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IRVINE, Calif. - Xponential Fitness, Inc. (NYSE: XPOF), a prominent global franchisor of boutique health and wellness brands with impressive gross profit margins of 66%, announced the upcoming retirement of its CEO Mark King. According to InvestingPro data, the company’s stock is currently undervalued, trading at $9.83 with strong growth potential ahead. King, who has played a pivotal role in the company’s growth, will remain in his position until a suitable successor is appointed.
King’s tenure as CEO saw him utilize his vast experience in scaling global franchises to fortify Xponential’s market position and expand the reach of its fitness brands, achieving annual revenues of $317.5 million. His strategic focus on franchisee health and a customer-centric culture has been integral to the company’s stability and growth strategy. King also spearheaded the formation of a top-tier leadership team, aligning with the company’s vision of becoming the preferred global franchisor in health and wellness. InvestingPro analysis shows three analysts have recently revised their earnings expectations upward, suggesting positive momentum ahead.
The Board of Directors, led by Chairman Mark Grabowski, has expressed its gratitude for King’s significant contributions and has committed to a comprehensive search for the next CEO. The board aims to facilitate a seamless transition, with King’s continued involvement throughout the process.
King is set to participate in Xponential’s Analyst and Investor Day on Thursday, May 29, 2025, at the New York Stock Exchange. This event will highlight the company’s operations, strategy, and commitment to shareholder value, featuring presentations from key management figures, including CFO John Meloun, President of North America John Kawaja, and COO of North America Tim Weiderhoft.
Xponential Fitness is known for its diverse portfolio of eight brands, which include Club Pilates, CycleBar, StretchLab, YogaSix, Pure Barre, Rumble, BFT, and Lindora. The company operates in 49 U.S. states, Puerto Rico, and 30 additional countries through franchise, master franchise, and international expansion agreements.
The press release also contains forward-looking statements regarding the anticipated benefits of executive expertise, acknowledging the inherent risks and uncertainties that could affect future results. These statements are not guarantees of future performance and are subject to various factors that could cause actual outcomes to differ. For deeper insights into XPOF’s financial health and growth prospects, including 10+ additional ProTips and comprehensive valuation metrics, visit InvestingPro for exclusive analysis and the detailed Pro Research Report.
This news is based on a press release statement from Xponential Fitness, Inc.
In other recent news, Xponential Fitness Inc. reported mixed financial results for the first quarter of 2025. The company faced a significant earnings per share (EPS) miss, reporting -$0.20 compared to the forecasted $0.16, although it exceeded revenue expectations with $76.9 million, slightly above the projected $75.42 million. Jefferies analyst Randal Konik responded by lowering the price target for Xponential Fitness from $32 to $26, yet maintained a Buy rating, citing stable core metrics and a continued positive outlook on membership growth. The company also announced strategic initiatives, including international expansion and leadership changes, as part of its efforts to optimize operations. Despite a 4% year-over-year decline in consolidated revenue, North American system-wide sales rose by 18%, reflecting robust performance in that region. Adjusted EBITDA decreased by 9% year-over-year, totaling $27.3 million. Future projections for 2025 include North American system-wide sales between $1.935 billion and $1.955 billion, with global net new studio openings ranging from 160 to 180. Analyst feedback from Jefferies suggests a cautious optimism about Xponential Fitness’s long-term growth potential, despite current financial challenges.
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