May 7, 2026, technology-enabled platform of franchised fitness brands Xponential Fitness, Inc. announced Its financial results for the first quarter ended March 31, 2026.
The report shows in Q1 2026, the company reported total revenue of $60.71M, down 21% year-over-year, with a net loss of $820K, significantly improved from a $26.59M loss in Q1 2025. Adjusted EBITDA was $20.41M, down 25% YoY. North America system-wide sales reached $436.9M, up slightly 2%, while same-store sales fell 6% (compared to +6% in Q1 2025). During the quarter, 66 new stores opened and 28 franchise licenses were sold.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Total Revenue | $60.7M | $76.9M | -21% |
| Net Loss | ($0.8M) | ($2.7M) | Improved |
| Adjusted EBITDA | $20.4M | $27.3M | -25% |
| North America System-Wide Sales | $436.9M | $428.4M | +2% |
| Same Store Sales | -6% | +6% | – |
| Revenue Category | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Franchise Revenue | $41.2M | $43.9M | -6% |
| Equipment Revenue | $4.4M | $11.1M | -61% |
| Merchandise Revenue | $0.7M | $6.3M | -90% |
| Franchise Marketing Fund Revenue | $8.7M | $9.3M | -6% |
| Other Service Revenue | $5.8M | $6.4M | -8% |
| Total | $60.7M | $76.9M | -21% |
The year-over-year revenue decline was primarily driven by a decrease in equipment revenue and merchandise revenue, reflecting a strategic transition in the Company’s merchandising model.
Xponential opened 66 gross new studios and sold 28 franchise licenses during Q1 2026. North America system-wide sales increased 2% year-over-year to $436.9 million, while same store sales declined 6% compared to a 6% increase in the prior year period.
Average unit volume (AUV) for North America system-wide sales was $662,000, compared to $685,000 in Q1 2025.
As of March 31, 2026, the Company had cash and cash equivalents of $21.5 million, compared to $45.9 million as of December 31, 2025. Net cash used in operating activities was $21.7 million for Q1 2026. Total long-term debt was $523.7 million.
During Q1 2026, Xponential made significant leadership appointments to strengthen its executive team:
Additional leadership announcements are expected in mid-May 2026.
“During the first quarter of 2026, Xponential Fitness welcomed new senior leaders and focused on driving operating execution,” said Michael Nuzzo, Chief Executive Officer of Xponential Fitness. “While our top-line performance reflects the challenges facing our industry—including lower digital traffic driven by shifts at Meta and Google, as well as AI-related declines in website referrals—we are taking decisive action to restore sustainable organic growth through a more disciplined framework.”
Mr. Nuzzo continued: “We are increasing our marketing investment, upgrading our digital and organic acquisition capabilities, introducing new class offerings, and enhancing our member lead conversion processes. We remain committed to our disciplined pricing strategy while continuing to execute on our studio expansion commitments.”
The Company reiterates its full-year 2026 guidance:
| Metric | 2026 Guidance |
| Net New Studio Openings | 150 – 170 |
| North America System-Wide Sales | $1.72B – $1.80B |
| Revenue | $260M – $270M |
| Adjusted EBITDA | $100M – $110M |
Key assumptions for 2026:
Xponential Fitness, Inc. (NYSE: XPOF) is a technology-enabled platform of franchised fitness brands. Through its portfolio of brands, the Company offers consumers of all fitness levels and interests access to a diverse range of boutique fitness experiences. For more information, visit www.xponential.com.
Non-GAAP Financial Measures
In addition to results determined in accordance with GAAP, Xponential Fitness uses certain non-GAAP measures, including Adjusted EBITDA and Adjusted Net Loss, to evaluate its operating performance and inform business decisions. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and have limitations as analytical tools.
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