Xponential Fitness(XPOF) - 2024 Q4 - Annual Results

Financial Performance - System-wide sales reached $464.7 million in Q4 2024, a 21% increase year-over-year[6] - Reported revenue for Q4 2024 was $83.2 million, a decrease of 7% from $89.3 million in Q4 2023[8] - For the full year 2024, total revenue increased by $2.4 million, or 1%, to $320.3 million[12] - Total revenue for the year ended December 31, 2024, was $320.346 million, a slight increase from $317.937 million in 2023[29] - Franchise revenue increased to $174.524 million in 2024 from $143.247 million in 2023, representing a growth of 21.8%[29] Net Loss and Earnings - Net loss for Q4 2024 totaled $62.5 million, or a loss of $1.36 per basic share, compared to a net loss of $12.3 million in the prior year[9] - Full year net loss was $98.7 million, or a loss of $2.27 per basic share, compared to a net loss of $6.4 million in 2023[13] - The net loss attributable to Xponential Fitness, Inc. for the year ended December 31, 2024, was $67.658 million, compared to a net loss of $4.001 million in 2023[29] - The net loss for Q4 2024 was $62.454 million, compared to a net loss of $12.290 million in Q4 2023, representing a significant increase in losses[33] - The adjusted net loss attributable to Xponential Fitness, Inc. for Q4 2024 was $4.804 million, compared to an adjusted net income of $0.460 million in Q4 2023[36] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $30.8 million, up 13% from $27.2 million in the prior year[11] - Adjusted EBITDA for the full year 2024 increased to $116.2 million, up 16% from $100.3 million in the prior year[15] - Adjusted EBITDA for the year ended December 31, 2024, was $116.217 million, up from $100.321 million in 2023, indicating a growth of approximately 15.5%[33] Impairment and Expenses - The company reported an impairment of goodwill and other assets amounting to $62.551 million for the year ended December 31, 2024[29] - The company incurred $45.957 million in impairment of goodwill and other assets during Q4 2024, compared to $4.841 million in Q4 2023, reflecting a substantial increase in impairment charges[36] - Acquisition and transaction expenses for the year ended December 31, 2024, totaled $8.886 million, a significant recovery from an income of $18.464 million in 2023[36] - The company reported a significant increase in litigation expenses, totaling $18.054 million in Q4 2024, compared to $0.984 million in Q4 2023[33] Studio Openings and Future Projections - The company plans to open 200 to 220 new studios in 2025, a decrease of 12% at the midpoint[22] - 2025 revenue is projected to be in the range of $315.0 million to $325.0 million, representing no change at the midpoint[22] Assets and Liabilities - Cash, cash equivalents, and restricted cash decreased to $32.739 million as of December 31, 2024, down from $37.094 million in 2023[30] - Total assets decreased to $403.397 million in 2024 from $529.534 million in 2023, reflecting a decline of 23.7%[27] - Total liabilities decreased slightly to $597.402 million in 2024 from $624.406 million in 2023[27] - The company’s total current liabilities increased to $107.887 million in 2024 from $102.234 million in 2023[27] Share Information - The weighted average shares of Class A common stock outstanding for the year ended December 31, 2024, was 31,999, compared to 31,742 in 2023[29] - The weighted average shares of Class A common stock outstanding for Q4 2024 were 32.879 million, an increase from 30.900 million in Q4 2023[36] Operating Income - Operating income (loss) for the year ended December 31, 2024, was a loss of $53.614 million, compared to an operating income of $34.906 million in 2023[29] Unit Volume and Membership - Quarterly average unit volume (AUV) was $668,000 in Q4 2024, growing 9% year-over-year, with total members increasing by 15% to 813,000[6] Earnings Per Share - The adjusted earnings per share (basic) for Q4 2024 was $(0.19), compared to $(0.02) in Q4 2023, indicating a decline in earnings performance[36] Restructuring Charges - The company’s restructuring and related charges (excluding impairments) amounted to $6.884 million in Q4 2024, compared to $9.089 million in Q4 2023, showing a decrease in restructuring costs[36]