US stock futures dip as Trump’s firing of Cook sparks Fed independence fears
Xponential Fitness, Inc. (XPOF) stock has reached a 52-week low, dipping to $7.24, as the company faces a tough market environment. Despite maintaining impressive gross profit margins of 67% and generating annual revenue of $327 million, the fitness franchise operator’s shares have struggled. This latest price point underscores a challenging period for the fitness franchise leader, which has seen its stock value decrease by 20.63% over the past year. Investors are closely monitoring the company’s performance, as the broader fitness industry grapples with post-pandemic shifts in consumer behavior and spending. The 52-week low serves as a critical indicator for the market, reflecting both the short-term and long-term investor sentiment towards XPOF’s growth prospects and operational resilience. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts setting price targets ranging from $9 to $32. Discover more insights and 6 additional ProTips for XPOF with an InvestingPro subscription.
In other recent news, Xponential Fitness Inc. reported a notable earnings miss for the fourth quarter of 2024, with earnings per share (EPS) at -$0.19, significantly below the anticipated $0.38. Despite this, the company slightly exceeded revenue expectations, bringing in $83.2 million against the forecasted $81.42 million. The full-year revenue was $320.3 million, marking a 1% increase year-over-year, while adjusted EBITDA for the year was $116.2 million, a 16% increase from the previous year.
Jefferies analyst Randal Konik adjusted the price target for Xponential Fitness to $32 from $36 but maintained a Buy rating, citing confidence in the company’s long-term growth prospects despite lighter EBITDA figures and 2025 guidance. Conversely, Stifel analysts downgraded the stock from Buy to Hold, reducing the price target to $12 from $20, due to deeper-than-expected operational challenges and a financial restatement.
The company plans to open 200-220 new studios globally in 2025, with a focus on franchisee profitability and a target EBITDA margin of 20-25%. Despite the challenges, Xponential Fitness is working to improve its infrastructure and operational processes under the leadership of its new CEO, Mark King.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.