Core Viewpoint - Xponential Fitness, Inc. has announced a new credit agreement to refinance existing debt, which includes a $525 million term loan and a $25 million revolving credit facility, aimed at enhancing financial flexibility and supporting strategic priorities [1][2]. Group 1: Financial Details - The new term loan facility of $525 million will be used to fully refinance the existing credit facility, repurchase outstanding convertible preferred stock, and cover associated fees and expenses [2]. - The refinancing allows the company to potentially decrease interest payments by up to one percent upon achieving certain financial milestones [2]. Group 2: Company Overview - Xponential Fitness is a leading global franchisor of boutique health and wellness brands, operating a diversified platform that includes five brands: Club Pilates, StretchLab, YogaSix, Pure Barre, and BFT [3]. - The company aims to provide personalized workout experiences through partnerships with franchisees and master franchisees, with operations in 49 U.S. states, Puerto Rico, and 30 additional countries [3].

Core Points - Xponential Fitness, Inc. has appointed Gavin M. O'Connor as Chief Legal Counsel and Administrative Officer, effective November 14, 2025 [1] - Andrew Hagopian, the previous Chief Legal Officer, has separated from the company as of November 10, 2025 [1] Company Overview - Xponential Fitness is recognized as one of the leading global franchisors of boutique health and wellness brands [1]

Core Insights - Xponential Fitness reported Q3 CY2025 results that exceeded Wall Street's revenue expectations, with a revenue of $78.82 million, reflecting a 2.1% year-on-year decline but a 3.9% beat against analyst estimates [1][7] - The company anticipates full-year revenue to be around $305 million, aligning with analysts' expectations, and reported a non-GAAP profit of $0.34 per share, significantly above the consensus estimate of $0.12 [1][7] Company Overview - Xponential Fitness is the owner of several boutique fitness brands, including CycleBar, Rumble, and Club Pilates, offering diverse and specialized exercise experiences [4] Revenue Growth - The company has demonstrated strong long-term sales performance with an annualized revenue growth of 24.1% over the last five years, outperforming the average consumer discretionary company [5] - However, recent performance indicates a slowdown in demand, with an annualized revenue growth of only 2.5% over the last two years, which is below the five-year trend [6] Financial Highlights - Q3 revenue was $78.82 million, surpassing analyst estimates of $75.83 million, despite a year-on-year decline of 2.1% [7] - Adjusted EPS was $0.34, significantly beating the analyst estimate of $0.12 [7] - Adjusted EBITDA reached $33.48 million, with a margin of 42.5%, exceeding analyst expectations of $25.81 million [7] - The company reaffirmed its full-year revenue guidance of $305 million and EBITDA guidance of $108.5 million, both in line with analyst expectations [7] Segment Performance - Revenue breakdown for key segments shows Franchise revenue contributing 65.8%, Equipment 9.5%, and Merchandise 6.1% [8] - Franchise revenue has averaged 17% year-on-year growth over the last two years, while Equipment and Merchandise revenues have seen declines of 8% and 13.9%, respectively [8]

Core Viewpoint - Xponential Fitness, Inc. has completed the divestiture of Lindora to Next Health Management Group, allowing the company to concentrate on its core fitness modalities that significantly impact profitability [1] Company Focus - The divestiture of Lindora is aimed at enabling Xponential Fitness to allocate more time and capital towards its primary fitness brands [1] - CEO Mike Nuzzo emphasized that this strategic move will enhance the company's focus on areas with the greatest profitability potential [1]