Q2 2024 Xponential Fitness Inc Earnings Call Transcript
Key Points
- Xponential Fitness Inc (XPOF) reported a 10% increase in North America run rate average unit volumes, reaching $638,000 in the second quarter.
- The company achieved a 24% year-over-year increase in North America system-wide sales, driven by a 7% same-store sales increase and new studio openings.
- Adjusted EBITDA for the second quarter was $25.4 million, maintaining a 33% margin, indicating strong operational efficiency.
- Xponential Fitness Inc (XPOF) has a backlog of over 1,800 licenses sold in North America and over 1,000 internationally, representing over 5 years of future studio openings.
- The company executed a new master franchise agreement for its BFT brand in Scandinavia, with plans to open 30 studios over the next 10 years.
- Xponential Fitness Inc (XPOF) faced short-term disruptions due to leadership changes and regulatory uncertainties, impacting their second quarter results.
- The company reported a net loss of $13.7 million in the second quarter, compared to a net income of $27.5 million in the prior-year period.
- Merchandise revenue decreased by 30% year-over-year, attributed to a slowdown in retail purchases by members at the studio level.
- The company announced the winding down of its AKT brand, which will be completed in the third quarter, indicating challenges in brand performance.
- Total 2024 revenue guidance was adjusted down to $310 million to $320 million, from the previous $340 million to $350 million, reflecting a 1% year-over-year decrease at the midpoint.
Greetings and welcome to the Xponential Fitness, Inc. Second Quarter 2024 Earnings Conference Call. (Operator instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Avery Wannemacher, Investor Relations. Thank you. You may begin.
Thank you, operator. Good afternoon and thank you all for joining our conference call to discuss Xponential Fitness second quarter 2024 financial results. I am joined by Brenda Morris, Lead Director; Mark King, Chief Executive Officer; and John Meloun, Chief Financial Officer. Sarah Luna, President, will join Mark and John for the question-and-answer portion of the call. A recording of this call will be posted on the Investors section of our website at investor.xponential.com.
We remind you that during this conference call, we will make certain forward-looking statements, including discussions of our business outlook and financial projections. These forward-looking statements are based on management's current
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
