- 2026 operating targets include new studio openings of 500, system-wide sales of $2.330 billion, revenue of $405.0 million and Adjusted EBITDA of $190.0 million
- Announces new partnership with Gympass
- Welcomes VaynerMedia as official advertising agency
Xponential Fitness, Inc. (NYSE: XPOF) (the “Company” or “Xponential Fitness”), the largest global franchisor of boutique fitness brands, today will hold its inaugural Analyst and Investor Day at the New York Stock Exchange (“NYSE”). The presentation will be streamed live on Xponential’s Investor Relations website at https://investor.xponential.com/. In addition, all accompanying materials that will be used during today’s event can now be accessed at https://investor.xponential.com/.
“It is great to be at the NYSE today to discuss a wide range of topics, including our three-year operating targets,” said Anthony Geisler, CEO of Xponential Fitness, Inc. “In addition, we are thrilled to announce our new partnership with Gympass and look forward to working with Gary Vaynerchuk and VaynerMedia as they lead Xponential’s marketing efforts moving forward.”
2023 Outlook and Three-Year Operating Targets
The Company is confident it will achieve the high-end of the ranges in its full year 2023 outlook which was provided in its second quarter 2023 earnings release announced on August 3, 2023, and remains as follows:
- New studio openings in the range of 540 to 560, or an increase of 8% at the midpoint as compared to full year 2022;
- North America system-wide sales in the range of $1.385 billion to $1.395 billion, or an increase of 35% at the midpoint as compared to full year 2022;
- Revenue in the range of $295.0 million to $305.0 million, or an increase of 22% at the midpoint as compared to full year 2022; and
- Adjusted EBITDA in the range of $102.5 million to $106.5 million, or an increase of 41% at the midpoint as compared to full year 2022.
In addition, the Company also confirmed today that it concurs with current full year 2024 sell-side performance estimates.
Furthermore, Xponential Fitness is providing three-year operating targets as follows:
- New studio openings of 500;
- North America system-wide sales of $2.330 billion;
- Revenue of $405.0 million; and
- Adjusted EBITDA of $190.0 million.
Xponential Fitness is proud to announce a new partnership with Gympass, the leading corporate well-being platform. With more than 15,000 corporate customers and two million paid subscribers, all ten brands will be available on the Gympass app in October, which will utilize excess inventory to offer Xponential classes to a new market of potential customers and drive incremental studio revenue.
Xponential Fitness has selected VaynerMedia, a contemporary global creative and media agency with expertise delivering impactful business results, as its global media and creative agency of record. VaynerMedia will assume marketing and creative responsibilities for all Xponential brands effective October 1, 2023. Pursuant to the partnership, VaynerMedia Chairman and Chief Executive Officer Gary Vaynerchuk will lead marketing for all Xponential brands.
Analyst and Investor Day Event Details
Xponential Fitness will host an Analyst and Investor Day today at the New York Stock Exchange. Presentations by members of the Xponential management team, including Anthony Geisler, CEO, John Meloun, CFO, Sarah Luna, President, and Ryan Junk, COO, will begin at 9:00 a.m. ET.
A live stream of the Analyst and Investor Day will be available through the Investor Relations section of Xponential’s website at https://investor.xponential.com/ beginning at 9:00 a.m. ET. To listen to a live webcast, please visit the site at least 15 minutes prior to the start time to register, download and install any necessary software. For those unable to join for the live presentations, a replay will be available through the Investor Relations section of the Company’s website following the event.
About Xponential Fitness, Inc.
Xponential Fitness, Inc. (NYSE: XPOF) is the largest global franchisor of boutique fitness brands. Through its mission to make boutique fitness accessible to everyone, the Company operates a diversified platform of ten brands spanning across verticals including Pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, running, functional training and yoga. In partnership with its franchisees, Xponential Fitness offers energetic, accessible, and personalized workout experiences led by highly qualified instructors in studio locations across 49 U.S. states and Canada, and through master franchise or international expansion agreements in 19 additional countries. Xponential Fitness' portfolio of brands includes Club Pilates, the largest Pilates brand in the United States; CycleBar, the largest indoor cycling brand in the United States; StretchLab, a concept offering one-on-one and group stretching services; Row House, the largest franchised indoor rowing brand in the United States; AKT, a dance-based cardio workout combining toning, interval and circuit training; YogaSix, the largest franchised yoga brand in the United States; Pure Barre, a total body workout that uses the ballet barre to perform small isometric movements, and the largest Barre brand in the United States; STRIDE, a treadmill-based cardio and strength training concept; Rumble, a boxing-inspired full-body workout; and BFT, a functional training and strength-based program. For more information, please visit the Company’s website at https://xponential.com.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures. We believe non-GAAP financial measures are useful in evaluating our operating performance. We use certain non-GAAP financial information, such as EBITDA, Adjusted EBITDA, adjusted net income (loss), and adjusted net earnings (loss) per share, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively with comparable GAAP financial measures, is helpful to investors because it provides consistency and comparability with past financial performance and provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations or outlook. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We seek to compensate such limitations by providing a detailed reconciliation for the non-GAAP financial measures to the most directly comparable financial measures stated in accordance with GAAP. However, we are not able to provide a quantitative reconciliation of the estimated full-year Adjusted EBITDA for fiscal year ending December 31, 2023 (or any future periods) without unreasonable efforts to the most directly comparable GAAP financial measure due to the high variability, complexity and low visibility with respect to certain items such as taxes, TRA remeasurements, and income and expense from changes in fair value of contingent consideration from acquisitions. We expect the variability of these items to have a potentially unpredictable and potentially significant impact on future GAAP financial results, and, as such, we also believe that any reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated financial performance. These forward-looking statements include, without limitation, statements relating to expected growth of our business; projected number of net new studio openings; anticipated industry trends; projected financial and performance information such as targeted system-wide sales; targeted revenue, and targeted Adjusted EBITDA; our competitive position in the boutique fitness industry; and ability to execute our business strategies and our strategic growth drivers. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, our relationships with master franchisees, franchisees and international partners; difficulties and challenges in opening studios by franchisees; the ability of franchisees to generate sufficient revenues; risks relating to expansion into international markets; loss of reputation and brand awareness; general economic conditions and industry trends; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the full year ended December 31, 2022 filed by Xponential with the SEC and other periodic reports filed with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and Xponential undertakes no duty to update such information, except as required under applicable law.
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