Q1 2025 Xponential Fitness Inc Earnings Call Transcript
Key Points
- North American system-wide sales increased by 18% year over year, reaching $467 million.
- Total membership grew by 12% year over year, with 865,000 members at the end of the quarter.
- The company successfully completed its updated financing agreement and filed franchise disclosure documents.
- Xponential Fitness Inc (XPOF) is expanding its international presence, with successful markets in Spain, Portugal, France, Japan, and Australia.
- The company is launching a new field operations function with plans to have 12 field managers in place across North America by the end of the quarter.
- There were 51 global studio closures in the first quarter, representing an annualized closure rate of 6%, with Cyclebar and Stretch Lab being notably affected.
- Revenue for the quarter was down 4% year over year, primarily due to lower merchandise and equipment sales.
- The company recorded a net loss of $2.7 million for the first quarter, with increased legal and settlement expenses contributing to the loss.
- Adjusted EBITDA decreased by 9% compared to the prior year period, impacted by accelerated marketing fund spending.
- The company is facing challenges with delayed studio openings, with approximately one-third of global licenses lagging over 12 months behind the development schedule.
Good afternoon ladies and gentlemen, and welcome to Xponential Fitness Inc. First quarter, 2025 earnings call. (Operator Instructions). And I would like to turn the conference over to Patricia Nir from ADDO Investor Relations. Please go ahead.
Thank you, operator. Good afternoon and thank you all for joining our conference call to discuss exponential Fitness's first quarter 2025 financial results. I am joined by Mark King, Chief Executive Officer, and John Meloun, Chief Financial Officer. A recording of this call will be posted on the investor section of our website at investor. Exponential dotcom. 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 expectations and involve risks and uncertainties that could cause our actual results to differ materially from such expectations.
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