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Xponential expanded its footprint in 2025—opening 201 net new studios (341 gross) and reaching roughly $1.75 billion in system‑wide sales with Club Pilates as the primary growth driver, but also recorded 140 closures (~4.5% of studios) that management expects to trend lower.
Financially, Q4 revenue was $83M (flat YoY) and full‑year revenue was $314.9M (down 2%), Q4 net loss narrowed to $45.6M while adjusted EBITDA fell 26% to $22.9M, and management guided 2026 to $260–$270M revenue and $100–$110M adjusted EBITDA.
For 2026 the company will prioritize member acquisition and studio performance—investing in performance marketing, digital conversion tools, a ~35‑person field team and studio upgrades—while strengthening the balance sheet via a new $525M term loan (and $25M revolver) and agreeing to a proposed $17M FTC settlement (subject to approval).
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Xponential Fitness (NYSE:XPOF) used its fourth-quarter and full-year 2025 earnings call to outline progress made during the year, acknowledge operational challenges that weighed on organic growth, and frame a 2026 plan centered on improving member acquisition and studio-level performance while continuing to expand its footprint.
Chief Executive Officer Mike Nuzzo said the company opened 201 net new studios in 2025 and reached $1.75 billion in system-wide sales, citing continued momentum from its franchise base and “strong brands.” He highlighted Club Pilates as a key growth driver, noting the opening of the brand’s 1,414th studio and pointing to what he described as compelling “four-wall economics” and a strong first-year sales ramp.
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Chief Financial Officer John Meloun reported that the company ended the fourth quarter with 3,097 global open studios. During Q4, Xponential opened 78 gross new studios (51 in North America and 27 internationally). For the full year, gross new studio openings totaled 341 (252 in North America and 89 internationally).
Closures were also a notable factor. Meloun said there were 47 global studio closures in Q4 and 140 during 2025, representing about 4.5% of global open studios for the year. Q4 closures included the decommissioning of 16 non-traditional studios operating on Princess Cruises. The remaining 31 traditional studio closures were said to be concentrated primarily within StretchLab, BFT, and YogaSix. Management expects closure rates to decline over time and be in the low-to-mid single digits.
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Xponential sold 53 licenses globally in Q4 and 179 licenses during 2025. Of the annual total, 112 licenses were international and 67 were for North America. Meloun said North America license sales were lower during parts of the year because the company temporarily paused sales activity while updating franchise disclosure documents (FDDs). Updated FDDs are expected to be filed in the coming weeks as part of the normal renewal process.
As of December 31, 2025, the company had more than 830 licenses contractually obligated to open in North America and more than 760 international master franchise obligations. Meloun said roughly 30% of these obligations are more than 12 months behind their contractual development schedules and are considered inactive. Nuzzo said the company has implemented an effort to address global licenses that are lagging more than 12 months behind schedule.
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In North America, Q4 system-wide sales were $447 million, up about 5% year over year, driven primarily by net new studio openings. Same-store sales were negative 4.3% in the quarter. For the full year, system-wide sales increased about 13% to $1.7 billion, and full-year same-store sales were 0.5%.
North America run-rate average unit volumes (AUVs) were $683,000 in Q4, down 2% from $695,000 a year earlier. Meloun attributed the decrease largely to lower average pricing for paying members, partially offset by a higher number of actively paying members. In the Q&A, he said promotional activity—particularly Black Friday package offers—can dilute pricing in Q4, with normalization expected in Q1 and Q2 as packages are used and members convert to traditional memberships.
Consolidated revenue was $83 million in Q4, flat year over year, and the company said 76% of quarterly revenue was recurring. Full-year 2025 revenue was $314.9 million, down 2% from the prior year. Within Q4 revenue components, franchise revenue rose 14% to $51.5 million, driven by higher franchise territory revenue as the company worked through delinquent franchise licenses. Equipment revenue declined 45% to $7 million due to fewer installations. Merchandise revenue increased 18% to $7.2 million, which management attributed to favorable retail sales and benefits from an outsourced retail operation transition completed in the fourth quarter.
Xponential posted a Q4 net loss of $45.6 million, or $1.17 per basic share, compared to a net loss of $62.5 million, or $1.36 per basic share, in the prior-year quarter. For 2025, net loss was $53.7 million, or $1.47 per basic share, compared to a net loss of $98.7 million, or $2.27 per basic share, in 2024.
Adjusted EBITDA was $22.9 million in Q4, down 26% year over year, with adjusted EBITDA margin falling to 28% from 37%. Meloun said margin pressure reflected higher marketing fund expenses that exceeded marketing fund income, along with lower sponsorship revenue associated with the annual franchise conference. Full-year adjusted EBITDA was $111.8 million, down 4% from 2024.
On a pro forma basis across five brands (BFT, Club Pilates, Pure Barre, StretchLab and YogaSix), Meloun said Club Pilates led 2025 license sales with 140, followed by BFT with 24. Club Pilates represented 78% of total licenses sold in 2025. In gross openings, Club Pilates led with 220, followed by StretchLab with 48 and BFT with 36.
Management also shared AUV and same-store performance by brand for 2025:
Club Pilates: AUV down 6% year over year to $966,000; full-year same-store sales +3% (Q4 same-store sales down 3%, as disclosed in Q&A).
StretchLab: AUV down 12% to $483,000; full-year same-store sales -12%.
Pure Barre: AUV up 3% to $400,000; full-year same-store sales +4%.
YogaSix: AUV up 12% to $525,000; full-year same-store sales +2%.
Nuzzo said the company faced “marketing and lead management missteps” in 2025 that contributed to top-of-funnel challenges and same-store sales pressure, “most visible in Club Pilates.” He said 2026 investments will prioritize new member acquisition and franchisee top-line health, even if that results in more modest near-term adjusted EBITDA growth than previously expected.
Among planned 2026 initiatives discussed on the call were enhancements to performance marketing, website and digital conversion tools, an upgrade to studio member management systems, and support from a roughly 35-person field operations team focused on lead-to-member conversion and presale execution for new studios. Nuzzo also pointed to innovation efforts such as a Club Pilates studio refresh pilot and expanded class formats, including the Club Pilates Circuit class, and noted the company will test pricing and package changes informed by a Q4 pricing study.
Meloun said cash, cash equivalents and restricted cash totaled $45.9 million at year-end 2025, up from $32.7 million a year earlier. He also detailed a December 2025 refinancing: a new five-year, $525 million term loan and a $25 million revolver. The company also fully repurchased outstanding convertible preferred stock, eliminating about 8.1 million potential common shares. Total long-term debt was $525 million at year-end 2025, up from $352.4 million, which management attributed primarily to the retirement of the convertible preferred security.
The company also provided an update on the FTC investigation. Meloun said FTC staff indicated they will recommend that commissioners approve a proposed stipulated consent order to resolve the FTC’s alleged claims. Without admission of liability, Xponential agreed to pay $17 million over the next 12 months, subject to FTC commissioner and court approval.
For 2026, management guided to:
Global net new studio openings: 150 to 170 (net of closures), described as a 20% decrease at the midpoint versus the prior year on a pro forma basis for brand dispositions.
Closures: 3% to 5% of the global system.
North America system-wide sales: $1.72 billion to $1.8 billion.
Total revenue: $260 million to $270 million, with the year-over-year decline driven primarily by revenue impacts from 2025 divested brands and the shift to an outsourced merchandise model.
Adjusted EBITDA: $100 million to $110 million, implying about a 40% margin at the midpoint.
In Q&A, Meloun said the outsourced retail model is expected to improve EBITDA by “high single digit, low double digit” millions of dollars, clarifying it as roughly $9 million to $10 million of EBITDA improvement. He also said Q4 marketing fund spend exceeded marketing fund revenue by about $4 million, primarily funded by Club Pilates marketing fund surplus that built up post-COVID, and that the company expects to deploy additional surplus in the first half of 2026.
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.
The article “Xponential Fitness Q4 Earnings Call Highlights” was originally published by MarketBeat.
