Stifel Nicolaus Keeps Hold Rating for Xponential Fitness with $10 Price Target

Stifel Nicolaus has maintained a Hold rating on Xponential Fitness (XPOF) with a price target of $10.00. The company's shares opened at $8.39. Analyst O'Cull has an average return of 13.0% and a 56.37% success rate on recommended stocks. The current analyst consensus on XPOF is a Moderate Buy with an average price target of $12.43, a 48.15% upside from current levels.

Xponential Fitness Inc. (NYSE: XPOF) received a reiterated Hold rating and a $12.00 price target from Stifel Nicolaus on July 2, 2025, following the company's second-quarter earnings report. The stock opened at $8.39, with analysts maintaining a mixed outlook despite mixed financial performance.

The fitness franchisor reported second-quarter revenue of $76.2 million, slightly above Wall Street expectations of $75.6 million but below Stifel's projection of $77.2 million. While the company's revenue showed a slight year-over-year decrease, primarily due to lower equipment revenue, it maintained impressive gross profit margins of 66.23%, demonstrating strong operational efficiency despite challenges [1].

System-wide sales rose 12% to $473.5 million, while adjusted EBITDA increased 14% to $28.1 million, benefiting from lower-than-expected SG&A expenses and higher franchise profit. The company opened 86 new studios during the quarter but continues to face challenges with certain brands, notably StretchLab [1].

Xponential revised its 2025 guidance downward, projecting lower system sales, fewer new studio openings, decreased revenue, and reduced adjusted EBITDA. The company's Club Pilates brand is experiencing slower comparable sales and is testing new pricing and marketing strategies [1].

Despite near-term challenges, net income is expected to grow this year, with three analysts revising their earnings estimates upward for the upcoming period [1].

The company announced the appointment of Mike Nuzzo as CEO, effective immediately, succeeding retiring CEO Mark Kring. Nuzzo brings over 25 years of consumer retail and services experience, having previously served as CEO of Eyemart Express and in executive roles at Petco. The leadership change comes as the stock has experienced significant volatility, with a 44.5% decline over the past six months [1].

In other recent news, Xponential Fitness Inc. reported its second-quarter 2025 earnings, delivering an adjusted earnings per share (EPS) of $0.26, which exceeded analysts’ expectations of $0.22. However, the company experienced a slight revenue miss, reporting $76.2 million in revenue against the anticipated $77.24 million. The earnings announcement was followed by a significant premarket decline in the stock. Despite the earnings beat, the revenue shortfall drew attention from investors [1].

Analysts at Raymond James have lowered their price target for Xponential Fitness from $15.00 to $14.00, while maintaining a "Strong Buy" rating. The move reflects recent financial performance and leadership changes at Xponential Fitness. The company's strong fundamentals and growth potential are seen as positive factors, but the analysts acknowledge the challenges it faces [2].

Despite a recent 26.6% decline in stock price, several analysts have upgraded their ratings and price targets for Xponential Fitness. The consensus rating is a Moderate Buy with an average price target of $12.43, a 48.15% upside from current levels [3].

References:
[1] https://in.investing.com/news/analyst-ratings/xponential-fitness-stock-holds-steady-as-stifel-maintains-12-price-target-93CH-4954100
[2] https://www.ainvest.com/news/raymond-james-adjusts-xponential-fitness-price-target-14-00-maintains-strong-buy-rating-2508/
[3] https://www.marketbeat.com/instant-alerts/xponential-fitness-inc-nysexpof-given-average-rating-of-moderate-buy-by-brokerages-2025-08-10/