What were the key takeaways from Xponential Fitness’s earnings call?

What were the key takeaways from Xponential Fitness's earnings call?

What is the market's earnings forecast for Xponential Fitness next quarter?

What guidance did Xponential Fitness's management provide for the next earnings period?

What is Xponential Fitness's latest dividend and current dividend yield?

What factors drove the changes in Xponential Fitness's revenue and profit?

What is Xponential Fitness's gross profit margin?

Did Xponential Fitness beat or miss consensus estimates last quarter?

- **Revenue Resilience**: Q3 revenue $78.8M (-2% YoY), driven by 10% growth in North America system-wide sales to $432.2M.
- **Club Pilates Dominance**: AUVs hit $668K (+2% YoY), with 2023-2024 cohorts showing 27% higher year-one revenue ramps.
- **Cost Efficiency**: SG&A down 47% YoY to $24.7M, aided by $10M insurance reimbursement.
- **Strategic Shifts**: Streamlined brand portfolio, $5M Q4 marketing investment for Club Pilates, and 20+ field teams supporting franchisees.
- **Challenges Ahead**: 40% of license backlog delayed, Medicare Advantage impacts on StretchLab, and 7% YoY decline in adjusted EBITDA guidance.

**【CEO Opening Remarks】**
- Mike Nuzzo highlighted the company's streamlined brand portfolio post-divestitures (CycleBar, Rumble, Lindora), emphasizing focus on BFT, Club Pilates, Pure Barre, StretchLab, and YogaSix.
- Key industry trends: Boutique fitness market projected to reach $60B by 2030; 247M Americans engaged in exercise in 2024 (+25M since 2019).
- Club Pilates leads with 1,200+ locations globally; 2023-2024 studio cohorts show 27% higher year-one revenue ramps vs. prior vintages.
- Strategic priorities: Marketing, operations support, unit growth, innovation, and cost efficiencies.

**【CFO Financial Summary】**
- Q3 2025 Revenue: $78.8M (-2% YoY), with 73% recurring revenue.
- North America System-Wide Sales: $432.2M (+10% YoY), driven by new studio openings and higher AUVs ($668K vs. $654K YoY).
- Adjusted EBITDA: $33.5M (+9% YoY), margin 42% vs. 38% YoY.
- Franchise Revenue: $51.9M (+17% YoY), Equipment Revenue: $7.5M (-49% YoY).
- SG&A Expenses: $24.7M (-47% YoY), benefiting from $10M insurance reimbursement.
- 2025 Guidance: Adjusted EBITDA $106-111M (-7% YoY midpoint), Revenue $300-310M (-5% YoY midpoint).

**【Q&A Highlights】**
- **Club Pilates Performance**: Q3 same-store sales -0.8% YoY, but 5.4% stacked 2YR growth. AUVs near $1M, limiting comp growth. New pricing study underway to optimize tiers and retention.
- **Marketing Strategy**: $5M Q4 investment in national Club Pilates campaign (podcasts, CTV, YouTube). Testing new channels for future scalability.
- **StretchLab Challenges**: Medicare Advantage coverage reductions impacting member flow. Testing operational adjustments to reduce instructor-to-member ratio.
- **Franchisee Support**: 20+ field support teams implementing ProfitKeeper system to improve studio economics. 40% of license backlog 12+ months behind schedule.
- **Levered Free Cash Flow**: 35% conversion of adjusted EBITDA, with $49M interest expense and $5M tax payments.


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