February 26, 2026, Xponential Fitness, Inc. announced a substantial loss in the fourth quarter of 2025, with a 25.6% decline in adjusted EBITDA and flat sales.

“The fourth quarter capped a year of progress as we refined the strategic priorities that will drive Xponential’s long-term growth,” said Mike Nuzzo, CEO of Xponential Fitness, Inc. “With strong franchise partner engagement and disciplined execution across our brands, we are continuing to reinforce our industry-leading position and capitalize on the opportunities ahead.”

Nuzzo continued, “As we enter 2026, we are focused on driving organic growth and elevating the member experience. We are making intentional investments to drive member acquisition and retention, even if this results in more modest near-term adjusted EBITDA.”

Regulatory and Legal Developments

The staff of the United States Federal Trade Commission (FTC) recently indicated they will recommend that the FTC Commissioners enter into a stipulated consent agreement to fully resolve the previously disclosed FTC investigation. Subject to approval by the FTC Commissioners and the court, and without admitting liability, the company has agreed to pay $17.0 million over a 12-month period. The company has also recently finalized a $22.75 million settlement, to be paid out over a thirty-five-month period, with over 500 current and former franchisees. The company believes these developments will substantially reduce regulatory and legal uncertainty.

Results for the Fourth Quarter Ended December 31, 2025

Total revenue was $83.0 million, down $0.3 million from the prior-year period, as higher franchise revenue was offset by lower equipment revenue due to a decline in installations.

Net loss totaled $45.6 million, or a loss of $1.17 per basic share, compared to a net loss of $62.5 million, or a loss of $1.36 per basic share, in the prior year period.

Adjusted net loss was $44.6 million, or adjusted net loss of 91 cents per basic share, on a share count of 35.2 million shares of Class A Common Stock.

Adjusted EBITDA, which is defined as net income (loss) before interest, taxes, depreciation, and amortization, adjusted for the impact of certain non-cash and other items that are not considered in the evaluation of ongoing operating performance, was $22.9 million, down 26 percent from $30.8 million in the prior year period.

Q4 2025 Compared to Q4 2024

• Reported revenue of $83.0 million, down $0.3 million from the prior year period.
• Increased North America system-wide sales by 5 percent to $446.7 million.
• Reported North America same-store sales decreased by 4 percent, compared to growth of 7 percent.
• Reported North America quarterly run-rate average unit volume (AUV)4 of $683,000, compared to $695,000.
• Posted net loss of $45.6 million, or a loss of $1.17 per basic share, on a share count of 35.2 million shares of Class A Common Stock, compared to a net loss of $62.5 million, or a loss per basic share of $1.36, on a share count of 32.9 million shares of Class A Common Stock.
• Posted adjusted net loss of $44.6 million, or an adjusted net loss of 91 cents per basic share, compared to adjusted net loss of $7.1 million, or adjusted net loss of $0.19 per basic share.
• Reported adjusted EBITDA of $22.9 million, compared to $30.8 million.

Results for the Full Year Ended December 31, 2025

For the full year 2025, total revenue decreased $5.5 million, or 2 percent, to $314.9 million, down from $320.3 million in the prior year period, driven by lower equipment revenue resulting from a decline in installations, as well as a decrease in merchandise revenue, partially offset by higher franchise revenue and franchise marketing fund revenue.

Net loss totaled $53.7 million, or a loss of $1.47 per basic share, compared to a net loss of $98.7 million, or a loss of $2.27 per basic share, in the prior year period.

Adjusted net loss was $18.4 million, or adjusted net loss of $0.49 per basic share, on a share count of 34.8 million shares of Class A Common Stock.

Adjusted EBITDA, as defined above, decreased to $111.8 million, down 4 percent from $116.2 million in the prior year.

FY 2025 Compared to FY 2024

• Reported revenue of $314.9 million, a decrease of 2 percent from the prior year period.
• Increased North America system-wide sales by 13 percent to $1.75 billion.
• Reported North America same-store sales growth of 0.5 percent, compared to growth of 7 percent.
• Posted net loss of $53.7 million, or a loss of $1.47 per basic share, on a share count of 34.8 million shares of Class A Common Stock, compared to a net loss of $98.7 million, or a loss of $2.27 per basic share, on a share count of 32.0 million shares of Class A Common Stock.
• Posted adjusted net loss of $18.4 million, or an adjusted net loss of $0.49 per basic share, compared to adjusted net income of $1.8 million, or adjusted net loss of $0.13 per basic share.
• Reported adjusted EBITDA of $111.8 million, compared to $116.2 million.

Liquidity and Capital Resources

As of December 31, 2025, the company had approximately $45.9 million in cash, cash equivalents, and restricted cash, and $525 million in total long-term debt. Net cash provided by operating activities was $28.3 million for the full year ended December 31, 2025.

2026 Outlook

The company is initiating a full-year 2026 outlook, which compares to 2025 results as follows:

• Net new studio openings in the range of 150 to 170, or a decrease of 20 percent at the midpoint.
• North America system-wide sales in the range of $1.72 billion to $1.80 billion, or an increase of 1 percent at the midpoint.
• Revenue in the range of $260.0 million to $270.0 million, representing a decrease of 16 percent at the midpoint.
• Adjusted EBITDA in the range of $100.0 million to $110.0 million, representing a decrease of 6 percent at the midpoint.

Additional key assumptions for the full year 2026 include:

• Tax rate in the mid-to-high single digits.
• Share count of 37.3 million shares of Class A Common Stock for the GAAP EPS and Adjusted EPS calculations.

Xponential’s fitness clubs include Club Pilates, YogaSix, Pure Barre, and BFT.