- 2026 operating targets include new studio openings of 500,
system-wide sales of $2.330 billion, revenue of $405.0 million and
Adjusted EBITDA of $190.0 million
- Announces new partnership with Gympass
- Welcomes VaynerMedia as official advertising agency
Xponential Fitness, Inc. (NYSE: XPOF) (the “Company” or
“Xponential Fitness”), the largest global franchisor of boutique
fitness brands, today will hold its inaugural Analyst and Investor
Day at the New York Stock Exchange (“NYSE”). The presentation will
be streamed live on Xponential’s Investor Relations website at
https://investor.xponential.com/. In addition, all accompanying
materials that will be used during today’s event can now be
accessed at https://investor.xponential.com/.
“It is great to be at the NYSE today to discuss a wide range of
topics, including our three-year operating targets,” said Anthony
Geisler, CEO of Xponential Fitness, Inc. “In addition, we are
thrilled to announce our new partnership with Gympass and look
forward to working with Gary Vaynerchuk and VaynerMedia as they
lead Xponential’s marketing efforts moving forward.”
2023 Outlook and Three-Year Operating Targets
The Company is confident it will achieve the high-end of the
ranges in its full year 2023 outlook which was provided in its
second quarter 2023 earnings release announced on August 3, 2023,
and remains as follows:
- New studio openings in the range of 540 to 560, or an increase
of 8% at the midpoint as compared to full year 2022;
- North America system-wide sales in the range of $1.385 billion
to $1.395 billion, or an increase of 35% at the midpoint as
compared to full year 2022;
- Revenue in the range of $295.0 million to $305.0 million, or an
increase of 22% at the midpoint as compared to full year 2022;
and
- Adjusted EBITDA in the range of $102.5 million to $106.5
million, or an increase of 41% at the midpoint as compared to full
year 2022.
In addition, the Company also confirmed today that it concurs
with current full year 2024 sell-side performance estimates.
Furthermore, Xponential Fitness is providing three-year
operating targets as follows:
- New studio openings of 500;
- North America system-wide sales of $2.330 billion;
- Revenue of $405.0 million; and
- Adjusted EBITDA of $190.0 million.
Gympass Partnership
Xponential Fitness is proud to announce a new partnership with
Gympass, the leading corporate well-being platform. With more than
15,000 corporate customers and two million paid subscribers, all
ten brands will be available on the Gympass app in October, which
will utilize excess inventory to offer Xponential classes to a new
market of potential customers and drive incremental studio
revenue.
VaynerMedia Engagement
Xponential Fitness has selected VaynerMedia, a contemporary
global creative and media agency with expertise delivering
impactful business results, as its global media and creative agency
of record. VaynerMedia will assume marketing and creative
responsibilities for all Xponential brands effective October 1,
2023. Pursuant to the partnership, VaynerMedia Chairman and Chief
Executive Officer Gary Vaynerchuk will lead marketing for all
Xponential brands.
Analyst and Investor Day Event Details
Xponential Fitness will host an Analyst and Investor Day today
at the New York Stock Exchange. Presentations by members of the
Xponential management team, including Anthony Geisler, CEO, John
Meloun, CFO, Sarah Luna, President, and Ryan Junk, COO, will begin
at 9:00 a.m. ET.
A live stream of the Analyst and Investor Day will be available
through the Investor Relations section of Xponential’s website at
https://investor.xponential.com/ beginning at 9:00 a.m. ET. To
listen to a live webcast, please visit the site at least 15 minutes
prior to the start time to register, download and install any
necessary software. For those unable to join for the live
presentations, a replay will be available through the Investor
Relations section of the Company’s website following the event.
About Xponential Fitness, Inc.
Xponential Fitness, Inc. (NYSE: XPOF) is the largest global
franchisor of boutique fitness brands. Through its mission to make
boutique fitness accessible to everyone, the Company operates a
diversified platform of ten brands spanning across verticals
including Pilates, indoor cycling, barre, stretching, rowing,
dancing, boxing, running, functional training and yoga. In
partnership with its franchisees, Xponential Fitness offers
energetic, accessible, and personalized workout experiences led by
highly qualified instructors in studio locations across 49 U.S.
states and Canada, and through master franchise or international
expansion agreements in 19 additional countries. Xponential
Fitness' portfolio of brands includes Club Pilates, the largest
Pilates brand in the United States; CycleBar, the largest indoor
cycling brand in the United States; StretchLab, a concept offering
one-on-one and group stretching services; Row House, the largest
franchised indoor rowing brand in the United States; AKT, a
dance-based cardio workout combining toning, interval and circuit
training; YogaSix, the largest franchised yoga brand in the United
States; Pure Barre, a total body workout that uses the ballet barre
to perform small isometric movements, and the largest Barre brand
in the United States; STRIDE, a treadmill-based cardio and strength
training concept; Rumble, a boxing-inspired full-body workout; and
BFT, a functional training and strength-based program. For more
information, please visit the Company’s website at
https://xponential.com.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures. We
believe non-GAAP financial measures are useful in evaluating our
operating performance. We use certain non-GAAP financial
information, such as EBITDA, Adjusted EBITDA, adjusted net income
(loss), and adjusted net earnings (loss) per share, to evaluate our
ongoing operations and for internal planning and forecasting
purposes. We believe that non-GAAP financial information, when
taken collectively with comparable GAAP financial measures, is
helpful to investors because it provides consistency and
comparability with past financial performance and provides
meaningful supplemental information regarding our performance by
excluding certain items that may not be indicative of our business,
results of operations or outlook. However, non-GAAP financial
information is presented for supplemental informational purposes
only, has limitations as an analytical tool, and should not be
considered in isolation or as a substitute for financial
information presented in accordance with GAAP. In addition, other
companies, including companies in our industry, may calculate
similarly titled non-GAAP measures differently or may use other
measures to evaluate their performance, all of which could reduce
the usefulness of our non-GAAP financial measures as tools for
comparison. We seek to compensate such limitations by providing a
detailed reconciliation for the non-GAAP financial measures to the
most directly comparable financial measures stated in accordance
with GAAP. However, we are not able to provide a quantitative
reconciliation of the estimated full-year Adjusted EBITDA for
fiscal year ending December 31, 2023 (or any future periods)
without unreasonable efforts to the most directly comparable GAAP
financial measure due to the high variability, complexity and low
visibility with respect to certain items such as taxes, TRA
remeasurements, and income and expense from changes in fair value
of contingent consideration from acquisitions. We expect the
variability of these items to have a potentially unpredictable and
potentially significant impact on future GAAP financial results,
and, as such, we also believe that any reconciliations provided
would imply a degree of precision that would be confusing or
misleading to investors.
Forward-Looking Statements
This press release contains forward-looking statements that are
based on current expectations, estimates, forecasts and projections
of future performance based on management’s judgment, beliefs,
current trends, and anticipated financial performance. These
forward-looking statements include, without limitation, statements
relating to expected growth of our business; projected number of
net new studio openings; anticipated industry trends; projected
financial and performance information such as targeted system-wide
sales; targeted revenue, and targeted Adjusted EBITDA; our
competitive position in the boutique fitness industry; and ability
to execute our business strategies and our strategic growth
drivers. Forward-looking statements involve risks and uncertainties
that may cause actual results to differ materially from those
contained in the forward-looking statements. These factors include,
but are not limited to, our relationships with master franchisees,
franchisees and international partners; difficulties and challenges
in opening studios by franchisees; the ability of franchisees to
generate sufficient revenues; risks relating to expansion into
international markets; loss of reputation and brand awareness;
general economic conditions and industry trends; and other risks as
described in our SEC filings, including our Annual Report on Form
10-K for the full year ended December 31, 2022 filed by Xponential
with the SEC and other periodic reports filed with the SEC. Other
unknown or unpredictable factors or underlying assumptions
subsequently proving to be incorrect could cause actual results to
differ materially from those in the forward-looking statements.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, level of activity, performance, or achievements.
You should not place undue reliance on these forward-looking
statements. All information provided in this press release is as of
today’s date, unless otherwise stated, and Xponential undertakes no
duty to update such information, except as required under
applicable law.
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