fell short of the estimated $77.24 million, marking a 1% decline year-over-year [1].

The company's net income turned positive, with a net income of $1.3 million, a substantial turnaround from the previous year's net loss of $14.3 million [1]. Adjusted EBITDA rose by 14% to $28.1 million, indicating enhanced operational efficiency [1]. System-wide sales increased by 12% year-over-year to $473.5 million, driven by new studio openings and higher memberships [2].

Xponential Fitness reported a quarterly average unit volume (AUV) of $659,000, up 3% from the previous year, and expanded its membership base by 8% to 863,000 [2]. The company also opened 86 new studios in Q2 2025, contributing to its growth strategy [1]. Despite these positive metrics, the company's revenue decreased by 1% compared to the prior year, primarily due to lower equipment revenue and a decline in merchandise sales [1].

The company expects 2025 revenue between $300 million and $310 million and forecasts 2025 Adjusted EBITDA of $106 million to $111 million [2]. However, the net new studio opening guidance for FY2025 is expected to be down 37% compared to the prior year. The company also divested CycleBar and Rumble and reorganized its field operations as part of its strategic initiatives [2].

Xponential Fitness's stock has seen institutional investors increase their positions, with AQR Capital Management growing its stake by 94.8% in the first quarter [3]. Analysts have upgraded their ratings, with a consensus rating of "Moderate Buy" and an average price target of $13.07 [3].

Investors and stakeholders will be keen to see how these strategic initiatives translate into financial performance in the coming quarters. The company's focus on expanding its franchise network and enhancing operational efficiency positions it well for future growth in the competitive boutique fitness industry.

References:
[1] https://www.gurufocus.com/news/3046210/xponential-fitness-inc-xpof-q2-2025-earnings-eps-surges-to-026-beating-estimates-revenue-slightly-misses-at-762-million
[2] https://www.marketscreener.com/news/xponential-fitness-q2-net-income-swings-to-profit-ce7c5edcd888f624
[3] https://www.marketbeat.com/instant-alerts/xponential-fitness-xpof-expected-to-announce-earnings-on-thursday-2025-07-31/