- **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.


Xponential Fitness, Inc. (XPOF) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

XPOF

XPOF fundamentals

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