Xponential Fitness(US:XPOF)2022-08-14 06:07Company Overview - Xponential Fitness operates as the leading global franchisor in the boutique fitness industry, estimated at over $20 billion[8, 15] - The company has over 2,300 global studios open and over 4,900 global licenses sold as of June 30, 2022, representing an 11% and 12% increase compared to 2021, respectively[8, 18] - Xponential Fitness boasts a diverse portfolio of 10 brands across high-growth fitness modalities[8] Financial Performance - The company's last twelve months (LTM) revenue reached $200 million, with LTM Adjusted EBITDA of $48 million, marking a 29% and 74% increase compared to 2021, respectively[16] - In the first half of 2022, recurring revenue accounted for 69% of the total revenue, which reached $110 million[64, 65] - North America system-wide sales for the LTM period reached $880 million, a 24% increase compared to 2021[18] Growth Strategies - A key strategy involves growing the franchised studio base across all brands in North America, with potential for approximately 7,900 studios in the US alone[39, 41] - The company aims to expand its brands and studio base internationally, leveraging experienced master franchisees[37, 43] - Xponential Fitness intends to drive system-wide same-store sales and grow average unit volumes through initiatives like XPASS and XPLUS[37, 46] Franchisee Economics - The estimated initial investment for a franchisee is approximately $350,000, net of tenant improvement benefits[35] - Standalone studios are designed to achieve average annual revenue of approximately $500,000 in year 2, with operating margins between 25% and 30%[35] - Franchisees can expect a payback period of around 2.5 years and a cash-on-cash return of approximately 40%[35]