Xponential Fitness Inc. has agreed to pay $17 million over 12 months to resolve the previously disclosed FTC investigation, without admitting liability, which is subject to approval by the FTC Commissioners and the court.
The Irvine company has also finalized a $22.75 million settlement with over 500 current and former franchisees to be paid out over a 35-month period.
“The company believes these developments will substantially reduce regulatory and legal uncertainty,” Xponential said in a statement.
Shares of Xponential dropped 10% to $7.20 during after-hours trading after posting the update and its fourth-quarter report on Feb. 26 (NYSE: XPOF). It had a market cap of $394 million during regular trading.
The franchisor of fitness studios reported Q4 revenue of $83 million, flat compared to the same period in 2024.
North America system-wide sales rose 5% to $447 million while same store sales fell 4% compared to a year prior.
Xponential Fitness forecasts 2026 revenue in the range of $260 million to $270 million, representing a 16% decrease from 2025, as well as a 20% decrease in new studio openings.
