Xponential Fitness secures $25 million in new term loans

Xponential Fitness, Inc. (NYSE:XPOF), a diversified fitness and wellness services provider, has entered into a seventh amendment to its existing financing agreement, securing an additional $25 million in term loans. The amendment, effective as of Thursday, August 23, 2024, involves Wilmington Trust, National Association, serving as the administrative and collateral agent, alongside lenders which include entities affiliated with MSD Partners.

The fresh capital infusion through the Seventh Amendment Incremental Term Loans is earmarked for general corporate purposes. This includes bolstering working capital, addressing lease liabilities, and covering legal costs connected to regulatory matters that the company has previously disclosed.

The terms of the Amendment stipulate that the proceeds will be utilized to support the company's ongoing operational needs. The details of the Amendment will be fully disclosed in Xponential Fitness's upcoming quarterly report on Form 10-Q for the quarter ending September 30, 2024, in accordance with the Securities and Exchange Act of 1934 regulations.

This strategic financial move by Xponential Fitness, headquartered in Irvine, California, reflects its efforts to maintain a robust balance sheet and ensure the company has the liquidity necessary to navigate its business obligations and growth strategies.

In other recent news, Xponential Fitness, a prominent boutique fitness franchisor, reported a 1% decrease in consolidated revenue in its Q2 2024 earnings call. Despite this, the company saw a 22% boost in franchise revenue and projects a 16% year-over-year growth in adjusted EBITDA. The firm is focusing on supporting its franchisees, fostering innovation, and expanding internationally.

Xponential Fitness also anticipates opening between 500 to 520 new global studios in 2024, which is an 8% decrease from the previous year. The company's full-year revenue guidance is set between $300 million to $310 million.

InvestingPro Insights

Xponential Fitness, Inc. (NYSE:XPOF) has demonstrated a strategic approach to financial management with its recent amendment for additional term loans. An InvestingPro Tip highlights that the company has been aggressively buying back shares, showcasing a proactive stance by management in bolstering shareholder value. Additionally, Xponential Fitness impresses with its gross profit margins, which have been robust, as evidenced by a gross profit margin of 68.57% in the last twelve months as of Q2 2024.

InvestingPro Data reveals that Xponential Fitness holds a market capitalization of $641.21 million, with a P/E ratio of 29.93, indicating investors' valuation of the company relative to its earnings. Despite a high earnings multiple, the company's PEG ratio stands at 0.78, suggesting potential for earnings growth when compared to its P/E ratio. Furthermore, the company's revenue has grown by 15.41% in the last twelve months as of Q2 2024, a testament to its expanding business operations.

For investors looking for more in-depth analysis and additional InvestingPro Tips, there are 11 more tips available on the platform, including insights on near-term earnings growth, stock price volatility, and profitability predictions for the year. Visit InvestingPro for a comprehensive evaluation of Xponential Fitness's financial health and future prospects at https://www.investing.com/pro/XPOF.

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