Xponential Fitness(US:XPOF)2025-11-06 21:18Financial Performance - Total revenue for Q3 2025 decreased by $1.7 million, or 2%, to $78.8 million compared to $80.5 million in Q3 2024[5] - The company reported a net loss of $6.7 million, or a loss of $0.18 per basic share, an improvement from a net loss of $18.1 million, or a loss of $0.29 per basic share in the prior year[7] - Adjusted net income was $19.3 million, or adjusted net earnings of $0.36 per basic share, compared to an adjusted net loss of $0.3 million in the prior year[8] - Adjusted EBITDA for Q3 2025 was $33.5 million, a 9% increase from $30.8 million in Q3 2024[9] - Total revenue for the three months ended September 30, 2025, was $78.824 million, a decrease of 2% compared to $80.530 million in the same period of 2024[24] - Franchise revenue increased to $51.882 million for the three months ended September 30, 2025, up 16% from $44.458 million in 2024[24] - Net loss attributable to Xponential Fitness, Inc. for the three months ended September 30, 2025, was $4.859 million, compared to a net loss of $12.120 million in the same period of 2024[24] - Operating income for the nine months ended September 30, 2025, was $28.068 million, a significant improvement from an operating loss of $1.700 million in 2024[24] - Adjusted EBITDA for the three months ended September 30, 2025, was $33,479 thousand, up from $30,802 thousand in the same period of 2024, indicating an increase of 5.5%[30] - Adjusted net income attributable to Xponential Fitness, Inc. for the three months ended September 30, 2025, was $13,924 thousand, compared to a loss of $219 thousand in the same period of 2024[30] Cash and Debt Position - The company had approximately $41.5 million in cash and cash equivalents and $376.4 million in total long-term debt as of September 30, 2025[10] - Cash, cash equivalents, and restricted cash increased to $41.463 million as of September 30, 2025, from $32.739 million at the end of 2024[26] - Total current assets rose to $99.217 million as of September 30, 2025, compared to $84.147 million at the end of 2024, reflecting a 17.9% increase[22] - Total liabilities decreased to $559.000 million as of September 30, 2025, down from $597.402 million at the end of 2024[22] - The company reported a net cash provided by operating activities of $17.640 million for the nine months ended September 30, 2025, compared to $10.901 million in 2024[26] Studio Openings and Sales Growth - System-wide sales reached $432.2 million in Q3 2025, reflecting a 10% year-over-year increase[6] - Quarterly average unit volume (AUV) was $668,000, up 2% year-over-year, with total members increasing by 7% to 796,000[6] - For full year 2025, the company expects net new studio openings in the range of 170 to 190, a decrease of 37% at the midpoint[11] - North America system-wide sales are projected to be between $1.730 billion and $1.750 billion, representing a 12% increase at the midpoint[11] - System-wide sales growth is driven by new studio openings and increases in same store sales, with approximately 7% and 2% of franchisee sales contributing to royalty and marketing fund revenue, respectively[31] Impairments and Charges - The impairment of goodwill and other noncurrent assets was $32.411 million for the nine months ended September 30, 2025, compared to $16.594 million in 2024[26] - The company reported an impairment of goodwill and other noncurrent assets amounting to $17,568 thousand for the three months ended September 30, 2025, compared to $4,505 thousand in 2024[30] - Restructuring and related charges (excluding impairments) amounted to $2,175 thousand for the three months ended September 30, 2025, down from $9,193 thousand in the same period of 2024[30] Shareholder Information - The weighted average shares of Class A common stock outstanding increased to 35,110 thousand for the three months ended September 30, 2025, from 32,177 thousand in 2024[24] - The weighted average shares of Class A common stock outstanding for the three months ended September 30, 2025, increased to 35,110 thousand from 32,177 thousand in 2024, reflecting a growth of 11.4%[30] - Adjusted net earnings per share - diluted for the three months ended September 30, 2025, was $0.34, compared to a loss of $0.05 in the same period of 2024[30] Revenue Guidance - Revenue guidance for 2025 is set between $300.0 million and $310.0 million, indicating a 5% decrease at the midpoint[11]