Xponential Fitness (XPOF) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue declined 21% to $60.7M–$61M, mainly due to lower equipment and merchandise sales after brand divestitures and a shift to outsourced retail merchandising.

• Net loss narrowed to $0.8M ($0.02 per share), a significant improvement from $2.7M loss in Q1 2025, driven by lower SG&A and absence of impairment charges.

• Adjusted EBITDA fell 25% to $20.4M, with margin declining to 34%.

• 66 new studios opened globally in Q1 2026, with 23 net new domestic and 17 net new international units; total operating studios reached 3,137.

• Leadership changes included new interim CFO, CIO, and incoming CMO to strengthen execution and growth.

Financial highlights

• Franchise revenue dropped 6% to $41.2M; equipment revenue fell 61% to $4.4M; merchandise revenue declined 90% to $0.7M.

• North America system-wide sales grew 2% year-over-year to $437M.

• Same-store sales declined 6% overall and 4% for Club Pilates.

• Cash, cash equivalents, and restricted cash totaled $21.5M at quarter-end.

• SG&A expenses declined 34% to $30.0M, mainly due to lower legal and compensation expenses.

Outlook and guidance

• 2026 guidance reaffirmed: 150–170 net new global studios, 3%–5% closure rate, North America system-wide sales of $1.72–$1.80B, revenue of $260–$270M, and adjusted EBITDA of $100–$110M (39.6% margin at midpoint).

• Expect improvement in sales trends and EBITDA as marketing, pricing, and operational initiatives take effect.

• Additional restructuring charges of $9.2M–$12.9M expected through 2026, with annualized savings of $13.5M–$15.5M.

• Franchise sales temporarily paused in several states pending regulatory review, potentially slowing growth.