Xponential Fitness (NYSE:XPOF) Announces Earnings Results, Misses Expectations By $0.15 EPS

Xponential Fitness (NYSE:XPOF) issued its earnings results on Thursday. The company reported ($0.04) EPS for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.15), FiscalAI reports. Xponential Fitness had a negative net margin of 11.28% and a negative return on equity of 3.49%. The firm had revenue of $60.71 million during the quarter, compared to analysts’ expectations of $63.75 million. During the same quarter last year, the firm earned $0.20 EPS. The business’s revenue for the quarter was down 21.0% compared to the same quarter last year.

Here are the key takeaways from Xponential Fitness’ conference call:

• Leadership additions: The company added Robert Julian as Interim CFO, Eric Quade as CIO, and will hire Steph Soe as CMO, positions management says will strengthen financial, technology, and marketing execution.
• Unit growth and pipeline: Q1 saw 23 net domestic and 17 net international openings, management reaffirmed a 2026 target of 150–170 net studio openings and highlighted a robust Club Pilates pipeline (targeting >2,100 U.S. studios and >499 committed international licenses).
• Same‑store sales weakness: Q1 same‑store studio sales fell ~6% company‑wide (Club Pilates down ~4%), which management attributes mainly to lower digital traffic from Meta/Google platform changes and privacy‑related lead conversion issues.
• Financial pressure and liabilities: Revenue declined 21% YoY to $60.7M and adjusted EBITDA fell 25% to $20.4M; cash dropped to $21.5M, the company drew $10M on its revolver, paid $12.5M of franchisee settlement with ~$16.4M more expected, and long‑term debt rose to $523.7M.
• Operational fixes underway include a new national marketing agency, automated CRM emails, website redesigns (early lifts at StretchLab), pricing “hygiene” and remodels; management expects these initiatives plus targeted paid spend to stabilize lead generation and reaffirmed full‑year 2026 guidance.

Xponential Fitness Stock Down 14.1%

XPOF stock traded down $0.93 during midday trading on Friday, hitting $5.62. 1,653,009 shares of the company traded hands, compared to its average volume of 375,491. Xponential Fitness has a twelve month low of $3.83 and a twelve month high of $11.14. The stock has a market capitalization of $275.42 million, a price-to-earnings ratio of -4.07 and a beta of 1.19. The business has a 50 day simple moving average of $6.36 and a 200-day simple moving average of $7.11.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Kanen Wealth Management LLC bought a new stake in Xponential Fitness during the fourth quarter valued at about $1,313,000. XTX Topco Ltd bought a new position in shares of Xponential Fitness in the fourth quarter worth about $616,000. Bridgeway Capital Management LLC acquired a new position in shares of Xponential Fitness during the 4th quarter worth about $288,000. Price T Rowe Associates Inc. MD lifted its position in shares of Xponential Fitness by 28.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,958 shares of the company’s stock worth $148,000 after purchasing an additional 3,999 shares during the last quarter. Finally, Soviero Asset Management LP bought a new stake in Xponential Fitness during the 4th quarter valued at approximately $988,000. Institutional investors own 58.55% of the company’s stock.

Trending Headlines about Xponential Fitness

Here are the key news stories impacting Xponential Fitness this week:

• Negative Sentiment: Q1 2026 results missed expectations, with EPS of -$0.04 versus the $0.11 consensus and revenue of $60.7 million versus $63.8 million expected; revenue also fell 21% from a year ago, signaling softer operating performance. Article Title
• Negative Sentiment: The company’s same-store sales in North America declined 6%, reversing last year’s growth and suggesting slower franchise demand. Article Title
• Negative Sentiment: Lake Street Capital downgraded Xponential Fitness (XPOF) from buy to hold, even though it kept a $6.00 price target, which adds to the cautious sentiment around the stock. Article Title
• Neutral Sentiment: Management guided 2026 revenue to $260 million-$270 million, roughly in line with Wall Street expectations, which may help limit further downside if execution improves.
• Neutral Sentiment: Despite the earnings miss, North America system-wide sales rose 2% to $436.9 million, showing the franchise base is still expanding even as same-store trends remain weak.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on XPOF shares. Lake Street Capital lowered Xponential Fitness from a “buy” rating to a “hold” rating and set a $6.00 price target for the company. in a report on Friday. Robert W. Baird cut their price objective on shares of Xponential Fitness from $8.00 to $6.50 and set a “neutral” rating on the stock in a research report on Friday, February 27th. Zacks Research raised shares of Xponential Fitness from a “strong sell” rating to a “hold” rating in a research report on Monday, May 4th. Roth Mkm set a $7.00 price target on shares of Xponential Fitness in a research note on Friday. Finally, Wall Street Zen downgraded shares of Xponential Fitness from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. One investment analyst has rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $8.50.

About Xponential Fitness

Xponential Fitness is a leading franchisor and operator of boutique fitness studios headquartered in Irvine, California. The company specializes in developing, marketing, and supporting a portfolio of fitness brands that deliver low-impact cardio, strength training, and mindful movement workouts. Through its asset-light franchise model, Xponential provides entrepreneurs with proprietary studio designs, branded equipment, digital support, and comprehensive training programs to ensure consistent member experiences.

Its portfolio comprises core brands such as Club Pilates, Pure Barre, CycleBar, StretchLab, YogaSix, Row House, Rumble, AKT, and STRIDE.