Xponential Fitness Revenue Falls 21% to $62.3 Million in Third Quarter
Key Facts
Xponential Fitness said on November 5 that revenue was $62.3 million in the third quarter of 2026, down 21% from the same period a year earlier, while adjusted net income fell to $2.2 million, or $0.04 per basic share, compared with $19.3 million, or $0.36 per share, a year earlier. Adjusted earnings per share came in below analysts’ estimate of $0.12, according to Investing.com, while revenue also fell short of consensus of $63 million. The contrast between the decline in adjusted results and what other figures might suggest about the company’s performance stands out: the year-over-year comparison shows a sharp drop in adjusted earnings and revenue. The company said revenue fell from $78.8 million in the third quarter of 2025 to $62.3 million in the quarter ended September 30, 2026. In its statement, it said total revenue “decreased 21% from the prior-year period.”
Franchise revenue was the largest driver among the operating items cited, falling 16% to $43.4 million during the quarter. Equipment revenue fell 42% to $4.3 million, while merchandise revenue dropped 92% to $0.4 million. The company attributed the overall revenue decline to lower franchise revenue, the transition to third-party logistics and fewer equipment installations. It linked the decline in merchandise revenue to the change in its logistics model, while citing fewer equipment installations among the reasons for the revenue decline. These items reflect the sources of contraction in quarterly revenue, with the steepest percentage declines concentrated in merchandise and equipment.
North American same-store sales fell 7.5% in the third quarter, compared with a 0.8% decline in the same period of 2025. System-wide sales in the region were $424.3 million, versus $432.2 million a year earlier. Average unit volume on a quarterly run-rate basis also fell to $634,000 from $668,000. In the second quarter of 2026, revenue was $66.0 million, down 13% year over year, while North American same-store sales fell 6.8%, after growing 2.4% in the second quarter of 2025. The quarterly comparison shows that the decline in North American same-store sales widened between the second and third quarters, alongside the year-over-year drop in revenue.
When it reported second-quarter results, the company expected to open about 150 net new studios during 2026 and estimated adjusted EBITDA of between $91.0 million and $97.0 million. In its third-quarter results announcement, the company said it had lowered its outlook for studio openings and its adjusted earnings range, while leaving its annual revenue outlook unchanged. The board’s review of strategic, financial and operational alternatives remained ongoing when the results were released. The company said the process could include a sale, merger or other strategic or financial transaction. It added that it “does not intend to provide further comment until the process is complete.”
As of September 30, 2026, the company had $27.2 million in cash, cash equivalents and restricted cash, while total long-term debt was $521.1 million. The company used a net $21.1 million in cash in operating activities during the first nine months of 2026. The stock closed at $4.53 on November 4, the eve of the results announcement. On November 5, it closed at $4.42, according to Investing.com. The platform reported that the stock fell 12.13% over the three months ended on that date and 29.84% over the 12 months.