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IRVINE, Calif. - Xponential Fitness , Inc. (NYSE:XPOF) saw its shares tumble 24.9% in after-hours trading on Thursday after the boutique fitness franchisor reported a wider-than-expected fourth quarter loss and issued disappointing guidance for 2025.
The company posted an adjusted loss of $0.19 per share for Q4, significantly below analysts’ expectations for earnings of $0.38 per share. Revenue came in at $83.2 million, slightly ahead of the $81.42 million consensus estimate.
Xponential’s fourth quarter revenue declined 7% year-over-year to $83.2 million, despite a 21% increase in North America system-wide sales to $464.7 million. The company attributed the revenue decline primarily to decreases in other service, merchandise and equipment revenues.
For the full year 2025, Xponential forecasts revenue between $315 million and $325 million, well below Wall Street’s projection of $342.8 million. The weak outlook suggests ongoing challenges for the fitness franchise operator.
"It is clear from some of the issues we have found and are addressing that there is a lot to do," said CEO Mark King. "That said, I have full confidence in the team we’ve assembled; they all have experience executing on exactly what Xponential must execute on to sustainably grow."
The company also announced a restatement of its 2023 financial statements to correct accounting errors related to accrued inventory, 401(k) compliance, purchase accounting, and vendor rebates. The restatement increased Xponential’s 2023 net loss from $1.7 million to $6.4 million.
As of December 31, 2024, Xponential had 813,000 members across its portfolio of boutique fitness brands, up 15% YoY. However, the company’s quarterly average unit volume growth slowed to 9% compared to the prior year.
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