Xponential Fitness (XPOF) Reports Q1 Loss, Tops Revenue Estimates

Company Performance - Xponential Fitness reported a quarterly loss of $0.20 per share, missing the Zacks Consensus Estimate of $0.15, and compared to earnings of $0.16 per share a year ago, representing an earnings surprise of -233.33% [1] - The company posted revenues of $76.88 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.07%, but down from $79.52 million year-over-year [2] - Over the last four quarters, Xponential Fitness has not been able to surpass consensus EPS estimates, and it has topped consensus revenue estimates three times [2] Stock Outlook - Xponential Fitness shares have lost about 37.2% since the beginning of the year, significantly underperforming the S&P 500's decline of -4.3% [3] - The current consensus EPS estimate for the coming quarter is $0.18 on revenues of $78.22 million, and for the current fiscal year, it is $0.79 on revenues of $319.75 million [7] - The estimate revisions trend for Xponential Fitness is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Leisure and Recreation Services industry, to which Xponential Fitness belongs, is currently in the bottom 29% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]