Key Points – Weak second-quarter performance led Xponential Fitness to lower its 2026 outlook.
North American same-store sales fell 6.8%, revenue declined 13% to $66 million, and adjusted EBITDA dropped 22% to $21.9 million. – The company continues to expand its studio network, ending the quarter with 3,165 locations and pursuing a Club Pilates deal expected to add 117 studios over six years
However, management is shifting priorities toward organic membership growth, franchisee economics, digital marketing and operational consistency. – Xponential is maintaining elevated paid-media spending while addressing merchandise and lead-generation challenges, and its board continues to review strategic alternatives, including a potential sale or merger. Management expects approximately $11.4 million in additional settlement payments during the rest of 2026 and cash flow to turn positive in 2027. – 3 gym stocks to cash in on dieters’ New Year’s resolutions Xponential Fitness (NYSE:XPOF) reported second-quarter results that fell below its internal expectations, prompting the boutique fitness franchisor to lower its full-year outlook as same-store sales declined, merchandise operations remained pressured and the company continued to invest in paid marketing and digital initiatives. Chief Executive Officer Mike Nuzzo said the company is shifting its emphasis from the unit expansion and brand development that characterized its prior growth toward improving organic growth, franchisee economics, operating execution and consistency in the member experience. – Can Planet Fitness Stock Regain its Pump? “Our objective is straightforward,” Nuzzo said. “Build a healthier, more productive franchise system that delivers sustainable membership growth and long-term value creation.” Studio Growth Continues, Though Same-Store Sales Decline Xponential ended the second quarter with 3,165 open studios globally.
The company opened 67 gross new studios during the quarter, including 47 in North…