• Yum! Brands for boutique fitness studios: Xponential Fitness operates as a franchisor of multiple distinct boutique fitness brands (like Club Pilates, Pure Barre, and CycleBar), similar to how Yum! Brands franchises multiple fast-food chains (KFC, Pizza Hut, Taco Bell).
• Marriott for specialized fitness studios: Xponential Fitness manages a portfolio of various specialized fitness concepts, each offering a unique experience, much like Marriott operates a collection of distinct hotel brands.

• Franchise Granting: Xponential Fitness sells and licenses franchise rights for its portfolio of boutique fitness brands to independent studio owners.
• Franchise Support Services: The company provides comprehensive ongoing operational, marketing, training, and technology support to its network of franchisees.
• Brand Portfolio Management: Xponential Fitness develops, acquires, and manages a diverse collection of boutique fitness brands, each offering unique workout modalities.

Major Customers of Xponential Fitness (XPOF)

Xponential Fitness (XPOF) operates primarily as a franchisor of boutique fitness brands. Therefore, its major customers are **franchisees**.

These franchisees are typically independent business entities (e.g., limited liability companies or corporations) that purchase the rights from Xponential Fitness to open and operate studios under its various brands, such as Club Pilates, Pure Barre, CycleBar, StretchLab, YogaSix, Rumble, BFT, Lindywell, and Body Fit Training. These individual franchisee businesses pay initial franchise fees, ongoing royalties, and other fees to Xponential Fitness.

Given the nature of the franchising model:

• The customer companies are thousands of individual, privately-owned franchisee entities.
• These franchisee companies are generally not public companies, and therefore do not have public stock symbols.
• It is not feasible to list the names of specific franchisee companies due to their large number and private ownership structure.

While the ultimate consumers are individuals who become members of these studios, they are direct customers of the individual franchisees, not of Xponential Fitness itself.

• Technogym (TGYM.MI)

Mike Nuzzo, Chief Executive Officer

Mike Nuzzo was appointed Chief Executive Officer of Xponential Fitness in August 2025. He brings over 25 years of leadership experience in the retail and consumer services industry. Before joining Xponential Fitness, Mr. Nuzzo served as CEO of Eyemart Express, where he revitalized the business, leading to its successful acquisition by VSP Vision in January 2025. Prior to that, he spent six years at Petco as CFO and later COO, where he led a turnaround of the pet services division, introduced an in-store veterinary hospital concept, and played a pivotal role in Petco's 2016 sale transaction and 2021 IPO. He also held leadership positions at 4moms, General Nutrition Centers (GNC), and Abercrombie & Fitch.

John Meloun, Chief Financial Officer

John Meloun has served as the Chief Financial Officer of Xponential Fitness since July 2018. He has been instrumental in guiding the company through strategic acquisitions and its successful initial public offering on the New York Stock Exchange in July 2021. Prior to Xponential Fitness, Mr. Meloun held executive roles, including Chief Financial Officer, at The Joint Corp., a publicly traded national operator and franchisor of chiropractic clinics, where he was crucial in turning around and scaling the business. His earlier career includes positions as Senior Director of Financial Planning and Analysis at the University of Phoenix, World Wide Financial Planning & Analysis Manager at Emerson Network Power, and various roles at Motorola.

Tim Weiderhoft, Chief Operating Officer

Tim Weiderhoft was appointed Chief Operating Officer in January 2025. His previous experience includes serving as the Chief Operating Officer and Vice President of Franchising for Central Bark USA from 2022 to 2025, and as CEO at Wow Wow Hawaiian Lemonade from 2019 to 2022. Before that, Mr. Weiderhoft spent over five years at Massage Envy, where he advanced to Vice President of Franchise Development. He also currently serves as a board advisor for Carousel's Soft Serve Icery.

Louise Ocasion, Chief Marketing Officer

Louise Ocasion serves as the Chief Marketing Officer for Xponential Fitness.

Andrew Hagopian, Chief Legal Officer

Andrew Hagopian has served as Chief Legal Officer since March 2023. Before joining Xponential Fitness, Mr. Hagopian was the General Counsel of Newlight Technologies, Inc., a biotechnology and manufacturing startup. From 2021 to 2022, he was the Chief Legal Officer of BetMGM, a privately held sports betting entertainment company partially owned by MGM Resorts International. He also held several in-house legal executive roles at MGM Resorts International, including a four-year tenure as Chief Corporate Counsel. Mr. Hagopian began his legal career as a corporate attorney at Gibson, Dunn & Crutcher from 2005 to 2011.

The key risks to Xponential Fitness (XPOF) are primarily centered around ongoing legal and regulatory scrutiny, financial health and debt, and challenges within its franchise operations.

1. Ongoing Government Investigations and Litigation: Xponential Fitness has been subject to government investigations by the SEC and the U.S. Attorney's Office, as well as class-action lawsuits. These investigations and lawsuits relate to alleged misrepresentation of financial and operating metrics, particularly concerning Average Unit Volume (AUV) and the profitability of its franchises. While the SEC probe closed without charges in July 2025, the U.S. Attorney's probe and ongoing class-action lawsuits continue, leading to significant legal expenses and leadership changes, including the suspension of a former CEO. These legal and regulatory challenges pose substantial financial and reputational risks to the company.
2. Financial Health and Debt: The company has experienced bottom-line volatility, including periods of negative net income, despite revenue growth. Xponential Fitness also carries a substantial total long-term debt, which increased significantly from 2022 to 2024. Refinancing its term loan, which becomes current in May 2026, has been identified as a critical action item for the company's financial health, although Xponential Fitness recently announced debt refinancing and new credit facilities. The high debt-to-equity ratio indicates a reliance on debt financing.
3. Franchise Operations and Development Challenges: Xponential Fitness's franchise model has faced challenges, including inadequate infrastructure and processes to support franchisees at scale. There have been concerns regarding the profitability of individual franchises, with reports suggesting that a significant portion of brands lost money monthly and many studios never turned a profit. The company has also experienced delays in its franchise development pipeline, with approximately 40% of global licenses running over 12 months behind schedule, leading to lowered guidance for new studio openings. Additionally, slowing same-store sales growth points to issues with lead generation and member conversion in a competitive boutique fitness market.

The following clear emerging threats have been identified for Xponential Fitness (XPOF):

• Continued advancement and consumer adoption of comprehensive at-home digital fitness platforms: While initial hype around some platforms like Peloton has waned, the underlying trend of accessible, high-quality, and diverse digital fitness experiences (e.g., Apple Fitness+, various subscription fitness apps, and sophisticated free content on platforms like YouTube) continues to evolve. These platforms increasingly offer personalized, instructor-led workouts across multiple modalities, often at a significantly lower cost point than boutique studio memberships. As these digital offerings become more sophisticated, integrated with wearable technology, and widely adopted, they present a compelling and convenient alternative that directly competes with Xponential Fitness's in-person class model for consumer time and discretionary spending.

• Intensifying competition from traditional large-format health clubs expanding premium group fitness offerings: Many established big-box gym chains and health clubs are increasingly investing in and upgrading their group fitness programming to include dedicated boutique-style studios and high-quality classes. These offerings often feature specialized instructors and premium amenities for modalities such as Pilates, Yoga, Cycle, and Barre, which are core to Xponential Fitness's brand portfolio. By offering these classes as part of a broader membership that also includes traditional gym equipment, pools, and other facilities, these larger clubs diminish the unique value proposition of single-modality boutique studios, potentially drawing away consumers who seek a comprehensive fitness solution at a competitive price.

Xponential Fitness (symbol: XPOF) operates within the boutique fitness industry, offering a variety of specialized workout modalities. Its main products and services encompass franchised studio classes and digital content via Xponential+, covering areas such as Pilates, barre, stretching, indoor cycling, rowing, boxing, dance, strength training, and yoga.

The addressable market for Xponential Fitness's main products and services can be identified as follows:

• Global Boutique Fitness Market: The global boutique fitness market was estimated at approximately USD 135.16 billion in 2024 and is projected to grow to USD 141.61 billion in 2025. It is further expected to expand to USD 202.15 billion by 2033, demonstrating a compound annual growth rate (CAGR) of 4.55% from 2025 to 2033. Other estimates for the global boutique fitness studio market include USD 40.1 billion in 2024, projected to reach USD 80.4 billion by 2034 with a CAGR of 7.2%, and an investor presentation by Xponential Fitness referencing a "$37B+ Boutique Fitness Market Size" in 2024.

• U.S. Boutique Fitness Market: The United States constitutes a significant portion of the global boutique fitness industry, accounting for approximately 37.5% of its market share. The U.S. boutique fitness market is estimated to reach $12,877.1 million (approximately $12.88 billion) by 2032, with a projected CAGR of 12.8% from 2025 to 2032.

Xponential Fitness (XPOF) is anticipated to drive future revenue growth over the next 2-3 years through several key strategies:

1. Expansion through New Studio Openings: The company projects continued growth through the opening of new studios globally. For instance, Xponential Fitness forecasts global net new studio openings to be in the range of 170-190 for 2025. This expansion directly contributes to an increase in franchise revenue, encompassing royalties and fees.
2. Growth in System-Wide Sales and Memberships: Xponential Fitness expects an increase in North American system-wide sales, with projections between $1.73 billion and $1.75 billion for 2025. Additionally, the company has seen growth in actively paying memberships and total visits, which are crucial for driving royalty revenue from its franchise network.
3. Enhanced Pricing Strategies: Xponential Fitness aims to increase revenue by implementing dynamic pricing methodologies, including new price tiers, more stringent cancellation policies, and new package offerings. This approach is particularly relevant for high-demand brands like Club Pilates to better monetize existing capacity.
4. Operational Efficiency and Optimized Brand Portfolio: The company has undertaken strategic divestitures of certain brands (e.g., CycleBar, Rumble, Lindora) to streamline its portfolio and focus on core, stronger brands such as Club Pilates, Pure Barre, YogaSix, and StretchLab. This optimization is expected to lead to lower closure rates, improved average unit volumes, and higher operating margins, indirectly supporting profitable revenue growth by allowing for more focused investment and better franchisee support.
5. Strategic Retail Partnerships: Xponential Fitness has entered into a retail agreement with Fit Commerce to outsource its wholesale retail segment. This partnership is expected to reduce overhead, introduce minimum guaranteed commissions, and improve operating margins, with significant financial benefits anticipated in 2026. This initiative aims to transform a potentially underperforming revenue stream into a more stable and higher-margin contributor.

Share Repurchases

No significant share repurchases or repurchase authorizations by Xponential Fitness were identified in the available information for the last 3-5 years.

Share Issuance

• Xponential Fitness completed its initial public offering (IPO) on July 23, 2021, issuing 10,000 shares of Class A common stock.

Outbound Investments

• Xponential Fitness acquired Rumble, a boxing concept, on March 24, 2021.
• The company acquired BFT, a high-intensity interval training concept, on October 13, 2021.
• Xponential Fitness acquired Lindora, a provider of medically guided wellness and metabolic health solutions, in January 2024. The company also divested two brands, Row House and Stride, before June 30, 2024, as part of its optimization efforts and strategic shift.

Capital Expenditures

• Capital expenditures for Xponential Fitness were reported as approximately $1.88 million in 2024, $3.21 million in 2023, $8.89 million in 2022, and $7.37 million in 2021.
• The company anticipated capital expenditures of approximately $10 million to $12 million for the full year 2023, with a primary focus on new digital platform features, XPASS and XPLUS enhancements, and maintenance of other technology investments.
• For the full year 2025, capital expenditures are anticipated to be approximately $6 million to $8 million, or about 2% of revenue at the midpoint, which is a reduction from prior guidance.