Xponential Fitness Q2 hit by lower equipment, merchandise sales, cuts 2026 outlook

Xponential Fitness

06/08/2026 21:41

Overview
U.S. boutique fitness franchisor's Q2 revenue fell 13% yr/yr on lower equipment and merchandise sales
Adjusted net income and adjusted EBITDA declined sharply from prior year period
Company cut full-year 2026 outlook for revenue, adjusted EBITDA and net new studio openings

Outlook
Xponential Fitness lowers 2026 net new studio openings forecast to about 150, down 25%
Company sees 2026 North America system-wide sales between $1.70 bln and $1.75 bln
Xponential Fitness expects 2026 revenue between $250 mln and $260 mln, down 19% at midpoint

Result Drivers
EQUIPMENT SALES DROP - Co said revenue decline was driven primarily by fewer equipment installations, linked to fewer studio openings and lower franchise license sales
MERCHANDISE MODEL CHANGE - Merchandise revenue fell due to transition from in-house wholesale to outsourced retail model and related challenges
SAME STORE SALES & DIVESTITURES - Franchise revenue declined due to lower same store sales and brand divestitures completed in 2025

Company press release: ID:nBwhhnyMa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Franchise Revenue
 
$43.99 mln
 
Q2 Net Loss
 
$4.83 mln
 
Q2 Operating Income
 
$9.51 mln
 
Q2 Pretax Loss
 
$4.77 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the leisure & recreation peer group is "buy."
Wall Street's median 12-month price target for Xponential Fitness, Inc. is $7.00, about 4.2% above its August 5 closing price of $6.72
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Aug 6 - Planet Fitness Q2 revenue beats; reiterates 2026 revenue growth
Aug 6 - Peloton Interactive Q4 revenue flat, paid subscriptions fall 
Aug 5 - WW International Q2 revenue beats estimates on Clinical growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)