Voss Capital, which owns nearly 20% of Xponential, says Club Pilates’ brand strength means the fitness franchisor is worth much more than its current equity value
Less than a week after Xponential Fitness disclosed nearly $40 million in legal settlements and watched its stock plunge, the boutique fitness and wellness franchisor is now facing pressure from its biggest shareholder to sell.
Voss Capital, a Houston-based investment firm that controls 19.3% of Xponential’s outstanding shares, issued an open letter Wednesday to the company’s board of directors urging it to immediately hire independent financial advisors and explore a full sale of the company, including its boutique fitness darling, Club Pilates.
Shares of Xponential rose over 12% Wednesday following the letter’s release.
“The entire company’s 2026 Adjusted EBITDA guidance midpoint is only $105 million — suggesting Club Pilates standalone now generates more in earnings than the company as a whole with its four other brands and current corporate structure,” the letter stated.
Xponential’s other brands include Pure Barre, YogaSix, BFT and StretchLab.
Voss also took aim at Xponential’s more than $500 million in debt and $55 million in annual interest expense.
“After the legal settlements, capital expenditures and interest, the equity holders of XPOF receive very little of the cash the business generates,” Voss wrote, adding that a sale could resolve what it called a “potential structural trap.”
And then there is Club Pilates, which Voss described as a “generational fitness franchise asset,” pointing to the brand’s 1,414 global studios and nearly $1 million in average unit volumes.
It is, the firm noted in its letter, seven times larger than its nearest competitor.
“Given Club Pilates’ unmatched scale, healthy franchisee base, new unit pipeline visibility and long unit growth runway, it is reasonable to suspect a sale of the brand could be worth multiples of the current equity value, even after netting all corporate level debt,” the letter continued.
The letter comes as Xponential reported a net loss of $53.7 million for full-year 2025 alongside a $17 million FTC settlement and a separate $22.75 million payout to more than 500 current and former franchisees. The fitness franchisor also disclosed that roughly 30% of its contractually obligated studio licenses are more than 12 months behind schedule.
The FTC consent agreement still requires approval from commissioners and a court.
Xponential has been shedding brands in recent years.
At its height in 2023, the company operated 11 boutique fitness and wellness concepts. Since then, it has offloaded Rumble Boxing and CycleBar to Extraordinary Brands, sold Lindora, its GLP-1 and longevity franchise, to Next Health and divested both Row House and Stride Fitness. It also shuttered AKT, its dance-based cardio brand.
The franchisor is led by Mike Nuzzo, who was appointed CEO last August, succeeding Mark King.
Xponential Fitness didn’t immediately respond to a request for comment.
