Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Xponential Fitness, Inc. for possible violations of federal securities laws and unlawful business practices affecting stockholders [1][2]. Investigation Details - On February 26, 2026, Xponential announced a stipulated consent agreement with the Federal Trade Commission (FTC), agreeing to pay $17.0 million over a 12-month period [2]. - Additionally, Xponential finalized a $22.75 million settlement with over 500 current and former franchisees, to be paid over thirty-five months [2]. - Following these announcements, Xponential's stock price fell by $3.79 per share, a decrease of 47.1%, closing at $4.26 on February 27, 2026 [2]. Next Steps - Investors who purchased or acquired Xponential shares and experienced losses are encouraged to contact Bragar Eagel & Squire for more information regarding their rights and potential claims [3]. About the Law Firm - Bragar Eagel & Squire, P.C. is a nationally recognized law firm with a focus on representing individual and institutional investors in various types of litigation, including securities and consumer protection [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Xponential Fitness Inc. due to allegations of materially misleading business information issued to the investing public [1] Company Summary - Xponential Fitness Inc. (NYSE: XPOF) is under scrutiny for potentially misleading business information that may have affected its shareholders [1] - Shareholders who purchased Xponential securities may be entitled to compensation without any out-of-pocket fees or costs through a contingency fee arrangement [1]

Core Insights - Xponential Fitness reported revenue of $82.96 million for the quarter ended December 2025, reflecting a year-over-year decline of 0.3% and an EPS of -$0.91 compared to -$0.18 a year ago, indicating a significant drop in earnings performance [1] - The revenue exceeded the Zacks Consensus Estimate of $72.53 million by 14.38%, while the EPS fell short of the consensus estimate of -$0.03 by 3308.24% [1] Financial Performance Metrics - Same store sales decreased by 4%, which is worse than the three-analyst average estimate of -0.3% [4] - Franchise revenue was reported at $51.51 million, surpassing the average estimate of $47.49 million, marking a year-over-year increase of 13.7% [4] - Equipment revenue was $6.95 million, slightly above the estimated $6.67 million, but showed a significant year-over-year decline of 45.3% [4] - Other service revenue reached $8.35 million, exceeding the average estimate of $7.29 million, with a year-over-year decrease of 15.7% [4] - Franchise marketing fund revenue was $8.91 million, slightly above the estimated $8.73 million, reflecting a year-over-year decline of 3.2% [4] - Merchandise revenue was reported at $7.24 million, significantly higher than the estimated $4.03 million, indicating an 18.4% year-over-year increase [4] Stock Performance - Xponential Fitness shares have returned +5.8% over the past month, outperforming the Zacks S&P 500 composite, which changed by +0.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - For Q4 2025, consolidated revenue was $83 million, flat compared to the prior year period, while total revenue for 2025 was $314.9 million, a 2% decrease from the previous year [24][30] - Adjusted EBITDA for Q4 was $22.9 million, down 26% year-over-year, with an adjusted EBITDA margin of 28%, down from 37% in the prior year [30][31] - The company recorded a net loss of $45.6 million in Q4, or a loss of $1.17 per basic share, compared to a net loss of $62.5 million in the prior year [29][30] Business Line Data and Key Metrics Changes - Franchise revenue for Q4 was $51.5 million, up 14% year-over-year, driven by higher franchise territory revenue [24] - Equipment revenue declined by 45% year-over-year to $7 million, primarily due to lower installation volumes [25] - Merchandise revenue increased by 18% year-over-year to $7.2 million, attributed to favorable retail sales [25] Market Data and Key Metrics Changes - North America system-wide sales for Q4 were $447 million, up approximately 5% year-over-year, while same-store sales were down 4.3% [23] - For 2025, system-wide sales increased approximately 13% to $1.7 billion from $1.6 billion in 2024, with full-year same-store sales at 0.5% [23] - Club Pilates contributed 65% of total system-wide sales for the year, with 1,241 studios operating in North America [33] Company Strategy and Development Direction - The company aims to prioritize investments in new member acquisition and healthy top-line growth for franchisees, focusing on new unit openings and organic studio revenue performance [11][12] - The strategic outlook includes enhancing marketing efforts, improving digital platforms, and evolving brand offerings to drive member engagement [18][19] - The company recognizes the need to address legal and regulatory challenges, underperforming brand acquisitions, and organizational issues to improve execution capabilities [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that sales growth moderated beginning in late 2024 and into 2025, with marketing missteps contributing to same-store sales pressure [10] - The company is developing improvements focused on organic growth in partnership with franchisees, particularly for Club Pilates [11] - Management expressed confidence in the company's strategic priorities and plans to evolve the business, despite acknowledging the challenges ahead [19] Other Important Information - The company completed a debt refinancing, entering into a new five-year, $525 million term loan, which improved financial flexibility and reduced refinancing risk [35][36] - The company expects closure rates to decline to low to mid-single digits in 2026, with a focus on reducing global closures [22][38] - The company anticipates total revenue for 2026 to be between $260 million and $270 million, representing a 16% decrease year-over-year at the midpoint of the guided range [39] Q&A Session Summary Question: Can you elaborate on the revenue and same-store sales in the quarter? - Management explained that lower average pricing was due to new studios coming online and promotional activities during Q4, which typically dilute pricing [44] Question: Are you seeing any shift between pricing tiers? - Management noted stability in the distribution of membership purchases, with no material shifts observed [45] Question: How much of an improvement are you assuming from shifting to an outsourced retail model? - Management indicated a significant gross profit improvement, estimating a $9 million to $10 million EBITDA enhancement from the transition [46][49] Question: What is your view on the portfolio's future direction? - Management emphasized a focus on improvement across all brands, particularly StretchLab, while remaining open to divestitures of underperforming brands [52][54] Question: What is the plan for Club Pilates regarding unit growth? - Management expressed confidence in the potential for unit growth, particularly in domestic and international markets, while also focusing on improving performance across other brands [58][59]

Core Insights - Peloton Interactive, Inc. (PTON) and Planet Fitness, Inc. (PLNT) represent contrasting strategies in the fitness market, with Peloton focusing on connected at-home equipment and digital subscriptions, while Planet Fitness emphasizes an extensive network of affordable gyms [1] Summary of PTON - Peloton's profitability is improving, with an adjusted EBITDA of $118 million in Q1 fiscal 2026, exceeding expectations by $18 million, and generating $67 million in free cash flow, a notable improvement from the previous year [2] - The company has launched its largest product refresh, including the Cross Training Series and Peloton IQ AI coaching, which is expected to enhance engagement and shift towards premium hardware [3] - Peloton is expanding its distribution channels, opening 10 micro stores in the U.S. and partnering with Johnson Fitness & Wellness, which broadens its reach across 46 states [4] - Despite operational improvements, Peloton faces challenges with a 6% decline in paid Connected Fitness subscriptions year-over-year, contributing to a 6% revenue drop in Q1 [5] - The company is dealing with a product recall of the Original Series Bike+, resulting in a $16.5 million inventory accrual, which may impact member sentiment and usage [6] Summary of PLNT - Planet Fitness is experiencing strong demand, ending Q3 2025 with approximately 20.7 million members and achieving 6.9% same-club sales growth, leading to a 13% year-over-year revenue increase [7] - The High School Summer Pass program saw a 30% year-over-year increase in participation, attracting 3.7 million teens and fostering long-term loyalty among Gen Z consumers [8] - The company opened 35 new clubs in Q3 2025, bringing the total to 2,795, and is actively pursuing optimized club formats and upgraded equipment [9] - While membership trends are strong, attrition remains elevated due to the introduction of click-to-cancel, with management expecting higher churn through Q4 2025 [11] - Approximately 80% of the same-club sales growth in Q3 2025 came from price increases, raising concerns about potential consumer resistance to future price hikes [12] Comparative Estimates - The Zacks Consensus Estimate for Peloton's fiscal 2026 sales implies flat growth, while EPS is expected to grow by 140% year-over-year [13] - For Planet Fitness, the Zacks Consensus Estimate for 2025 sales and EPS indicates year-over-year increases of 10.8% and 15.4%, respectively [15] Price Performance - PTON stock has decreased by 30.2% over the past year, while PLNT shares have increased by 9.9% during the same period [16] Valuation - PTON is trading at a forward price-to-sales ratio of 1.12X, below its median of 1.22X, whereas PLNT's forward sales multiple is at 6.47X, above its median of 5.30X [22] Conclusion - Both companies are making significant progress in their recovery efforts, with Peloton showing signs of stabilization through innovation and expanded distribution, while Planet Fitness benefits from strong demand and brand momentum [21][23]

Core Insights - Xponential Fitness reported a revenue of $78.82 million for the quarter ended September 2025, reflecting a decrease of 2.1% year-over-year, but exceeding the Zacks Consensus Estimate by 4.15% [1] - The company's EPS was $0.34, a significant improvement from -$0.04 in the same quarter last year, resulting in an EPS surprise of 142.86% compared to the consensus estimate of $0.14 [1] Revenue Breakdown - Franchise revenue was $51.88 million, surpassing the average estimate of $47.23 million, marking a year-over-year increase of 16.7% [4] - Franchise marketing fund revenue was $8.83 million, slightly below the estimated $9.19 million, but showing a year-over-year increase of 3.1% [4] - Merchandise revenue was $4.8 million, significantly lower than the estimated $5.8 million, representing a year-over-year decline of 26.6% [4] - Other service revenue was $5.85 million, below the average estimate of $6.01 million, with a year-over-year decrease of 6.3% [4] - Equipment revenue was $7.46 million, falling short of the $9.63 million estimate, reflecting a substantial year-over-year decline of 49.2% [4] Stock Performance - Xponential Fitness shares have returned -17% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Xponential Fitness reported a revenue of $76.88 million for the quarter ended March 2025, reflecting a decrease of 3.3% year-over-year, with an EPS of -$0.20 compared to $0.16 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $76.07 million by 1.07%, while the EPS fell short of the consensus estimate of $0.15 by 233.33% [1] Financial Performance Metrics - Same store sales increased by 4%, slightly below the average estimate of 4.8% from five analysts [4] - Franchise revenue was reported at $43.89 million, which is lower than the average estimate of $44.44 million but shows a year-over-year increase of 5.1% [4] - Revenue from the franchise marketing fund reached $9.27 million, exceeding the average estimate of $8.49 million, with an 18.4% year-over-year increase [4] - Merchandise revenue was reported at $6.26 million, surpassing the average estimate of $5.94 million, but reflecting a significant decline of 23.5% year-over-year [4] - Other service revenue was $6.36 million, slightly below the average estimate of $6.61 million, with a year-over-year decrease of 19.1% [4] - Equipment revenue was reported at $11.10 million, exceeding the average estimate of $9.95 million, but showing a decline of 20.1% year-over-year [4] Stock Performance - Xponential Fitness shares have returned +9% over the past month, compared to a +11.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Xponential Fitness, Inc. and its officers or directors following the company's disappointing financial results and subsequent stock price drop [1][3]. Financial Performance - On March 13, 2025, Xponential reported an unexpected loss for the fourth quarter and a 7.7% year-over-year revenue decline [3]. - The company's Board of Directors announced that the financial statements for the fiscal year ended December 31, 2023, would need to be restated [3]. - Following these announcements, Xponential's stock price fell by $4.66 per share, or 38.45%, closing at $7.46 per share on March 14, 2025 [3]. Legal Investigation - Pomerantz LLP is actively investigating claims on behalf of investors of Xponential Fitness, Inc. regarding possible securities fraud [1]. - Investors are encouraged to contact Pomerantz LLP for more information about the investigation [1].